This document provides an overview of P&G's sales and distribution system and a case study on Cool Heads, a pharmaceutical company. It discusses P&G's old distribution network, issues they faced, and their Project Golden Eye initiative to improve efficiency. It also compares FMCG and industrial sales/distribution models. For Cool Heads, it outlines their new chocolate coffee drink launch, reasons for failing to meet sales targets, and recommends prize schemes, trade shows, and sales contests to improve performance. Changing the distribution channel could help increase a company's sales.

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.