Description
Established in the year 2003, in the capital of Eastern Region of Nepal , Biratnagar, The First Direct Marketing Company in the Eastern Region of Nepal
CHANNEL MANAGEMENT PROJECT
CONTENTS
?About the Company
?Current Positioning of the Company
?Channel Structure
?Channel Functionality
?Channel Financial Aspect
?Challenges
?Future Look Through
?Geography of Nepal
?References
ABOUT THE COMPANY
?Established in the year 2003, in the capital
of Eastern Region of Nepal , Biratnagar
?The First Direct Marketing Company in the
Eastern Region of Nepal
?Started with three products : Talcom
Powder, Herbal Tea, Herbal Shampoo from
the manufacturer : Jeeva Nepal
CURRENT POSITIONING OF THE COMPANY
?Cause of PESTLE Effect
? Company’s growth was affected by the political
transformation in Nepal
?Currently, the Channel has grown in size being at
the other geographical locations : Biratnagar,
Itahari, Dharan, Damak, Birtamode, Dhankuta,
Illam
?Each Channel Office comprising of ,
? Manager
? Tour Manager
? Trainer
? Sales Agents
CHANNEL STRUCTURE
Of Eastern Region , Nepal
Manufacturer
Head Office:
Distributor,
Biratnagar
Regional :
Sunsari
Regional: Mechi
Regional: Hilly
Itahari Dharan
Damak
Birtamode
Dhankuta
Illam
CHANNEL FUNCTIONALITY
? Sole Supplier Distribution : Jeeva, Nepal
? The products are supplied to each of the distribution from the
Head office distributor in Biratnagar
? Under each region, there at the most 7 places ( including cities
and sub-urban places) assigned for sales.
? No overlapping Sales Mechanism thus avoiding the Conflict of
Operation
? Sales Agents are School Passing qualified personnel , training
is given by the Trainer on aspects as,
? Negotiation Skill
? Sales Skill
? The action of Sales force is assisted by the advertising from
HQ and Regional Office.
CHANNEL FINANCIAL ASPECT
? Cost borne by each level,
? Head office – Logistics cost upto the Zonal Level , Advertising Cost
? Regional office – Advertising Cost, Infrastructure cost upto the Zonal
level
? Zonal office – HR cost, Sales tour Cost
? Final Price of sale from Sales Agent ________________
? Say, Manufacturer Set Price to HQ = NRs.100/-
? Manufacturer keeps 40% margin, thus new price = NRs.140/-
? Regional Office keeps 30% margin, thus new price = NRs. 170/-
? Zonal office keeps 20% margin, thus new price = NRs.190/-
? Each Sales Agent is gen 5% margin, thus new price = NRs.195/-
? Final Price of sale from Sales Agent ___NRs 195/-__________
? NRs. Implies Nepali Rupee, only domestic market operation of the
company, 1USD = NRs.76.7 as of 5
th
july 2009.The above price is of
per unit.
CHALLENGES
?High Attrition Rate of Sales Agent
?PESTLE problem
?Conflicts at the Zonal level of Operation
?Logistics Problem : Koshi Flood in June
2007
?Flow of information from Sales Agent to HQ
for the product development as customer
desired is not properly communicated
FUTURE LOOK THROUGH …
?HQ is considering to launch Weekly News
Paper to bring out the elasticity approach to
establish in PR and for the product sales.
GEOGRAPHY OF NEPAL
REFERENCES
? Nepal’s Map : www.himalayanjava.com/map.html
doc_461392006.ppt
Established in the year 2003, in the capital of Eastern Region of Nepal , Biratnagar, The First Direct Marketing Company in the Eastern Region of Nepal
CHANNEL MANAGEMENT PROJECT
CONTENTS
?About the Company
?Current Positioning of the Company
?Channel Structure
?Channel Functionality
?Channel Financial Aspect
?Challenges
?Future Look Through
?Geography of Nepal
?References
ABOUT THE COMPANY
?Established in the year 2003, in the capital
of Eastern Region of Nepal , Biratnagar
?The First Direct Marketing Company in the
Eastern Region of Nepal
?Started with three products : Talcom
Powder, Herbal Tea, Herbal Shampoo from
the manufacturer : Jeeva Nepal
CURRENT POSITIONING OF THE COMPANY
?Cause of PESTLE Effect
? Company’s growth was affected by the political
transformation in Nepal
?Currently, the Channel has grown in size being at
the other geographical locations : Biratnagar,
Itahari, Dharan, Damak, Birtamode, Dhankuta,
Illam
?Each Channel Office comprising of ,
? Manager
? Tour Manager
? Trainer
? Sales Agents
CHANNEL STRUCTURE
Of Eastern Region , Nepal
Manufacturer
Head Office:
Distributor,
Biratnagar
Regional :
Sunsari
Regional: Mechi
Regional: Hilly
Itahari Dharan
Damak
Birtamode
Dhankuta
Illam
CHANNEL FUNCTIONALITY
? Sole Supplier Distribution : Jeeva, Nepal
? The products are supplied to each of the distribution from the
Head office distributor in Biratnagar
? Under each region, there at the most 7 places ( including cities
and sub-urban places) assigned for sales.
? No overlapping Sales Mechanism thus avoiding the Conflict of
Operation
? Sales Agents are School Passing qualified personnel , training
is given by the Trainer on aspects as,
? Negotiation Skill
? Sales Skill
? The action of Sales force is assisted by the advertising from
HQ and Regional Office.
CHANNEL FINANCIAL ASPECT
? Cost borne by each level,
? Head office – Logistics cost upto the Zonal Level , Advertising Cost
? Regional office – Advertising Cost, Infrastructure cost upto the Zonal
level
? Zonal office – HR cost, Sales tour Cost
? Final Price of sale from Sales Agent ________________
? Say, Manufacturer Set Price to HQ = NRs.100/-
? Manufacturer keeps 40% margin, thus new price = NRs.140/-
? Regional Office keeps 30% margin, thus new price = NRs. 170/-
? Zonal office keeps 20% margin, thus new price = NRs.190/-
? Each Sales Agent is gen 5% margin, thus new price = NRs.195/-
? Final Price of sale from Sales Agent ___NRs 195/-__________
? NRs. Implies Nepali Rupee, only domestic market operation of the
company, 1USD = NRs.76.7 as of 5
th
july 2009.The above price is of
per unit.
CHALLENGES
?High Attrition Rate of Sales Agent
?PESTLE problem
?Conflicts at the Zonal level of Operation
?Logistics Problem : Koshi Flood in June
2007
?Flow of information from Sales Agent to HQ
for the product development as customer
desired is not properly communicated
FUTURE LOOK THROUGH …
?HQ is considering to launch Weekly News
Paper to bring out the elasticity approach to
establish in PR and for the product sales.
GEOGRAPHY OF NEPAL
REFERENCES
? Nepal’s Map : www.himalayanjava.com/map.html
doc_461392006.ppt