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Case Facts
O Well established company with market leader in all respective
brand categories.
O 6 Product Groups :
- Soft Drinks : 250ml & 500/1ltr Pet Bottle - Ice creams : Bulk & On premise Packs - RTE Foods : Modern retail & Catering.
O Got distributors for 5 product groups and only sales person for
Modern retail.
Case Facts
O The current distribution network and sales force are very well
established.
O The Distributors own the transports, i.e. van and the company
to 1
O The distributor's are just acting as financers and not working on
Problem
O The Distributors are not leveraging their primary duty of re-
distribution, its the company salesman who takes care of that part which isn't good for company.
O The role and responsibility of salesman as well as even though the
salespersons are from same company but the each category salesman never vest any interest in case they find any abrupt in their other product category products. Example:- Mis-use of cold storage by the retailer was ignored by the soft drink salesperson even though he knew its from same company and being mis-used.
O How should the sales and distribution re-organized and maintain
Suggestions/Solution
O The Distributors should be clearly instructed and mentored about
what their primary responsibility is, the name distributor itself means Distribute and here the distributors are shifted away from this responsibility and thus they should take care of it henceforth.
O The Current span of control is very lenient and thus it should be
changed to at least 1 salesperson to 3 distributors, event though this step will add up to 2/3rd of Salesperson without any job ,but as a business prospective the company should inform the salesperson around 6months prior itself that there will be a cut in number of sales heads based on performance with respect to long term prospect of business.
about working for the companies welfare and not with the habit of treating only designated product category as their sole single responsibility. For Example Next time if they notice any retailer mis using any of the company goods then they should voluntarily instruct the retailer to re-correct their actions and as well inform the respective product category head about the Conduct by the retailer.
Thank you