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Sdm ppt final

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Sdm ppt final

  1. 1. SALES AND DISTRIBUTION FUNCTION Presented by- Swati Singh (165) Garima Sanger (133) Karan S Bora (137) Mohd. Sadiq Khan (205) Mohd. Saad Rashid (143) Vikas Yadav (170)
  2. 2. • At present, the fourth largest sector with a total market size in excess of $13 billion as of 2012.• Expected to grow to a $33 billion industry by 2015 and to a whooping $ 100 billion by the year 2025.• Highly fragmented FMCG market and a considerable part of the it comprises of unorganized players selling unbranded and unpackaged products. 3/21/2013 Sales and Distribution Management 2
  3. 3. • India’s largest consumer goods company based in Mumbai, Maharashtra.• Owned by British- Dutch company Unilever, controls 52% majority stake in HUL.• Headquartered in Mumbai, India. 3/21/2013 Sales and Distribution Management 3
  4. 4. • Incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited• Changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.• Headquartered in Kolkata, West Bengal, India.• Employs over 29,000 people; more than 60 locations across India.• Listed on Forbes 2000. 3/21/2013 Sales and Distribution Management 4
  5. 5. HUL ITC Product lines Soaps, shampoos, detergents, Cigarettes, foods, apparel, beverages, packaged foods, personal care, stationary, personal care, cosmetics. safety matches and agarbattis. Market share 36.4% 30.3% Growth rate Net profit grew at the rate of Net profit grew at the rate of 17% . 25%. Profit 2011- 2012- 2599.23 crores 2011- 2012- 1,333 crores Turnover 2011- 2012- 21,735.6 crores 2011- 2012- 4,071.32 crores3/21/2013 Sales and Distribution Management 5
  6. 6. I.T.C. LIMITED HINDUSTAN UNILEVER Regional Sales Manager Regional Manager Branch manager Regional sales manager Assistant manager Area sales Manager Area manager Sales officer Area executive Territory sales incharge Supervisor3/21/2013 Daily sales officer Redistribution stockist Sales and Distribution Management 6
  7. 7. I.T.C. LIMITED HINDUSTAN UNILEVER• Merchandising. • Selling and marketing of products.• Checking stocks. • Booking orders.• Getting distributor’s feedback. • Reporting on a daily basis.• Maintaining good PR with • Getting feedback from the the distributors distributors.3/21/2013 Sales and Distribution Management 7
  8. 8. I.T.C. LIMITED HINDUSTAN UNILEVER• SAP is used for improving • HHT machines are transparency in billing and provided for taking the order placing. orders and billing purpose.• Sify online’s distribution • UNIFY software is used. management.• VAJRA machine for booking orders.3/21/2013 Sales and Distribution Management 8
  9. 9. I.T.C. LIMITED HINDUSTAN UNILEVER• Non- tobacco division: • Minimum billings per month. stock availability in every outlet. • Sales volume• Tobacco division- 1. Stock availability in every outlet. 2. Sales volume- (+20%) of the last month sales. 3/21/2013 Sales and Distribution Management 9
  10. 10. I.T.C. LIMITED HINDUSTAN UNILEVER• Past records • On the basis of area size: – Less experienced in retail• On rotational basis. outlets & kirana stores. – More experienced in high frequency stores. 3/21/2013 Sales and Distribution Management 10
  11. 11. I.T.C. LIMITED HINDUSTAN UNILEVER• Monthly basis • Performance evaluation is• Amount of sale of different done using QOC model. products.• Achievement of sales targets • Quantitative- 80%• Feedback form. Qualitative- 20% 3/21/2013 Sales and Distribution Management 11
  12. 12. I.T.C. LIMITED HINDUSTAN UNILEVER• Initial training- 20 days; • Initial training on product senior salesperson knowledge. accompanies the salesperson. • Fortnight training on field• Skill training- job. – WEP; every 6 months – Training and development3/21/2013 Sales and Distribution Management 12
  13. 13. I.T.C. LIMITED HINDUSTAN UNILEVER• Best salesman competitions • MOC awards given on the are held. basis of QOC score. – QOC score > 4.5: 7-star• Awards and trophies are award provided to the winners. – QOC score > 4: 5-star award – QOC score > 3.5: 3-star award 3/21/2013 Sales and Distribution Management 13
  14. 14. DISTRIBUTORS3/21/2013 Sales and Distribution Management 14
