Sales management fmcg_presentation

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  • http://www.thehindubusinessline.com/companies/dabur-india-hindustan-unilevers-tech-route-to-rural-markets/article4915134.ece
  • Sales management fmcg_presentation

    1. 1. SALES MANAGEMENT AN OVERVIEW
    2. 2. INDUSTRY PROFILE - FMCG The FMCG Industry Rising income and growing young population Increasing rural demand 1.9% of total FDI inflow April 2000 – September 2012 $34.8 billion industry (CAGR 17.3% in 2006-11) 43% Food Products 22% Personal Care 12% Fabric Care 66.5% Urban 33.5% Semi-Urban and Rural
    3. 3. KEY TRENDS IN FMCG INDUSTRY • Consolidation • Product innovation • Global expansion • Backward integration • Focus on rural markets • Third party manufacturing Growth Drivers Rise of Rural Consumers Organized Retail Increasing per capita income
    4. 4. SALES MANAGEMENT IN THE FMCG INDUSTRY Sales Management Strategic Roles Setting Sales Targets Quotas Sales Forecasting Demand Planning Sales Planning Control Roles Setting up Sales Routes Analysis of Sales Reports Recruitment and Training
    5. 5. SALESFORCE HIERARCHY - NESTLE National Sales Manager Zonal Sales Manager North Zonal Sales Manager South Regional Sales Manager Sales Administration Executive Area Sales Manager Pallet Salesmen Territory In Charge (SO) Distributor Salesmen Zonal Sales Manager East Zonal Sales Manager West Zonal Sales Manager Central
    6. 6. ORGANIZATION DESIGN BY TERRITORY Vice President (Marketing) National Sales Manager Division Manager (East) Regional Sales Manager District Sales Manager Sales Staff Division Manager (North) Regional Sales Manager District Sales Manager Sales Staff Division Manager (West) Regional Sales Manager District Sales Manager Sales Staff
    7. 7. ORGANIZATION DESIGN BY MANAGEMENT FUNCTION Vice President (Marketing) Sales Manager Sales People Line Function Manager (Market Research) Staff Function Advertising/Sales Promotion Manager
    8. 8. ORGANIZATIONAL SALES STRUCTURE – HINDUSTAN UNILEVER LIMITED Product Customer Geographic Functional Chairman of the Board Vice President – Human Resources Vice President – Sales & Customer Development Marketing Manager (India) General Manager (Whole Sale) General Manager (Consumer Care) Division Manager (Food) Division Manager (Home & Personal Care) Division Manager (Nutrition) Division Manager (Health & Beauty) Division Manager (Water) Marketing Manager (International) Vice President – Supply Chain Management CFO & CIO
    9. 9. SALES ORGANIZATION – GEOGRAPHY BASED (HUL) HUL Sales Organization South West East Bihar Orissa Bhubhanehswar Konark Puri West Bengal North
    10. 10. SALES STRUCTURE - ITC Marketing Organization • Consumer Behaviour • Brand Matrix • Product Performance • Direction to Brand Manager • Advertisement Roll Out • POS Activities • Market Research Brand Manager (National) -> Assistant Brand Manager • Promotional Budgets • Trade Schemes • Inventory Logistics Sales Organization • On Field Sales
    11. 11. SALES MANAGER FUNCTIONS Regional Sales Manager • P&L of assigned territory • Ensuring compliance of company policies • Manages cohesiveness of sales team • Training and development of ASM Area Sales Manager • Primary target achievement • Communication of company philosophies and values • Managing relationships with clients, government entities, major accounts and legal entities • Training and development of sales officers • Accompanying sales executives on call Sales Executives • Secondary target achievement • Ensuring execution of all strategies- selling/promotions • Managing relationships with dealers, distributors and retailers • Training and development of distributor salesmen
    12. 12. TYPES OF SELLING JOBS • Product type or specific products. • Account type or specific account. • Type of distribution method • Order size
    13. 13. RECRUITING AND SELECTION Skills Required Improvisation Skills Productivity Selling Skills Education Requirements Area Sales Manager Hired from premier business schools Sales Executives Screening – HR Team Final Selection – ASM Graduates or from smaller business schools
    14. 14. TRAINING AND DEVELOPMENT • Area Sales Manager • Management Trainee program • Sales stint – 3 to 6 months • Regular training programs • Sales Executive • 15 day induction program • Tag along • Salesmen • 3-4 day training • IT and computer system training • Market introduction • SKU analysis and information
    15. 15. EVALUATION AND COMPENSATION
    16. 16. QUOTAS AND TARGETS • Industry growth • Last year sales • Company growth • Advertising budgets • Annual operating plan • Top down approach – data flows • Targets based on 2D matrix of pack and brand
    17. 17. MAJOR ACCOUNTS
    18. 18. DISTRIBUTION CHANNEL - ITC ITC Company Appointed Distributor Secondary Wholesaler/Stockist Retailer Consumer Distributor Appointed Salesmen Retailer Consumer Company Appointed Salesmen Retailer Consumer
    19. 19. DISTRIBUTION CHANNEL - NESTLE Last level purchase points Supply happens in weekly beats Multiple purchase points per region 1 Re-Distributor per region 1 distributor per city 1300 in 2010 1 Super Stockist per city 1 C&F per state 7 plants across India Manufacturing Plant Carrying and Forwarding Agent (C&F) Super Stockist Re-Distributor Retailer Wholesaler Modern Trade DCs Cash Distributor Retailer Wholesaler STING
    20. 20. CRM IMPLEMENTATION • Uses technology to organize, automate and synchronize sales, marketing, customer service and technical support • Effective tool for managing company-customer relationships Collecting customer information Analyzing data to predict customer behavior Applying the results of analysis Measuring results
    21. 21. CRM IMPLEMENTATION Business Areas affected •Customer Analysis •Operations and Cost Management •Product and Sales Analysis •Inventory and Distribution Management •Promotion Analysis Benefits •Database management •Accurate demand forecasting •Automated product tracking from supplier to retailer •Access to real time competitor and customer information •Easily available product information •Effective monitoring of sales performance •Automated route scheduling •Increased sales productivity with timely follow up of leads
    22. 22. SALES PROMOTION ACTIVITIES Trade Marketing • Brands • Foreign trips for distributors • Gold coins • Dinner meet for retailers Sales Promotions • Discount sales • Price offs • Buy 1-get 1
    23. 23. MOBILE RETAILING • United Villagers is using mobile technologies to bring big brands to rural India. • Dabur and HUL use technology to improve sales and reach UV’s Sales men take order from retailer Use mobile application to place order to city warehouse Products are delivered in boxes to the retailers Dabur Urban Sales Force (Hand Held Device) Understand buying patterns Customize selling strategies Rural Sales Force (Mobile Devices) Maps showing demographies and market potential Report sales

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