CHANNEL DISTRIBUTION OF BAJAJ APPLIANCES

Presented by Pritam Sahoo (13DM050)Vipul Sharma (13DM049)Kushal KumarR.(13DM046)

Branch office address,Bajaj Electricals Ltd Kharavela Nagar, Janpath,

Bhubaneswar 751 001 Phone : 0674-2390697, 2396980, 2394052 Fax : 0674-2390294 Email :bhu_cic@bajajelectricals.com .

Distributor’s address,Bapuji nagar Bhubaneswar.

Why Bajaj Appliances?Interested in consumer durablesBajaj appliances is a major player in CD sector.And it also holds effective market share.It’s growth in last two years was on an average 20 to 22%.Revenue contributed by CD

Presentation structureEntire delivery order system?Timing or getting the order? And order punching system?Number of SKU? (High/Moderate/Low) and why?Which product do not come to Orissa but sold elsewhere?

And why?Examples of secondary scheme?How schemes effect Dealer?

1. Consumer scheme.

2. Dealer scheme.

3. Both.

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7. Cost of distribution? 8. Counter analysis (detailed)? 9. How distributor ROI is calculated? 10. New product launches experience? 11. How branding, advertising, display are done? 12. What merchandiser does? Detailed?

CompanyC&F

Branch sales Godow

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Distributor

BRANCH OFFICEExclusive

Stores

Dealers

DISTRIBUTION CHANNEL OF BAJAJ APPLIANCES

Timing of getting the order? And order punching system? The timing of getting order is from 10:00am to 6:00pm.

For daily.DSO goes on weekly basis.Long arm sales officer goes in fifteen day’s.TSO goes to field on monthly basis. The order is taken by DSO from dealer’s, manually on a

register.They have the punching machine for taking the order

from the distributor at branch office.

Collection procedureTarget to DSO on daily basis is Rs 50,000.Last year the target of distributor was 6.5crores.Credit period given to Dealer are on the basis of counter.

A - 15 to 20 Days

B – 20 to35 Days

C - 35 to 50 days

Budget allocationIt is done on the basis of previous year sales data.For instance the estimated market sales of previous was of

3cr and the sales was 1.5cr so on the basis of this data the company allocated the budget 20-25% more than the previous year.

If the estimated market sales was same but the actual sales was 2.5cr then the budget allocation will be 9-12% more than this year.

Number of SKU? (High/Moderate/Low) and why?

They have 43 to 45 SKU at Bajaj appliances.High – Grinder, Iron,& Cooler.Moderate- Pressure Cooker, Electric Kettle, Gas stove, and

Toaster.Low – Micro oven, O.S. Grill, Rice Cooker, Chimney, and

Water purifier. Reason

1.Mordern product.

2.Life of product is more than other’s.

Which product do not come to Orissa but sold elsewhere? And why?

Air Fryer.

Modern product,

Customer knowledge,

High cost appliances.

Schemes?

DEALER SCHEME:

Primary scheme & tertiary schemePrimary scheme – they have monthly slab of generally

45days to 60day.

Where they give free product’s

Example -10 for 1 for low moving,

15 for 1 for moderate moving. Tertiary scheme given on festive occasion.

Effect of schemes on Dealer.They compare the schemes of other company and push

the product according to that, even the new product also moves accordingly.

More focused on your companies promotion rather than others.

Product life cycle might get reduced to some extent.Increase in purchase of scheme product’s.

7. Cost of distribution?

1% of sales amount in total..54% of the company..46% of the distributor.

Counter analysis (detailed)?On the basis of three criteria

1. Potential of sales.

2. Payment capacity.

3. Number of sales in variety of SKU.

Based on the sales of the counter A the sales benefits are given i.e, 1% of ads budget

How distributor ROI is calculated?

New product launches experience?

Proper ads(ATL,BTL) and broadcasting.Conference with dealer and distributor’s.Feature’s disclosure in all the outlet’s before hand.Example : induction heater

Launch 2 year back

1st year sales 10cr.

2nd year sales 7cr.

3rd year sales 3.5cr.

How branding, advertising, display are done?In shop branding.Neon signboards inside the shop in scheme

product’s.Advertising 1.Hoardings 2.Canopy 3.Brand promoting boys(Dealer’s counter) 4.Glowsign bar. Paper ads

Media advertisement

Example-ads of Pressure cooker

They have given a advertisement in local media in odia channel’s.

The budget was of 2cr which was for six month.

Increase in sales of the product by 30%.

And the sales of other product rise by 7 to 8%.

.What merchandiser does? Detailed?

Merchandisers are responsible for ensuring that products appear in the right store at the right time and in the right quantities.

 Trying to forecast trends. Plan stock levels and monitor how fast, or slow, the stuff

is disappearing from the shelves.Product is kept in proper in store.Visual displays.