INSTITUTE OF MANAGEMENT,

CHRIST UNIVERSITY
HOSUR ROAD, BANGALORE-560029

Sales Process Report for FMCG Industry

Analyzing and Understanding the Sales Process in the FMCG Industry.

Report Submitted To:

Prof. Suresh A.S
As a part of CIA 3 of Sales Management

Submitted By:

Arkojit

1527904

Viral

1527929

Sashank

1528025

Siddhi

1528055
Page | 1

Kushagra

1528117

Pallavi

1528148

Nithin

1528623

Jenish

1528630

Trimester: 3
Year: 2016

Table of Contents
Title

Page No

1. Industry Analysis.............................................................................................3
1.1 Introduction.......................................................................................................3
1.2 Industry Snapshot..............................................................................................3
1.3 Product Categories.3
1.4 Major Players in the FMCG Sector3
1.5 Latest Trends and Developments in the FMCG Industry..4
2. Sales Structure..4
2.1 Examination of the Roles and Responsibilities of Every Member.4
2.2 Gaining from the Analysis..5
3. Sales Force Hierarchy...6
3.1 Job Description...6
4. Permanent Journey Plan of Sales Force8
4.1 Daily Sales Activity8
4.2 Travel Plan..8
5. Incentives System for Sales force Motivation..9
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6. Annual Sales Plan Deriving Methodology...9

6.1 Sales Objective...9
7. Records and Reports.10
8. References....11

Industry Analysis
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Introduction
Fast Moving Consumer Goods (FMCG) are products which fulfill the day to day needs of a
customer. This includes all items that are purchased by people at regular or frequent intervals like
monthly or weekly. It mainly consists on products like toothpaste, shampoos, toilet soaps,
detergents, packaged food and other household items.

Industry Snapshot

The Indian FMCG sector is the 4th largest segment in the Indian economy and has grown at an
annual average of 11% over the last decade. The market size of this sector is expected to increase
at an annual rate of 14.7% to touch up to $ 110 billion by 2020. The rural market is also expected
to grow at an annual growth rate of 17.7% to touch $100 billion by 2025. Food products segment
accounts for 43% of the total market, followed by the personal care segment which accounts for
22% and fabric care segment which accounts for 12%. The key growth drivers for the FMCH
sector are the changing lifestyles, increase income levels, easier access and growing awareness.

Product Categories

The FMCG Industry has several segments such as Food and Beverages, Personal Care and
Household Care.
1. Food and Beverages segment includes Biscuits, Salty Snacks, Health Drinks, Aerated
Drinks, Cereals, Packaged tea and coffee, Chocolates etc.
2. Personal Care segment can be divided into oral care, hair care, skin care, cosmetics and
hygiene products.
3. Household care includes household cleaners, fabric cleaners and others.
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Major Players in the FMCG Sector

The top 5 Indian players in the FMCG segment based on Sales (Rs. In. Cr.):

Name
ITC
Hindustan Unilever
Nestle
Godrej Consumer Products Ltd
Britannia

Sales (Rs. In. Cr.)

38834
31972
9854
8276
7858

*Data source https://www.edelweiss.in/sector-snapshot/fmcg-industry.html

Latest Trends and Developments in the FMCG Industry

Increase in disposable income of the middle class and the upper middle class consumers in urban
markets has led to a shift in the purchasing trends from essential products to premium/branded
products. The millennial generation is also looking beyond a products basic utility. They are
more inclined towards the brand image and lifestyle associated to a particular product.
Technology is also playing an essential role in the growth of the FMCG industry and speed is
playing an important role when making purchase decisions. E-commerce/Internet has emerged as
an important source for buying because of the several advantages it offers. Technology has also
helped FMCG companies gain better customer insights and understand the customer needs.
Indian consumers are also increasingly focusing on healthy living. Health and wellness are the
new segments which are expected to grow at an annual growth rate of 10%.
Globalization and favorable Government policies like Foreign Direct Investment has lead to
large number of multinational corporations entering Indian markets and offering a large variety
of products, increasing competition, generating employment, improving standard of living and
increasing the purchasing power of consumers. This boom in the FMCG sector has lead to a
growth in the organized retailing in India which has led to easier availability and access of
FMCG products.

