Beruflich Dokumente
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Project Mentor : Samir Sikroria ,Area manager , Ganesh Maurya , Area executive, Marketing , ITC Ltd., Gurgaon. Prof. Satya prasad IBS , HYDERABAD Submitted by: Abhishek Pathak
Presentation Plan
Understanding the Sales And Distribution Chain Dynamics involved in a Sales negotiation Tracking Sales loss Across South Delhi Methodology implemented
Findings
Recommendation
AE
Wholesale Distributor
AE
Supervisor
Supply Chain
Salesman
Channels
Grocery , Bakery , Chemist ,Fancy Stores , Consumption Centre Convenience , Hawker, ,HORECA , Wholesale
Salesman
Supervisor
Salesman
Wholesale Distributor
AE
Supply Chain
Salesman
Channels
Grocery , Bakery , Chemist ,Fancy Stores , Consumption Centre Convenience , Hawker, HORECA , Wholesale
Supervisor
Salesman
Load Adequate Stock , Merchandising Material Carry Pending Bill , Rack Cleaning Material , Bill Book
Coverage
Check Stock On Hand , Expiry Stock , DND Inform Previous week sales , Suggest Purchase Quantity
Quality of Service
Sales Value/Volume
Confirm Order , Cut the Bill Deliver Order Clean Rack , Rotate new stock on rack , Hang Ladis Exchange DND .
Sales Deliverables
Line Cuts
Productivity
Merchandising
Bill Cuts
4
Inefficiencies in Loading
Loading Sale Negotiate Merchandising DND Collection
Delivered
Stock with DS
Stock at WD
Loading
Sale Negotiate
Merchandising
DS pushes available stock Maximize sale value , bill cuts, lines cut Retailers capacity to pay
SKUs Available
Retailers Push
Prefers high selling SKUs Prefers more credit & variety Induces Sales Cannibalization
SKUs Demanded
Demand
Salesmans Push
Supply
Inefficiencies in Merchandising
Loading Sale Negotiate Merchandising DND Collection
Stock Check Hanging Ladis Arranging on rack New Stock Rotation on rack
Expired stock Air out Packets Unsold / Obscured packets in stores Lost visibility
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298376
Average Daily Actual Sales of Rs. 6917 Low Billed Outlets Coverage 30.71% Across 90 routes , 2000+ outlets , 2 WD points Expected Daily Sales of Rs. 8616 per DS High Average Daily loss of Rs. 1798 per DS Huge Demand Supply Mismatch Stock Unavailable Stock out 0.01% Sales loss of 20.5%
Routes covered
Avg daily actual sales 10000 8000 6000 4000 2000
BIN TU 8 7468
GA UR AV 8 8024
DE EPA K 6 8687
LU CKY
WD Avg. 48 8380.1
Hybrid distribution model SHAKUJA SONS HIGHLIGHTS Two routes clubbed together in one day Alternate day cycle of Order Day (OD) and Supply Day(SD) Visibility of DS is just doubled per route No of outlets covered increased in one day. 14 day average : Inc Sales , inc bill cut HYBRID MODEL WEEKLY PLAN
DAY 1 ORDER BOOKIN G DAY 2 DELIVER Y DAY 3 ORDER BOOKING DAY 4 DELIVERY DAY 5 ORDER BOOKING DAY 6 DELIVERY HAUZRA NI KHIDKI EXTENSI ON KHIDKI EXTENSIO HAUZRANI N SEKH SARAI SEKH SARAI HAUZKH AS HAUZKH AS
SAKET
SAKET
AV G D A I LY 22/ROUTE AV G D A I LY 38/ROUTE,
OUTLETS OUTLETS
COVERED COVERED
Retailers expectation and satisfaction level ( phase -2) Sampling Method field work 900 + retailer stores covered 72 respondents Data collection Primary data: Questionnaire. Observation and Interview technique.
Secondary data: Information is collected through company websites, various Bingo advertisement and marketing websites. From various text books. Journals and magazines.
10
11
69 58
Percentage (%)
sales assessment
60 50 No of stores 40 30 20 10 0 Lays Percentage (%) No of stores 70.83% 51 Bingo 26.38% 19 Bala ji 0 0 Parles wafers 0 0
Uncle chips 0 0
Merchandising activity
35 30 No of stores 25 20 15 10 5 0 No. of retailers Percentage (%) Excellent 4 5% Good 35 49% Fair 29 41% Poor 4 5% Very poor 0 0%
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Contribution in sales
Less than 5% Between 5-10% Between 10-20%
32%
44%
No. of retailers
Demand 51 70.80%
Margin 10 14.20%
Advertiseme nt 0 0
TOTAL 64 100
Satisfaction rating
40 35 No of stores 30 25 20 15 10 5 0 Percentage (%) No. of Retailers Highly satisfied 5% 3 Satisfied 54% 39 Neutral 30% 22 Dissatisfied 11% 8 Highly dissatisfied 0 0
Hypothesis testing
1. Issue: Contribution of ITC products to the total sales of retailers. 15 H0: Contribution of ITC products to the total sales of more than 50% retailers is below 10%. H1: Contribution of ITC products to the total sales of more than 50% retailers is more than 10% Using Z test can prove this Computation of Z value Z= P-P/ sigma P P=0.50 q = (1-P) =0.50 N=72 (N-1) =71 Where P= X/N = Respondents favoring Ho Total sample size P=44/72=0.61
= 0.059
k0.05 = 1.64
Acceptance region
Rejection
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H0: More than 70% of retailers are satisfied with the availability of ordered stock. H1: Less than 70% of retailers are satisfied with the availability of ordered stock Using Z test can prove this Computation of Z value Z= P-P/ sigma P P=0.70 (1-P) =0.30 N=72 (N-1) = 71 Where P= X/N = Respondents favoring Ho Total sample size P=39/72=0.54 Sigma P= P (1-P)/ (N-1) = 0.054 Z= (.54-0.70) /0.00406 Z = - 2.96 K=1.64 (referring table value of Z)
Dissatisfaction with the schemes and discounts in collection of feedback and list out the queries of retailers Many of the retailers are not satisfied with the sales representative
Most of the retailers are expecting schemes and offers for retailers and they are dissatisfied with their margin. For a great margin they sometimes purchase the product from the local wholesalers which might cause to generate sales loss.
Most of the outlets are satisfied with the merchandising activity. It has been found that most of the retailers place the order every week and once in 15 days .It shows that many of the retailers frequently place the order i.e. means the products are market viable.
Recommendation
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Retailers viewed that display of the products has influenced their sale and many people in some areas recognize the product not by its name but by its external appearance. As it is suggested that merchandising activity should be extended to all General retailers. Modernization and standardization of retailers network must be carried out in order to exchange ideas on successful selling strategies and identifying areas of improvements Sales through Services and a Retailer Development Program must be carried out. It is likely to advise to the sales representative, to give an opportunity to retailers to put their point of view during visit. Still few of the retailers choice of stocking depend upon the factors like margin, schemes, discounts and offers. It attracts bulk orders to distributor. Distributor must be taking care of satisfaction of retailers in respect to above given factors. Distributor should maintain stock of all ITC products. General discount and incentive from the company. periodically review the performance of their retailer
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