Distribution Dossier On EMAMI LIMITED - NING

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SALES AND SALESFORCE MANAGEMENT

Distribution Dossier

On

EMAMI LIMITED

COMPETITOR:-GODREJ CONSUMER PRODUCTS LIMITED

SUBMITTED TO

Prof. Govindrajan

Submitted By:-

Ashwani Kumar(BM18007)

Ankita Sharma(BM18011)

Jayant Bakshi(BM18021)

Lokesh Kanodia(BM18056)

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About Emami

Emami limited is an Indian conglomerate of fast moving consumer goods such as

cosmetics and health and baby products. The company is based in Kolkata. Emami was

founded in 1974 & founders are Mr.R S Agarwal and Mr. R S Goenka. Mr.R S Agarwal

and Mr. R S Goenka set up Kemco Chemicals, Ayurvedic medicine, and cosmetic

manufacturing unit in Kolkata in 1947 with a merger amount of 20000 and started

operation in a 60 sq ft godown. Emami launched their first flagship brand Boroplus

anticeptic cream under Himami umbrella in 1984. The next flagship brand Navratna

cool oil was launched in 1989.in 1995, kemco chemicals, the partnership firm was

converted into a public limited company under the name of Emami Limited. In 2005 the

company created a marketing history by launching fair and handsome, the first fairness

cream for men. In 2015 they exceeded the market capitalization of Rs. 23000 crore. In

2016 launched 100% pure honey without no added sugar. The mission statement of

Emami limited is “making people healthy and beautiful naturally”. The Emami

group is diversified into sectors such as FMCG, newsprint, and packaging boards

manufacturing, edible oil and biodiesel, real estate, hospitals, ballpoint tip

manufacturing, retail, pharmacy chain, cement, solar power, and contemporary art.

Taking one step Emami went overseas and international business contributes to its 12%

revenue. Emami has 5 international subsidiaries and its global reach extends to more

than 63 countries. The Group enjoys a leadership position across several product

categories and niches. Three Emami Limited brands possess unassailable market

leadership - Navratna Oil (64 percent-plus in the cool oil category), BoroPlus (74

percent-plus of all antiseptic creams). sold in India) and Mentho Plus Balm and Zandu

Balm together in the pain relief category (54 percent-plus market share).

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Channel Design

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Raw Materials

Raw material for the plant will be sourced both from indigenous and overseas locations

as per the requirement.

Manufacturing units

Emami Limited has 8 manufacturing units across India. They are located in the states of

West Bengal, Assam, Uttarakhand, Maharashtra, Gujarat, Dadra & Nagar Haveli and

Pancharia. The Company has 1 overseas unit in Bangladesh.

The plant is involved in the manufacturing of new products.

From these manufacturing units products are moved to mother depots present in

different regions of India.

Mother Warehouse

The mother warehouses are located in different regions of India such as Kolkata,

Ambala, Pacharia(Assam) and Hyderabad.

Transfer of goods from the factory to the depot is difficult to manage so it first goes to

mother warehouse located in different regions and then goes to nearby depots.

Depots(Regional distribution centers)

There are 31 depots located in different regions across India namely Agartala (Tripura),

Ahmedabad (Gujrat), Ambala (Haryana), Bangalore (Karnataka), Bhagalpur (Bihar),

Chennai (Tamil Nadu), Coimbatore (Tamil Nadu), Cuttack (Orissa), Dehradun

(Uttaranchal), Delhi, Ghaziabad (UP), Guwahati (Assam), Hubli, Hyderabad, Indore,

Jabalpur, Jaipur, Jammu, Kanpur, Kolkata, Nagpur (Maharashtra), Pabhat, Parwanoo

(HP), Patna (Bihar), Pune (Maharashtra), Raipur (Chattisgarh), Ranchi (Jharkhand),

Siliguri (West Bengal), Varanasi (UP), Vijayawada (AP).

The key roles of depots are:

Receiving of shipments

Storage of goods

Inventory Management

Managing orders from different distributors

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Distributors

Emami has around 3500 distributors located across India.

It mainly refers to the agency holders of the company who act as the company

representative in the market and supplies the product to the different selling points in

the market.

The distributors of Emami are available in almost every city and other important areas of

the market to increase the availability of the brand in the market and compete against the

competitors.

Stockists

The main role of stockists is to store the products received by the company and deliver the

products to the retailer on receiving an order from the retailers and billing and collecting

money from the retailers.

