Description
Sales and Distribution
Sales and Distribution
Free Powerpoint Templates
Page 1
Introduction:
Free Powerpoint Templates
Group No.-10
Page 2
Details
Subsidiary of Kraft Foods.
Began its operations in India in 1948.
Corporate head office is in Mumbai Manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh)
Free Powerpoint Templates
Group No.-10
Page 3
Details
MARKET SHARE-72%
Sales offices in New Delhi, Mumbai, Kolkata and Chennai
SOME PRODUCTS: Cadbury Dairy Milk, 5-Star, Perk, Gems, Eclairs ,Oreo
Free Powerpoint Templates
Group No.-10
Page 4
CHANNEL STRUCTURE
COMPANY
MOTHER GODOWN
C&F
DISTRIBUTOR
Free Powerpoint Templates
Group No.-10
Page 5
Channels
MODERN
TRADITIONAL
Free Powerpoint Templates
Group No.-10
Page 6
SELECTION CRITERIA
INFRASTRUCTURE
Initial investment-Rs 50 lakh+ stock worth Rs 25 lakh. Modern---1500 sq feet. Traditional --- (700-800)sq feet. Warehouses with cooling unit
Insulated vans for transportation provided by company (MODERN). Own pick-up vehicles for delivering chocolates (TRADITIONAL) Technology-PDA
Free Powerpoint Templates
Group No.-10
Page 7
SELECTION CRITERIA
OTHER CRITERIAS
Past Experience 2 years
Current Business
Products handled.(tropicana,parle,marico,colga te,godrej) Not allowed Yes(Gurgaon, North Delhi) Minimum Stock-Rs 20 lakh worth products
Conflicting Business Coverage Inventory Management
Free Powerpoint Templates
Group No.-10
Page 8
Distributor Details
Modern Traditional
Order are taken on fixed days Sales person visits various hyper and super market store for taking the order. PDA devices are allotted to sales force. Very next day orders are delivered to the stores. Orders are delivered via insulated van. Order size is not fixed
Orders are taken once in a week . Sales person visit different retail shops to take their orders. PDA devices are allotted for taking orders. Next day orders are delivered. Orders are delivered through normal pick-up van. Order size is not fixed
Free Powerpoint Templates
Group No.-10
Page 9
CONTINUED..
COMPANY ± DISTRIBUTOR Hypermarket distributor : advance payment through DD/RTGS. Retail distributor : Advance payment through DD/RTGS. MARGIN Fixed margin for stockiest of 4.5% DISTRIBUTOR - RETAILER Payment is made after receiving orders. In case of small retail shops credit period reduces to 7 days. MARGIN Fixed margin for stockiest of 4.5%
Incentive of 1% on achieving targets
Incentive of 1% on achieving targets
Free Powerpoint Templates
Group No.-10
Page 10
SALES FORCE
Modern Strength - 2 One person is hired for maintaining accounts & for utilizing ERP software efficiently & effectively. Second person keeps track of order processing. Time & again company provides training to the sales force Sales force have their own PDA device. Company¶s S.O visit the distributor¶s office every alternate day Traditional Strength - 6 All for order processing
A formal training is provided to the staff after hiring Each of them has a PDA device provided by the company. Company¶s S.O visit the distributor¶s office every alternate day Page 11
Free Powerpoint Templates
Group No.-10
Details
Subsidiary of Nestlé S.A. of Switzerland.
Began its operations in India in 1912.
Head office is located in Gurgaon, Haryana. Seven manufacturing facilities in Moga (Punjab), Choladi (Tamil Nadu), Nanjangud (Karnataka), Samalkha (Haryana), Bicholim (Goa), Pantnagar (Uttarakhand)
Free Powerpoint Templates
Group No.-10
Page 12
Details
MARKET SHARE-21%
Branch offices in Delhi, Mumbai, Chennai and Kolkata.
SOME PRODUCTS: Kit Kat, Munch,Milky Bar, Bar-One, Polo, Eclairs, Dark Chocolate.
Free Powerpoint Templates
Group No.-10
Page 13
CHANNEL STRUCTURE
COMPANY
MOTHER GODOWN
CNF
DISTRIBUTOR AS PER ASSIGNED TERRITORY
Free Powerpoint Templates
Group No.-10
Page 14
Channels
TRADE
CHOCOLATE
WHOLESELLER
RETAILERS
Free Powerpoint Templates
Group No.-10
Page 15
SELECTION CRITERIA
INFRASTRUCTURE
Initial investment-Rs50 lakh+Stock worth 50 lakh. Godowns / storage space Air conditioned godown space (with wooden padding will be required).
