group 7 bata-reckitt

8/14/2019 Group 7 Bata-Reckitt

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SUBMITTED BY – GROUP 9

SOMIL JOSHI (08PGDM113)

PRAKHAR SINGH (08PGDM100)

PRAJITH V M (08PGDM099)

VARUN S PILLA (08PGDM119)

TARUN GUPTA (08PGDM118)

RAKESH M (08PGDM043)

Study of Distribution Flow



SEMI-DURABLE GOODS

Bata India Limited



Manufacturing



Distribution Base

North -FaridabadDistributor

South - BangaloreDistributor

West -ThaneDistributor

East – KolkataDistributor



Delhi – Retail Network



Retail Structure – Company Owned



Other Facts

Company maintains two different companies Bata Properties Limited (100% subsidiary)

Dealers, Owners, Investors of Land and building etc

Costal commercial Exim Ltd.Exports, Imports, Buyers, Traders, Suppliers, Merchants etc

Repair cost borne by the retailer for both thechannels

Company considers 1% defect rate and maintains therepair costs in the margins of the retailer



Bata Dealer Requirements

Bata - Basic Requirements Availability of location in major semi-urban/ urban centres with at least 30,000 inhabitants or

in major shopping centres. Selling area of at least 500 sq. ft. fro half dealership or 1,000 sq. ft. for full dealership. Start-up investment/ capital of minimum RM50,000.00 Adherence to terms and conditions of dealership such as payment terms and follow strict pricing

policy.

Bata - Special Services Site and store evaluation, competitive analysis and turnover forecast. Profitability calculation and feasibility. Store design, layout, furniture and fittings will be provided by Bata on a cost sharing basis. Sales tracking and re-order. Full management support for new openings. Long term business and management support.

Bata - General Condition Exclusive selling areas dedicated to Bata products only. Management training will be provided. Point of Purchase (P.O.P) materials will be provided free of charge. DSP van/ artist assist in the in-store display of your shop.



Efficient utilization of Distribution capacity

Bata partnering with Adidas, Reebok, M & B, LeeCooper to effectively utilize its distribution channelcapacity

Bata charges a direct commission on MRP Adidas – 40% - Footwear / 42% - Apparels

Reebok – 36%

M & B – 40%

Sierra (Lotto) – 42% Puma* – 35%



4th Dimension – Direct Selling

Bata Direct - Bata venturing into Direct Selling

Sale through Catalogs

Sales Force –

Sales coordinators Bata sales consultants

High end products on sale thorough this channel



Another Dimension - Institutional Sales

“Bata Institutional Sales Division is an exclusive division of BataIndia which caters to the requirements of corporate customers

across the country.”

The Institutional Sales Team customizes footwear solutions to

meet the requirements of various industries – hospitality, aviation,healthcare, educational and government organizations.The Bata Institutional team collaborates with corporate customers

to design exclusive shoe lines under the various international andnational brands - HUSH PUPPIES, MARIE CLAIRE, MOCASSINO, AMBASSADOR, COMFIT, SCHOLL, QUOVADIS, NORTH STAR,

POWER, which are in line with latest technology and industry specific, to meet the requirement of the customer.



FMCG

Reckitt and Benckiser



Distribution Network:

Conventional Trade

Conventional Trade: The

trade practice which has beenexistent from old times,where the supplier enjoys asignificant bargaining power



Distribution Network:

Modern Trade

Modern Trade: The new set of

trade practices, which involvesmuch larger and organized retailers (like Big Bazaar,Spencer's, etc), effectively shifting the bargaining power into the hands of the retailer



Functioning of the Channel

• Manufacturing units for different products at different regions of the country – Dettol is manufactured at Jammu – Harpic is manufactured at Uttaranchal

• Products from all of these manufacturing units brought to a central warehouse (northern region)

• From Central warehouse to C&FA agents

• C&FA to Distributors

• Distributor – 10 salesmen and 2 merchandisers (numbers fixed by company) Salesmen in company terminology called Distributor Sales Representatives (DBSR) Company prepares a weekly schedule which mandates the visits of each of these 10 salesmen in the distributor’s territory Distributor’s territory is also decided by the company




• Reckitt Benckiser works on a before-cash basis – Payments can be made on a per week basis, even if the sales targets are

set on a per month basis

•

All dealings of the distributor are with the C&FA – Dealer places his order via email

– Payment can be made by either an RTGS fund transfer or a DD

– Carrying costs till goods are placed on shelf of distributor born by C&FA (including damages)

• Distributor margin 5%




• Salesmen travel to the retail points, and procures orders from the retailers

• Orders are then filled in to two software – Dealer’s own software (keep track of logistics) – Company software (for real time data for company)

• Dealer software then makes a dispatch summary sheet – how much – which product – which retailer – what vehicle

•

Vehicle goes with a driver, a helper and a salesman• Damage of goods in transit to retailer born by distributor• Salesman collects the payment from the retailer

– Either as cash, credit, dd or cheque – Cash payments get discount of 2.5%

Conventional

Trade



• Organized Retailing

• Absence of Salesmen

• Varied methods of Operation – Big Bazaar – Central Order – Spencer’s – Regional Order

• RB’s Area Sales Representative – Overlooks sales and delivery procedures – Resolve channel Conflict

Modern Trade


group 7 bata-reckitt

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