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Slide 1: Master Sun Consulting: Sales & Distribution Services
Slide 2: Master Sun Consulting Difference  Connect vision with execution. We specialize in execution  We focus on achieving Progress & Outcomes and not on writing reports   Accountable, deliver measurable financial results End-to-end execution solutions provider along with partners  From Outsourcing to Pure Consulting, Fund Raising to IT  Put our money where our mouth is  For Long Term Projects open to low fees & high profit share  Focus on the building blocks of the organization  Processes, Systems, Practices & Procedures  Create a joint venture with the client’s management team  Steering Committee, Risk Management, Task Force  Work both top-down, bottom-up  Senior management to field staff. CEO to ‘Peon’  Cohesive strategy for integrating people  Competencies, Culture, Attitudes to Workplace
Slide 3: Strategy Execution (SE) : Likely Benefits Indicator Sales Volume Turnover Capacity Utilisation Productivity Process Efficiency TAT Performance Margin Overhead Yield/Quality Improvement Range 5-25% 5-30% 15-50% 20-50% 5-15% 5-40% 5-20% 5-40% 5-25% Indicator WIP Overtime Warranty Costs Labour Indirect Overheads Time to Market Brand Indicators Throughput New Product Development Improvement Range 10-30% 20-60% 15-20% 5-20% 15-25% 25-35% 5-25% 15-40% 10-20%
Slide 4: Strategy Execution Process Challenges the assumption that Strategy comes first, Execution Later Stage Health Check Plan & Pilot Rollout Institutionalization Activity Identification & definition of areas of improvement Development of solution and testing Implementation of solution across all units Institutionalization of the process Output Strategic Direction Executable Strategy Fine-tuned Strategy Sustainable Strategy
Slide 5: Strategy Execution: Building Blocks Success of Key Tasks X Impact of Drivers = Success of Strategy Execution Strategic Plan Health Check & Plan Alignment & Measurement - Balanced Scorecard Synergy : Org. Restructuring Leadership Sponsorship Goal-Setting Follow Through Right Man-Right Job People Capability Building Leadership Capability Productivity & Flexibility Continuous Improvement Linking HR to Performance Great Place to Work Systems & Processes Management Control Systems Process Design , Re-engineering Best Practices Standard Operating Procedure IT Strategy & Automation Change Management Minds Path Matrix Communications Attitudes & Climate Change Assessment Measurement Project Management Progress & Outcomes Estimating Scheduling, WBS Taskforce, MAT Risk Management
Slide 6: Sales & Distribution Methodology
Slide 7: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing   Make vs. Buy Alignment Channel Selection: Tradeoffs, Consumer Expectations, Acknowledged Dependency,Product Life Cycle
Slide 8: Make vs. Buy Alignment : Impact on Sales & Distribution Buy Classical Market Contracting Quasi-Vertical Integration (Relational Governance) How does the the work get done Make Vertical Integration Third Party Does it (for a price) Their people Their money Their risk Their responsibility You do it The costs Your people Your money Your risk Your responsibility You and third party share costs and benefits Their operation (control) Their gain or loss The benefits Your operation (control) Your gain or loss
Slide 9: Make vs. Buy Alignment: Impact on Sales & Distribution Market Contracting Selling (only) Manufacturers’ Representatives Independent Wholesaler Independent (3rd party) Stores Quasi-vertical Integration “Captive” Sales Agency Distribution Joint Venture Franchise Store Vertical Integration Company Sales Force (direct salespeople) Distribution Arm Company Stores Wholesale Distribution Retail Distribution
Slide 10: Channel Selection : Trade-Offs
Slide 11: Channel Selection : Consumer Expectations From Channels Consumer Durables Reach Lot size Delivery time Product variety Service back up Quality of selling Buying decision Influence of channel Moderate Single units One day Moderate Very high Very high High involvement High Consumer Non Durables Very high Single units Immediate Moderate / High Negligible Not much Low involvement Negligible
Slide 12: Changes in Life Cycle and Channels:Designer Apparel Utility Added by Channel High Introductory Stage Boutique (e.g., service utility) Low Declining/ Death Off-price Outlets (e.g., convenience utility) Low Market Growth Rate Growth Stage Mature Stage Merchandisers (e.g., lot size utility) High Better Department Stores (e.g., selection utility)
