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7/31/2019 Munendra Kumar Summer Training Final
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L B S I M T
A SUMMER PROJECT REPORT
ON
END TO END CHANNEL PERFORMANCE
MEASUREMENT
[CHANNELPLAY CONSULTING PRIVATELIMITED]
Submitted by:
Munendra Kumar
PGDM (2008-2010)
CHANNELPLAY CONSULTING PVT. LTD.
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Lal Bahadur Shastri Institute of Management &
Technology, Bareilly
AcknowledgementI am privileged to begin this project by acknowledging Mr.
Suhas Nath Misra (Director, ChannelPlay Consulting Pvt.
Ltd) & Ms. Shilpi Rawat (Assistant Manager-HR) who
provided me the golden opportunity to work on such a
wonderful project which was a great learning experience for
me.
I would like to express my gratitude for the able guidance and support provided
by Ms. Dimple Tiwari (Assistant Manager Training), Ms. Ujwala
Misra(Assistant Manager-Training) since the very inception of the project.
I would also like to thankMr. Raj Kumar Yadav (Zonal Manager-North &
East Region) for his encouragement, sagacious guidance, critical appreciation
and above all moral inspiration in carrying out this project.
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Munendra Kumar
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CONTENTS
Executive summary
Company profile
Vision, mission
Companys service area expansion
The leadership team
Companys Projects
Objectives
Introduction
Learning
Limitations
Suggestions
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Executive Summary
This project is all about measuring the performance of end distribution system
of channel partners of Nokia & Coca Cola and it also covers my learning &
field experience in Channel Play as a channel executive. This report focuses on
channel partners effectiveness, which was evaluated by conducting audits and
mystery shopping wherein actual conditions were critically examined by filling
in standardized templates. In addition, the feedback of various channel partners
about the system & processes of the company was taken & both their grievances
and suggestions for strengthening the entire value chain were taken into serious
consideration.
This study is based on practical experience, observation and critical analysis.
There were certain parameters regarding basic infrastructure, look & feel, stock
upkeep, statutory compliance, safety & trained personnel based on which the
performance of Nokia Care Centres, Nokia Priority Dealers and Coke
Distributors was evaluated.
We have found that there is an urgent need for improving the relationship of the
companies with their channel partners as the reputation & success of any
company goes hand in hand with its channel partners and there is a tremendous
scope for developing the existing channels & modifying them for meeting the
current as well as future market requirements.
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This report also mentions the various problems faced by a Channel Executive in
the field. In addition, it includes various limitations as well as motivator factors
in various aspects of company working. Moreover, it includes certain
suggestions for making improvements in companys working methodology.
Company Profile
Channel Play is a company of people who are passionate about brands, about
marketing and most of all, about making a difference. Integrity, passion, respect
and the desire to succeed are values that bind us together.
Through our collective professional experience in marketing a range of products
and services like FMCG, mobile phones, pharmaceuticals and insurance and
with deep exposure to global retailing in the US and China we believe there is a
difference to be made to the Indian shopping experience and consequently to
brand success through improvement of execution. That, in a nutshell is the
mission of Channel Play.
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Vision & Mission
The Channel Play Vision
To be the world's best channel execution company and to enrich our
stakeholders by:
Helping businesses achieve excellence in their channel execution
Helping employees maximize and achieve their growth potential
Transforming the shopping experience of the Indian consumer
Mission
We will succeed by making our clients successful
We will invest in the excellence of our people and processes
We will treat all stakeholders with respect
We will be a socially responsible company and will contribute to the
development of our markets and communities.
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Companys Service Area
Channel play is Indias first end to end channel execution service provider and
offers a range of service for the last mile of your value chain- the sales
channels. Clients choose from our portfolio of services to meet some of the
following objectives:
Channel field force deployment
Capabilities development & training
Channel consulting
Promotions & event management
Channel Field Force Deployment
Channel Play provides a high quality field force complete with a value-adding
organization structure that can be deployed as a true key solution for feet on
street channel execution. We ensure that the field force has a skill base relevantto our partners products, and we work with the partner to design and implement
an initial and ongoing training programme to ensure field force effectiveness.
An effective managerial organization and support functions such as HR, IT and
Training are deployed as part of the project to ensure employee performance,
effective reporting and market-responsiveness.
Some examples of Channel Play field force execution:
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Sales promoters in stores
Retail outlet & distributor developers
Retail outlet merchandisers
Capability Development & Training
Capabilities Development & Training is Channel Plays biggest strength, and an
advantage we leverage in all of our offerings. In the distributed environment of
a retail channel, good execution is highly dependent on the process compliance
and product knowledge of the channel participants which is ensured through
proper training delivery.
We collaborate with our clients to co-develop training content and provide
services for training delivery through classroom, travelling- trainer or e-
learning and multimedia-based programmes.