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Rural markets are expected to be the key drivers for FMCG products. Rural markets have been
growing at 16% as against the urban markets which have been growing at 12%. Also government
initiatives like National Rural Employment Guarantee Act, increase in minimum support prices
have helped boost the rural markets. Therefore several companies are coming up with low
priced value for money products to capture this market.

Sales Structure
Examination of the Roles and Responsibilities of Every Member
FMCG's have an all around characterized and entrenched sales system. It takes after the same
system in every one of the business sectors where it works in. The national sales supervisor
heads the whole sales process and the business group in a specific national business sector.
The organizations have very much characterized districts reserved that section the business
sector in view of geological divisions. Such regions are alluded to as zones and the organizations
have someone else as the zonal head or the zonal chief who reports to the national head. Every
zone is again subdivided into various zones which are under the control of local supervisors who
report to the individual zonal administrators.
The local administrator has various supervisors who care for various parts of offers in the
district. While the territorial chief partitions still littler fragments of the business sector in light of
topographical areas and are put under the zone sales administrators.
The zone sales supervisor is in charge of the genuine offer of the items through a large group of
different workers such as the region responsible for sales, the business partners and the
immediate sales agents. Then again, the local heads likewise take care of different parts of offers
like clients administration, frameworks backing and occasion administration through another
system of heads.

Gaining From the Analysis

The national head has the overall part of making the business sector and sales system for the
whole nation. The national head capacities in two ways:
While a few heads make a solitary system for the whole nation and takes after the procedure all
through the nation, different figure sales and showcasing methodologies as indicated by locales
and remembering the local needs, tastes and needs.
The zonal sales heads help the national supervisor in providing so as to make the national sales
technique different inputs about the business sector and the related business sector insight to
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shape the methodology. Data streams from underneath as the zonal administrators are helped
with the work of gathering data and knowledge by the provincial sales chiefs.
The parts and obligation of the territorial sales heads is two-fold. They participate in the
procedure development for sales in of the organization and they are likewise the ones who are
straightforwardly in charge of executing the organization sales technique o the ground. The range
supervisors posted under the territorial heads are the genuine hands and legs for the organization.
They alongside product head, sales collaborators and the immediate sales agents connect with the
wholesalers to survey request and guarantee supply of the items.
The local supervisor really goes into the field and co-ordinate and chat with the wholesalers and
different customers. They are the ones who push available to be purchased sand execute different
sales advancement techniques. The other assistive divisions of the business office help in
keeping up client relations.

Sales Force Hierarchy

National Sales
Manager

Zonal Sales
Manager

Zonal Sales
Manager

Zonal Sales
Manager

Zonal Sales
Manager

Zonal Sales
Manager

(North)

(South)

(East)

(West)

(Central)

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Area Sales

Regional Sales
Manager
Territory Salesman
Area Sales Admin

Job description
Job Position: Area Sales Manager
Reports to: Regional Sales Manager
Location: Bangalore
Key responsibilities:

Responsible for ensuring a good customer network within the area.

Can appoint and measure distributors whenever and wherever needed.
In charge of driving top line growth
Monitors channel and category wise performance for the territory.
Take care of major promotion activities within the area.
Step in and resolve customer issues whenever the sales force are not able to handle it.
Prepare the journey plan for the salesmen to follow
Appoint, monitor and motivate the sales force who directly report to the ASM
Make sure that the sales force has all the support needed
Ensure efficient maintenance of the supply channel and inventory management

Job Position: Regional Sales Manager

Reports to: Zonal Sales Manager
Location: Bangalore
Key responsibilities:

To manage channel sales and achieving growth in a given territory

Promoting the companys products in the assigned territory
Effective Implementation of the Marketing strategies for better sales performance within
the territory.
Good man management and developing them to enhance the sales.
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Ensuring the sales achievement on a positive track with corrective actions for better
results.
Recruiting, training and developing the subordinates at all levels.
Implementing the company guidelines and monitoring the same for better growth in the
market.
Coordinating with the various Area Sales managers for better results and performance on
a regular basis.

