apel final
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Presented by: Mercury
ABHINAV AGARWAL(043003)
ABHINAV MITTAL(043004)
DEEPALI AGARWAL(043019)
ABHINAV MAHAJAN(043032)
RAGINI PANT(043042)
ASIA PACIFIC ELECTRICALSTerritory Planning and Management
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ABOUT US
Germancollaboration 1992
to launch MCB.
Believe in joininghands with the
best players in theworld to provideIndian consumers
with higher valueof money throughsuperior quality of
products andservices.
Developing &Marketing
Switchgearproducts
Focus on good
QUALITY.
Largestmanufacture ofMCB in India.
MCBs supplied tovarious consumerdurable companies
and MNCs.
Successfulrelationship with 7
global names inswitchgearindustry.
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Products
MCB MCCB ELCBPush
ButtonsBallast
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Product certifications, approvals and recommendations.
Brand pull through presentations, seminars, customer and
electrician education combined with trade push.
Sales team concentrates on demand generation while distributionnetwork provides order servicing.
Largest sales and marketing team in LT switchgear industry inIndia.
OEM sales were met directly by APEL.
SALES AND MARKETING
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Preferred appointing dealers who had
good contact with institutional buyers
rather than a reputation in the retailmarket.
Conducted an 8 weeks induction program
for all inductees.
16 SalesEnginee
rs
10Resident
SalesEngineers
8 Salesofficers
4 SalesExecutives
7 AssistantManagers
45ersons
SALES OPERATION AND MANAGEMENT
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PROBLEMIDENTIFICATION
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Conflict of goals at the management level and the sales force level. Management aims at increasing theoverall profitability of the company while sales force is concentrating on sale volume.
Inadequate attention given to non-MCB products by the sales team.
Sales team content to sell MCB because of dominant position of APEL in the market.
Wide disparity in sales performance amongst regions.
Regional Managers not being able to motivate and control their sales team and their territory performance.
Increasing competition, especially in South.
Disparity in sales tax structure between Delhi and other states, resulting in territorial infringement by Delhidealers especially in Southern and Eastern states.
Use of unethical practices by competitors, especially in institutional business.
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Sales staff tended to concentrate most of their effort on the metros and class I towns, due tohigh potential in the areas and poor TA and DA rates offered by APEL.
Growing number of quality complains especially in ELCB and MCCB.
Persistent complains of dolly free and continuity of circuits in MCB.
Sales staff has to spend much more time looking into complains and hence lost out inproductive sales calls.
Prices of non-MCB products are not competitive and loss of a lot of sales to new competition.
Sense of neglect from Head Quarter in terms of communication and actual visits to the Easternregion.
Head Quarters reacted slowly on competitive rates for tenders for eastern region, resulting inloss of sales.
Marketing-Sales Disconnect, as Marketing emphasizes on MCB products as it is expected togrow at 40%- 0% in next 3 years. While sales team feels that the non-MCB products are notgetting adequate attention.
Improper territory alignment leading to conflict among sales teams.
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1 Recover existing credit
2 Maintain market leadership in MCB
3
Foc s on Non-Metro
4 Sell non-MCB prod cts
PRIORITIES
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ALTERNATIVES
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Hold Regional Managers responsible to
receive payments on time
RMs should be given incentive for recovering
existing credit within 60 days
For future, separate incentives should given
for sales and payment received
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More number of dealers (distributers)
should be added
46 dealers should continue for institutional buyers
Around 00 new distributers (for household and buildersegment) should be appointed, within one year by RM,considering their relationship with retailers.
Distributor to be appointed for the FMCG universeArea basis - 100 K.M. Radius (Geographical Contiguity)
o. of retailers under the distributor (Equal Demand
Potential)
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Add new Sales Engineer and Sales Agent
Sales Engineer 50 new engineers should be hired, 1 per 10 dealers, they
will act as order creators.
Inform users about products other than MCB
Independent Sales Agents (Resident)
500 new sales agents to be appointed, one per distributor.
They will act as order getters from retailers.
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Functional Specialization
Sales staff in Sothern region was busy in handlingcustomer complaints
Hence lost sales
Restructure the organization structure to include
functional specialization
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ANSWER TO QUESTIONS
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Q1. Examine the relative merits and
demerits of deploying sales engineeron a state wise territories versus
territories carved out of consideration
of:
Geographical contiguity of towns of
adjoining states Equal demand potential
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Deploying Sales Engineers on the basis of
Geographical Contiguity of towns of Adjoining States
Less travel time
Equitable use of resources
Optimum use of dealershipnetwork
erits
No clear demarcation ofsales territory
Loss of focus towardsinstitutional buyers
Demerits
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Deploying Sales Engineers on the basis of
Equal Demand Potential
E ita l s f r s rc sa ti s f
al rs i t rkrits
No cl ar arcationofsal s t rritory
Loss of foc s towar sinstit tional y rs
D rits
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Q2. What changes would you suggest interms of having a separate sales force
for dealer network and for
institutional/OEM business?
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CMD
Joint
ManagingDirector
ExecutiveDirector
Productmanagement
MarketDevelopment
Manager
Commercialand
InstitutionalManager
National Head
Marketing Manager
(Household/Builders)
Marketing Manager
(Institutional/OEM )
Marketingmanager
Sales Planningand
coordination
Dealers Distri uters
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Q3. What is your reaction to the
suggestion of reducing dealer marginsfor MCBs and diverting the funds
towards advertising and brand
building? How would youcommunicate this to the dealers and
what safeguards would you build into
the system to adverse dealer
reaction?
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Bulk
order0-2%
Paymentwithin 15 days3%
Fixedincentive10%
Average discount should be kept the same,
only the overall division should be revised
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Give Extra incentives toattract new distributors
All new distributors whogive on time payment for
6 billing cycle should begiven a 20% discount onthe 7th bill.
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Q4. Should MCBs be sold as FMCG
products? What expertise would you
inculcate in your sales force if this
change is implemented?
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YES, MCBs be sold as FMCG products
Resident Sales Agent
Training given to divide the distributors area
into beats.(Mandatory for FMCG)
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