Beruflich Dokumente
Kultur Dokumente
Channel of Marico
Group C6
Avishek Nayak 11P188
Henna 11P194
Prateek Maheshwari 11P211
Vaibhav Sharma 11P235
Vikram Agrawal 11P237
Marico (Company Overview)
One of the India's leading Consumer Products & Services companies in the beauty
and wellness space
During 2010-11
Turnover of USD $ 695
Revenue grew by 17%
Volume grew by 11%
Higher growth rate in rural market, share of rural sales revenues increased to 30%
Every year 70 Million Mario Consumer Products packs reaches 130 Million
consumers across 23 Million households, through its distribution network of more
than 3.5 Million outlets in India
Portfolio includes
Parachute Advanced Set Wet
Saffola Livon
Hair & Care Zatak
Nihar Manjal
Mediker Revive
Companys Distribution Channel
Companys Distribution Channel
(Contd..)
Manufacturer
Products are moved from 7 company
manufacturing units to depots in each state
Number of depots in each state is determined by
size of state. For example, Maharashtra and Uttar
Pradesh have multiple depots to cater the
demand of whole state.
ASM sits at Depot and handles the operations
Also helps in evading taxes on movement of
Marico goods from one state to another
Companys Distribution Channel
(Contd..)
From depots goods are transported to distributor across
various districts
Area Sales
Manager (ASM)
Distributor Sales Distributor Sales Distributor Sales Distributor Sales Distributor Sales Distributor Sales
Representative Representative Representative Representative Representative Representative
(DSR) (DSR) (DSR) (DSR) (DSR) (DSR)
Sales Force (Contd.)
Salesman are known as Distributor Sales
Representatives, they are on company payroll
and incentivized by Marico itself
Their targets and daily beats are set by
Territory Sales Officer (TSO)
TSO deals with distributors on daily basis,
address their concerns and report to Area
Sales Manager.
Distribution Channel in Rural Area
The rural channel is 5 level channel market
Wholesaler is added between distributor and
retailer to cater the largely the segregated market
The Stock is moved from the Company Depot to
the Super distributor from where it is moved to
the Wholesaler who delivers the goods to the
retailer
The wholesaler is appointed by company itself
and it caters to a cluster of village
This helps in increasing penetration and also its
cost effetive
Sales Force
Area Sales
Manager
(ASM)
Rationale:
Since these are the premium brands of the company, the company needs to create pull for these
products. Promotion has to be effective to ensure that awareness is created about the product.
Rationale:
Modern trade is growing in India at a fast pace, especially in urban channels. With the possibility of
FDI in multi-brand retail being allowed in India anytime soon, Modern Trade just cant be ignored
and these big retailers will continue to use their bargaining power to extract discounts from the
FMCG companies. However, retailer channel will continue to be a very important channel in future in
the Indian context. So in this situation when Marico cant afford to antagonize any of these channels,
a possible solution could be to offer more schemes to the retailers so that they dont feel that they
are at a disadvantageous position
Rationale:
Theft is a serious problem and should be dealt with seriously. Making the distributors jointly liable
for the theft will make them responsible and would reduce the occurrence of such cases. This step
would force distributors to act to identify the gaps and do the necessary
Rationale:
Since the company needs to be aware about the market realities, trends and what
the competitors are doing, information flow is critical and the above suggested
measure should be implemented.
Rationale:
This exercise will reduce the risks associated with extending the credit facility
Rationale:
It will specify different price for the same product in different areas which will legally
restrict arbitrage.