Sales and Distribution Function

SALES AND
DISTRIBUTION
FUNCTION
Presented bySwati Singh (165)

Garima Sanger (133)
Karan S Bora (137)
Mohd. Sadiq Khan (205)
Mohd. Saad Rashid (143)
Vikas Yadav (170)
FMCG Industry in India
At present, the fourth largest sector with a total

market size in excess of $13 billion as of 2012.
Expected to grow to a $33 billion industry by
2015 and to a whooping $ 100 billion by the
year 2025.
Highly fragmented FMCG market and a
considerable part of the it comprises of
unorganized players
unbranded and
Salesselling
and Distribution
12/14/16
2
Management
HINDUSTAN UNILEVER
Indias largest consumer goods company based
in Mumbai, Maharashtra.
Owned by British- Dutch company Unilever,
controls 52% majority stake in HUL.
Headquartered inMumbai,India.
12/14/16
Sales and Distribution

Management
I.T.C. Limited
Incorporated on August 24, 1910 under the
nameImperial Tobacco Company of India Limited
Changedfrom Imperial Tobacco Company of India
LimitedtoIndia Tobacco Company Limited in
1970and then to I.T.C. Limited in 1974.
Headquartered inKolkata, West Bengal, India.
Employs over 29,000 people; more than 60
locations across India.
Listed onForbes 2000.
12/14/16

Management
OVERVIEW OF THE COMPANIES

HUL
ITC
Product lines
Soaps, shampoos,
detergents, beverages,
packaged foods,
personal care,
cosmetics.
Cigarettes, foods,
apparel, personal care,
stationary, safety
matches and agarbattis.
Market share
36.4%
30.3%
Growth rate
Net profit grew at the

rate of 17% .
Net profit grew at the

rate of 25%.
Profit
2011- 2012- 2599.23

crores
2011- 2012- 1,333

crores
Turnover
2011- 2012- 21,735.6

croresSales and Distribution
2011- 2012- 4,071.32

crores
12/14/16
Management
SALES ORGANIZATION STRUCTURE

I.T.C. LIMITED
HINDUSTAN UNILEVER
Regional Manager
Regional sales manager
Area sales Manager
Sales officer
Territory sales incharge
12/14/16
Redistribution stockist

Management
RESPONSIBILITIES OF A SALESPERSON
HINDUSTAN
UNILEVER
I.T.C. LIMITED
Selling and marketing of

products.
Merchandising.
Checking stocks.
Booking orders.
Getting distributors
feedback.
Reporting on a daily
basis.
Maintaining good PR
with the distributors
12/14/16
Getting feedback from

the distributors.
Management
SALES FORCE AUTOMATION

I.T.C. LIMITED
SAP is used for
improving transparency
in billing and order
placing.
Sify onlines distribution
management.
HINDUSTAN UNILEVER
HHT machines are

provided for taking the
orders and billing
purpose.
UNIFY software is
used.
VAJRA machine for

booking orders.
12/14/16

Management
SETTING UP OF SALES TARGET

I.T.C. LIMITED
Non- tobacco division:
stock availability in
every outlet.
Tobacco division1. Stock availability in
every outlet.
2. Sales volume(+20%) of the last
month sales.
12/14/16
HINDUSTAN UNILEVER
Minimum billings per

month.
Sales volume

Management
CRITERIA OF TERRITORY ALLOCATION

HINDUSTAN
UNILEVER
I.T.C. LIMITED
Past records
On rotational basis.
12/14/16
On the basis of area

size:
Less experienced in
retail outlets & kirana
stores.
More experienced in
high frequency stores.
Management
10
PERFORMANCE APPRAISAL SYSTEM

I.T.C. LIMITED
HINDUSTAN UNILEVER
Monthly basis
Amount of sale of
different products.
Achievement of sales
targets
Feedback form.
12/14/16
Performance
evaluation is done
using QOC model.
Quantitative- 80%
Qualitative- 20%

Management
11
TRAINING
I.T.C. LIMITED
HINDUSTAN UNILEVER
Initial training- 20 days;

senior salesperson
accompanies the
salesperson.
Skill training WEP; every 6 months
Training and
development
12/14/16
Initial training on
product knowledge.
Fortnight training on
field job.

Management
12
MOTIVATION & COMPENSATION

I.T.C. LIMITED
HINDUSTAN UNILEVER
Best salesman
competitions are held.
Awards and trophies are
provided to the winners.
12/14/16
MOC awards given on

the basis of QOC score.
QOC score > 4.5: 7-star
award
QOC score > 4: 5-star
award
QOC score > 3.5: 3-star
award

Management
13
DISTRIBUTORS
12/14/16

Management
14
HINDUSTAN UNILEVER
Hindustan Unilever ltd.
Carrying and Forwarding
Agents
Redistribution Stockist
Wholesalers
Urban retailers
Rural retailers
Consumers
12/14/16

Management
15
I.T.C. LIMITED
Company Hub Factory
Carrying and Forwarding Agent
Distributors
Retailers
Small
Wholesalers
Consumers
12/14/16

Management
16
FUNCTIONS OF THE CHANNEL

MEMBERS
I.T.C. LIMITED
Distribution &
promotion of goods.
Gather information
regarding the demand
and competition.
Inventory
management.
12/14/16
HINDUSTAN LEVER
Provide logistics
support.
Financing.
Make the brand
available in rural areas.

