Types of Channel, Market Segmentation, Channel Structure Details, Retail Environment, Process Flows,Sales Force Responsibilites, Margins, Role of IT

1. COLGATE-PALMOLIVE INDIA
SALES AND DISTRIBUTION MANAGEMENT PROJECT ON
25/9/2017

2. Company Overview (1/2)
• Founded in 1806 by William Colgate
• An American company headquartered in New York, USA
• Colgate Palmolive India Limited was incorporated in 1937, with its headquarters in Mumbai
• Colgate-Palmolive India Ltd (CPIL) is a 51 per cent subsidiary of Colgate-Palmolive Company
(CPC), USA
• Main business is manufacturing and marketing of oral care products, personal care, and
shaving products
• Four Manufacturing Factories located in Baddi, Aurangabad, Hyderabad and Goa
• Branch Offices situated in Delhi, Mumbai, Chennai and Kolkata

3. Company Overview (2/2)
2.7 Million 8,00,000 1800
Rs. 4520 Crore Rs. 705 Cr.
Market Leader in Indian Oral Market
Total Retail
Outlets in India
Company Serviced
Outlets in India
Stockists, Super
stockist and other field
force
Annual Turnover of CPIL
51% 48% 30%
Toothpaste Segment Toothpowder Segment Toothbrush Segment
Market Position
Distribution
Financials
Source: https://www.ibef.org/download/ColgatePalmolive.pdf
Profit in 2016

4. Product Basket
Oral Care Personal Care Home Care From the Dentist
• Toothpaste
• Toothbrush
• Toothpowder
• Mouthwash
• Body Wash
• Liquid Hand Wash
• Shave Preps
• Skin Care
• Hair Care
• Surface Care • Gingivitis Treatment
• Sensitivity Treatment
• Tooth Whitening
• Fluoride Therapy
• Mouth Ulcer Treatment
• Specialty Cleaning

5. Toothpaste Segment of Colgate-Palmolive (1/2)
Colgate® Strong Teeth with
Calci-lock Protection
Toothpaste
Colgate MaxFresh® Power
Freeze Toothpaste
Colgate MaxFresh® Spicy
Fresh Toothpaste
Colgate MaxFresh® Spicy
Fresh Toothpaste
Colgate MaxFresh®
Peppermint Ice Toothpaste
Colgate® Active Salt Neem
Toothpaste
Colgate® Active Salt Healthy
Neem Toothpaste
Colgate Total® Charcoal Deep
Clean Toothpaste
Colgate® Active Salt
Toothpaste
Colgate Total® Advanced
Whitening Toothpaste
Colgate® Sensitive Plus
Toothpaste
Colgate® Sensitive Plus
Enamel Repair Toothpaste
Colgate Total® Advanced
Health Toothpaste
Colgate Total® Pro-Gum
Health Toothpaste
Colgate® Herbal Natural
Toothpaste
Colgate Sensitive® Original
Toothpaste
Colgate Sensitive Clove Colgate® Cibaca Toothpaste Colgate® Cibaca Vedshakti
Toothpaste
Colgate® Maximum Cavity
Protection

6. Toothpaste Segment of Colgate-Palmolive (2/2)
Colgate® Kids Toothpaste
Colgate® Kids Toothpaste Colgate® Kids Toothpaste
Colgate® Kids Toothpaste
Colgate® Barbie Toothpaste Colgate® Spider Man Toothpaste
Colgate® Visible White
Toothpaste
Colgate® Visible White Plus
Shine Toothpaste

7. Types of Channels
1. Stockist
•Contracted service providers who receives
supplies from the company against firm orders
and arrange distribution of products amongst
all outlets at required frequencies
2. Wholesale
•Wholesale is an important middlemen, the
difference is that they are not contracted but
are independent middlemen
•They service indirectly covered retail
environments
3. Direct
•CP Products are directly served to big
customers
Channels
Stockist Wholesale Direct

8. • Villages and Rest of
the towns
Market Segmentation
• Urban Towns with
population less than
1 lac
• 360 towns
• Population between
1 lac and 10 lac
• 27 Metro Towns
• Population greater
than 10 lac
Metro
Middle
India
Rural
Rest of
Urban
(ROU)