In the urban areas, there are modern trade stockists like Big Bazaar, More etc. In the rural

areas, there are Super stockists who receive goods from the Depots and sub stockists who

act as the intermediaries between the super stockists and retailers.

Front Line Sales Force

It consists of a salesperson in the company whose work is to complete the last

mile.

The role of the front line sales force is to visit every wholesaler and retail outlet

of their respective area and take down the order as per the demand.

They also maintain a relationship with the wholesaler and retail outlets.

They visit the outlets every week once to take down the order.

They also provide bills to their clients and collect the money from them.

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Channel Member Management

Monetary Methods

Emami gives very less remuneration to Depots and distribution centers. The primary

objective of Emami is to reward their field force.

Regional Distribution Centres/ Depots :

Trade margin from (1 - 1.2)%

Based on the following parameters the scorecard is designed to reward the C&FA:

Service level agreement

Timely delivery to the distributor

Maintaining FIFO (First In First Out)

Timely audit of the stock – the quantity of the stock in the C&FA must be

matching with the stocks in the system. If not, then penalized.

Distributors:

Trade Margin- 5%

Based on the following indexes the performance of the distributor is monitored in a

particular area:

The overall target of the month achieved given by the company.

The coverage should be effective nearly ranges between 90 to 95%.

Modern Trade Stockist

Trade Margin- 5%

General Trade (Shops)- Trade Margin : 4.75%

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Super Stockist

Trade Margin- 6%

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Sub Stockist

Trade Margin- 2%

Wholesaler

Margin- 1.09%

Scheme based margin - (4 to 5)%

Retailer

PTR- 10% (for old products) , 12%(new products)

Customer

The company provides certain consumer offers.

Boroplus body lotion (buy one get one free)

On buying of 100ml of Keshking customer will get 20ml free

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Non- Monetary Methods

As per the performance of distributors and super stockists, Emami provides different

non-monetary benefits:

Foreign Trips

National Trips

Awards & Recognition

Parties

Invitation to mega conferences

Tickets to sports matches

Target Setting Mechanism

Emami follows the trend of last year upto the present month(50% weightage) and

the average of last three months(50% weightage) and then add it up with certain

growth expectations to set the target.

The target is basically set for :

General Trade (Growth Target)- (8 to 10)% because it is a saturated

channel.

Modern Trade (Growth Target)- (30-35)% because it is a growing channel

of the present era.

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Monitoring Mechanism used for tracking

Channel members

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Emami Sales application is basically used by Field staffs(Marketing Representative)

and Beats. Let us take a example, the person involved in the beat planning of

Emami has to cover 40 shops in a day and they work for 6 days in a week so

roughly they have to cover 240 shops or 240 calls in a week.

Basically, the role of Beat is to go to his stipulated area of coverage and perform the

following roles:

Go to the shops and take orders.

Once the Beat reaches to the shop he enters the name of the shop in this

application and then the full list of that shop can be tracked such as :

Last three months trend of that shop like which of the items that shop is

majorly focusing on.

Purchased list of same month trend of last year because of the seasonal

products purchase during winter is different from that to summer.

The Beat will do some merchandising of the shop.

The Beat will also have to take payments from the shop for the previous week.

Once the order is placed then Outreach/UBQ software will generate the bill for

each and every shop that is handed over to the supply chain that go to that

stipulated area.

C&FA (Regional Distribution Centre & Depot):- Software used here is SAP.

It monitors:- The billing done to the distributor, the stock in transit to the

distributor, the stock received by the distributor, date of billing, the quantity and

the value of the stock billed, Stocks lying in the DEPOT, Goods Received Note

(GRN) received from the distributor.

SAP is also used in Emami from Factory to Mother Warehouse and from Mother

Warehouse to C&FA/Depots.SAP is synced with all the software points. It gets

automatically refreshed in every one hour. It provides all the customized reports

to the company. It even provides all the information related to – The amount of

billing done by the distributors individually, the quantity of closing stock lying

with the distributors, Billing reports, Stock reports, Outlet wise report, Cross

verification of all the respective bills, Consolidated sales report with respect to

the wholesalers and retailers.

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Training & HR Inputs provided to channel

members

Emami basically will provide training to their field force because the main objective of

Emami is that field force is the driving force of their business.

Flowchart of Training & HR inputs:

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Field Force Management

Monetary Methods:-

Emami has designed certain parameters for evaluating their employees and provide the

incentive to them:

On achievement of monthly targets given to the field force.

On achievement of quarterly targets.

On achievement of meeting targets of a new launched product.