Slide 13: Factors Influencing Marketing Channel Strategies Characteristics of Short Channels Characteristics of Long Channels Consumers Geographically diverse Little technical knowledge and regular servicing not required Small orders Durable Standardized Inexpensive Market factors Business users Geographically concentrated Extensive technical knowledge and regular servicing required   Product factors Large orders Perishable Complex Expensive
Slide 14: Factors Influencing Marketing Channel Strategies Characteristics of Short Channels Characteristics of Long Channels Manufacturer lacks adequate resources to perform channel functions Producer factors Manufacturer has adequate resources to perform channel functions Broad product line Channel control important Limited product line Channel control not important Manufacturer feels dissatisfied with marketing intermediaries’ performance in promoting products Competitive factors Manufacturing feels satisfied with marketing intermediaries’ performance in promoting products
Slide 15: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Sales Strategy Framework Sales Management Control System SPIN Approach To Selling Sales Force Management Incentive Planning Sales Meeting & Everyday Effectiveness
Slide 16: Sales Strategy Framework Buying Situation Account Targeting Strategy Buying Center Organizational Buyer Behavior Relationship Strategy Sales Strategy Account Salesperson Buying Process Sales Channel Strategy Buying Needs Selling Strategy
Slide 17: Sales Strategy  Account Targeting Strategy  Classify accounts so you can develop strategic approaches for selling to each category Possible basis for classification:     Account size Account potential Desirability of the account  Selling Strategy  What approach will you use to establish the relationships that you decided on above? What type of sales presentation would you use to build a transactional relationship? What type of sales presentation would you use to build a collaborative relationship?  
Slide 18: What Makes Up The Sales Strategy  Relationship Strategy    What type of relationship do you want to establish with each of the above categories  Transaction relationship?  Solutions relationship?  Partnering relationship?  Collaborative relationship? The closer the relationship, the higher the costs! For example …  What type of relationship do you want to have with “C” level accounts (small size, slow growth)?  How about “A” level accounts (important, large customers)?
Slide 19: Sales Management Control System-Example Forecast Mission, Vision, Corporate Values, Group Policy Plan Control Report BC members Resource Planning Financial Budget Corporate policy Five Year Business Plan Review of annual Sales plan Annual sales Report Sales/ Mkt Head Annual Business Plan Annual Operating Plan Review Action Log Quarterly sales Plan Quarterly Sales Report Review Action Log Monthly sales Plan Business head Forecast Last year performance Marketing Info Sys Monthly Score Card Seg.Head Review Action Log Weekly sales Plan Cumulative Weekly Score Card Sales Force Census Contact Strategy Weekly Contact Plan Check List Daily Activity Control Sheet Daily Score Card
Slide 20: Spin Selling –Needs Creation Selling SPIN - an easy way to remember the basic model and process for 'needs-creation selling' S - Situation P - Problem I - Implication Discuss, understand or explain the situation with the prospect Next identify the problem that exists or could arise. Explain, discuss or understand the implication of the problem for the prospect's business (i.e.., what organizational improvement can potentially be achieved) N - Need This effectively creates a need or opportunity to rectify the problem (with the sales person's product/service).
Slide 21: Sales Force Management Framework Recruiting/Selection Objectives Realism Training Objectives Initiation to Task Person Outcomes Task Specific Self -Esteem Job Outcomes Job Satisfaction Job Involvement/ Commitment Congruence Role Definition Resolution of Conflicting Demands at Work Performance
Slide 22: Incentive Planning-Approach         Pure Commission Quota Territory Share Goal Share/Share Change Relative Measure Relative Rank Flat Rate  High Motivation High ROI   Low Motivation Low ROI
Slide 23: Understanding the Continuum of Incentive Plans  Since the pure commission plan has the highest potential ROI and the highest Motivation effect why would we not use this in all cases?   This plan at the top of the continuum only work when the forecast is perfect.  If the plan is under-forecast the corporation can largely over pay.  If the plan is over-forecast the sales force will quickly become unmotivated. A variance of more than 15% in the forecast can cause drastic over or underpayments.  Most commission plans do not have a linear payout and consequently 15% low in share or units can result in 30% low in payout. And vice versa.
