Final Report on Slm

Report by –

Brijinder Singh Anand

Application no – 61100

FSB1

About the company –

Asian Paints is an Indian paint company headquartered in Mumbai, India. It is one of the largest paint corporation that operates in 17 countries and has 23 paint manufacturing facilities in the world-servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

JOB DESCRIPTION

Position: Area Manager SalesReporting to: Regional Manager - Sales

PURPOSE:

Prepare regular sales plans, direct and lead the sales personnel in the unit, handle schemes, promotions and collections, ensure excellent relationships with, and servicing of, dealers and customers linked to the unit, and manage and direct unit administration and complete statutory compliances in the unit WITHIN the guidelines of Company policies WITH THE OBJECTIVE of exceeding planned sales growth and ensuring efficient unit administration and complete statutory compliances.

SIZE

PUNE: 100 Cr, 500 dealers, 150Lakhs expenses

1 Office staff with C&F team (for Godown operations)3 Sales Supervisors 13 Trade Sales OfficersEducation: Master’s in Business Administration with 3-4 years experience in sales

Specific Knowledge Statutory laws, Dealer commerce, marketing tools

AREAS OF RESPONSIBILITY

Sales PlanningConduct the retail audit, identify opportunities, complete annual planning doc.With sales, local promotion & input proposals & other key objectives andresource requirement, set objectives for the team IN ORDER TO ensure sustainable growth, market share gains & stretch objectives at product-category level.

Sales OperationsReview sales and work out monthly sales plans, examine critical dealer levelplans work out & implement schemes and promotions, provide day-to-daysupervision, ensure timely reporting by the sales team & ensure responsiveback-office support IN ORDER TO achieve/ exceed defined sales targets

Dealer Network ManagementResolve dealer/inter-dealer/inter-territory issues and conflicts, workout/rationalize special deals & rebates, add new Colourworlds/dealers,influence identified dealers/dealer-segments, build good relations with keydealers IN ORDER TO ensure the development of a healthy dealer network.

PromotionPlan, schedule & direct conduct of influencer meets, fix targets & plans forDemand Generation for direct orders by the sales, schedule, direct &implement activities relating to new product launch & market initiatives INORDER TO ensure the achievement of regional/central product category

Commercial ManagementMaintain unit-level over dues & collection efficiencies as per objectives, review& guide team in ensuring collections from dealers, anticipate and addresspayment problems in identified geographies/dealers IN ORDER TO ensurethose collections are in line with company norms and unit objectives

Complaints ManagementMonitor & resolve dealer service issues i.e. material service, shade cards,Dealer Health Cards, customer complaints, dealer accounts accuracy , promptpreparation and posting of business credit notes & account statements todealers IN ORDER TO ensure excellence in dealer service as per company

Expense ManagementPrepare expense budgets, monitor & review expense reports, meet &negotiate critical vendors, authorize expense vouchers IN ORDER TO ensureproper accounting and budgeting of expenses

People ManagementConduct appraisals of all sales & administrative staff, provide developmentalinputs to them build a spirit of teamwork, train and induct new recruits,assist in screening and recruitment of sales, administrative and CFA staff forall roles in the unit.

Logistics ManagementSupport the forecasting process by Supply Chain by providing estimatesthrough the RM for critical products and reviewing the forecasts in the systemIN ORDER TO minimize inventory levels and ensure timely service

Statutory ComplianceRegularly review all control, accounting and safety aspects of the CFA andgodown administration to ensure streamlined operations and compliances incontrol and statutory areas.

JOB PROFILE:

1. TERRITORY SALES OFFICEREducation: Graduate, English speaking, knowledge of local language, good communication skills, 2-3 years selling experience

Dealer servicing1. Predetermined visit frequency2. Order booking3. Providing information on products, schemes, promotions4. Collecting payments5. Resolving issues, tallying dealer accounts, following up with company for

Credit Notes6. Ensuring timely supplies7. Handling product complaints8. Painter training, conducting meets9. Demand generation- visiting painting contractors, architects, large

customers and selling companies products10. Providing shade cards, shade tools, price lists, product literature etc11. Collecting market information- competitor product launches, schemes etc12. Conducting annual market audits- visiting all dealers, assessing competitors

sales and evaluating opportunities

2. SALES SUPERVISOR

Education: Graduate, English speaking, good communication skills, 5 plus years as Territory Sales Officer

