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