Channel Play offers following types of training:
Process training merchandising process, ordering process, inventory
management process, selling process etc.
Product training - product feature-benefit training, scripted sales pitchtraining
Soft skills training - sales training, customer interaction training.
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CHANNEL CONSULTING
Companies that run a widely distributed operation to sell sophisticated products
or services have a lot to gain from standardizing their channel process and
rolling them out to all stakeholders. Strong process help reduce the risk of being
dependent on individual performance, bring predictability to results, provide
visibility into critical performance parameters, and help plan strategic and
tactical moves.
Channel play brings its experience and best minds to the table to help you
define and rollout processes and best practices in Channel Execution. Some of
the areas where we can help you are:
Sales processes
Measurement and reporting
Store merchandise and display management.
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Promotions And Event Management
Channel Play provides a complete solution for planning and executive large-
scale promotions or one-time events. We provide a combination of design and
publishing capabilities, kiosk infrastructure and PR service to deliver high
impact promotions and event targeted at communication with a set of
consumers or with specific segments of the channel.
Examples:
Mela & mall Kiosks
Consumer Expos
Corporate promotions
Dealer / Distributor Conferences
Current Projects
Nokia N.P.D. Program
Nokia Sales Promoter Program
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Coca Cola Distributor Audit
Nokia Care Audit
H.U.L Alternate Channel Development.
Dell Project
Yahoos Website Content Development
Objectives
1) To measure the performance level of channel partners biz
authorized distributors, dealers, service centres of Nokia & Coca
Cola with respect to their infrastructure, inventory management,
look & feel, trained & competent personnel ,statutory compliance
& overall costumer experience.
2) To gather feedback & suggestions from the channel partners
regarding the system, processes & procedures of the company(s).
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INTRODUCTION
End To End Channel Performance Measurement
End to End Channel Performance Measurement: Here we measure the
performance of all intermediaries in channel distribution right from the
products origin/manufacturing till the final delivery of the product to
consumers.
Channel distribution includes all channel partners such as manufacturers,
wholesalers, c&f agents, retailers and other middlemen. In channel performance
measurement, we focus on the primary and support activities of the value chain.
In primary activity, we mainly focus on outbound logistics, marketing and sales
and after sales services. In support activities, we include channel partners
infrastructure, human resources management, technology development and
procurement.
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In this project, I had tried to focus on the channel distribution system of Nokia
and Coca Cola. Both these two brands are the market leaders of their respective
industry and worlds two big brands as well.
The mode for channel partner performance measurement was channel partners
audit and mystery shopping.
In audit, we have a set of templates, which include all the dimensions of
channel partners working to measure their performance accurately.
In this project we did mystery shopping for Nokia priority dealers and Nokiacare centres, in this a mystery shopper enters inside the outlets as a customer
and gets an experience of Nokia services and judges about the service delivery
and product offerings of Nokia care centres and Nokia priority dealers.
Need For Channel Performance Measurement
In todays changing scenario it is very important to measure the performance of
channel partners because with the help of performance measurement companies
can make continuous improvement in their channel distribution system to
provide more effective and efficient services to their customer & achieve a
steady growth rate . Some of the other reasons are as follows:
1. To measure the effectiveness of channel distribution
2. To measure the product offerings and service delivery of channel
partners
3. Behaviour of channel partners towards their customer
4. To measure the level of after sale services of channel partners
5. To know the customer experiences through look and feel
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maintenance, sales promoters outlook, marketing tactics& most importantly
pricing. The rationale for maintaining them is to create exquisite in store
experience for customers so that the customers feel connected with the brand
Nokia and do not switch over easily to other brands.
It is essential to keep a strict and regular watch over NPDs to ensure that all the
company norms are practically implemented and wonderful in store experience
is created for each & every costumer.
Mainly Nokia Priority Dealers are classified under these three looks:
1. Global look
2. White look
3. Blue look
Global Look: In Global look, the floor of the Nokia priority dealer (NPD) is
made of wood and there is a techno stand inside the store. Most of the NPDsnowadays have shifted from other looks to Global look because in global look
the space & size required according to Nokia specifications is less than other
looks of NPD.
White Look: In white look, the floor of the NPD is made of the tiles of 2X 2
size and of Nokia approved cream colour and Wall Bay is there inside the store.
Blue Look: In Blue Look, the floor of the NPD is made of the tiles of 2X 2
size and of Nokia approved cream colour. Back Wall Units, Poster Light Box
and Nokia Point Units are present inside the store.
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Nokia Concept Stores (NCS)
Nokia concept stores are exclusive showrooms of Nokia which are directly run
and controlled by Nokia. Nokia has provided training to its promoters who brief
customers about various handsets and their features. These stores have the entire
range of Nokia devices including latest range of mobile enhancements and
exclusive Nokia merchandise.
