Distribution and Sales Management

 Mangal Communications
 1849, Bhaskar Plaza,
 Karve Road, Kothrud,
 Pune -411039



Nature of Retailer
§ Electronics Showroom.
§ Vast range of Companies products to choose from.
§ Located at a Market place with good customer pull ability.
§ With a built-up space of 1000sq.feet. It employees 4 Salesmen, 1
Manager and 1 Receptionist.
§ Hours Open: 10:30am to 08:30pm (02:00pm to 3:30pm –
Lunch Break)
§ Weekly-Off on Sundays.


Various Company Products at the
Showroom
Television Micro-Wave
SAMSUNG
LG •SAMSUNG
ONIDA •LG
SONY
VIDEOCON

Refrigerator Air-Conditioners

SAMSUNG
LG •SAMSUNG
GODREJ •LG
•VIDEOCON
•PANASONIC

Washing Machine Music Systems & DVD Players

SAMSUNG
LG •SAMSUNG
WHIRLPOOL •LG
•VIDEOCON
•PANASONIC
Sales Volume
 Product Segment Chosen for the study

TELEVISION: -


§ Popularly known as “Idiot Box”

§ Produced and Available in different Models, Sizes, Shapes,
Categories etc
§ Popular Companies in this Segment are :-
 SAMSUNG, LG, SONY, ONIDA, VIDEOCON
Product Segment Chosen for the study

§ One of the Fastest selling product in the Electronic Segment.

§ Available in15inch-53inch with price ranging from Rs.5,500 –
3,50,000 respectively.
§ The Brands that we are analyzing are SAMSUNG and LG
§ Average Monthly Sales for television Rs. 500,000
§ The sales are not seasonal and it wholly depends on the customer
demand.
 Popular products
Television Segment: -

Company Portable Ultra-slim LCD Plasma TV

Name [15inch] (19 – 34 SCREENS [21-34 inch]
38cms. inch)
SAMSUNG Portable CS29T11MA Luxia 8-4 Plasma 8-4
14-15inch Series Series
CS29T10PA

LG Flatron Plus Flatron Groove 400, SL90-LIVE

Flatron Majestic, BORDERLESS,
PS 80 SERIES,
PQ 70 SERIES,
70, Flatron Pride LED LCD TV PG 70 SERIES
SERIES,
SCARLET 2.0
SERIES
Prominent Features
SAMSUNG LG
 Turbo Sound  Invisible Speaker
 

 Easy View  HDMI INPUTS

 

 Digital Noise Reduction  HD-Ready

 

 Filter Bright Technology  Intelligent Sensor



 Intelligent Power Saving


Price Comparison
 Stock Demand
Average Monthly Stock required by Mangal Communications:

Company Portable Ultra- Flat Screen LCD Plasma

Name
SAMSUNG 1-3 Slim
3-5 TV
4-5 Pieces Screens
4-5 Pieces TV
0-1 Piece
Pieces Pieces
LG 1-3 2- 3-4 Pieces 3-4 Pieces 0-1 Piece
Pieces 3Pieces
Samsung: 15 Units LG: 12 Units

A ve ra g e M o n th ly S a le
Company Portable Ultra- Flat Screen LCD Plasma
Name
SAMSUNG 1-2 Slim
2-3 TV
3-4 Pieces Screens
3-4 Pieces TV
0-1 Piece
Pieces Pieces
LG 1-2 1-2 2-3 Pieces 2-3 Pieces 0-1 Piece
Pieces Pieces
Samsung: 12 Units LG: 9 Units
Price Margin
§ Reasons –


1. SAMSUNG products as far Television section is

concerned is popular then that of LG’s.
2.
3. Features like auto volume leveller, motion optimiser,
detail enhancer etc. differentiates it from others.
4.
5. Value for Price, Brand Image, Customer knowledge for
the Product also favour's SAMSUNG Televisions.
6.
7. Retailer Margin for SAMSUNG television’s is much
higher as compared to LG.
Marketing Decisions
§ Marketing decisions are made and taken solely by the Company
itself.
§
§ Marketing is done mainly through Media advertising, Holdings,
Event Sponsorships etc.
§
§ As far as Retailers are concerned advertising is done through
Posters, Showroom Holdings, Pamphlets etc.
§
§ Through various Schemes and Discount offers, the Retailers are
given an opportunity to cheer at.
Marketing Strategies
§ SAMSUNG and LG:


1. Not - Seasonal
 For Ex:- Products like Refrigerator’s, Air-conditioners, Washing
Machine etc. are seasonal and thus are marketed accordingly.
2. Other products like Television, Micro-oven are marketed on the
festive moods, major national events, on the start of the Month
etc.
3. Done effectively through Schemes launched, Discount offers,
Additional features added.
4. Sponsoring Distributors and Retailers Showroom holdings helps to
enhance the Brand value.
MARKETING CHANNEL SYSTEMS
§ Marketing channel systems are the particular set of marketing
channels a firm employs, and decision about it are amongst
the most critical ones management faces
§
§ One of the chief roles - Convert potential buyers into profitable
customers
§
§ Must not just serve markets, they must also make markets
§
§ Channels chosen affect all other marketing decisions
§
§ Firm must decide between
§ Push Strategy Vs Pull Strategy
CHANNEL LEVELS

0 - Level 1 - Level 2 - Level 3 - Level

Manufactur Manufactur Manufactur Manufactur
er er er er

Distributo Wholesaler
r

Distributo
r

Retailer Retailer Retailer

Consumer Consumer Consumer Consumer

Supply Chain

Margin : 50 % approx

Margin : 4 - 5 % approx

Margin : 5 – 7 . 5 % approx
Distributor
§ Acts as a link
§
§ Appointed by company
§
§ Distributor supplies the required products as per the Company Price
List.
§
§ Upto 15 days Credit given
§
§ Weekly visits by Salesman of Distributors for Product orders.
Retailer(Dealer)
§ Main link between the Distributor and the Customer.
§
§ Direct contact with the customer.
§
§ Sells the products on the MRP or less.
§
§ Margins for the Products ranges from 5- 7% respectively.
 Relationship of the retailer with different parties
The owner has
a relation with others on the basis of:

1. Customers - Courteous
 - Provides them with the right amount of
information
 - Gives options as per their preferences
 Expectations from the other party

upplier ’ s expectation from the Retailer

.On-time payment Retailer ’ s expectation from the Supplier

. 1.On-time and safe delivery of goods

.Frequent and timely orders 2.Discounts
3.Provide according to the latest trends and techn
4.Services
 Expectations from the other party

stomer ’ s expectation from the Retailer

ood quality products
heap / Affordable Price
p-to-date Information
atest technology
ore options
uarantee / Warrantee
n-time delivery
Retailer ’ s expectation from the Customer
1.Advance payment (if required)
2.
3.Customer satisfaction (so that he comes back a
1.
2.
Physical Distribution

Input – Order from Customer Output – Delivery to Customer

Processor –
Transportation

Transport:
 These Transportation costs are incurred form the
Customers itself
Physical Distribution (contd.)
§ Order Volume
§ Wholesalers
§ Retailers
§
§ Frequency
§ Transportation:
§ Age of Stocks / Inventory

Economics of Margins
Distributor:


1. Company decided price margin.

 For Ex:- For a product worth Rs. 20,000 the
distributor margin assigned by the Company is
upto 5%. i.e. (Rs.1000 )
2.
3. Special discounts are assigned when ordered in
Bulk.
4.
5. Foreign trips are lauded to the distributors when a
specific targets are achieved.



 Economics of Margins
Retailer:
1.
2. Price decided by the company
3. Retailer is free to sell the product as per his own wishes.
 For Ex: if a Product’s MRP is Rs. 20,000. And the Dealer gets it
for Rs. 18,500 then, he is free to sell it for any amount from Rs.
18,500-20,000.
3. Many retailer sell a product on a profit margin of Rs. 500-1000 for
a Product who’s MRP is Rs. 20,000. Thus, these dealers are
Quantitative oriented.
4. Credit window upto 15 days from the day of Receipt but income is
immediate.

Sales Incentives
Commission Based:

1.Salesman at the showroom gets upto 1%

commission per product sold by him.
2.
3.It defers upon the product sold.
4.
5.Company products with High Margin are
marketed first.
6.
7.Special discounts by Distributor’s on specified
sales.
Sales Force Responsibilities
cONCLUSION

§ Highly organized sector

§ Maximum customer satisfaction
§ Global recognition & high penetration
§ Efficient Supply Chain