Slide 24: Productivity Study : Day in the Life Of Salesman  How the salesman actually spent the day A full day in the life of a salesman studied & time spent on   7% 1% 23% 7% 23% 39% Active Selling Delivery / Order Taking Administration    Travelling How the salesman thought he spent Available Passive Selling the day 55% 10% 10% 15% 10%  Active selling Passive Selling Administration Delivery Order Taking Traveling Available/Free Reality Perception Ideal  Active Selling the salesman would likeTaking Delivery / Order to spend Administration How the day Travelling Passive Selling Available Comparison of    50% 10% 15% 15% 10%  Active Selling Administration Passive Selling Delivery / Order Taking Travelling Available Diagnosis of sales man’s productivity & alignment to business needs
Slide 25: Selling Execution: Salesman Checklist Compliance 15% 67% 69% 68% 100% PREPARATION BUILDING THE RELATIONSHIP IDENTIFYING THE NEEDS AND OBJECTIONS CLOSING THE DEAL ADMINISTRATION Complied Not Complied  Pre-meeting, Meeting & Post-meeting issues analyzed on  Preparation, Building relationship, Identifying needs & objections, closing & administration  Diagnosis of sales man’s selling effectiveness & alignment to business needs
Slide 26: Sales Audit : Sales Meeting Effectiveness Sales Meeting Effectiveness Asking questions Listening Qualifying (the opportunity for both parties) Discovering hot buttons (wiifm-what’s in it for me) Building rapport Establishing trust Developing credibility Developing a valuable relationship Addressing objections Planning next action steps Confirming understanding Asking for referrals Seeking additional opportunities to serve & sell Evaluating responses & results (positive/ negative) Affirming decisions (minimizing buyer’s remorse)    Analyzes the effectiveness of salesman during the course of the meeting Analyzes soft sales skills Diagnosis of sales man’s soft skills & retraining priorities assessed
Slide 27: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 28: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 29: Marketing Channels: Issues and Answers     What is channel design?  Decisions associated with forming new or altering existing channels. Why are design decisions critical?  They directly influence all other marketing decisions.  Key external resource for many manufacturers. How do marketing functions factor into design decisions?  Who performs what channel function more efficiently and effectively. When is it time for channel redesign?  When a new firm is established, new product introduced, new market targeted, external environment change, or when there is a change or performance failure of channel members.
Slide 30: Five Marketing Functions in an Automobile Channel Physical Function Suppliers Transporters Warehouses Manufacturer Transporters Warehouses Dealers Transporters Customer Title Function Suppliers Manufacturer Dealers Customer Payment Function Suppliers Banks Manufacturer Banks Dealers Banks Customer Information Function Suppliers Transporters Warehouses Banks Manufacturer Transporters Warehouses Banks Dealers Transporters Banks Customer Promotion Function Suppliers Advertising Agency Manufacturer Advertising Agency Dealers Customer
Slide 31: Issues of Control vs. Resources in Channel Design High Manufacturer’s Financial Resources Few Fewer financial resources required Less control given up Number of Intermediaries Manufacturer’s Financial Resources More financial resources required More control given up Intermediary’s Control Over Channel Functions Many Low
Slide 32: Channel Design : Acknowledged Dependency Classification of Channel Relationships based upon 'Acknowledged Dependency' Transactional Structure Relational Vertical Marketing System (VMS) VNC Eveready Electrolux Raymonds Single Purchase Conventional Distribution Process Follow the Leader Strategic Alliances Contractual Corporate (Ownership) Dependency Increased formalisation, information sharing and connectivity