The new Nokia Concept Stores represent a rebranding of the previous Nokia
Professional Centers. These stores help to strengthen the brand and at the same
time save costs that it incurs in distributing to the retailers. Although it would
have to bear the costs of training the employees but the transportation cost
would be greatly reduced. It would also give the company the advantage of
exclusivity.
NOKIA CARE CENTRES
Nokia Care Centres are exclusive Nokia handset & accessories service centres
that provide after sales service & support to Nokia Costumers. They are
authorized for the sale of genuine Nokia accessories & spare parts. Nokia Care
Centres have to adhere to certain standards and norms prescribed by Nokia.
They have a specific standardized format pertaining to their look and feel
throughout the country.
Their primary job is to attend all costumer complaints with utmost dedication
and patience so that the costumers always remain satisfied with the companys
after sales service & support. They also provide out of warranty service to the
costumers so that the costumers feel that the company is there to serve them
anytime anywhere .These care centres provide their service on standard charges
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prescribed by Nokia. They have to send the accessories/handsets with
complicated
COKE DISTRIBUTORS
Coke Distributors play a very vital role in the coke supply chain. Generally one
coke distributer covers seven hundred to eight hundred retail outlets in a
particular region. They help Coke manage its working capital better by
investing in inventories, facilities and trained personnel. They keep huge stock
of both RGB & PET bottles of all brands offered under the Coke Umbrella.
They also provide cases on credit to retailers for stipulated times and thereby
facilitate the sale of Coke. They also have large warehouses wherein safe
storage facility is available for the goods produced at nearby production units of
the company.
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The audit is done on a regular basis to ensure that proper stock is maintained,
quality is ensured, and BBD stock is segregated from other stock and is
removed at regular intervals from the warehouse. In addition, it is to be ensured
that safe storage is available for the goods, vehicles carrying the goods are
properly maintained and above all the distributor conforms to all legalities
specified by the state as well as central government.
RETAILERS
Coke Retailers include hotels, restaurants, railway vendors, road side dhabas,
betel shops, general stores, tea shops and many others. They cater to the needs
of the end customers. They play a vital role in coke distribution because they
are directly linked with end customers and thereby they refer coke products to
them. It is to be noted that these retailers are mostly non-exclusive stores which
keep the products of many companies simultaneously. They prefer only that
company(s) which provides them maximum margin, timely supply, credit
facility and also they look for good behaviour from company staff. In case of
other companies, they keep their products only because of strong and persistent
demand from their regular costumers. Therefore, it is extremely important to
take care of the needs as well as demands of these retailers and fulfil them to the
maximum possible extent. Then only the retailers will feel motivated & will
remain committed to the company and the sales of the company will grow
rapidly.
LEARNING
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It was a great opportunity provided to me by Channelplay Consulting Pvt.
Ltd. to understand the End Distribution Channels ofNokia and Coca Cola by
the virtue of which I had the experience of the real market conditions prevailing
in the states ofTamilnadu, Kerala, Karnataka and Maharashtra. I had the
opportunity of interacting directly with the Distributors, Dealers, Retailers, End
Costumers & Company Officers.
In todays dynamic & competitive market scenario, the main aim of any
company is to achieve costumer delight. This can be achieved only by bridging
the gap between the perceived service and expected service provided to the
costumers. Moreover, for accomplishing this support of channel partners is
extremely vital.
COVERAGE OF OUTLETS
ParticularState
NCC(audit &Mystery.shop.)
NPD (audit) NPD (GLMS) COKE(audit)
Total
TamilNadu 23 11 26 - 60
Kerala 9 13 - - 22
Karnataka 8 - 33 3 44
Maharashtra 2 - 12 1 15
Total 42 24 71 4 141
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LEARNING IN THE FIELD
During this project I had covered 141 outlets in four states out of which three
states are from South and one state from is Western part of India. This project
has provided me a great learning of end distribution system of worlds two big
brands Nokia and Coca Cola. During this project I have covered forty-two
Nokia Care Centres in which I did Mystery Shopping and Audit. Both in
Mystery Shopping & Audit we are mainly concerned about the delivery of
services by Nokia Care Centres to their customers and how they satisfy their
customers and what kind of attitude they show to their customers. In this, we
also consider the Nokia Care service charges, Repair process, Time taken for
repairing and overall customer satisfaction with Nokia.
In Nokia Care Centre Audit , there is one standard template whichcomprises of 181 questions .These questions mainly focus on Exterior Glow
Sign Board Display, Wall Mounted Interior Signage(WMIS), Point of Selling
material(POSM), Token Number Display, Reception Area, Seating
/Entertainment/Drinking Water Facilities, Staff Appearance, Knowledge Level
of CCOs/Engineers, Technical and Service Manuals, Electro Static
Discharge(ESD) safe tools, Computer Systems, Handset Handling Process,
Statuary Compliances, Job sheets / Loaner Handsets Logbook/ Customer
Feedback Register/ IMC Pending Tracker maintenance & update etc.
