sales territories of two-wheeler automobile companies

1. STUDY AND COMPARISON THE SALES TERRITORIES
OF TWO-WHEELER AUTOMOBILE COMPANIES –
HERO & BAJAJ
Team Members:-
Prateek Gupta
Abha Priya
Anurag Srivastava
Neha Kumari
Abhishek Chaudhary
Neelam
Kislay Kumar (17090)
Presented To:-
Mr. Atul Kumar Arora

2. CONTENT
 Introduction
 sales territories

3. SALES TERRITORIES
 Customer group or geographical area for which an individual salesperson or a sales team holds responsibility.
 Reduce costs and increase sales.
 Defined on basis:
• Geography
• Sales potential
• History
• Or combination of factors.

4. CONSTRUCTION OF SALES TERRITORIES
 Balance workloads
 Balance sales potential
 Develop compact territories
 Minimize disruptions during the redesigns.
The workload for a territory can be calculated as follows:
• Workload= [Current accounts * Average time to service an active account] + [Prospects * Time spent trying to
convert a prospect into an active account]
The sales potential in a territory can be determined as follows:
• Sales potential (₹) = Number of possible accounts x Buying power (₹)

5. NEED FOR ESTABLISHING TERRITORIES
 Type of product or product line you have
 Competition in territories
 Channels of distribution and the transport system
 Workload of the salesperson and the nature of the assignment or job
 Sales potential and servicing requirements of territory – territories with limited potential can serve as a training ground for new
sales reps
 Performance of a particular salesperson – this will determine if they get more or less challenging territories
*Territories must be balanced, Non-balance territories are resulted into:
Under-serviced
Over-serviced

6. FACTORS INFLUENCING ESTABLISHMENT OF SALES TERRITORIES
• Size of Market.
• Demand for product or services.
• Nature and degree of competition.
• Market and sales potential.
• Methods of Distribution, etc.

7. STEPS INVOLVED IN ESTABLISHING SALES TERRITORIES
• Select control unit for territorial boundary.
• Determine location and potential of customers.
• Deciding basic territories.
• Assigning sales person to territory.
• Formulate territorial coverage plan.
• Reviewing and revising sales territory.

8. HERO MOTOCORP
 the largest manufacturer of motorcycles in the world
 engaged in manufacturing and sale of motorcycles and gearless scooters
 The country's largest two-wheeler maker Hero MotoCorp has crossed the 75 lakh units sales mark in 2017-18
fiscal
 Hero MotoCorp's overall market share in the domestic two-wheeler market stood at 37.4 per cent

9. 9
Hero
Motocop
STRENGTHS
• Huge Brand Equity
• Huge Brand Image
• Wide Variety of products
WEAKNESS
• Strong Competition
• Lack of Innovation
OPPRTUNITY
• Growing Industry
THREATS
• Strong Competition
• Better of Public Transport

10. BAJAJ
 Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading Corporation Private Limited. It
started off by selling imported two- and three-wheelers in India.
 The company's sales mix consists of motorcycles (88%) and three-wheelers (12%).
 Bajaj Auto enjoys 25.4% market share (FY12) in the motorcycle segment in India.

11. BAJAJ
11
.
STRENGTHS
• Highly Experienced Management
• Extensive R&D focus
• Alliance with KTM
WEAKNESS
• Lack of Presence in the scooter
market
• Labour Issues
• Not a global brand
OPPRTUNITY
• Growth in motorcycle market
• Launch new vehicles
THREATS
• Intense competition in the 2-
wheeler market
• Environmental Regulations

12. PRESENCE OF HERO

13. PRESENCE OF BAJAJ