4. Methods of setting & evaluating
Sales Quota
• Territory potential
Estimated market potential of a part of Jehanabad is Rs.13.50 million.
Multiple factor index using population & buying power is estimated
at 0.25.
[Suppose the territory has 0.5 population of target areas, weight
given is 0.3 & buying power is 1%, weight allotted is 0.1]
Then expected industry sales is 13.50*0.0025=33.75
thousand.Considering estimated market share of 20% the sales
volume quota for Jehanabad’s salesperson would be
(Rs.13.50*0.00025*0.2 = 67.5 thousand.
• Past Sales Experience
• Total Market estimates
• Executive Judgment
• Sales person’s estimates
• Compensation plan
5. Distribution Systems
• Bikano Namkeen follows all forms of trade. It is not the
market leader of India and extensively follows intensive
distribution too.
• Bikano Namkeen is also sold online through its dedicated
website but a cash on delivery system is not available.
• Talking about the modern trade it occupies shelves in modern
supermarkets as well as food courts such as Spencer’s, Big
Bazaar, Dmart etc.
• To conclude its strategy Bikano Namkeen tends to penetrate
all forms of distribution system other than exclusive
distribution pattern.
6. Stocking of product
• Modern Trade :
The product is bought in bulk according to the distribution
capacity of the trade partner. This gives a national presence of
the product and helps in brand promotion too.
• General Trade :
Jehanabad occupies intensive distribution, the product is
widely distributed in almost every grocery stores which goes
through a fixed format of distributors based on territory. A
majority of the product is sold in liquor shops. The stocks are
weekly or fortnightly replenished due to the increased
demand . Retailers can be found at a distance of an average of
400m.
7. Distribution Management Needs
• Distributors are hired to :
1. Reach markets where the company cannot reach.
2. They facilitate smooth flow & create time, place &
possession utilities.
3. They also provide contacts, experience, specialization &
scales of operation.
• Bikano utilizes distributors as:
1. Sales Channel Partners – Perform all above mentioned tasks,
negotiate fair bargains & motivate buyers.
2. Delivery Channel Partners – Ensure physical delivery of
products. Example : C&Fa
8. Training, Motivation
• Distributors are trained with comparative pricing techniques
as well as with product worth in the rural parts.
• They are fielded with the company’s policies and are
strategically trained on their responsibilities and roles through
operating manuals.
• Motivation is instilled by providing ad on perks like extra
benefits in stocks and promotional offers. They are motivated
through different non financial aspects like quick replacement
of old & damaged stocks.
• Financial motivation comes when they are given extra cost
benefits and other incentives according to the company’s
policy. They are also provided with additional stock for
promotion.
9. Evaluation of the channel
• The company evaluates them on monthly results and
additionally track their return on investments too. An
increased ROI results to additional tasks by the company.
• Evaluation parameters:
1. Volume generated
2. Profit Contribution
3. Exclusivity of the channel partner
4. Quota achievement
5. Support to the brand
6. Extent of customer relationships
7. Ethics & Values
10. Channel Conflict & Power
Channel power in the case of Bikano Namkeen in this
territory lies in the hands of the manufacturer as:
1. The territory is a rural belt and less capital is required to
become the dealer.
2. Bikano is spread to a great extent in the territory & with the
comparative pricing and promotional schemes it becomes a
pull brand rather than a push brand.
Channel conflict is unavoidable in the territory as a large
number of retailers are present in the territory and living up
to the demands and expectations can sometimes become
gruesome. Channel conflict amongst the dealers are not
much as the number of dealers is clearly geographically
distributed. These conflicts are sometimes amplified by the
company & most of the time a win-win approach is followed.
11. Logistics Arrangement
• Bikano Namkeen keeps the following as considerations in
arranging logistics :
1. Customer Service
2. Demand Forecasting
3. Distribution Communications
4. Inventory control
5. Materials Handling
6. Order Processing via e-portals
7. Procurement
8. Packaging
9. Reverse Logistics
10. Traffic & Transportation
12. Delivery Mechanism
• The mentioned logistics points are covered by:
1. Having dedicated C & F agents.
2. Using an electronic model for registration of orders
3. E-Invoice and billing systems.
4. The deliveries are made weekly and fortnightly depending on the
consumption.
5. According to the topography of the territory a clove leaf approach
is followed, a fixed beat plan is allotted to save time and costs.
6. Additional stock is allotted to overcome exigencies.
7. Packaging and stocking is done to occupy least space and increase
efficiency.
8. Delivery is done by utility vehicles rather than bigger counterparts
to avoid delay and ease in transportation.
9. Priorities are set according to the ABC classification of the channel
partners.
10. Logistics also cater to the data of consumption thus help in sales
forecasting too.