Slide 33: Design Challenges : Distributing Auto Accessories Vs. Auto Spare Parts Accessories Independent network of accessory distributors. The accessory distributors do not distribute spare parts. Spare Parts Independent network of spare parts distributors/stockists. Spare part distributors do not distribute accessories Target audience is the workshops and mechanics. Mechanics create a pull for the product ‘Pull’ product. Selling by order taking Target audience is the accessory Institutional er /installer ‘Push’ product.Demand for accessories have to be created Require competitive selling , “incentives” to induce Institutional ers to sell our brands Typical promotion will be an ad in an auto magazine like Overdrive, with massive POP support(banners, posters, product displays and demo boards etc.) A typical promotion will be mechanic contact programmes where company MSRs will educate/train/sell to mechanics
Slide 34: Sales & Distribution Strategy Institutional Selling Distribution Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 35: Channel Management -Management Challenges  Key Challenges      Maximize channel revenue & profitability Increase partner loyalty Improve collaborative sales, marketing and service Enhance visibility into channel performance Optimize resources across programs
Slide 36: Channel Management-Best Practices        Integrated Partner Program Management Closed-loop Collaborative Business Planning Collaborative Campaign Design & Execution Score-based Partner Performance Management Real-time Partner Lead Management Coordinated Lead Registration Collaborative Service Network Management
Slide 37: Channel Management- Distribution Activities 1) Hold the goods (storage, delivery costs) 2) Own the goods (inventory carrying costs) 3) Promote (sell, advertise, public relations, trade deals) 4) Negotiate (takes time and money) 5) Finance (credit, terms and conditions of sale) 6) Assume risks (price guarantees, warranties, insurance, repair, after-sales service) 7) Assume costs of processing orders (often greater than cost of items!) 8) Handle payment (collection, bad debt)
Slide 38: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 39: Termination & Appointment: Termination Termination of Existing Distributor & Appointment of a New One  Step 1: Quantify Exit Risk  Every termination is a transition.Assess risk associated with transition:  Length of agreement  Required notice period  Inventory levels  Distributor marketing/promotional spend  Distributor’s annual sales  Understand distributor’s culture and company history  Employee redundancy  Assess new distributor’s willingness to absorb transition cost
Slide 40: Termination & Appointment: Termination   Step 2: Define transition period:period usually concurrent with the notice of termination period Step 3: Define transition services, if necessary     preservation of shelf space/warehouse space generation of certain trade reports logistics and warehousing support delivery of product remaining at end of transition period Waiver of claims Reconciliation of all receivables/payables Return of marketing materials  Step 4: Embody final transition terms in written agreement   
Slide 41: Termination & Appointment : Appointment   Appointment of New Distributor Step 1: Get all the facts (Distributor Data Form)     Distributor name/address,Territory Length of agreement,Exclusive or Non-Exclusive Performance criteria Credit terms,Delivery terms  Step 2: Evaluate and Explain Local Legal Landscape    finite term vs. evergreen contract litigation history of distributor dispute resolution (arbitration, mediation)
Slide 42: Termination & Appointment : Selection Criteria S.NO CRITERIA RATING 1 Experience in doing business ? 0 Market knowledge and not just number 2 of years 6 8 10 2 Turnover for past 3 years 0 2 4 6 8 10 3 Marketing knowledge (of the main line product) 0 3 7 10 4 Number of products dealt in,that sell through 0 a retail chain 3 7 10 5 Number of retailers served today on a 0 regular basis. 2 (keeping penetration in mind) 4 6 8 10 RATING GUIDELINES No Experience Other products ; Other region Same product ; Other region Other products ; Same region Same product ; Same region - with good reach > 25 % of tartget business 25 - 50 % 50 - 75 % 75 - 100 % 100 - 150 % > 150 % Poor Average Good Excellent 0 1 2-3 >4 < 10 11 - 20 21 - 40 41 - 60 61 - 75 > 75
Slide 43: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 44: Distributor Economic Model  Objective  To estimate the economic viability of the distributor’s business by simulating sales quantities and mix, margins, costs and profitability parameters.
