dabur sales management analysis

1. SALES & DISTRIBUTION
MANAGEMENT
Presented To:
Prof. Avinash Mulky
Submitted By
GROUP 7
Aman Agarwal 2111227 Nikhil Negi 2111265 Parthkumar Patel 2111272
Krishna Kolapkar 2111397 Ayush Mishra 2111409

2. Dabur – A Brief Overview
A Leader in
Ayurveda &
Natural
Healthcare
Established in
1884 – 138
years of trust
& heritage
Among the
Top 4 FMCG
companies in
India
One of the
largest
distribution
network
(~6.7mn outlets)
20 world class
manufacturing
facilities
Strong
overseas
presence with
~27%
contribution
Market Cap:
US$ 13 bn
Dedicated to
the health &
well-being of
each household

3. Analysis of Dabur’s Distribution Channel
Focus on rural markets
Expansion to >89000 villages (~1.3mn outlets) due to penetration
of digital media outlets.
Gradual shift to e-commerce
Launch of several products exclusively for e-commerce business
Last mile distribution
Addition of vehicles (including Evs) to reach last-mile customers
Manufacturing capabilities
13 locations in India; 8 overseas mfg. locations; 2 mother
warehouses; 26 CFAs
Sufficient stocks at various levels
26-day inventory with CFAs; Additional 10-day stocks in-transit or
in factory
Digital Transformation of the channel
Cost & time reduction through implementation of AI, ML,
Blockchain, IoT, etc.
Highlights of the distribution channel Tasks Performed by channel
entities
CFA: Inventory management, Expert
Knowledge, On-time delivery, Logistics & return
logistics
Distributors: Order Fulfilment, Warehousing,
Logistics, Credit, Relation building, Sales and
promotion activity, Market Inputs
Retailers: Inventory Management, Ensuring
availability of assortment in-store, Promotion,
In-store customer service
Penetration
Distribution network reaches over 6.9mn retailers

4. Sales Organization Roles
Salesperson
Stakeholders Responsibilities Functions Technology used
 On ground sales
representative
 Deals with Stockist, Sub
Stockist & retailers
 Different salesperson for
healthcare, home and
personal care & Foods
product
 Good relationship with all
retailers
 To drive sales & distribution
 To increase the effective
coverage of Dabur brands
 Market new schemes and
promotional activities run
 Inform the retailer about the
latest products & provide
samples
 Needs to visit the market 6
days a week
 Take orders from the
retailers
 Orders are reported to &
fulfilled by distributors
 Stock check and suggests
what should be purchased
depending on the stocks left
 Use dedicated app ‘Drishti’
 In rural areas, bookkeeping
is followed
 Places order through the app
for the already registered
shop
 Daily routes, stock
information, performance
reports, attendance
Sales Officer Area Sales Manager Zonal Manager Regional Sales Manager
 Improving employee
performance through
capability trainings
 Ensuring stock availability in
MT stores
 Develop and manage OTC
Sales Strategy
 Comprehensive promotional
& activation plans
 Developing sales programs
to maximize sales
 Overseeing & conducting
market research
 Expanding & strengthening
the Distributor network
 Channel Management,
motivating & monitoring
stockist

5. Sales Organization Structure
Sales Officer
Senior Sales Manager
Sales Person Rural Sales Person
Area Sales Manager
Regional Head
Territory Manager
Executive Vice President (Sales)
Zonal Sales Manager
Sales In charge
Urban Rural
Geographic Division
• Zonal Sales Manager
• Area Sales Manager
• Territory Manager
• Sales Officer
• Sales Representatives
Division by Products
• Healthcare (Chyawanprash, Honey)
• Foods (Real Juices, Homemade)
• Home & Personal Care (Oral care,
hair care
• Specialized Workforce (Ayurveda)

6. • Basic Education
• Local market knowledge
• Prior experience in FMCG
• Communication Skills
• Interpersonal skills
• Owns a vehicle
Hiring, Onboarding and Training
ONBOARDING
LONG-TERM
TRAINING
DRISHTI APP
The salesperson places
the order through the app;
Stockist gets the order and
dispatches the product
Product Mix – Product mix is explained, and
the margins and schemes are to be
memorized.
App training – They are made familiar with
Drishti App.
Sales Officer Shadowing – An experienced
person accompanies the new hire for initial
month.
Basic Financial and Maths training to calculate
landing price etc.
Seminars & workshops focused on improving
interpersonal and soft skills (No fixed
schedule)
Upskilling of salesperson to drive a two wheeler
if not doing already
HIRING CRITERIA
• Depends on the language,
local culture & level of
experience
• Usually based on
background of the
salesperson
TERRITORY ALLOCATION

7. Evaluation Mechanism
Monthly Targets
Ranking mechanism based on the
completion of state-wide monthly targets
Focused Product
The sales of a focused product in a
month is used to determine performance
Growth Rate
Evaluation of monthly growth rate in
terms of retailers covered
Competitive Rewarding
Competition among salespeople to push
certain products; top person gets rewarded
Visibility
Merchandising of products in retail
stores in terms of display & shelf space
Numeric Distribution
Analysis of the percentage of stores carrying
the brand among total stores in the category

8. Compensation Mechanism
Compensation
Incentives
• Promotions
• Territory Manager
Recommendations
• Interviews with
salespeople of
different territory
• Gifts and awards
Non Monetary
Fixed
• Metro: ₹ 3900
• Non-Metro: ₹ 2600
Monthly Sales Target
• Slab 1: 98.5% - 99.99%
• Slab 2: 100% - 105%
• Slab 3: > 105%
• Slab 4: > 110%
Secondary Sales Target
• Every Day Great
Execution
• Must Sold Lines
Adherence
• Suggested Order
Adherence
Monetary
Others

9. Issues & Challenges Faced
Sales Management
Low coordination between the sales & marketing team
Lack of understanding of the incentive for target completion
Multiple very high targets – personal, growth & product-wise
App malfunctions & frequent tech changes
Conflict due to manager forcing higher sales when retailer
doesn’t want to stock
Career issues – No defined trajectory, no job security
Limited knowledge about new product launches
Distribution Channel
Delayed replacement of expired products
Concealing trade promotions/discount schemes
from downstream stockists
Billing scams & mismatch between the SKU being
billed and delivered
Lack of IT infrastructure resulting in losing track of
inventory

10. Recommendations
Formal training process and scheduled calendar events like workshops to be incorporated in
long term training process
Clearer targets instead of multiple targets that are difficult to achieve amidst a much-diversified
portfolio of Dabur
A conscious effort to make marketing go hand in hand with sales
Use of technology for better order tracking and stock availability checks at the distributor’s end
Hiring of salespeople who have a strong fit with the local demographics – native language,
VALS know how
Cross region trainings of the salespeople
Performance based TADA compensations
Better sync between the sales and marketing teams to efficiently utilise PoPs

11. THANK YOU