Business improvement project - SP Jain An example of how to take a proactive decision in business situations

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BIP 1: PROJECT
PROPOSAL Presentation
Name: Harsh Gupta
Roll No: 045
Section: B
Location: JODHPUR ( Raj. )
Date of Presentation: 14 & 15 May 2018

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Background of Family Business
Basic Facts
1. Business : Trading
2. Name of the Company & Location/Offices: SLRR & Sons, Jodhpur,
Rajasthan
3. Mentor for the participant: Mr. Pramod Gupta
4. Turnover : Rs. 150 Cr.
5. Educational Background of Participant: BA (Honours) Economics
6. Current Role of FMB participant in the Family Business: Marketing &
Sales
7. Experience in Family Business ( of Participant): 1 Year

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BIP TOPIC-Sales & Marketing
SALES FORCE STRUCTURE AND
SALESMAN INCENTIVES

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Background of the BIP topic :
Why the topic chosen ?
• To reduce cost per acquisition of new parties and maintain proper relationships with them in
the market
• To increase the productivity of our sales team activity
• To attain competitive edge in the market
• To analyze field data
• To reduce warehouse TAT (Time alloted for task)
Key points of discussion with Mentor?
• Cost of digital upgradation
• User friendly approach which is easy for our sales persons
• Curration of data

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Background of the BIP topic :
Has any work done in the same topic earlier and results ?
In order to tackle this problem traditional method of sales tracking via job cards
and manual entry on paper for travel expense is being used by our firm as of now.
Any other points relevant to the topic?
As per the tactics of other competitors in our market, Valvoline Pvt. Ltd and Servo
(Indian Oil corporation) are already addressing this problem via ‘ Real time sales
tracking softwares ’. And the direct consequences of which are beared by us(
Distributor of MAK Lubricants )

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BIP Project Description
Details in 3 bullet points:
1. A systematic approach to improve the productivity
of Sales force activity.
2. To reduce cost per acquisition of new customers
3. To opt for most effective and efficient alternative

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BIP Project - Problem
Initial Problem
Statements
• High cost per acquisition
• Malpractice of outside
distributors
• Poor employee performance
• Traditional business operation
• Poor sales force structure
Final Problem Statement &
Why this was finalised
• Poor sales force structure
As our business operates
mainly B2B and there is a need
for hike in productivity of sales
team activity

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BIP Project - Objectives
Initial Objective Statements
 To reduce cost per acquisition of new parties
 To increase the productivity of our sales team
activity
 To attain competitive edge in the market
 To analyze field data
 To reduce warehouse TAT (Time alloted for task)
Final Objectives & why
they were finalised
• To reduce cost per
acquisition of new
parties and maintain
proper relationships with
them in the market

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BIP Project – Preliminary Alternatives
Initial Alternative Statements
• Salesperson training session
• Real time sales tracking via app
• On call central order placing
• Engage more small-Mid size
stock transportation vehicle
Consequences

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10
Indicators & impact on BIP 1
Project
1. Microeconomic Indicators: Credit facilities, Supply
Chain Management, Discount and offers, Product
knowledge of the final consumer.
2. Macroeconomic indicators: BPCL, MAK
Lubricants
3. Non – economic external factors affecting
business: Environmental & Technological
4. Micro-elements of the environment affecting the
business: Customers, Competitors, and C&F

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Preliminary Consequences Table -
ALTERNATIVES
OBJECTIVES
Salesperson training
session
Real time sales tracking
via app
On call central order
placing
Engage more small-
Mid size stock
transportation
vehicle
To reduce cost per acquisition of new
parties | Current Av. CPA = Rs. 400 -20% -60% +25%
To increase the productivity of our sales
team activity | Current Av. Productivity =
116 Drums/per DSR per month
+30% +40% -10%
To attain competitive edge in the market
To analyze field data
To reduce warehouse TAT (Time alloted for
task) | Av. TAT: 7 Hrs. -15% -50%

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TRADE OFFS
A2 IS THE MOST AND (Real time sales tracking via app)
A1: Salesperson training session
It has a long term advantage but to such a dynamic industry retention is an issue so investing more on each
and every DSR will not solve the purpose. Also its very time consuming to train the DSR’s.
A2: Real time sales tracking via app
It will not only increase the productivity of the sales force but give us competitive edge in the market. It will
help us to analyse field data hassle free without any advance knowledge of data analysis. And most
importantly it will reduce cost per acquisition and help us understand our retailers via there order history
analysis and maintain better relationship with them in the future. Its less costly and more productive. The app
will be designed by a third party with one time cost and monthly cost per user per month that too at great
price.

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A3: On call central order placing
It will definitely reduce warehouse TAT and cost per acquisition but no field data can be then analysed in terms
of brand visibility and also will lose that primary touch and relation with the retailers.
A4: Engage more small-Mid size stock transportation vehicle
Definitly it will reduce warehouse TAT, but it’s a huge capital investment and operating cost will increase, And
sometimes due to lack of proper storage at dealers end they ask us to keep the product at our facility and
accept blind cheque so it will again not solve our purpose completely.
TRADE OFFS

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Preliminary RACI Matrix
RACI MATRIX Area Manager
Marketing and
sales
Partner 1
Warehouse
operations
Partner 2
ACTIVITY Sales Marketing Accountant Distribution Mentor
Mr. Manoj
Mathur
Mr. Harsh Gupta
(Me) Mr. Umesh Bazaari Mr. Amrat Lal
Mr. Pramod
Gupta
Salesperson training
session – A1
R A I I C
Real time sales tracking
via app – A2 R A/R I I C
On call central order
placing – A3
A/R R I C C
Engage more small-Mid
size stock transportation
vehicle – A4
R R C R A/C
NOTE: ALTERNATIVES ARE MENTIONED IN THE SAME ORDER IN WHICH THEY ARE
MENTIONED IN SLIDE NO. 9 - PRELIMINARY ALTERNATIVES

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PLANNED IMPACT of BIP 1
Qualitative Impact:
• Incorporation of a new system for field data analysis
• Increase in the productivity of our sales team activity
Projected Quantitative Impact from April to August 2018:
(Attaching detailed EXCEL SHEET WORKING is Mandatory)
• Incremental Revenues or Production- Rs 2,00,000
• Incremental Profits or Cost Savings- Rs 5,92,500

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PROGRESS REPORT as on 31st MAY, 2018
So far the app is made and is live now. Its completely designed via 3rd party Master Mind E-Solutions and is right now on
pilot survey for 2 weeks. 2 of our top DSR’s are assessing the app and enclaving us with there valuable suggestions on
improving it as much as possible. By next month end we will have the numbers to analyze the impact both on the new
acquisition and cost benefits in terms of reduction in sales person’s expenses with the help of this app.

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PROJECTED VS CURRENT
PROJECTED MONTHLY May-18 Jun-18
Avg. Transactions Avg. GMV
Avg. New
Acquisition
Avg. Transactions Avg. GMV
Avg. New
Acquisition
Avg. Transactions Avg. GMV
Avg. New
Acquisition
200 700000 10 215 560000 12 250 612577 8
REVENUE ANALYSIS May-18 Jun-18 TOTAL
GMV 560000 612577 1172577
Revenue (14% of
GMV)
78400 85400 163800
NOTE: Projected Revenue – Rs. 200000 for BIP and Rs. 163800 earned till June 2018 | Expenses reduced by almost 50% as earlier.
COST SAVINGS May-18 Jun-18
Number of Sales persons
using the app
18/39 29/39
Monthly operating sales cost Rs. 122000 Rs. 115000

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Gross Merchant Value for the month June
2018
Note: Every new day is added on the top

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Thank You