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A PRESENTATION ON THE SALES
AND DISTRIBUTION SYSTEM
OF P&G
&
COOL HEADS

               Presented By:-
                           Praneet Raj
CONTENTS

 P&G Company Profile
 P&G Brands

 Old sales and distribution system of P&G

 Problems in the old distribution network

 Project Golden Eye

 How does FMCG S&D system differ from Industrial
  System.
 Cool Head intro

 Reasons for failure of Cool Head to achieve its
  sales target.
 Sales Promotion Plans For Cool Head.
P&G: COMPANY PROFILE
 Started in 1837 by William Procter and James
  Gamble
 First products were soaps and candles

 Markets 250+ brands to nearly 5 billion
  consumers in 140 countries
 Main Headquarter in Cincinnati, Ohio

 Employ 138,000 people

 Fast moving consumer goods company

 162 years old
P&G BRANDS

 baby  care:             Pampers

 beauty care:            Pantene,  Head & Shoulders
 fabric & home care:     Arial, Tide, Bold, Ace, Lenor

 feminine protection:    Always, Alldays, Tampax

 food & beverage:        Pringles, Folgers

 health care:            Blend-a-Med, Vicks

 tissues & towels:       Swiffer
 Personal  & Beauty
  - Cosmetics, Oral Care, Hair Care
 House & Home

  - Laundry care, Dish Soap, Snacks & Coffee
 Health & Wellness

  - Prescription drugs, Health Care
 Baby & Family

 Pet Care & Nutrition
MAIN COMPETITORS
 Johnson    & Johnson Co.

 Kimberly-Clark   Co.

 Unilever   Co.
OLD SALES AND DISTRIBUTION
SYSTEM OF P&G


 Imitating the HLL distribution system.
 Using many distributors in a limited area.

 Applying every possible method to match the lever.

 Tried to establish direct coverage of rural market.

 Spent extensively on distribution network.
PROBLEMS IN THE OLD DISTRIBUTION
NETWORK

 Increase in cost due to increase in distribution
  cover.
 The current volume did not justify the large
  distributor network.
 The distributors were getting low ROI.

 This resulted in distributors trying to push up
  volumes, but again the volume did not meet the
  demand.
ANALYSE THE NEW SALES AND
DISTRIBUTION SYSTEM OF P&G


   PROJECT GOLDEN EYE
 Moving     to super- stockist set – up
 Reducing    its number of distributers
 Provided    better ROI to the distributers
 Better   ROI helped the distributers to improve
 infrastructure
 Cost   saving
 Large    invest in advertising
 Target   to expend its distribution cover, appoint
 new distributors and plumb for volume growth

 Process   of redrawing

 Rationalising   distributors network

 Invest   in storage and warehousing

 Focus    on key urban market
HOW DOES AN FMCG SALES AND
DISTRIBUTION SYSTEM DIFFER FROM
     THE INDUSTRIAL SYSTEM
FMCG SALES
 Specifically   developed for the company, which
 has high volume of sales.

 The   rotation of stocks is high.

 Higher   number of intermediaries involved.

 Wide   distributer network
DISTRIBUTION CHANNEL STRUCTURE FOR
FMCG


                  Factories


                                              Branches

                  WSP
            Wholesaler Service
                Providers


                   WD
             Wholesaler Dealers



      Retailers                   Secondary Wholesalers
INDUSTRIAL SALES
 For   the companies which has low volume of
 sales.

 Less   intermediaries involved.
CHANNELS FOR INDUSTRIAL
PRODUCTS
              Industrial
 Manufactu       User
    rer
                 Merchant              User.
 Manufact        Wholesaler
   urer

                Agent
              Wholesaler          User
 Manufact
   urer
                              Merchant
                              Wholesal
 Industrial    Agent             er
    User


                                User
COOL HEADS INTRO
A  leading pharmaceuticals co.
 Established in 1985.

 Purely Indian co.

 Made its image in the last decade.

 Works in the field of manufacturing, distribute &
  market pharmaceutical soft drinks.
 In 1995 Co. MD seek the need of diversification
  & addition of new product to its existing range.
CONTD.
 Launched    new product- Chocó-coffee(Coffee
  with milk, cocoa & sugar.)
 price of Rs74 for 400gm pack.

