This document provides a sales plan for a new fruit-based cereal product called Fruila Flakes targeting children and women in Bangalore, India. The plan aims to penetrate the corn cereal breakfast market in Bangalore through modern trade channels. Key elements of the plan include negotiating with modern trade outlets for product placement, forecasting sales through qualitative methods like customer surveys, and establishing an efficient distribution system to supply outlets. The distribution strategy focuses on reducing costs by partnering directly with modern trade distribution centers and combining the roles of promoters and salespeople.

1. Sales & Distribution Management Assignment On
Developing A Sales Plan For A New Product
Submitted To: Submitted By:
Dr. Shantanu Shekhar Aniruddh Tiwari
M S Ramaiah Institute of Management

2. Product : Fruila Flakes

3. Product Description:-
 Fruila Flakes is a fruit based corn cereal breakfast.
 Unlike other corn cereals, Fruila Flakes has real fruit extracts.
 It is available in 400 grams carton pack.
 The pack has an assortment of 4 fruit based corn cereals.
 The four flavors are Mango, Strawberry, Banana & Vanilla.
 A clutter breaker from regular corn cereals.
 Targeted at young children(influencer) and women in late 20s and 30s
(decision maker). Primarily in the urban areas.
 Can be consumed directly or with hot/cold milk.
Competitors:-
 Kellogg’s:
Although Kellogg’s is one of the largest players in corn cereal based
breakfast segment, but it’s not a direct competitor to Fruila Flakes as it does
not have fruit based cereal breakfast catagory.
 Various regional & local players:
There are a few regional & local players operating in Bangalore region but
they pose a mild threat as they offer plain corn flakes only

4. Sales ‘Objectives-Strategies-Tactics’ For Fruila Flakes:-
Objective Marketing Strategy Sales Strategy Tactics (Plan Of Action)
Penetrate the corn based Enter the market through Evaluate & decide the 1) Negotiate with the
cereal breakfast market in Modern Trade Channel * modern trade outlets in category managers of the
Bangalore region. various localities of modern trade chains for
Bangalore ** product placement and
compensation schemes.
2) Zero in the best possible
shelf space inside the
modern trade outlets.
3) Train & develop
promoters/salesmen who
can visit these outlets on
daily basis.
* Since the brand is new and unheard among the target customers and targeted at
urban people, it is best suited that the brand enters the market through modern
trade route. In this way the promotional overheads will be in control and at the
same time it will provide maximum visibility among the target audience.
** It will be wise if the company evaluates the options available at their disposal.
Consider an example: In Bangalore there are more than 2100 modern trade stores.
Most of them are from national players like Future Group, Reliance Group, Aditya
Birla Group etc. Plus there are few regional players like Heritage, Smart etc. Out of
which approximately 75% of the stores are making profit. So it will be wise that
for a perfect product launch & acceptance these 75% of the stores be approached
and finalized. For the comprehension of this study we will consider Mathikere area
of Bangalore.
Estimating The Sales Forecast For Fruila Flakes:-
Generally sales forecast are done through following methods:
1) Qualitative Methods
2) Quantitative Methods

5. However, since the product is new it will be difficult to forecast the sales through
quantitative methods as these methods require previous years’ sales data to
estimate the future sales.
Therefore qualitative methods will be the most appropriate methods to forecast the
sales. Following can be few qualitative methods:
1) Survey of buyers’ intention method
This can be the most fundamental forecast where the customers preference
and his intention for buying the product can be assessed.
2) Delphi Method
This method can be effective when the company manages to gather expert
opinions from both the ends that is from the company’s management as well
as incorporating the views of the category managers of these modern trade
outlets.
3) Test Marketing Method
This is one of the best forecasting methods for new products. In our case
Fruila Flakes can undergo a full-blown test in the modern trade outlets of
mathikere area where the product acceptance & repurchase intentions of the
customers can be determined.
Once the sales forecast is done, the distribution arm & the promotional team have
to be activated for the proper acceptance of the product among the customers.
Distribution Of Fruila Flakes:-
The distribution of Fruila Flakes has to be so strong that it should be able to
provide the place, time and possession utility to its customers.
This can be achieved by tying up with as many as modern trade outlets as possible
in mathikere area.
Consider the figure on next page:-

6. Company Warehouse
Distribution Center for Distribution Center for
Reliance Fresh More Hyper
Reliance Fresh Reliance Fresh More Hyper More Hyper
Outlet 1 Outlet 2 Outlet 1 Outlet 2
Customers
Again it is evident that entering into the market through modern trade route
reduces burden on company overheads. The company can directly send its
products to the distribution centers of these modern trade chains where these
distribution centers (DC) ensure that the product is reached to each and every store.
This in turn reduces the dependence on C&FAs / CSAs, Distributors etc. and thus
lot of distribution & freight cost can be saved.
Call Or Beat Plan
As already a lot of distribution cost has been saved, the company can further
reduce the cost by doubling up the salesmen with product promoters. Since
both the jobs require frequent visits to these outlets a single person can
easily accomplish both the jobs.
A promoter’s job is to ensure that his company’s product enjoys maximum
visibility among the competition, the products are orderly arranged in the
shelves, there is no pilferage of the product, are the promotional schemes are
properly executed both – inside and outside the store etc.

7. Whereas a salesman’s job is to ensure that proper order cycle of the product
is maintained and orders are coming at regular interval. He is also
responsible for the growth of the business by initializing various
promotional activities. He has to maintain good relation with the category
managers of these modern trade chains.
Thus all of these activities can be achieved only when a proper call or beat
plan is in place. For example the call or beat plan for Mathikere area can be
as follows:
1) On Mondays all the modern trade outlets on new BEL Road should be
covered.
2) On Tuesdays & Wednesdays Mathikere east should be covered.
3) On Thursdays & Fridays Mathikere west should be covered.
4) On Saturdays rounds should be made in less performing areas and KSIs
& CSFs should be monitored & revised.
For devising proper distribution strategy, following aspects should be looked upon:
1) Deciding the level of customer service
2) Once the customer service is decided, distribution objectives should be
defined.
3) Clear steps should be mentioned to achieve the distribution objectives.
4) To execute these steps the distribution channel and workforce should be
properly structured.
5) All the policies and procedures should be clearly defined.
6) Key Performance Indicators should clearly marked
7) Critical Success Factors should be closely monitored and revised on time-to-
time basis.
THANK YOU