1. Supervises 4 to 5 TSOs2. Responsible for setting annual targets at territory/dealer/product level3. Determines TSO’s visit cycle plan to cover all dealers4. Vets all requisitions for new dealer openings5. Supervises monthly scheme implementation/ painter training/ painter

meets/ shopboy meets6. Reviews TSO visit reports to ensure all pending issues are satisfactorily

resolved

7. Collects market information8. Handles difficult product complaints which TSO is not able to close9. Assists Area Sale Manager in planning, monitoring sales operations and

Network Management.10.Takes responsibility in developing good relations with few key dealers

3. SALES SUPERVISOR

Education : Graduate, English speaking, good communication skills, 5 plus years as Territory Sales Officer

Supervises 4 to 5 TSOs Responsible for setting annual targets at territory/dealer/product level Determines TSO’s visit cycle plan to cover all dealers Vets all requisitions for new dealer openings Supervises monthly scheme implementation/ painter training/ painter

meets/ shopboy meets Reviews TSO visit reports to ensure all pending issues are satisfactorily

resolved Collects market information Handles difficult product complaints which TSO is not able to close Assists Area Sale Manager in planning, monitoring sales operations and

Network Management. Takes responsibility in developing good relations with few key dealers

DURABLE NON -DURABLE

SERVICES

CONSUMER YES NO YES

INDUSTRIAL YES NO YES

PRODUCT CATEGORY MATRIX

Dealer’s Margin :- 5-15 %

Octroi tax – the current rate is 5.5 %

The company pays 3.5 % ( 63 %)

The dealer pays 2 %. (37%)

CHANNEL MEMBERS

Customer

Product

Primors/ Putties – we get primors in litres while putties in kg. Primor sizes vary from 1kg – 20 kg. Puttie sizes vary from 1ltr – 20 ltr.

All the products come in 7 shades to the distributor: –

1 White

6 Bases

Colors can be tinted in machines in the shop. This can yield 1800 different

shades.

Roles of channel members

Company (territory manager):-

Explains schemes/ Co promotion. Dealer Health Card – Notes all complaints Checks A/c May Collect Payments Informs dealers of new products Visits customers in case of grievances Holding painter meet

Dealers/ Distributors:-

Payment discounts Monthly Schemes/ promotions Annual deals Customer Service.

Dealer Frequency Plan

Company’s territory manager makes a plan to make visits to the dealers at a particular frequency based on the sales volume.

SALES COSTS NO. OF VISITS

5cr- 1cr Once in 3 days.

75 lakhs – 1 cr Once in a week

50 lakhs – 75 lakhs Once in 10 days

Others Once in 15 days

Territory manager allocates different areas in his territory to different salesmen and make them to visit the customer at a particular frequency based on the above criteria.

Distribution System (PUNE)

Wakad200 Shops in Pune City

Pimpri 150 Shops

Adjoining Dist.

400 Shops In Pune/ Satara

Delivery Process

Pune - 3 hrs Up Country - next day

3 Depots

750 Shops in Pune City

Buying process (PUNE)