Slide 45: Distributor Economic Model Example- Break Even Analysis Distributor - Volume Simulation Sales Voulme >> 0 25 50 75 100 125 Income Sales (Non Other Cement) Total Income 68,575 857 69,432 137,150 1,714 138,864 205,725 2,572 208,297 274,300 3,429 277,729 342,875 4,286 347,161 Expenditure Semi-Variable Sales Wages Administrative Wages Conveyance Electricity Rent Telephone Total Semi-Variable Cost Variable Purchase Transport Cost Handling Cost Cost of Credit Interest Cost Bad Debts Misc Expenses Total Variable Cost Total Expenses 1,000 750 200 800 500 3,250 1,000 750 200 800 500 3,250 1,000 750 200 800 500 3,250 1,000 750 200 800 500 3,250 1,000 750 200 800 500 3,250 1,000 750 200 800 500 3,250 3,250 (3,250) 65,000 250 1,190 206 250 66,895 70,145 (713) -10.79% 79,300 595 0.75% 130,000 500 2,379 411 500 133,790 137,040 1,824 1.15% 158,600 1,190 0.75% 195,000 750 3,569 617 750 200,686 203,936 4,361 1.83% 237,900 1,784 0.75% 260,000 1,000 4,758 823 1,000 267,581 270,831 6,898 2.17% 317,200 2,379 0.75% 325,000 1,250 5,948 1,029 1,250 334,476 337,726 9,435 2.38% 396,500 2,974 0.75% Profit / Loss % Actual Return Capital Employed Expected Return % Expected Return -
Slide 46: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 47: Policy Framework   Exclusive/Non Excusive Scope    Territory Breadth Customer    Distributor Obligations Terms of Contract Information
Slide 48: Policy Framework: ExampleWhenever Exclusive  Exclusivity could be a key requirement of the distribution appointment, thus:  Distributor shall not deal in any competing product directly or indirectly  Distributor shall not share his physical assets with any other competing product  Distributor shall not share competing products, on which he has direct or indirect control  Distributor shall not enter into any partnership or have a sister company for distributing competing products  Distributor shall not promote any competing product directly or indirectly  Where Company’s product range does not meet market requirements, Company (Segment Manager) will authorize specific competitor products that can be sold by Distributors to complete his product offerings
Slide 49: Policy Framework: ExampleTerritory  To ensure smooth working, a designated territory will be assigned to each distributor      Distributors will sell to end users and/or manufacturing units and/or retailers lying in the distribution territory assigned to them Under no circumstances will a distributor sell to a customer/party who is neither a retailer and/or end consumer in your territory Under no circumstances will a distributor sell to a retailer/end user who is directly served by Company’s sales force. Company reserves the right to redefine any territory and appoint another Distributor in the redefined territory Any changes will be communicated in writing separately
Slide 50: Policy Framework: Example-Breadth  Distributor will endeavor to promote the integration of the channel   Distributor will be responsible for maximizing value within the chain Distributor will minimize the intermediaries within the chain  Distributor will be willing to distribute the complete range of Company’s products   To the extent that they are covered in the markets he is serving And is necessary to promote the Company brand
Slide 51: Policy Framework: ExampleDistributor Obligations  The contract is based upon Distributor commitments of a minimum quantity of sale per month and per quarter       Distributor will work towards business growth every year Through mutual discussions, Distributors will arrive at growth targets for sales in their territory. It will be the obligation of the Distributor to exceed these targets Distributor will appoint sales executives to promote the sale of Company’s products as per norms set up by Company Distributor will strictly implement the ‘Management Control System” adopted by Company Distributor will share the promotional costs incurred for the product Distributor will maintain confidentiality of the transactions carried out with Company