Non-monetary Methods:-

Invitation to conferences & meetings

Awards for the achievement of targets consistently

Recognition

Trips

Vouchers

Get-togethers or team outings

Target setting mechanism:-

The target at the distributor level is set by the Area Sales Manager (ASM). In the UBQ

software the target is reflected for the individual store which the salesperson has to

cover. The target is being set on past purchase of the outlets as what is the buying

behaviour of the shop , what are the different SKUs of product the outlet buys.

Monitoring mechanism used for tracking channel member:

The salesman once in a week visits to the wholesaler and retailer-> takes down the

order in their Smartphone or TAB through Emami Sales application installed in it &

then goes back to their respective distributor where the order is listed down in the

software of distributor. The software used by the distributor is UBQ/outreach.

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Training & HR inputs

Generally, the training of salesman is done every 6 months. The topics covered in the

training for new & old employees are-:

Product training at the time of joining.

How to book order from the wholesaler & retailer on Emami Sales app.

The process to be followed

How to make a call successful.

How to maintain a relationship with wholesaler and retailer

How to read the data of the shop.(their buying behaviour, SKUs they buy,

frequency of purchase)

How to sell new line of products once they start their distribution (e.g-1st product

sold to the shop is boroplus, now how to sell zandu balm, navratan also )

Salesman is trained on how to achieve the targets in the given time.

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TRANSPORTATION & LOGISTICS

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Emami uses the following modes of transportation:

Factory to Mother Warehouse:- Trucks

Mother warehouses to depots:- Trucks

Depots to distributors:- Trucks

Rural and Urban areas Super distributors to stockists:- TATA ACE/Chota Hathi

Stockists to the retailer:-in small towns - Rickshaw, two-wheelers

In extremely rural areas - people carry goods on the

shoulder to deliver to the retailer

Modern trade Distributors to big bazaar/ spencers:- TATA ace

The deployment of Information technology in transportation:-

The inventory is recorded in the SAP software from the factory ->

motherwarehouse -> depots. The bill generated is also maintained in SAP.

From distributor to retailer mainly pen-paper based document is maintained

in terms of transportation.

For billing purpose and keeping the flow of goods distributor uses

outreach/UBQ.

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Project RACE

Emami has launched this project with a motive of outlet expansion in Urban Areas.

First of all Emami collects data regarding the number of outlets from Nielsen and

then the salespeople of Emami physically visits those outlets to increase the direct

reach.

This will lead to the expansion of direct reach and will result in sales development.

Once those outlets become regular customer they are included in the channel of

Emami.

Project DHANUSH

Emami has launched this project with a motive of increasing direct reach in

Rural Areas.

This project is also known as Van Operation.

In rural areas, the sub stockists directly sell the products to the end consumers and

the retailers through van and the receive the payment directly in cash.

This is also termed as a promotional and advertising strategy of Emami as the use

various jingles (such as loud speakers) and posters for attracting the customers.

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The Financial Aspect

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Graphical Representation

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From the above charts, we can infer that :-

Godrej Consumer product limited has higher sales and distribution expenditure as

compared to Emami because of its distribution network. It has to ensure that the

products reach each and every part of the country. Godrej consumer products limited

spends on advertising its products like soap, goodnight, Godrej hair dye etc. Emami has

products like boro plus, navratna hair oil, boro plus body lotion etc. It spends a lot on

the advertisement and the sales promotion of the products.

Emami has brand ambassador for different products like for navratan and boroplus

Amitabh Bachchan, HE deodorants Hrithik Roshan. Emami is the small company as

compare to Godrej thus to make consumer aware of the product they heavily invest in

advertisement.

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Conclusion

Emami has brands like Navratna Oil and Boroplus Antiseptic Cream which are undisputed

leaders in market in their respective categories.

Even Other brands like Fair & handsome Fairness Cream, Sona Chandi Chyawanprash,

Himani Fast Relief, MenthoPlus Balms etc. are growing at rate better than the industry as a

whole.

Emami provided an offer of Buy 1 Get 1 free in boro plus body lotion category which helped

emami to increase the market share by 2 basis point.

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Bibliography

http://www.emamiltd.in/

https://www.thehindubusinessline.com/companies/emami-ramps-up-

direct-distribution-channel/article9783965.ece

https://www.bseindia.com/bseplus/AnnualReport/531162/5311620317.pd

f

http://www.emamiltd.in/images/newspdf/20150720015543small260.pdf

http://www.emamigroup.com/sites/default/files/emami_stationary/Pacha

ria-Plant-final-release-141117_0.pdf

http://www.godrejcp.com/annual-reports.aspx