 Its target customers are middle class peoples.

 The product was heavily advertised in
  newspaper, magazines, radio & television.
 In order to promote its product Co. made 50
  stockiest with 150 representatives.
 Initial discount of Rs5 was given to buyer on
  purchase of 400gm pack.
REASONS FOR FAILURE OF CO. TO ACHIEVE
                             TARGET
 Product is manufactured only on certain advisory notes &
  brief market research.

 Price   was high for middle class people.

 Promotional  strategy of the Co. was not according to its
  target audience.(Rs 5 discount on each pack)

 The    company spent too much in the initial stages.

 It   tried to cover the entire country in one go.
SALES PROMOTION PLAN
 Prize      schemes
1.       Scheme designed for both public and the dealers.
2.       For Consumers:
          Attractive offers should be made, like giving a Coffee
           cup free with the pack.
          Lucky draw coupons can also be given with the packs
           with attractive prizes.
3.       For Dealers:
          Sales competition should be arranged.
          Special offers should be made if they show a substantial
           progress in sales.
CONTD.
    Trade fairs and exhibition
     The main objective behind this are-
1.   Meeting potential customers.
2.   Making direct sales.

 Providing  catalogues
 Advantages are-
1. To get orders.
2. To make the customers aware about the
   specifications.
3. To provide detailed information.
4. To solicit product sales.
 Sales contest should be done to motivate the sales
   force, increase sales and bring more profit to the
   Co.
CONTD.
 Different   kind of contest prizes

1.   Cash awards,

2.   Merchandise prizes &

3.   Special honor

     e.g. winners could be requested to appear in a
     TV or game show.
CAN A CHANGE IN DISTRIBUTION
 CHANNEL BRING IMPROVEMENT IN THE
      SALES OF THE COMPANY
     According to us YES, a change in distribution
     channel can improve the sales of the Co.
1.     The Co. can increase its sales with the help of
       trade fair & exhibition by doing direct sales to the
       customers.
2.     The Co. can increase its sales performance by
       promotion its product to the target consumers
       preferred areas and location.
3.     Also by organizing different prize schemes and
       sales contest among the customers, dealers & the
       sales force the co. can increase its sales volume.
Sales and distribution presentation on procter n gamble(P&G)

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Sales and distribution presentation on procter n gamble(P&G)