Own delivery vehicles Technology-PDA
Free Powerpoint Templates
Group No.-10
Page 16
SELECTION CRITERIA
OTHER CRITERIAS
Past Experience Prior experience as a channel member in the FMCG sector. Existing distributor of other products of Nestle.
Current Business
Conflicting Business Coverage Inventory Management
Not allowed Yes Minimum Stock-Rs 30 lakh worth products
Free Powerpoint Templates
Group No.-10
Page 17
Distributor Details
A representative of distributor goes to the various outlets, once or twice a week (depending upon the area).
Delivers the goods there and then, or on the same day.
Operation ³STING´ For deeper reach and penetration into the small, reserved & unserved outlets.
Free Powerpoint Templates
Group No.-10
Page 18
Credit Policy & Margin
DISTRIBUTOR Payment is done online before the stock is delivered. 4.5-5.8% Negotiable with retail shops. Monitory ±Additional 2% margin. Flat panel television. Certificates of acknowledgement. WHOLESELLER 1-2 week credit period(depends on the Distributor). 2-3% 1-2% margin on selling to retail shops. CTV or flat panel television.
Free Powerpoint Templates
Group No.-10
Page 19
SALES FORCE
Strength ± (3-6)person. Distributor trains his own sales force. The remuneration and all other expenses are borne by the distributor. Company¶s S.O visit the distributor¶s office once in a weak.
Free Powerpoint Templates
Group No.-10
Page 20
Promotion
Company follows the policy of both Company follows consumer trade as well as consumer promotion. promotions but trade promotion is negligible. S.O personally looks after the visual Not much attention paid. merchandising or branding. Once in a weak company representative visits retail shops for shelf space vigilance. Representatives are very reluctant about the visual merchandising.
Free Powerpoint Templates
Group No.-10
Page 21
TARGET & DEAD STOCKS
Monthly targets are assigned. If the target is not achieved then it is shifted to next month. Monthly targets are assigned. Heavy dumping on distributors. Due to which stock gets blocked till expiry date.
Dead stocks are taken back by the company.
The bad goods are separated and marked ³marketable´ or ³unsalable´ appropriately.
Free Powerpoint Templates
Group No.-10
Page 22
TARGET & DEAD STOCKS
Expiry & damaged products are destroyed by third party in front of distributor. Targets are increased during festive seasons.
Return policy -done with cash and happens at the end of every six months. Targets are increased during festive seasons.
Free Powerpoint Templates
Group No.-10
Page 23
RETAIL
CREDIT PERIOD
CREDIT PERIOD
21 days for
hypermarket days for retail & shops
3.5weaks for big
shops.
7
7 days for small retail
shops.
Free Powerpoint Templates
Group No.-10
Page 24
Order Placing
Distributor¶s salesman visit shops twice in a week. Orders are also placed through phone calls. Orders are delivered on the same day or the next day.
Distributor¶s salesman visit shops twice in a week. Orders are also placed through phone calls. Orders are delivered on the same day or the next day. Small retail shops often take chocolates from whole sellers.
Free Powerpoint Templates
Group No.-10
Page 25
Incentive
Extra margin provided by the distributor. Free cooling units and display. Free visicoolers.
Extra units of chocolates. Free visicoolers.
Free Powerpoint Templates
Group No.-10
Page 26
Logistics
Distributors take care of the logistics. Insulated vans as well as small pick up trucks are used for delivery. Distributor¶s logistics. Insulated vans & small pickups are used. Bicycles are used for delivering stocks to the small and unserved retail shops.
Free Powerpoint Templates
Group No.-10
Page 27
Visit
Sales force of distributor visits 2-3 times a week. Visual merchandiser visits once in a week. Distributor¶s staff visit twice in a week. Visual merchandisers visits after every 2-3 weeks.
Free Powerpoint Templates
Group No.-10
Page 28
Promotional Tools
POP materials are provided by the company and the distributor. Small & attractive cooling units provided by the company. POP materials are provided by the company and the distributor. Laid back attitude.
Free Powerpoint Templates
Group No.-10
Page 29
Conclusion..
Dairy milk was the most preferred (Both by adults & kids) & Sold brand as said by 8 to 9 retailers followed by Munch, Five star, Kit-Kat and so on.