Flow

Shop places order through

of

Telephone - Call Centres in MumbaiPunched in or ERP System

Order

Invoice ReleashedMaterial Goes to Shop

Credit Schemes & Incentives

5 % Cash Discount Within 3 days

3.5 % Cash Discount

27 days for city35 days for up country

No discount

If it is further delayed than further orders are canceled

Main Products

PRODUCT MARKET  FINISH PRICE Premium Gloss Enamel

For use on wood/metal

Glossy Finish

180/ per litre

highly durable

to be used on primer

Utsav EnamelFor use on wood/metal

Glossy Finish 130/ perltre

only interiors

to be used on primer

Premium satin enamel

For use on wood/metal Satin Finish 190/ pl

highly durable

to be used on primer

Metal primerFor use on wood/metal

Rs 50/ per litre

to be used on metal

Wood Primer For use on wood Rs 70 per kg to be used on wood

Tractor Synthetic Distemper

For Use on interior walls Matt Rs 60 per kg washable

to be used on primer

Tractor acrylic Distemper

For Use on interior walls Matt Rs 70 per kg

more durable

to be used on primer

Tractor emulsionFor Use on interior walls Matt

Rs 100 per litre

more durable

to be used on primer

Premium EmulsionFor Use on interior walls Matt

Rs 165 per litre

more attractive

to be used on primer

Royale emulsionFor Use on interior walls Sheen

Rs 300 per litre

very attractive

to be used on primer

Royale playFor Use on interior walls Sheen

Rs 350/ per litre

with effects

to be used on primer

Ace emulsionFor use on exterior walls matt

Rs110 per litre

to be used on primer

ApexFor use on exterior walls matt

Rs 200 per ltre

to be used on primer

UltimaFor use on exterior walls Sheen

Rs 275/ per litre

to be used on primer

Exterior PrimerFor use on exterior walls matt

Rs 90 per litre

to be used on primer

MARKET BREAK UP

Home Repainting 60%Builders/ Contractors 20%Office Painting 10%Industry Painting 10%

MAIN PLAYERS IN PAINT MARKET -

1. ASIAN PAINTS LTD2. BERGER PAINTS LTD3. KANSAI NEROLAC LTD4. AKZO NOBEL LTD (Dulux)5. JOTUN PAINTS LTD6. NIPPON PAINTS LTD

TERRITORY SALES OFFICER- ALLOCATION OF TERRITOTIES AND DEALERS IN GEOGRAPHICAL AREA

No of of Dealers

Market Market

Market Market Market

Market Market

Market Market

Market Market Market TOTAL

TSO A B C D E F G H I J K L

Potential all cos20 crores

18 crores

15 crores

25 crores 20 crs 18 crs 15 crs 22 crs 20 crs 30 crs 23 crs 25 crs 251 crs

Asian Paint sale 10 8 7 10 7 8 6 7 8 15 9 9 104no of dealers 42 45 50 44 50 40 45 45 44 35 46 44 530 Nof dlrs over rs 1 cr annum 1 1 0 1 0 1 0 1 1 3 1 2 .5to 1 cr pa 4 2 2 3 2 2 1 1 2 3 3 2 .3 to .5 cr pa 7 6 6 8 6 6 5 5 5 5 8 7 .1 to .3 crs pa 10 16 20 10 15 11 14 15 15 10 12 14 less than 10 lac pa 20 20 22 22 27 20 25 23 21 14 22 19 Total 42 45 50 44 50 40 45 45 44 35 46 44 time with dlrs 37.5 33 31.6 36.6 30.6 30.5 25 28.9 31.3 37.7 37.6 37.2 travelling time 19.8 19.14 19.8 20.13 19.8 17.49 17.16 18.15 18.48 18.15 20.79 20.13 Painter training 21 22.5 25 22 25 20 22.5 22.5 22 17.5 23 22 Complaint handling 4 4 4 4 4 4 4 4 4 4 4 4 Demand gen 4 4 4 4 4 4 4 4 4 4 4 4 2 daysoff in month 16 16 16 16 16 16 16 16 16 16 16 16 1day/week office 32 32 32 32 32 32 32 32 32 32 32 32 Total 134.3 130.64 132.4 134.73 131.4 123.99 120.66 125.55 127.78 129.35 137.39 135.33 Time efficiency 84% 82% 83% 84% 82% 77% 75% 78% 80% 81% 86% 85%

Time/Visit in hours Visits/Months No. of Dealers

1 4 over rs 1 cr annum1 3 .5to 1 cr pa

0.75 2 .3 to .5 cr pa0.5 1 .1 to .3 crs pa0.3 1 less than 10 lac pa

Table above takes average time spent with each category of dealer.In Dealer market table,

Row 1 12 territories , one for each TSO, (1 TSO buffer when others go on leave)Row 2 Annual Paint sale in Territory – all companiesRow 3 annual Asian Paint Sale in TerritoryRows 6-10 No of dealers in each size classification in each territoryRow 11 Total no of dealers in each territoryRow 13 Time spent with dealers based on no of dealers in each category x

no of visits per month x avg time per visitRow 14 monthly travelling time = no of dealer visits x 20 min (avg time

between dlrs)Row 15-17 Avg monthly time in painter training, demand generation, complaint

handling Row 18-19 Days off/ in officeRow 20 total time workingRow 21 Working efficiency – kept between 80 and 90% to allow for

contingencies.