  15. 15. Hindustan Unilever ltd. Carrying and Forwarding Agents Redistribution Stockist Wholesalers Urban retailers Rural retailers Consumers3/21/2013 Sales and Distribution Management 15
  16. 16. Company Hub Factory Carrying and Forwarding Agent Distributors Retailers Small Wholesalers Consumers3/21/2013 Sales and Distribution Management 16
  17. 17. I.T.C. LIMITED HINDUSTAN LEVER• Distribution & promotion of • Provide logistics support. goods. • Financing.• Gather information • Make the brand available in regarding the demand and rural areas. competition.• Inventory management. 3/21/2013 Sales and Distribution Management 17
  18. 18. I.T.C. LIMITED HINDUSTAN UNILEVER• Financial reputation. • Goodwill.• Infrastructure • Market reach• Delivery vans • Past reputation.• Degree of computerization. • Availability of sales force.• Past performance. • Warehouse & infrastructure.• To deal in cigarettes, it is • Investment capacity must to deal in other goods. 3/21/2013 Sales and Distribution Management 18
  19. 19. ITC HULMode of payment Cheque. RTGSInitial deposit No initial deposit NILMargin 3% 5.5%Credit limit No credit; only cash No credit to distributorOrder placed Online software- sify online Online software- Unify 3/21/2013 Sales and Distribution Management 19
  20. 20. ITC HULOrder cycle time 7 day pipeline reserve In 2-3 days. alongwith the replacement of order sold in a day.Time period for late 0 days. 4-6 days.paymentInterest on late payment Yes; 8-10% Not mentioned; demand draft is taken.Cash/ trade discount NIL NILMode of transport of 3- wheelers, pick- up vans. Delivery vans, mini- trucks.goods 3/21/2013 Sales and Distribution Management 20
  21. 21. Parameters Weightage Rating Satisfaction IndexProduct quality 25 5 125Service quality 20 3 60Promotional 20 3 60activitiesField work 15 4 60Trade promotion 20 3 60Total 100 18 3655 Very good4 Good3 Average2 Below average1 3/21/2013 Dissatisfied Sales and Distribution Management 21
  22. 22. Parameters Weightage Rating Satisfaction IndexProduct quality 25 2 50Service quality 20 3 60Promotional 25 5 175activitiesField work 15 4 60Trade promotion 15 5 75Total 100 19 420 3/21/2013 Sales and Distribution Management 22
  23. 23. RETAILERS3/21/2013 Sales and Distribution Management 23
  24. 24. ITC HULRole Sales to the customer, Sales to the customer, determining trends in the trends determination in the market marketPayment Cash CashMargins on different Upto 10% 2-10%productsAverage sales per month 1) Rs. 20-25 thousand per 1) Rs. 70-80 thousand per month month 3/21/2013 2) Rs. 10000 per Management Sales and Distribution month 2) Rs. 48000 per month 24
  25. 25. ITC HULPromotional activities Bingo display stands are Display packs, gifts to provided to the retailers, retailers. dummy packs.Transport service Delivery vans, 3- wheeler Delivery vans, autos. autos.Average order cycle time Next day 2-3 daysCredit period from Credit period of 1 week Credit period of 1 weekdistributor from distributor from distributorService of sales person Pay frequent visit to them Come once or twice in 4-6 monthsAcquisition of products Distributor (Govindpuri) Wholesaler (Kalkaji)from3/21/2013 Sales and Distribution Management 25
  26. 26. Parameters Weightage Rating Satisfaction IndexDelivery time 15 4 60Quality of product 20 5 100Incentives 10 3 30Promotional 15 3 45activitiesTransport service 15 5 75Commercial terms 10 2 20Service of 15 2 30salespersonTotal 100 24 3605 Very good 4 Good3 Average 2 Below average 3/21/2013 Sales and Distribution Management1 Dissatisfied 26
  27. 27. Parameters Weightage Rating Satisfaction IndexDelivery time 15 5 75Quality of product 15 4 60Incentives 15 4 60Promotional 20 5 100activitiesTransport service 10 4 40Commercial terms 10 3 30Service of 15 4 60salespersonTotal 3/21/2013 100 29 Sales and Distribution Management 425 27
  28. 28. I.T.C. LIMITED• Provide credit period facility to distributors.• Provide greater margin.HINDUSTAN UNILEVER• Provide credit period facility to distributors.• Salespersons should pay frequent visits to the distributors and retailers.• More prompt in order delivery.3/21/2013 Sales and Distribution Management 28

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