Selling at price points was a huge advantage as many customers asked for 5 Rs. 2 Rs. Chocolates and felt easy to pay change
There was lot of brand loyal customers for Bar One and Milky Bar who specifically asked for these brands. (E.g. There is a customer in complete bazaar who buys 10 Bar One chocolate every day regularly. Some college students bought Milky Bar)
Free Powerpoint Templates
Group No.-10
Page 30
Conclusion..
Retailers look at the profit margin and decides what to & what not to keep near the counters and otherwise in case of space constraints.
Nestle Assets were not monitored properly by merchandisers as it is done for Cadburys. There were lot of other products kept inside Nestle..
Free Powerpoint Templates
Group No.-10
Page 31
Continued..
There was more branding and shelf space for Munch (50%) and Kitkat (30%) compared to other chocolates like Bar One, Milky Bar.
When there is no proper plan in place for shelf arrangement of chocolates, It is done on the basis of eye sight of the Target Customer. -Lower rack with Milky Bar, Gems, Kinder Joy etc. -Middle rack with Munch, Kitkat, Dairy Milk etc. -Upper rack with Bar one, 5 Star, Bourneville etc.
Free Powerpoint Templates
Group No.-10
Page 32
Continued..
The target sales of each Distributors is set based on the routes they are selling but promotional schemes were the same. Some retailers said Cadbury¶s schemes (Bulk purchase offers) are good compared to Nestle (Though percentage margin is almost same), Hence they prefer keeping Cadbury¶s products in the available space for chocolates. Some customers buys Munch & Kit Kat bulk/family packs regularly and hence order for Munch boxes & Kit Kat family packs is high compared to other chocolates.
Free Powerpoint Templates
Group No.-10
Page 33
Continued..
Considerable amount of shelf space is given to chocolates like Snickers, Ferrero, Delfi, Bounty, Mars etc. almost equal to that of Nestle chocolates when kept in common racks Some kids of age range 4-6 years recognize the chocolate brand names or any names related to the brand name Super markets had lot of imported chocolates including some of Nestle brands Chocolates with different type of packaging and the different type of racks/dispensers used for displaying chocolates & other products attracts more customers (Impulse purchase increases there by). Free Powerpoint Templates
Group No.-10
Page 34
Free Powerpoint Templates
Page 35
doc_362110656.pptx
Sales and Distribution
Sales and Distribution
Free Powerpoint Templates
Page 1
Introduction:
Free Powerpoint Templates
Group No.-10
Page 2
Details
Subsidiary of Kraft Foods.
Began its operations in India in 1948.
Corporate head office is in Mumbai Manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh)
Free Powerpoint Templates
Group No.-10
Page 3
Details
MARKET SHARE-72%
Sales offices in New Delhi, Mumbai, Kolkata and Chennai
SOME PRODUCTS: Cadbury Dairy Milk, 5-Star, Perk, Gems, Eclairs ,Oreo
Free Powerpoint Templates
Group No.-10
Page 4
CHANNEL STRUCTURE
COMPANY
MOTHER GODOWN
C&F
DISTRIBUTOR
Free Powerpoint Templates
Group No.-10
Page 5
Channels
MODERN
TRADITIONAL
Free Powerpoint Templates
Group No.-10
Page 6
SELECTION CRITERIA
INFRASTRUCTURE
Initial investment-Rs 50 lakh+ stock worth Rs 25 lakh. Modern---1500 sq feet. Traditional --- (700-800)sq feet. Warehouses with cooling unit
Insulated vans for transportation provided by company (MODERN). Own pick-up vehicles for delivering chocolates (TRADITIONAL) Technology-PDA
Free Powerpoint Templates
Group No.-10
Page 7
SELECTION CRITERIA
OTHER CRITERIAS
Past Experience 2 years
Current Business
Products handled.(tropicana,parle,marico,colga te,godrej) Not allowed Yes(Gurgaon, North Delhi) Minimum Stock-Rs 20 lakh worth products
Conflicting Business Coverage Inventory Management
Free Powerpoint Templates
Group No.-10
Page 8
Distributor Details
Modern Traditional
Order are taken on fixed days Sales person visits various hyper and super market store for taking the order. PDA devices are allotted to sales force. Very next day orders are delivered to the stores. Orders are delivered via insulated van. Order size is not fixed
Orders are taken once in a week . Sales person visit different retail shops to take their orders. PDA devices are allotted for taking orders. Next day orders are delivered. Orders are delivered through normal pick-up van. Order size is not fixed
Free Powerpoint Templates
Group No.-10
Page 9
CONTINUED..