Slide 52: Policy Framework : Example -Terms and Conditions  Performance against Distributors’ commitments of sale  Will be reviewed every year and will be the one of the criteria for renewal of contracts for Distributorship Will be strictly on cash against sale (as per price list)  Against Bank Guarantee with requisite approval Dishonoring of any financial instrument will attract a penalty of 1%, and interest charges @ 20% p.a. Manage inventory as per norms (minimum 15 days of sale) set by Company to meet service levels Ensure proper handling and keep material safe from dust, chemicals and other corrosive environment to ensure that it does not deteriorate at the distributor’s premises. Make the stockyard available for inspection by Company executives without prior permission or notice  Payments    Inventory   
Slide 53: Policy Framework: ExampleInformation  Distributor will provide complete and full visibility of information on the market, customer, retailers, consumption patterns, storage, accounting policy and records in all his premises to Company Segment Managers and Executives  Company reserves the right to audit the Distributors books of accounts, for which full cooperation shall be extended by the Distributor.  Total compliance and accuracy of information/data is of critical importance and  Willful default and miscommunication of information/data shall lead to termination of Distributorship
Slide 54: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 55: Distributor Management Control System-Example Forecast Segment Manager Segment Sales Target Plan Control Report Review Review Review Segment Mgr Monthly Score Card Marketing Department Manager Institutio nal Territory Sales Target Institutional Manager Contact Plan Direct Sales input Segment Mgr Weekly Segment Score Card Mgr Daily Review Score Card Institutional Mgr Monthly Review Score Card Institutional Review Mgr Weekly Institutional Score Card Mgr Daily Score Card Review Review Review Distributor Daily Score Card Distributor Weekly Score Card Distributor Monthly Score Card Distributor Distributor Sales Target Distributor Coverage Target Distributor Quarterly ROI Analysis Review DSM Monthly Score Card DSM Target Route plan Review Review DSM Weekly Score Card DSM Institutional er / Customer Sales Plan Contact Plan Customer / Institutional Card DSM Daily Score Card Market Intelligence Institutional Mgr Institutional Mgr Ride with Marketing Ride with
Slide 56: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 57: Channel Partner Performance Measurement -Best Practice  Best Practice Structured partner manager methodology Partner Scorecards Expend resources on top performing & high potential partners (A’s)  Benefits Scalable, fair approach to managing partnerships Quantitative measure of partners’ total contribution Aggregate portfolio performance improves,Partner loyalty increases 1. 2. 3. 1. 2. 3.
Slide 58: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing Channel Design Management Control System Channel Management Termination & Appointment Distributor Economic Model Policy Framework Performance Management Distributor Feedback
Slide 59: Channel Feedback ExampleCompany Image Associations 100 (Image 1 : Customer Oriented) (Image 2: Market Oriented) (Image 3: (Image 4: Wide service Mkt.leader/fin. network) strong) 94 90 88 75 70 66 61 55 51 60 60 73 72 63 57 56 66 60 57 49 47 72 79 72 71 79 75 72 79 71 69 62 57 53 48 72 63 57 72 80 78 70 76 70 66 60 50 40 Has fair trade practises Is customer oriented co. Follows consistent policies Is Is a trust Has got Is Has clearly Is a tech. Is a well Works jointly Hs wide responsive worthy co. strong mktg. aggressive defined and Superior co. established for success service and to needs of Strategies about well co. support trade business focussed network growth future plans Distributors Dealers RAD Is a mkt. Leader Is a financially strong co.
Slide 60: Channel Feedback Example : Key Driver Analysis- Ordering & Delivery Impact Overall quality of Ordering & Delivery Performance 22 29 27 26 35 21 24 25 29 31 25 9 20 40 8 5 9 6 9 12 11 7 8 8 Electrolux Godrej Whirlpool 34 40 34 34 43 29 29 34 35 40 34 60 80 64↑ 61↑ 64↑ 61↑ 61 61↑ 52↑ 66↑ 55↑ 59 52 100 50↑ 52 50↑ 53↑ 58 54↑ 58↑ 52↑ 50↑ 47 46 0.34 * 0.17 Ease of communicating orders to the sales personnel * Time taken for delivery Condition of goods delivered Availability of model/capacity Support for urgent deliveries Product handling by CFA Availability of spare parts Availability of specific colour * 0.16 0.14 0.08 0.03 0.01 ** ** ** 0.7 0.6 0.5 0.4 0.3 0.2 0.1 * High Impact ** No Impact Ease of ordering documentation Efficient inventory management 0 0 Very Good Excellent