Management
17
CHANNEL SELECTION CRITERIA

I.T.C. LIMITED
Financial reputation.
Infrastructure
Delivery vans
Degree of
computerization.
Past performance.
To deal in cigarettes, it
is must to deal in other
goods.
12/14/16
HINDUSTAN UNILEVER
Goodwill.
Market reach
Past reputation.
Availability of sales
force.
Warehouse &
infrastructure.
Investment capacity

Management
18
FINANCIAL TERMS
ITC
HUL
Mode of payment
Cheque.
RTGS
Initial deposit
No initial deposit
NIL
Margin
3%
5.5%
Credit limit
No credit; only cash
No credit to
distributor
Order placed
Online software- sify

online
Online software- Unify
12/14/16
Management
19
ITC
HUL
Order cycle time
7 day pipeline reserve In 2-3 days.

alongwith the
replacement of order
sold in a day.
Time period for late

payment
0 days.
4-6 days.
Interest on late
payment
Yes; 8-10%
Not mentioned;
demand draft is
taken.
Cash/ trade
discount
NIL
NIL
Mode of transport of 3- wheelers, pick- up

vans.
goods
12/14/16
Management
Delivery vans, minitrucks.

20
SATISFACTION INDEX
Parameters
Weightage
Rating
Satisfaction
Index
Product quality
25
125
Service quality
20
60
Promotional
activities
20
60
Field work
15
60
Trade promotion 20
60
18
365
100
Total
5
Very good
Good
Average
Below
average
12/14/16
Dissatisfied

Management
21
SATISFACTION INDEX
Parameters
Weightage
Rating
Satisfaction
Index
Product quality
25
50
Service quality
20
60
Promotional
activities
25
175
Field work
15
60
Trade promotion 15
75
19
420
Total
12/14/16
100

Management
22
RETAILERS
12/14/16

Management
23
RETAILERS
ITC
HUL
Role
Sales to the
customer,
determining trends in
the market
Sales to the
customer, trends
determination in the
market
Payment
Cash
Cash
Margins on different
products
Upto 10%
2-10%
Average sales per

month
1) Rs. 20-25
thousand per month
2) Rs.
10000
per
Sales
and Distribution
month Management
1) Rs. 70-80 thousand

per month
2) Rs. 48000 per
month
24
12/14/16
ITC
HUL
Promotional activities
Bingo display stands

are provided to the
retailers, dummy
packs.
Display packs, gifts to

retailers.
Transport service
Delivery vans, 3wheeler autos.
Delivery vans, autos.
Average order cycle

time
Next day
2-3 days
Credit period from

distributor
Credit period of 1
week from distributor
Credit period of 1
week from distributor
Service of sales
person
Pay frequent visit to

them
Come once or twice in

4-6 months
Acquisition of
products
12/14/16 from
Distributor
(Govindpuri)
Wholesaler (Kalkaji)
Management
25
SATISFACTION INDEX
Parameters
Weightage
Rating
Satisfaction
Index
Delivery time
15
60
Quality of
product
20
100
Incentives
10
30
Promotional
activities
15
45
Transport
service
15
75
Commercial
terms
10
20
30
15
Service of
5
salesperson Very good
3
Total
12/14/16
Average
100
Good
24Below

average
Management
360
26
SATISFACTION INDEX
Parameters
Weightage
Rating
Satisfaction
Index
Delivery time
15
75
Quality of
product
15
60
Incentives
15
60
Promotional
activities
20
100
Transport
service
10
40
Commercial
terms
10
30
Service of
salesperson
15
60
12/14/16
Total
100

29
Management
425
27
RECOMMENDATIONS
I.T.C. LIMITED
Provide credit period facility to distributors.
Provide greater margin.
HINDUSTAN UNILEVER
Provide credit period facility to distributors.
Salespersons should pay frequent visits to
the distributors and retailers.
More prompt in order delivery.
12/14/16

Management
28

Sales and Distribution Function

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SALES AND

Presented bySwati Singh (165)

FMCG Industry in India

At present, the fourth largest sector with a total

Sales and Distribution

Sales and Distribution

OVERVIEW OF THE COMPANIES

Net profit grew at the

Net profit grew at the

2011- 2012- 2599.23

2011- 2012- 1,333

2011- 2012- 21,735.6

2011- 2012- 4,071.32

SALES ORGANIZATION STRUCTURE

Sales and Distribution

Selling and marketing of

Getting feedback from

SALES FORCE AUTOMATION

HHT machines are

VAJRA machine for

Sales and Distribution

SETTING UP OF SALES TARGET

Minimum billings per

Sales and Distribution

CRITERIA OF TERRITORY ALLOCATION

On the basis of area

PERFORMANCE APPRAISAL SYSTEM

Sales and Distribution

Initial training- 20 days;

Sales and Distribution

MOTIVATION & COMPENSATION

MOC awards given on

Sales and Distribution

Sales and Distribution

Sales and Distribution

Carrying and Forwarding Agent

Sales and Distribution

FUNCTIONS OF THE CHANNEL

Sales and Distribution

CHANNEL SELECTION CRITERIA

Sales and Distribution

No credit; only cash

Online software- sify

Online software- Unify

Order cycle time

7 day pipeline reserve In 2-3 days.

Time period for late

Mode of transport of 3- wheelers, pick- up

Delivery vans, minitrucks.

Sales and Distribution

Sales and Distribution

Sales and Distribution

Average sales per

1) Rs. 70-80 thousand

Bingo display stands

Display packs, gifts to

Delivery vans, 3wheeler autos.

Delivery vans, autos.

Average order cycle

Credit period from

Pay frequent visit to

Come once or twice in