  • 1. A PRESENTATION ON THE SALES AND DISTRIBUTION SYSTEM OF P&G & COOL HEADS Presented By:- Praneet Raj
  • 2. CONTENTS  P&G Company Profile  P&G Brands  Old sales and distribution system of P&G  Problems in the old distribution network  Project Golden Eye  How does FMCG S&D system differ from Industrial System.  Cool Head intro  Reasons for failure of Cool Head to achieve its sales target.  Sales Promotion Plans For Cool Head.
  • 3. P&G: COMPANY PROFILE  Started in 1837 by William Procter and James Gamble  First products were soaps and candles  Markets 250+ brands to nearly 5 billion consumers in 140 countries  Main Headquarter in Cincinnati, Ohio  Employ 138,000 people  Fast moving consumer goods company  162 years old
  • 4. P&G BRANDS  baby care:  Pampers  beauty care:  Pantene, Head & Shoulders  fabric & home care:  Arial, Tide, Bold, Ace, Lenor  feminine protection:  Always, Alldays, Tampax  food & beverage:  Pringles, Folgers  health care:  Blend-a-Med, Vicks  tissues & towels:  Swiffer
  • 5.  Personal & Beauty - Cosmetics, Oral Care, Hair Care  House & Home - Laundry care, Dish Soap, Snacks & Coffee  Health & Wellness - Prescription drugs, Health Care  Baby & Family  Pet Care & Nutrition
  • 6. MAIN COMPETITORS  Johnson & Johnson Co.  Kimberly-Clark Co.  Unilever Co.
  • 7. OLD SALES AND DISTRIBUTION SYSTEM OF P&G  Imitating the HLL distribution system.  Using many distributors in a limited area.  Applying every possible method to match the lever.  Tried to establish direct coverage of rural market.  Spent extensively on distribution network.
  • 8. PROBLEMS IN THE OLD DISTRIBUTION NETWORK  Increase in cost due to increase in distribution cover.  The current volume did not justify the large distributor network.  The distributors were getting low ROI.  This resulted in distributors trying to push up volumes, but again the volume did not meet the demand.
  • 9. ANALYSE THE NEW SALES AND DISTRIBUTION SYSTEM OF P&G PROJECT GOLDEN EYE
  • 10.  Moving to super- stockist set – up  Reducing its number of distributers  Provided better ROI to the distributers  Better ROI helped the distributers to improve infrastructure  Cost saving  Large invest in advertising
  • 11.  Target to expend its distribution cover, appoint new distributors and plumb for volume growth  Process of redrawing  Rationalising distributors network  Invest in storage and warehousing  Focus on key urban market
  • 12. HOW DOES AN FMCG SALES AND DISTRIBUTION SYSTEM DIFFER FROM THE INDUSTRIAL SYSTEM
  • 13. FMCG SALES  Specifically developed for the company, which has high volume of sales.  The rotation of stocks is high.  Higher number of intermediaries involved.  Wide distributer network
  • 14. DISTRIBUTION CHANNEL STRUCTURE FOR FMCG Factories Branches WSP Wholesaler Service Providers WD Wholesaler Dealers Retailers Secondary Wholesalers
  • 15. INDUSTRIAL SALES  For the companies which has low volume of sales.  Less intermediaries involved.
  • 16. CHANNELS FOR INDUSTRIAL PRODUCTS Industrial Manufactu User rer Merchant User. Manufact Wholesaler urer Agent Wholesaler User Manufact urer Merchant Wholesal Industrial Agent er User User
  • 17. COOL HEADS INTRO A leading pharmaceuticals co.  Established in 1985.  Purely Indian co.  Made its image in the last decade.  Works in the field of manufacturing, distribute & market pharmaceutical soft drinks.  In 1995 Co. MD seek the need of diversification & addition of new product to its existing range.
  • 18. CONTD.  Launched new product- Chocó-coffee(Coffee with milk, cocoa & sugar.)  price of Rs74 for 400gm pack.  Its target customers are middle class peoples.  The product was heavily advertised in newspaper, magazines, radio & television.  In order to promote its product Co. made 50 stockiest with 150 representatives.  Initial discount of Rs5 was given to buyer on purchase of 400gm pack.
  • 19. REASONS FOR FAILURE OF CO. TO ACHIEVE TARGET  Product is manufactured only on certain advisory notes & brief market research.  Price was high for middle class people.  Promotional strategy of the Co. was not according to its target audience.(Rs 5 discount on each pack)  The company spent too much in the initial stages.  It tried to cover the entire country in one go.
  • 20. SALES PROMOTION PLAN  Prize schemes 1. Scheme designed for both public and the dealers. 2. For Consumers:  Attractive offers should be made, like giving a Coffee cup free with the pack.  Lucky draw coupons can also be given with the packs with attractive prizes. 3. For Dealers:  Sales competition should be arranged.  Special offers should be made if they show a substantial progress in sales.
  • 21. CONTD.  Trade fairs and exhibition The main objective behind this are- 1. Meeting potential customers. 2. Making direct sales.  Providing catalogues  Advantages are- 1. To get orders. 2. To make the customers aware about the specifications. 3. To provide detailed information. 4. To solicit product sales.  Sales contest should be done to motivate the sales force, increase sales and bring more profit to the Co.
  • 22. CONTD.  Different kind of contest prizes 1. Cash awards, 2. Merchandise prizes & 3. Special honor e.g. winners could be requested to appear in a TV or game show.
  • 23. CAN A CHANGE IN DISTRIBUTION CHANNEL BRING IMPROVEMENT IN THE SALES OF THE COMPANY  According to us YES, a change in distribution channel can improve the sales of the Co. 1. The Co. can increase its sales with the help of trade fair & exhibition by doing direct sales to the customers. 2. The Co. can increase its sales performance by promotion its product to the target consumers preferred areas and location. 3. Also by organizing different prize schemes and sales contest among the customers, dealers & the sales force the co. can increase its sales volume.