Call Sheet

CALL SHEET

Dealer Visited

Date

Time

Person Met

Value of order given

Credit notes Given

Payments Collected

shadecards given

Dealer grievances

Supplies

Accounts

Credit notes

Product Complaints

Competitor Information

competitor schemes/ discounts

new product launches

estimated monthly sale

Asian Paints Market percieved Kansai Nerolac Berger Paints Akzo Nobel

Interior wallsPrice/Quality Advantage of AP

Distempers EconomyUtsav acrylic Distemper most durable in category Beauty distemper Jadoo Distemper

Tractor Synthetic Dist best coverage Bison Distemper

Emulsions Economy Tractor Emulsion Beauty emulsion Bison Emulsion

Premium Premium emulsion good washability beauty acrylic Rangoli Easy Clean Dulux

Luxury Royale Emulsionbest washability with teflon Impressions Silk Velvet Touch

best look Breathe easy Dulux 3 in 1

Solvent based Apcolite Lustre

Good washability, ‘dana’ appearance Nerolac Lustre

Exterior Emulsion Economy Ace good colour retention Suraksha Walmasta

Premium Apex known for durability Excel Weathercoat Weather shield

Luxury Ultima 7 year warranty Excel TotalWeathercoat Allguard

Weather shield Max

Enamel Economy utsav Enamel Butterfly

Premium Apcolite Enamel wide shade range Nerolac Enamel Luxol Dulux

Luxury Satin enamel low sheen Satin Luxol Satin Dulux Satin

Premium Semi Gloss water based Dulux 5 in 1

Wood Finishes Economy Touchwood Wonderwood 1KPU

Premium Melamyne fast dryingWonderwood melamine

Luxury Asian PU Finish excellent durability Wonderwood 2KPU Woodkeeper PU

Kansai Nerolac – Leader in Lustre Enamel, Strong number two in Nerolac Enamel and good share of distemper. Prices 5% lower than asian paints.

Akzo Nobel strong number two in Velvet Touch Emulsion and Dulux Emulsion. Good share in Project s with builders using weathershield Emulsion.Berger leader in Project sales. Good sales of Bison distemper.Asian Paints strong in all categories and leader wherever not mentioned above. Prices are normally 5 to 10% higher than competition. Best supplies and quality as perceived by users.

Berger sells on the price economy front, Nerolac was traditionally strong in Pune but has been losing share to Asian Paints over the last 10 years.

MARKET DEVELOPMENT PLAN

1. To grow in Royale and Premium Emulsion category by 30 % in 2011-12a. Installing at least 10 new Colourworlds (Emulsion tinting machines at

dealer counters)b. Opening 10 new dealers in the growing suburbs of Pune – baner,

Pimpri Chinchwad etcc. Operating a consumer promotion on emulsions in the key in the key

demand period prior to Diwalid. Holding painter meets across all emulsion counters demonstrating

through application advantages of Royalee. Ensuring prominent visibility in all counters of Royale and the Teflon

merchandisingf. Working with Marketing to launch an emulsion initiative in December

to February in the city supported by attractive dealer and painter schemes

g. Ensure adequate share of voice in advertising in the City

2. To gain share in The Lustre enamel segment dominated by Nerolaca. Focus on this segment through launch of water-based Lustre across

the networkb. Fix targets at the dealer level for water based + solvent based lustrec. Hold extensive training programmes for painters highlighting

advantages of water-based lustre- quick drying, no smell, higher coverage hence lower cost/sq ft.

3. To expand the network in competition strong clustersa. To open at least 3 dealers each in the main market (Boriali) and camp

areas so as to gain shae from Nerolac in these markets

4. To ensure dealer servicing within 3 hours of placing the order and issue of credit notes within 5 days of month closing.

5. To focus on the Exterior market in the builder segment where Berger and Akzo Nobel are strong

a. Identify the list of major builders in the city

b. Allocate at least 3 builders to each TSOc. Ensure each builder is visited at least once in 15 days and his major

projects identifiedd. Ensure product/shade sampling is done across each builder’s projects

and that all services/ quotations are given in a timely manner