COMPANY ± DISTRIBUTOR Hypermarket distributor : advance payment through DD/RTGS. Retail distributor : Advance payment through DD/RTGS. MARGIN Fixed margin for stockiest of 4.5% DISTRIBUTOR - RETAILER Payment is made after receiving orders. In case of small retail shops credit period reduces to 7 days. MARGIN Fixed margin for stockiest of 4.5%
Incentive of 1% on achieving targets
Incentive of 1% on achieving targets
Free Powerpoint Templates
Group No.-10
Page 10
SALES FORCE
Modern Strength - 2 One person is hired for maintaining accounts & for utilizing ERP software efficiently & effectively. Second person keeps track of order processing. Time & again company provides training to the sales force Sales force have their own PDA device. Company¶s S.O visit the distributor¶s office every alternate day Traditional Strength - 6 All for order processing
A formal training is provided to the staff after hiring Each of them has a PDA device provided by the company. Company¶s S.O visit the distributor¶s office every alternate day Page 11
Free Powerpoint Templates
Group No.-10
Details
Subsidiary of Nestlé S.A. of Switzerland.
Began its operations in India in 1912.
Head office is located in Gurgaon, Haryana. Seven manufacturing facilities in Moga (Punjab), Choladi (Tamil Nadu), Nanjangud (Karnataka), Samalkha (Haryana), Bicholim (Goa), Pantnagar (Uttarakhand)
Free Powerpoint Templates
Group No.-10
Page 12
Details
MARKET SHARE-21%
Branch offices in Delhi, Mumbai, Chennai and Kolkata.
SOME PRODUCTS: Kit Kat, Munch,Milky Bar, Bar-One, Polo, Eclairs, Dark Chocolate.
Free Powerpoint Templates
Group No.-10
Page 13
CHANNEL STRUCTURE
COMPANY
MOTHER GODOWN
CNF
DISTRIBUTOR AS PER ASSIGNED TERRITORY
Free Powerpoint Templates
Group No.-10
Page 14
Channels
TRADE
CHOCOLATE
WHOLESELLER
RETAILERS
Free Powerpoint Templates
Group No.-10
Page 15
SELECTION CRITERIA
INFRASTRUCTURE
Initial investment-Rs50 lakh+Stock worth 50 lakh. Godowns / storage space Air conditioned godown space (with wooden padding will be required).
Own delivery vehicles Technology-PDA
Free Powerpoint Templates
Group No.-10
Page 16
SELECTION CRITERIA
OTHER CRITERIAS
Past Experience Prior experience as a channel member in the FMCG sector. Existing distributor of other products of Nestle.
Current Business
Conflicting Business Coverage Inventory Management
Not allowed Yes Minimum Stock-Rs 30 lakh worth products
Free Powerpoint Templates
Group No.-10
Page 17
Distributor Details
A representative of distributor goes to the various outlets, once or twice a week (depending upon the area).
Delivers the goods there and then, or on the same day.
Operation ³STING´ For deeper reach and penetration into the small, reserved & unserved outlets.
Free Powerpoint Templates
Group No.-10
Page 18
Credit Policy & Margin
DISTRIBUTOR Payment is done online before the stock is delivered. 4.5-5.8% Negotiable with retail shops. Monitory ±Additional 2% margin. Flat panel television. Certificates of acknowledgement. WHOLESELLER 1-2 week credit period(depends on the Distributor). 2-3% 1-2% margin on selling to retail shops. CTV or flat panel television.
Free Powerpoint Templates
Group No.-10
Page 19
SALES FORCE
Strength ± (3-6)person. Distributor trains his own sales force. The remuneration and all other expenses are borne by the distributor. Company¶s S.O visit the distributor¶s office once in a weak.
Free Powerpoint Templates
Group No.-10
Page 20
Promotion
Company follows the policy of both Company follows consumer trade as well as consumer promotion. promotions but trade promotion is negligible. S.O personally looks after the visual Not much attention paid. merchandising or branding. Once in a weak company representative visits retail shops for shelf space vigilance. Representatives are very reluctant about the visual merchandising.
Free Powerpoint Templates
Group No.-10
Page 21
TARGET & DEAD STOCKS
Monthly targets are assigned. If the target is not achieved then it is shifted to next month. Monthly targets are assigned. Heavy dumping on distributors. Due to which stock gets blocked till expiry date.
Dead stocks are taken back by the company.
