sales rahul sui project x

“Presentation on Integrated Topics from Sales Management, Distribution

Management and Logistics Management”

About the company The Colgate-Palmolive Company is an American multinational

consumer products company focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes).

Colgate-Palmolive is Rs1,300 crore company started in year 1937.In Rs2,400 crore domestic market it enjoys 50% of market share. It spread  across 4.5 million retails outlets out of which 1.5 million are direct outlets

In 2011 Colgate-Palmolive (India), the market leader in oral care, in association with the Indian Dental Association (IDA) achieved the Guinness World Records™ for ‘maximum number of dental check-ups’ in a single day (multiple venues)

Sales Forecasting (Break down method)(month)

Population 5,763,872

Literacy 65.56%

Sex Ratio (Per 1000) 984

Per capita income Rs 25,442

Total sales potential in Raipur 4,09,25,762.44

Company sales potential (30%) 12,277,728.73

Market potential(in terms of customer) 30,30859

Salary to sales person 15000

Expected return / sales person 4,10,000

No, of sales person employed 30.

Build up method (work load, single market)

Category of dealer

Visiting freq

No. of dealer

Avg travel time

Avg time/shop

Avg min. Total hours

A 25 8 3 4 96 1.6

B 20 9 3 4 108 1.8

C 15 12 5 4 240 4.00

Total 29 444.00 7.4

ESTIMATED

Sales ForecastingSales Forecasting is the process of estimating what your

business’s sales are going to be in the future.

Sales forecasting for an established business is easier than sales forecasting for a new business; the established business already has a sales forecast baseline of past sales.

A business’s sales revenues from the same month in a previous year, combined with knowledge of general economic and industry trends, work well for predicting a business’s sales in a particular future month.

Sales Budget

SALES REVENUE BUDGETLast year sales expected 10,80,00,000 - 100%

Last year achieved 07,45,00,000 - 68.98%

Deficit 3,35,00,000 – 31.02%

Target for current year 16,00,00,000 – 100%

Sales Force Expense Budget For entire Colgate range including new range launched

3cr. has been decided.

It includes promotion activities, free dental checkup camp, local advertisements Daily Allowance, design incentive, calculate training budget and Selling expenditures like Consumer promotional and Trade promotional Schemes.

Assumed data

DISTRIBUTION

Traditional Trade

Modern Trade

AVG.Weekly stocking of product in each category of retail primarily it is depends upon demand in the market and also based

on the sales in the market.

In general retail which covers maximum part of the market, order taken in daily basis. The delivery of the product and stock maintain is depend upon consumption of different SKU.like in every market there is a different order made daily and deliveries happen according to that.

In this case of Colgate the products has good demand in the market in all categories,

In general trade dealers they at least maintain one week inventories.

In modern trade order given in bulk quantity, so usually they maintain 15 days or maximum one month inventory.

Distribution Pattern

Distribution Pattern Intensive:- it s to make sure that the product is made available as

many outlet as possible, so that anywhere the consumer goes they can grab the product.( local retailer)

Selective:- only few outlets will be permitted to keep the company products. Outlets are carefully selected by the company in line with image it wants to project about itself.(few popular dental clinic store, SIS in any retail outlet for some special offer products)

Exclusive:- only few special outlet operated by the company directly or make any outlet exclusive by agreement.(company operated dental clinic, checkup camps)

No. Of distributor In Raipur there is 1 C&F agent and 3 stockist

Under 3 stockist there is 2 wholesaler each and they are operating in 5 urban and 2 rural territories.

Purpose of hiring distributor There are 3 purposesa) For entering in a new marketb) For additional coverage in the same cityc) For replacing an existing distributor before deciding whether distributor is required or not town

profiling is done.

Training of distributor How to manage demand and stocks

Handling product promotion

Information about new product

Participating in promotional events

To promote the products well in the market

Motivating tools for distributors

Sales target achieving incentives

Quantity purchases discount sales contests with attractive prizes in

Inviting distributor for important company meetings

Gifts, sales support

Other motivating incentives like holiday packages and others.

Evaluation of sales person

one of the most popular way to evaluate the dealer which is assigned target achieved or not. where is the gap to achieve the target

Some other parameters Efforts on new products Performance on institutional business Adding and developing new markets and outlets Handling market complaints Timely report submission

Vertical & Horizontal conflicts Horizontal Conflicts A horizontal conflict refers to a disagreement among two or more

channel members at the same level. For example, suppose manufacturer has deals with two wholesalers, each contracted to sell products to retailers in different territories . If one wholesaler decides to branch its operations into the other wholesaler’s territory, a conflict will result.

Vertical Conflicts Vertical conflicts involve a disagreement between two channel members

on consecutive levels. For example, if the manufacturer discovers its products are arriving at retail stores later than scheduled, a conflict might develop between the manufacturer and the wholesaler responsible for shipping to retailers. At the same time, the retail stores might be in conflict with the wholesaler due to its inability to ship products on time.

Distribution costs

Distribution costs (also known as “Distribution Expenses”) are usually defined as the costs incurred to deliver the product from the production unit to the end user.

Product handling cost. Store house cost Product transit cost Loading, unloading cost Transportation cost Vehicle cost Office expenses Other cost

LOGISTICS

Mechanism of delivery to Distributor from Company/ CNF

Arrangement of Special Deliveries in exigencies

In the case of urgent order company/ c&f maintain a emergency inventory

When order placed that time without any delay stocks are putting into transit

This kind of situation happen at the time of Any event, sudden shortage, so company ready with this kind of mechanism

Delivery mechanism of distributor

Here I am assuming in Raipur there is 7 territories and 12 vehicle for distribution

for 6 territories there is 6 vehicle assigned and, there is 1 driver and 2 loaders assigned.

For other 2 territories there is 2 vehicle for each territory. Other 2 vehicle are for small orders and for other purpose