Sales management fmcg_presentation
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Transcript of Sales management fmcg_presentation
SALES MANAGEMENTAN OVERVIEW
INDUSTRY PROFILE - FMCG
The FMCG Industry
Rising income and growing young population
Increasing rural demand
1.9% of total FDI inflow April 2000 – September 2012
$34.8 billion industry (CAGR 17.3% in 2006-11)
43% Food Products22% Personal Care12% Fabric Care
66.5% Urban33.5% Semi-Urban and Rural
KEY TRENDS IN FMCG INDUSTRY
• Consolidation
• Product innovation
• Global expansion
• Backward integration
• Focus on rural markets
• Third party manufacturing Growth Drivers
Rise of Rural
Consumers
Organized Retail
Increasing per capita
income
SALES MANAGEMENT IN THE FMCG INDUSTRY
Sales Management
Strategic Roles
Setting Sales TargetsQuotas
Sales Forecasting
Demand Planning
Sales Planning
Control Roles
Setting up Sales Routes
Analysis of Sales Reports
Recruitment and Training
SALESFORCE HIERARCHY - NESTLE
National Sales Manager
Zonal Sales Manager
North
Zonal Sales Manager
South
Regional Sales
Manager
Sales Administration Executive
Area Sales Manager
Pallet Salesmen
Territory In Charge (SO)
Distributor Salesmen
Zonal Sales Manager East
Zonal Sales Manager West
Zonal Sales Manager Central
ORGANIZATION DESIGN BY TERRITORY
Vice President (Marketing)
National Sales Manager
Division Manager (East)
Regional Sales Manager
District Sales Manager Sales Staff
Division Manager (North)
Regional Sales Manager
District Sales Manager Sales Staff
Division Manager (West)
Regional Sales Manager
District Sales Manager Sales Staff
ORGANIZATION DESIGN BY MANAGEMENT FUNCTION
Vice President (Marketing)
Sales Manager
Sales People
Line Function
Manager (Market Research)
Staff Function
Advertising/Sales Promotion Manager
ORGANIZATIONAL SALES STRUCTURE – HINDUSTAN UNILEVER LIMITED
Product
Customer
Geographic
Functional
Chairman of the Board
Vice President – Human
Resources
Vice President – Sales & Customer
Development
Marketing Manager (India)
General Manager
(Whole Sale)
General Manager
(Consumer Care)
Division Manager (Food)
Division Manager (Home &
Personal Care)
Division Manager
(Nutrition)
Division Manager (Health & Beauty)
Division Manager (Water)
Marketing Manager
(International)
Vice President – Supply Chain Management
CFO & CIO
SALES ORGANIZATION – GEOGRAPHY BASED (HUL)
HUL Sales Organization
South West
East
Bihar Orissa
Bhubhanehswar Konark
Puri
West Bengal
North
SALES STRUCTURE - ITC
Marketing Organization
• Consumer Behaviour• Brand Matrix• Product Performance• Direction to Brand
Manager• Advertisement Roll
Out• POS Activities• Market Research
Brand Manager (National) -> Assistant
Brand Manager
• Promotional Budgets• Trade Schemes• Inventory Logistics
Sales Organization
• On Field Sales
SALES MANAGER FUNCTIONS
Regional Sales Manager
• P&L of assigned territory• Ensuring compliance of
company policies• Manages cohesiveness of
sales team• Training and development
of ASM
Area Sales Manager
• Primary target achievement
• Communication of company philosophies and values
• Managing relationships with clients, government entities, major accounts and legal entities
• Training and development of sales officers
• Accompanying sales executives on call
Sales Executives
• Secondary target achievement
• Ensuring execution of all strategies-selling/promotions
• Managing relationships with dealers, distributors and retailers
• Training and development of distributor salesmen
TYPES OF SELLING JOBS
• Product type or specific products.
• Account type or specific account.
• Type of distribution method
• Order size
RECRUITING AND SELECTION
Skills Required
Improvisation Skills
Productivity
Selling Skills
Education Requirements
Area Sales ManagerHired from premier business schools
Sales ExecutivesScreening – HR Team
Final Selection – ASM
Graduates or from smaller business schools
TRAINING AND DEVELOPMENT
• Area Sales Manager• Management Trainee program• Sales stint – 3 to 6 months• Regular training programs
• Sales Executive• 15 day induction program• Tag along
• Salesmen• 3-4 day training• IT and computer system training• Market introduction• SKU analysis and information
EVALUATION AND COMPENSATION
QUOTAS AND TARGETS
• Industry growth
• Last year sales
• Company growth
• Advertising budgets
• Annual operating plan
• Top down approach – data flows
• Targets based on 2D matrix of pack and brand
MAJOR ACCOUNTS
DISTRIBUTION CHANNEL - ITCITC
Company Appointed Distributor
Secondary Wholesaler/Stockist
Retailer
Consumer
Distributor Appointed Salesmen
Retailer
Consumer
Company Appointed Salesmen
Retailer
Consumer
DISTRIBUTION CHANNEL - NESTLE
Last level purchase pointsSupply happens in weekly beats
Multiple purchase points per region1 Re-Distributor per region
1 distributor per city1300 in 2010
1 Super Stockist per city
1 C&F per state
7 plants across India Manufacturing Plant
Carrying and Forwarding Agent (C&F)
Super Stockist
Re-Distributor
Retailer Wholesaler
Modern Trade DCs
Cash Distributor
Retailer Wholesaler
STING
CRM IMPLEMENTATION
• Uses technology to organize, automate and synchronize sales, marketing, customer service and technical support
• Effective tool for managing company-customer relationships
Collecting customer
information
Analyzing data to predict
customer behavior
Applying the results of analysis
Measuring results
CRM IMPLEMENTATION
Business Areas affected• Customer Analysis• Operations and Cost Management• Product and Sales Analysis• Inventory and Distribution Management• Promotion Analysis
Benefits• Database management• Accurate demand forecasting• Automated product tracking from supplier to retailer• Access to real time competitor and customer information• Easily available product information• Effective monitoring of sales performance• Automated route scheduling• Increased sales productivity with timely follow up of leads
SALES PROMOTION ACTIVITIES
Trade Marketing• Brands• Foreign trips for distributors• Gold coins• Dinner meet for retailers
Sales Promotions• Discount sales• Price offs• Buy 1-get 1
MOBILE RETAILING
• United Villagers is using mobile technologies to bring big brands to rural India.
• Dabur and HUL use technology to improve sales and reach
UV’s Sales men take order from retailer
Use mobile application to place order to
city warehouse
Products are delivered in boxes to the
retailers
Dabur
Urban Sales Force (Hand Held Device)
Understand buying patterns
Customize selling strategies
Rural Sales Force (Mobile Devices)
Maps showing demographies and market potential
Report sales