This document outlines a plan to restructure the sales department of a FMCG company in Russia. It identifies shortcomings in the current structure such as a centralized marketing program and duplicate roles. The proposed restructuring plan aims to double sales within 3 years by dividing the country into 17 sales areas based on population density and economic regions. Key changes include combining food and HPC divisions, simplifying the structure, and reducing duplicate functions. New roles like Regional Sales Managers and Regional Marketing Managers are defined. The plan details an implementation timeline of 5 years to ensure changes are managed effectively and results are achieved.

1. “DNA” TeamSt. Petersburg State UniversityGraduate School of ManagementNadezhdaKomarovaEvgeniyaOsinaDenisSkolotaMikhailPleshakov

2. “Restructuring the Sales Department”

3. Agenda

4. FMCG Industry SpecificsTwo types of customers: 1st level type consumers (distributors, retailers) 2nd level type consumers (end customer)Two types of trade: Modern type & traditional Russia (75%-traditional / 25%-modern) Developed countries ( 25% traditional / 75%-modern)High level of competition among key players: Necessity of quick decisions

5. Russian Market TrendsDisposable income growth: Disposable income CAGR is forecasted to reach 7% by 2014 Retail sales growth: According to Rosstat, retail food sales in Russia grew by 9,78% in 2010, in absolute values.Organized retail growth: Share of major retail chains is forecasted to reach 46% by 2014Organized retail growth penetration in low populationdensity areas

6. Growth Drivers

7. UNILEVER’S Field Sales division

8. Analysis of Existing Organizational structure Regional Sales ManagerCoaching and developing TSM;

9. Appointment/termination of distributors

10. Identification of external threats;

11. Promotion strategies development;

12. Creative idea development;

13. Regular communication with trade channels.Territory Sales ManagerCMECustomers Market ExecutiveProduction the strategy for each city of the Sales Area;

14. Generation and evaluation customer options;

15. Price policy in region;CDAEChannel Development Activating ExecutiveMTAEModern Trade Activating Executive MTEModern Trade ExecutiveDSDistributional SupervisorCSSCustomers Sales Supervisor Conduct efficient price reductions;

16. Control over channel activation budget

17. Optimization of exclusive sales representatives;

18. Analysis of sales data;

19. Monitor distributor payment position;

20. Control price policy by distribution;

21. Implementation of launch plans;

22. To arrange control over promotion;

23. To work out the schedule of field visits;

24. Implementation of launch plans;

25. To arrange control over promotion;

26. Coordination of Service Agencies work;

27. Execution of MTE agreements;

28. Negotiation with distributors;

29. Constant contact with MTE;Diagnosis and Setting Goals Shortcomings defined from diagnosis:Centralized marketing program: regions are followers;Ambiguous role of Customers Market Executive;Unpractical division;Duplicate functions: Food/HPC divisions, repeated staff responsibilities;Fuzzy functions’ division; Lack of communication among the regions;Customer sales supervisor structure is excessively complex.Topical Necessity of RestructuringGOAL Set from Head-office:To double Sales in 3 years