Slide 61: Distributor Feedback ExampleOverall Company Processes 55 56 48 55 50 64 60 44 27 24 15 40 28 19 22 5 Overall Quality of Product Overall Quality of Co. Sales rep Overall Quaity of Service Support North South Overall Quality of A/C & Payments West Overall Quality of Repair & Replacement
Slide 62: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 63: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 64: 3 P’s of Trade Marketing    If you are not there you don’t sell: Presence If you are not at the right place you sell less: Position If you are not best presented you don’t maximizes sales : Presentation
Slide 65: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 66: Presence: Competitive Analysis Example Ambuja emerges as a strong competitor to Haathi in the city
Slide 67: Presence: Self Analysis Example JANJARDA ROAD 15 DHAL ROAD 12 KALWA CHOWK 10 10 TIMBAWADI
Slide 68: Correlation between Sales Visit & Outlet Share Relationship between Sales Visits and Outlet Share Relationship between sales vists and outlet share 80% 70% 61% 60% 50% Outlet Share 40% 30% 20% 15% 34% 70% Outlet Share of Eveready 60% 50% 40% 30% 20% 10% 0% 1 2 Linear co-relation between sales vists and outlet share 10% 0% No Visit Irregular Visit Regular Visit 3 4 5 No. of sales visits per month Correlation between service and outlet share. Service provided (reflected by sales visits) is a competitive advantage
Slide 69: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 70: Other P’s : Position For the brand to really make a difference it needs to sit at the hotspot
Slide 71: Implications on Trade Marketing: Presentation Presentation is vital to maximizing sales
Slide 72: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 73: Trade Marketing :Score Card
Slide 74: Sales & Distribution Strategy Institutional Selling Distributor Management Trade Marketing 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines
Slide 75: Trade Marketing Disciplines: Anywhere One Price  Administering price & preventing under-cutting is one of the key discipline for trade marketing
Slide 76: Trade Marketing Disciplines: Continuous Audit  Continuous internal audit, validated by external one is a key requirement for ensuring continuous feedback & improvement opportunities for trade marketing
Slide 77: Credentials
Slide 78: Managing Partner -Sarvajeet Chandra Sales & Distribution FMCG/Institutional Infrastructure , Industrial & Real Estate ITC( ITD Division) Eveready Travelport Saurashtra Cement VNC Group Tata Steel Lavendor Group Mandala Asset Solutions Tata International Operations/ Service Quality MSM Brand Building Capability Development Shringar Cinema (Fame) Eveready Kodak Saurashtra Cement Pidilite (Fevicol, Fevikwik, Fevistik) VNC Group Tata Steel World Gold Council Lion Group Tata Steel VNC Group Gujarat Glass Textile, Leather & Commodities Indo Rama Texmaco Group Laxmi Machine Works Tata International ITC (IBD Division) ICICI Bank Thanjavur Hotel Residence Cidade de Goa Banking, Media, IT, Hospitality & Others Xenos Blue Star Cidade de Goa STAR TV EBay India MIHMCT Vizualize LBi India Systime JW Mariott GTL Limited BST-Sayona Organizations Worked For : ICICI Bank, Renoir Consulting (UK), Baazee.com ( now Ebay), Ogilvy & Mather
Slide 79: Profile of Partners – Jasravee Kaur FMCG Institutional Media, Banking & Others Bank of Baroda Sahara One STAR Rediff.com CNN FedEx VNC Group (Bestarc Bestfence Bestwire) ITC IBD Saurashtra Cement Tata Wiron Marketing & Brand Management Hindustan Unilever (Lifebuoy Hamam Fair & Lovely Kisan Annapurna Liril Dove Lux) Camlin Old Spice Coca Cola Unilever Thailand Unilever Brazil Fame Adlabs Pantaloon Central Essar Petro Institutional ing Welspun Spaces Training in Marketing/Brand Management Xaviers Institute of Communications North Point Lintas School Organizations Worked For : Lowe Lintas, Percept Group, Research International, AC Nielsen ORG Marg
Slide 80: Master Sun Projects Large & Medium Cap Companies
Slide 81: “You see, all the right things are written in books and research papers. The trick is to ensure that there is no gap between what is written in the books and your vision; from what is happening on the shop-floor and what is going on in the marketplace. That is execution. That is what makes the difference” Mukesh Ambani mastersun.synthasite.com chandra@mastersunindia.com Sarvajeet : +91 9920803060 Jasravee : +91 9892301590 Office :+91 22 65209702