The bad goods are separated and marked ³marketable´ or ³unsalable´ appropriately.
Free Powerpoint Templates
Group No.-10
Page 22
TARGET & DEAD STOCKS
Expiry & damaged products are destroyed by third party in front of distributor. Targets are increased during festive seasons.
Return policy -done with cash and happens at the end of every six months. Targets are increased during festive seasons.
Free Powerpoint Templates
Group No.-10
Page 23
RETAIL
CREDIT PERIOD
CREDIT PERIOD
21 days for
hypermarket days for retail & shops
3.5weaks for big
shops.
7
7 days for small retail
shops.
Free Powerpoint Templates
Group No.-10
Page 24
Order Placing
Distributor¶s salesman visit shops twice in a week. Orders are also placed through phone calls. Orders are delivered on the same day or the next day.
Distributor¶s salesman visit shops twice in a week. Orders are also placed through phone calls. Orders are delivered on the same day or the next day. Small retail shops often take chocolates from whole sellers.
Free Powerpoint Templates
Group No.-10
Page 25
Incentive
Extra margin provided by the distributor. Free cooling units and display. Free visicoolers.
Extra units of chocolates. Free visicoolers.
Free Powerpoint Templates
Group No.-10
Page 26
Logistics
Distributors take care of the logistics. Insulated vans as well as small pick up trucks are used for delivery. Distributor¶s logistics. Insulated vans & small pickups are used. Bicycles are used for delivering stocks to the small and unserved retail shops.
Free Powerpoint Templates
Group No.-10
Page 27
Visit
Sales force of distributor visits 2-3 times a week. Visual merchandiser visits once in a week. Distributor¶s staff visit twice in a week. Visual merchandisers visits after every 2-3 weeks.
Free Powerpoint Templates
Group No.-10
Page 28
Promotional Tools
POP materials are provided by the company and the distributor. Small & attractive cooling units provided by the company. POP materials are provided by the company and the distributor. Laid back attitude.
Free Powerpoint Templates
Group No.-10
Page 29
Conclusion..
Dairy milk was the most preferred (Both by adults & kids) & Sold brand as said by 8 to 9 retailers followed by Munch, Five star, Kit-Kat and so on.
Selling at price points was a huge advantage as many customers asked for 5 Rs. 2 Rs. Chocolates and felt easy to pay change
There was lot of brand loyal customers for Bar One and Milky Bar who specifically asked for these brands. (E.g. There is a customer in complete bazaar who buys 10 Bar One chocolate every day regularly. Some college students bought Milky Bar)
Free Powerpoint Templates
Group No.-10
Page 30
Conclusion..
Retailers look at the profit margin and decides what to & what not to keep near the counters and otherwise in case of space constraints.
Nestle Assets were not monitored properly by merchandisers as it is done for Cadburys. There were lot of other products kept inside Nestle..
Free Powerpoint Templates
Group No.-10
Page 31
Continued..
There was more branding and shelf space for Munch (50%) and Kitkat (30%) compared to other chocolates like Bar One, Milky Bar.
When there is no proper plan in place for shelf arrangement of chocolates, It is done on the basis of eye sight of the Target Customer. -Lower rack with Milky Bar, Gems, Kinder Joy etc. -Middle rack with Munch, Kitkat, Dairy Milk etc. -Upper rack with Bar one, 5 Star, Bourneville etc.
Free Powerpoint Templates
Group No.-10
Page 32
Continued..
The target sales of each Distributors is set based on the routes they are selling but promotional schemes were the same. Some retailers said Cadbury¶s schemes (Bulk purchase offers) are good compared to Nestle (Though percentage margin is almost same), Hence they prefer keeping Cadbury¶s products in the available space for chocolates. Some customers buys Munch & Kit Kat bulk/family packs regularly and hence order for Munch boxes & Kit Kat family packs is high compared to other chocolates.
Free Powerpoint Templates
Group No.-10
Page 33
Continued..
Considerable amount of shelf space is given to chocolates like Snickers, Ferrero, Delfi, Bounty, Mars etc. almost equal to that of Nestle chocolates when kept in common racks Some kids of age range 4-6 years recognize the chocolate brand names or any names related to the brand name Super markets had lot of imported chocolates including some of Nestle brands Chocolates with different type of packaging and the different type of racks/dispensers used for displaying chocolates & other products attracts more customers (Impulse purchase increases there by). Free Powerpoint Templates
Group No.-10
Page 34
Free Powerpoint Templates
Page 35
doc_362110656.pptx
