A PROJECT REPORT ON SALES AND

DISTRIBUTION STRATEGY OF

Submitted by: Sahil Garg

Roll no: 18PGDM-BHU065
Section: B
DISTRIBUTION STRATEGY
Whirlpool is one of the biggest producers and marketers of home appliances in the world. It
has numerous brands working under it with the assistance of in excess of 100,000 employees.
The organization has in excess of seventy research focuses in various parts of the world for
innovation and assembling purposes. To advance with evolving times, it has chosen to solidify
its different structures and has replaced a portion of the old distribution centres with new
facilities that are energy efficient and better.

The supply chain channel of the organization has eleven plants in Europe, twenty in North
America, three in Latin America and six plants in Asia. The distribution channel comprises of
warehouses that fill in as dissemination focuses of processing plants, areas and regions. The
organization wanted to make a system that would guarantee to ensure on time deliveries to
clients and for that, they required a sorted-out distribution channel. The organization has even
replaced a portion of its trucks that worked on fuel ignition to electric units. In India, it has an
assembling plant in Faridabad and another at Ranjangaon that produces refrigerators. It has
sales offices that have CFA specialists who send the items to the immediate dealers. All
whirlpool items are accessible at different outlets and additionally in other retail shops,
shopping centres, and big showrooms. Internet has additionally turned into an essential medium
for the purchase and selling of whirlpool items.

Distribution Network

SOURCE MANUFACTURING
UNITS

CARRYING AND
TRANSIT DISTRIBUTORS FORWADING
AGENTS

STOCKING SUB-DEALERS INSTITUTIONS DIRECT DEALERS

DESTINATION CONSUMER

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 REQUIREMENTS THAT WHIRPOOL NEEDS IN ORDER TO GRANT SOMEONE A
DEALERS LICENESE

 STRATEGY

Whirpool divides the Indian market into 5 Zones i.e. which are North, South, East, West and Central.
The company have18 sales branch offices in India which have in turn got 1 CFA each. The company
market its products through CFA’s who further provide the goods to the Direct Dealers. The Direct
Dealers can also source the products directly from the company. Another alternative channel is selling
through the Sub-dealers who in turn source their products from either the Distributor or the Direct
Dealers.

 KEY PLAYERS

 Zones
 Distributors
 Cfa
 Direct Dealers
 Sub Dealers
 Consumer

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Distribution Channel and Pricing
Whirpool divides Indian market into 5 Zones, i.e. North, South, East, West and Central. The
company have got 18 sales branch offices in India which have in turn got 1 CFA each. The
company market its products through CFA's who further provide the goods to the Direct
Dealers. The Direct Dealers can likewise source the products directly from the company. An
Alternative Channel is offering through Sub-Dealers who thus source their products from either
the Distributors or the Direct Dealers.
Whirlpool’s Distribution Network:
Manufacturing
Units

Distributors CFA

Sub Dealers Institutions Direct Dealers

60% of sales at Whirlpool is done through Distributors while rest 40% is undertaken by direct
dealers. Distributors are preferred as they increase the company's reach into the rural markets
as well reduce as the risk exposure of the company by providing credit worthiness. Direct
Dealers are also very important as there are some stores where each of these companies have
to be present so as to have a superior business relationship with the customer. The distributor
margin is near 3.25% while the margin of dealer is near 1.25%.
There are 3 factories of Whirlpool which serve by providing the following goods
 Faridabad: Refrigerators
 Pune: Washing Machines, Refrigerators
 Pondicherry: Washing Machines
After Sales Service come out to be one of the largest concerns for dealers. There was a marked
difference in Net Landing Price between Dealers because of which small dealers were finding
it too difficult to survive against the big players.
Comparison with LG’s Distribution Network:
Unlike Whirlpool, LG has distributor appointed for each
of Dealer/ Sub Dealer. LG has fixed Net Landing Cost Manufacturing
for all the dealers and has kept a minimum price below Units
which any dealer of it cannot sell the product in the
market. This gives a competitive advantage to multi
Distributors
brand dealers selling LG.
LG follows network of both Exclusive Dealers and Multi
Brand Dealers. Element of Exclusive dealers is missing Retailers Institutions
in Whirlpool because the company does not manufacture
other Consumer Durables.