9. Channel Structure Details
LEGENDS
MET : Metro
MI : Middle India
ROU : Rest of Urban
WS : Wholesale
RE : Retail Environment
SSTK : Super Stockist
RDST: Rural Distributor
IRSTK: Indirect Rural Stockist

10. Retail Environment
Retail Environment
Kirana
Store
General
Store
Medical
Store
Cosmetic
Store
Pan Shop
Whole-
Sale
Modern
trade

11. Process Flows in Colgate-Palmolive
We would be discussing the below processes incorporated at Colgate Palmolive India
Limited:
1. Business Planning Process (BPP)
2. Vendor Managed Inventory (VMI)
3. Order Frequency, Supply and Payment Flow
4. Communication through Review Meetings

12. Business Planning Process (BPP)
• Helps minimize time spent on billing
and use it more productively in the
market and for sales planning
• Helps ensure availability of all stocks
and enables to focus on selling and
distributing all SKUs
• Helps in planning standard orders
with the Stockist and also in doing
business evenly across the month
SKU wise Retailing
SKU wise Opening Stocks
SKU wise Billing
Week wise Phasing
Standard Orders/ VMI order
Month Inputs
Process Flowchart
Past Averages

13. Vendor Managed Inventory (VMI)
• VMI is a means of optimizing Supply Chain
performance in which the manufacturer is
responsible for maintaining the distributor’s
inventory levels.
• The manufacturer has access to the
distributor’s inventory data and is responsible
for generating purchase orders.
VMI Process
Stock Replenishment Cycle of Stockist
Day 1 Day 2 Day 3

14. Order Frequency, Supply and Payment Flow
COLGATE PALMOLIVE
[Warehouse]
DISTRIBUTOR
Advance Full Payment
[RTGS only]
[Frequency-Weekly Twice]
Target Set by CP
WHOLESALERS
[Cash and Carry]
[Frequency-Weekly once]
No pre-set targets by
Distributor
SUPERMARKETS
[7-15 days Credit]
[Frequency-Weekly once]
Targets set by Distributor
RETAILERS
[7-15 days Credit]
[Frequency-Weekly once]
Targets set by Distributor

15. Communication through Review Meetings
Activation
Meeting
•Communicate reasons for key changes
•Priorities for the Quarter
•Use this forum to Recognize & Reward
individuals
Instore
Meeting
•For the Instore CDOs
•Monthly review of Instore performance
/Activities
•Set timelines on implementation
Area
Meeting
•For the channel CDOs
•Stockist’s performance is reviewed
•Set time lines on implementations
Team
Meetings
•Discuss & Address customer / field issues
•Align teams on important things in the Branch
Instore
Meeting
•Instore Manager & Field team
•Monthly Stockists Meetings
•Make Stockists work independently
•Discuss key priorities of the week
•Address store wise issues & find resolutionStockists, Salesman
Weekly
Meetings
Internal Meetings Other Meetings

16. Communication through Review Meetings
Details
Monthly Area
Meetings
Monthly Review Meeting
with Stockist
Weekly Review Meetings
with Salesman
Period 30th/31st of every
month
At the beginning of the
month
Immediately after
cut off dates
(7th,14th,21st ,28th)
Conducted By Area Manager CDO CDO
Venue As informed by Area
Manager
Stockist Point Stockist Point
Participants All CDOs of the area Stockist All Stockist and salesmen
Objective of the Meeting • To finalize BPP for
next month
• To set KPIs
• To plan week wise
billing/retailing
phasing
• To finalize KPIs
• To finalize salesman
wise targets
• To plan channel wise
business
• To firm up week wise
billing/retailing phasing
• To motivate/train salesmen for
achieving KPIs
• To review salesmen wise
performance
• Channel wise business analysis
• Any other dealer related issues
• Maintenance of required reports

17. Trade Promotions
• Promotional offers and volume discounts vary based
on the demand.
• The wholesalers get a volume discount of 1%-2%,
regularly on all products over the retailers, which was
reflected in the margins. Over and above that they
get an additional 1%-2% on specific products,
enabling them to pass on the same to their retailers.
• The supermarkets and retailers get 1% - 2% volume
discounts on fast moving sizes of 100gms, upon
purchase of 100 or more units. This keeps rotating
over varied products.

