DISTRIBUTION CHANNEL

STRATEGY
A002 Rahul
Rahul Agarwal
Agarwal
Group 3 A002

Whirlpool

A005 Mona
Mona Arora
Arora
A005
A017 Shashwat
Shashwat
A017
Gupta
Gupta
A044 Rohit
Rohit Ratan
Ratan
A044
A048 Love
Love Saxena
Saxena
A048
A050 Nitin
Nitin Shaw
Shaw
A050

INDUSTRY & COMPANY

OVERVIEW
WHIRPOOL
INDIA

FMCD
INDUSTRY
White
- AirGoods
Conditioner
- Refrigerator
- Washing
Machine
- Sewing
Machine
- Clocks &
Watches

Brown
Goods
- Microwave
Oven
- Electric Fan
- Grinder
- Iron
- Mixer

Share in Consumer Durables Market in India

Consumer
Electronics

- TVs
- PCs
- Mobile
Phones
- Digital
Cameras
- DVD Players

Challenges in India

Tax and duty

structure

35%
Urba
n

65%

Limited scale and

increasing
competition

Refrigerat
or

Washing
Machine

Air
Condition
er

Other
Applianc
es

62
%

21
%

6%

10
%

Capital intensive
Infrastructure
deficiency

DISTRIBUTION CHANNEL STRATEGY - GROUP 3

DISTRIBUTION
STRUCTURE

Factory

Institutional
sales

E-zone,
Croma,
Vijay sales

CFA

G30

Modern Trade

National
accounts

Categ
ory

Wholesale

Mostly
exclusive
Whirlpool
brands Number of
Sal
es
outlets

65%

15%

20%

20%

15%

65%

DISTRIBUTION CHANNEL STRATEGY - GROUP 3

Distributors

Direct
dealers

Sub dealers

Urban
A

Small shops in
rural
3

DEPLOYMENT - CHANNELS &

PARTNERS
1. CFA: Carrier and Forwarding Agency/Agent
The company divides the Indian market into 5 Zones, i.e. North, East, West, South and Central
Company has got 18 sales branch offices in India which have in turn got 1 CFA each
The manufacturer will have the contact with the C&F to give the products to the wholesaler from
there it reaches to retailer and then to customer
Company markets its products through CFAs who further provide the goods to the Direct
Dealers; who can also source the products directly from the company

2. Independent Distributors & Dealers

60% of the sales at whirlpool is done through distributors, while remaining 40% is undertaken
by direct dealers
Direct Dealers generally stock Washing Machines, Refrigerators, Microwaves,
Air Conditioners, TV, Music Systems, Mobile Phones etc. of different brands
Direct dealers are important as there are some stores where Whirlpool has to be
present so as to have superior business relationship with customer
The distributor margin is around 3.25% and dealer margin is around 1.25%
Distribution Network of
Whirlpool
DISTRIBUTION CHANNEL STRATEGY - GROUP 3

DEPLOYMENT - CHANNELS &

PARTNERS

Modern Trade
Cromis anIndianretail chain
for consumer electronics and
Ezone has its presence at stand-alone stores
durables and its latest online
and the online vertical www.ezoneonline.in.
vertical, www.cromaretail.com

Institutional
Largerbuyers(such as hotels, hospitals,
schools, and universities) whopurchase
market
goods and servicesfor use in theproductionof their owngoods or services.

Wholesale
Wholesaling,jobbing, ordistributingis the sale of goods
ormerchandisetoretailers; toindustrial,commercial,institutional, or other
professional businessusers; or to other wholesalers and related subordinated
services.In general, it is the sale ofgoods to anyone other than a
standardconsumer.
DISTRIBUTION CHANNEL STRATEGY - GROUP 3

SALES
STRUCTURE

Senior
Director
Sales
Director
Regional
manager
Branch
manager

Branch sales
manager
(BSM)
ASMs (around 67)
1 for G30
1 for MT
Rest for Districts

Branch
marketing
executive
(BME)
RSO
regional sales
officer

DISTRIBUTION CHANNEL STRATEGY - GROUP 3

Branch
commercial
manager (BCM)

Branch services
manager (BCM)

DSO distributor
sales officer
(employed by
distributor)
6

ROLES &
RESPONSIBILITIES
DSO

RSO

ASM

BSM

Not much intellect needed

Should cover beats
Goes takes orders and nothing more than that
Does collections work (cash, cheque etc.)
Salary around 8000 per month
Paid by the distributor
Earns around 15000 per month
RSOs
Routine
Ground
interaction with the dealers
High
Goesrisk
to the
distributor
checks
inventory
zone
in convincing
the the
dealers
Goes
Then to
asks
the ASM
dealers and
he needs
to visit
thattoday
existing
andabout
new dealers
convinces
them
buy
whirlpool
Goes to the
dealer locations
products
Goes
Talks about
products
USP, in
better
than competitors, the credit
twice to
each dealer
a month
Goes
periods,
cash discounts
theper
margins
to around
5 dealerand
places
day spends close to an hour
per
dealer
For eg,
a C-class sub-dealer buys say 3 fridges after the sales call.
Reports
The RSOtocomes
the ASM
back to the distributor and the distributor then sends
Given
a mail 600
to the
for the order.
The order is taken on a SAP
perbranch
monthoffice
for telephone
expenses
250
platform
for travel
Manages
RSOsper day
Monthly meetings and reviews
Customer relationship management
Meeting targets
Recruited from middle level MBA colleges or experienced RSOs are
promoted
Earns around 50k per month
Regional target achieving
Inter-territorial management
Allocation of resources
BSM is the one who gets in touch with all the ASMs and even the
RSOs - he teaches RSOs what to do, how to talk, how to solve
problems etc.

DISTRIBUTION CHANNEL STRATEGY - GROUP 3

Thank You