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SALES ORGANISATIONAL STRUCTURE
The organisational structure followed in Whirlpool India is Geographic segmentation based
on divisional structure in the top order followed by line and staff organisation.

Chairman and CEO

Mr. Arvind Uppal

Board of Directors
Mr. Sunil A. D’Souza
Mr. Anil Berera
Mr. Sanjiv Verma
Mr. Anand Bhatia
Mrs. Sonu Bhasin
Mr. A Hari Reddy

Executive Committee
Mr. Sunil A. D’Souza
Mr. Anil Berera
Mr. A Hari Reddy

Line and Staff Organisation

The line and staff organization refers to an organization in which two types of authority
relationships co-exist. They are Direct or Line authority and Advisory Authority.
Staff manager’s advice, support and serve line managers.
Following are the characteristics of the line and staff organization:
 Managers are of two types-Line Managers and Staff managers
 The line managers perform the functions of decision-making, issuing orders and
controlling while the Staff managers perform the functions of advising, assisting and
providing expert and specialized services.
 There is a unity of command

Divisional Organisation
A division is collection of functions working together to produce a product. The product-
based division at Whirlpool India has five divisions: Refrigeration, Laundry, Kitchen, Air
Conditioners and Purification.
Geographic structure:- divisions based on the area of a country or world served. In
Whirlpool, the area is divided into North America and Rest of the World.

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Whirlpool India has various touch points with the customers:
 Exclusive showroom
 Electronic goods’ retail outlets
 Franchisee/retailers
 After sales service centers
 Regional sales team
 E- Commerce (e.g. Snapdeal)

Chairman &
MD

Senior VP
Sr. VP. Sales &
supply chain
marketing
operations

Zonal VP sales
VP operations
& marketing

GM- Sales & GM- Business

marketing development

Zonal manager-
sales &
marketing

Assistant
manager- sales
& marketing

Sales manager

Sales executive

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Some findings at Whirlpool
• 60% of sales at Whirlpool is done through the Distributors while the rest 40% is
undertaken by direct dealers.
• Distributors are mostly preferred as they increase the company's reach into rural
markets as well reduce the risk exposure of the company by providing credit
worthiness in the shape of Distributors.
• Direct Dealers are also important as there are some stores where each of these
companies has to be present so as to have a superior business relationship with the
customer.
• The distributor margin is around 3.25% while the dealer margin is around 1.25%

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Impact of GST

The execution of GST is considered to be a hiccup in the short-term of 30-60 months due to a
2 per cent surge in taxes; but in the long-term, it will benefit the economy. Even during the
demonetisation period, Whirlpool India registered a 1.1 per cent growth in the December
quarter, ahead of the industry.

Whirlpool foresees a growth momentum in white goods sales in the next 12-18 months,
thanks to implementation of the Central Pay Commission and good progress of monsoon,
believes the company management. These factors are expected to increase peoples’
disposable income levels, which will in turn reflect in the sales of consumer durables.
Besides, the lower penetration of refrigerators (20 per cent) and washers (8 per cent) in the
country also gives the firm the hope of garnering a better sales margin in the days to come.

The company, with a turnover of ₹4,400 crore, has already registered a 16 per cent growth
nationally up to March. They continue to see this positive momentum in the current fiscal
year. Irrespective of 2% hike hue to GST, the company is hopeful to do better than last fiscal.
On the sidelines of the launch of a new range of premium products ahead of the festival
season by Whirlpool India.

The white goods sales in the country has already posted a strong single-digit growth, after
registering a decline in the last few years. The growth is expected to continue further and will
translate into a double-digit one shortly. Owning the positive growth, not just Whirlpool but
also other players in the consumer durables industry do not show negative impact by GST.

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