18. Conflicts
• Retailers complaint of price
difference of product in other
channels
• High end product such as
Colgate sensitive ,charcoal are
pushed through cash and carry
while general product are
pushed through retail
environment
• Retailers complaint that whole
sellers are getting more
margin
• Retailers sell product on MRP
while whole sellers sell on less
than MRP so they get more
margin
Price difference of Products Margin Difference

19. Motivating Channel Members
• Monthly Incentive Program for exclusive CP SSM.
• Different parameters for local towns and VAN.
Hero No. 1
• Quarterly Incentive Program for VMI Stockiest.
• For Urban stockiest, Payout is 0.5%
• For Rural/WS stockiest, 0.3% payout
STEP
(Stockist Excellence
Program)
• Quarterly Wholesale Loyalty Program.
• 0.5 % on overall value purchase.
PDS
(Phir Dil Se)
• Inputs provided to Wholesalers for redistributing
our products to ICREs (where direct coverage is
not feasible)
DD
(Distribution
Driver)

20. Roles and Responsibilities of Sales Force
Functions
Distribution
Management
Instore
Management
Market
Developing and
Training
Reporting
Relationship
Building
Area
Manager
•Stockist
Management
•Trade
Management
•Coordination
•New Product
launches
•Secure and draw
insights for new
products,
activities, systems.
•Ensuring sales call
efficiency
•Self-assessment
•Ensure that all
CDOs in his team
are trained
•Compile reports
and information
as per
requirements
communicated by
RM
•Maintain trust and
understanding in
working with
stockist and trade in
general.
CDO
Customer
Management
•Trade
management
•Ensure sales call
efficiency
•Priorities
accounts for
maximum impact
through visibilities
•Secure and draw
insights from any
competitive
information
available in public
domain
•Train and develop
salesmen
•Coach and
motivate salesmen
to perform well
•Compile reports
and information
as per
requirements
communicated by
AM
•Maintain trust and
understanding in
working with
stockist and trade in
general, especially
partner

21. Roles and Responsibilities of Sales Force
Functions
Distribution
Management
Instore
Management
Market Reporting
Relationship
Building
Salesman
•Trade management
•Ensure sales call
efficiency
•Observe & share
feedback for all in-
store executions
•Ensure compliance
•Secure and draw
insights from any
competitive
information available
in public domain
•Compile reports and
information (hard
copy) as per
requirements
communicated by
CDO CM
•Maintain trust and
understanding in
working with stockist
and trade in general,
especially
partner with key
wholesalers to drive
business

22. Roles and Responsibilities of Sales Force
• PSR: Pilot Sales Representative is a Colgate’s representative for rural areas.
• PSR supports and implements activation plans and operations in rural areas.
• Key roles and responsibilities for PSR includes:
Implementation
of Key Activities
• Activation of key
activities for the
month as slated
in the monthly
meetings
Increasing
Coverage
• Identification of
feeder
wholesalers
• By identifying
new villages
Communication
• New promotional
schemes to the
retailers as well as
wholesalers
• Should also guide
them on utilization
of schemes to
generate higher
volumes
Relationship
• PSR must
maintain good
working
relationship with
stockists,
retailers, and
trade in general
Business
Planning
• Meeting monthly
commitments
• Ensuring
availability of
optimum stocks

23. Margins
Retailer’s Margin
• For high end toothpaste variants like Colgate Sensitive, Advanced White, the retailers
are given a margin of 15%
• For other toothpaste variants, the margin is 10%
Distributor’s Margin
• Distributors are given 5% margin
• Extra .25% for ullage
• And .70% for tax paid on profit
• Total distributor margin is 5.95%

24. Role of IT in Managing Channel
Warehouse
Distributor
Retail
Environment
• Distributor fill a predefined E-order sheet
and send that to warehouse.
• Warehouse generates bill trough SAP based
application and dispatch.
• Sales man takes orders from retail stores
through company provided palm top that is
connected to servers .
• On the basis of order from sales man
,distributor generates the bill through SAP
application and dispatch the order.
• CP official can see the stock movement
through the SAP application

25. THANK YOU