Expanding and Improving direct sales, distribution and

marketing in NCR region Shobit Mahajan (48A)MBA 2014-16 batch

IIFT Delhi

Agenda

Project Overview

Methodology

Markets covered

Analysis

Bizom – CRM tool

Results and Recommendations

Way forward

Project Overview

To determine the factors which persuade retailers for sale

To increase distribution by dividing proper areas for each sales executive

Opening new outlets and increase sales

Analyze data, making sales plans and making promotional activities

Material & Cash Flow – FMCG Industry

HECTOR BEVERAGES PLANT

Company Owned Depot

CFA Partner Depot Super Stockiest

Distributors

Retailers Retailers

Distributors

Retailers Retailers

Distributors

Retailers

Direct OperationsIndirect Operations

Flow of material Flow of money

Methodology

Exploration

Expansion

Geographical Contiguity

Visit Market Gather Feedback View Data Use Google Maps

Hire new sales executive

New relations with retailers

Activate new stores and enter new areas

Break existing routes into multiple routes to increase distribution

Assign new routes to each sales executive according to geography

Trade schemes, Promotional

Offers & Motivation

Merchandizing Training of new SE Schemes &

Promotions designing

Sales plan for general trade as well as high volume outlets

Markets Covered

South Delhi

Mahipalpur Vasant Kunj HauzKhas Malviya Nagar Lodhi Road Jamia Nagar Lajpat Nagar Greater Kailash South EX NFC Dhaula Kuan Nizamuddin Saket

Bizom – CRM tool (1/4)

Bizom: CRM tool integrated with ERP to track sales order of sales executives

Bizom – CRM tool (2/4)

Bizom – CRM tool (3/4)

Bizom – CRM tool (4/4)

Analysis: South Delhi

Number of Stores : 110+

Prob

lem

s fr

om R

etai

lers

Problems from

Sales Team• Retailers are skeptical

about new product• They want credit/Bill to Bill

payment terms• They are not interested in

keeping paper based packing

• They have excuses like space constraint in store

• Taking retailers for granted• Aggressive behavior with

Retailers• Irregular Service: Not visiting

Retailers on weekly basis• Less credit limit; Not willing to

take risk

Key Insights

Transfer of Sales Executive from one route to other results into huge loss

Jamia Nagar is potential market for us. It has 15-20 SAMTs

Sales Executive know about majority of Stores but they are not able of crack because :

I. Retailers compare price with Modern Trades

II. It takes approximately 30 minutes to crack one SAMTs

III. Retailers seek Bill to Bill Payments after bitter response in ‘Tzinga’

IV. To increase sales, SEs pitch Tzinga & Paperboat together

Results (1/2)

No of SAMTs 265

No of SAMTs Cracked: 130

South Delhi Route SAMTs: 90

South Delhi Route (Current)

SAMTs visit/ Day 17

Sales/Day 54.995

SAMTs visit/ week 102

Sales/Week 329.97

Sales/Month 1319.88

Sales/Day/SAMTs 3.235

Expected Sales(Current)

Sales/Day/SAMTs 3.235

Number of SAMTs 265

Total Visits/Month 1060

Sales/Month 3429.1

Sales/year 41149.2

Revenue/Year(Rs.23/pc) 11357179

Results (2/2)

South Delhi Route (Future)SAMTs visit/ Day 20Sales/Day 120SAMTs visit/ week 120Sales/Week 720Sales/Month 2880Sales/Day/SAMTs 6

Expected Sales (Future)Sales/Day/SAMTs 6Number of SAMTs 265Total Visits/Month 1060Sales/Month 6360Sales/year 76320Revenue/ Year (Rs 23/Pc) 21064320

Sales Revenue : 21064320 is Optimistic figure

REASON• Sales/Day/SAMTs is west Delhi would be 3• Sales will dip drastically in winter season• Distributor Model will also reduce the

Revenue

Average Revenue

Sales/Month 3000

Sales/year 36000

Revenue/ Per Year 10368000

Way Forward

• Same task needs to be done in East Delhi, Noida , Greater Noida, Gaziabad , Faridabad

• Incentive Model will push Sales Executive to search new SAMTs

• One Sales Manager to look after the working of SAMTs

• Chota Paperboat in dense market where customer are not willing to spend on Paperboat

• Distributor Model in dense market is more suitable

• Phone Number of Sales Executive on Poster

Ph: 9717063153

Project Timeline

0-6 Months 6-12 Months 1-3 Years

• Run “Incentive Plan Scheme” to open new counters

• Devote One Sales Manager in opening new SAMTs

• e-Arrangement of Direct Routes for Sales Executive

• Distributor Model in dense market like Najafgarh, Palam

• Launch of “Chota PaperBoat”

• Analysis of increase in Sales

• Stabilising SAMTs Model in Delhi/NCR

Thank You