Job Position: Zonal Sales Manager

Reports to: National Sales Manager
Location: Bangalore/Chennai
Key responsibilities:

In charge of sales in the entire South India

Will be given complete responsibility for building a distribution channel, team and sales
program for the zone under control
Selecting Regional Sales manager
Set and Monitor the target achievement of each region
Create Annual Plans, budgets & forecasts to achieve business goal
Update the management with progress, achievements, deviations and targets.

Permanent Journey Plan

Daily Sales Activity
Date _______________
Sales Representative Name _______________

Name
Name
Date
of
of
Distribu Retai
tor
ler

Stoc
k

Area/Reg
ion

Orders Booked

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P1

P2

P3

P4

Total

Travel Plan
Date: ______________
Sales Representative Name __________________

Date

Day

Office/Client

Area/Region

Reporting
Manager

Objective
of the Visit

Incentive Plans
1. Commission Basis: 5%-8% commission for based on number of units sold and total sales
generated.
2. Bonuses: 7% commission of the target, if monthly target is over achieved.
3. Cash Bonuses for meeting the target and for client acquisition
4. Sales Man of the Month: Winner would receive a gift certificate/bonuses.
5. Sales Man of the Year: Holiday Package, Award, Certificate.
6. Performance Appraisal and Hikes based of overall performance

Annual Sales Plan Deriving Methodology

Sales Objectives
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Creating sales objective is to set a target in terms of the sales that is to be achieved in the coming
year. The target is set based on:
1.
2.
3.
4.

Sales of the previous years

Forecast by the sales force in their respective regions
Forecast by the channel partners based on their expectations of the market trends
Trends and market research reports

Review Target Market

The sales objective created are then presented to the heads of various departments and territories.
The teams discuss regarding the feasibility of the objectives and what are the extra efforts, policy
and procedure changes that are needed for achieving the targets.
Determine Sales strategies
The heads of the territories discuss and come up with strategies that can be utilized for improving
the sales of each territory, the commonly used strategies in FMCG segment include incentives to
retailers and wholesalers, wholesaler meet.
List Resources
Review your companys marketing plan to determine what types of resources you or your sales
team can rely on to help them reach their sales goals. Include both digital and traditional
marketing tools, such as brochures, sales fliers, a website, and using social media networking to
find and convince people to buy. Describe any internal promotions, such as sales contests your
company plans to offer to get your sales staff on board with your plan
Set tracking schedule
The sales objectives of the company leads to formulation of region wise targets, which further
helps in formation of territorial and individual objectives. The individual targets have to be
tracked and monitored in order to achieve the overall objective of the company.

Records and Reports

Distributor retailer should have retailer card, daily sales report with opening stock and
stock position in unit.
Trade loads and promotional activities letter with slabs and discount percentages.
Price list of all SKUs, M.R.P.S, retailer prices and margins.
Days target of each SKUs for the day.
Range selling target.
Volume and value target.
Running display incentive contest details.
Retailer agreement forms for the above.
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References

Chhabra, S. and Bhargava, J. N. (2015), TRENDCASTING FMCG SECTOR IN

INDIA, International Journal of Science, Technology & Management, Volume No 04,
Special Issue No. 01, Allahabad.

Indian Consumer Durables and FMCG Industry Analysis, In (India Brand Equity
Foundation, 2016)

FMCG Roadmap to 2020: the game changers, In (Confederation of Indian Industries,

2010)

Indian FMCG Industry, In (Action Financial Services Ltd, Bangalore, 2013)

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