In addition, the Bill Books maintained by the NCC are checked & it is
ascertained that Nokia Approved Charges are taken from the costumers. The
Stock level of Critical Parts (those spares which are frequently used) is checked
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and then finally the feedback of the NCC Manager regarding the procedures,
processes & the overall working of the company is taken.
In this same Project, I also did twenty-four Nokia Priority Dealer Audit.
Parameters of this audit depend on the looks of Nokia Priorities. Every look is
having its own separate parameters like Global Lookfocuses on Flange, NPD
exterior signage, store entrance, store outside signage, store look and feel,
furniture, wall bay, counter, techno stand, store staff and stationary.
In Blue Look main parameters are Flange, NPD exterior signage, Store
Entrance, Store Outside Signage, Store look and feel, Furniture, Back wall
units, Poster light Box, Wall mounted interior signage, Nokia Point Unit,
Candle or Hanging TPO, JBL Speaker system (N Series TPO), Counter,
Brochure Panel, Kodak Picture Maker, Stationary and store staff on these basis I
had tried to measure the Nokia priority dealers services to their customers.
GLOBAL MYSTERY SHOPPING
Global mystery shopping is done to have the feel of in store consumer
experience at Nokia Priority Stores located in Metro & Tier I/II/III cities.
During this project, I had covered seventy-one NPD (GLMS).
The Mystery Shoppers focus on a particular series of handsets & ask the sales
promoters for the price & features .They try to irritate the promoter by asking as
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many questions as possible about the handsets & accessories. They also enquire
about the latest launchings by the company and other services/software
provided by the company. Mystery shoppers also take a careful look of the
internal/external look & feel inside the store and cleanliness maintained therein.
Here we try to measure the overall in store customer experience on the
following parameters:
Customer Experience Measurement
1. How the staff member connects with the customer
2. How the staff member explores the customer needs
(a) Listening to customer needs or not
(b)Spontaneous recommendation by staff member
(c) Product Features Explanation
(d) Reference to value added services & software by Nokia
3. Practical Orientation
(a) Live devices available for demonstration
(b)Live Nokia accessories for demonstration
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(c) Staff member invites you to try live devices/accessories yourself
4. Building lasting relationship i.e. suggesting value adding services like
Nokia helps to move your contacts, messages and software from
your old phone to the new phone.
My Nokia
Software Installation
After sales services
5. Rating Product Knowledge of the staff member
(a) Excellent
(b)Good
(c) Poor
(d)Very Poor
6. Rating Personal Impression of staff member
(a) Excellent
(b)Good
(c) Poor
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(d) Very Poor
7. Rating overall in store experience as a customer
(a) Exceed my expectations
(b) Average
(c) Good
(d) Mediocre
(e) Poor
As mystery shoppers, we measure the service delivery at Nokia Priority Stores
on the above-mentioned parameters. We try to make a match between the actual
customer experience & the expectations of the customer. If there is any
mismatch between the two then there comes service quality gap. We try to findout the root causes of this gap & suggest measures for omitting the gap.
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Coke Distribution Channel
The distribution channel of any company depends on its distribution strategies.
The distribution channel of coke comprises of two-way distribution in which the
full cases of bottles are transferred from manufacturing unit via wholesale
distributors, retailers and other intermediaries to the customer. In second way of
distribution, the empty bottles (RGB) are transferred from customers via
retailers, wholesale distributors & other intermediaries to manufacturing units.
D Coke distributers
R -- Retailer
1. Left to right (first way of distribution with full cases)
2. Right to left (second way of distribution with empty bottles)
(Figure 1.1)
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M 1
Manufactur
ing unit
D
D
D
D
D
R
R
R
R
R
R
R
R
R
R
R
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Coke Distribution Strategies
Distribution Strategies are mainly concerned with the right product in the rightplace at the right time. Marketing strategies are concerned with product-market
decisions which customers to serve and which customer needs to fulfil. In case
of Coca Cola the distribution strategies, that they are following is a Selective
distribution strategies in which Intensive and Exclusive both kinds of
strategies are found.
Intensive Distribution strategies
Intensive distribution provides the most comprehensive market coverage. Themarketer uses every available outlet to reach its customers. The demand of
Coke is a kind of Impulse demand so that the location of outlets is not taking
more important than the availability of Coke when the customer create a desire.
This strategy is uses by Coke distributer at the time when they are supplying all
the Umbrella brands of coke in the market through their retailers to make
adequacy of Coke at every outlets of market.
Exclusive distribution
In Exclusive strategy, only one or a few distributors are permitted to carry one
or more product lines from a manufacturer. In Coca Cola distribution when
manufacturer supply the coke brands through a limited number of distributer of
particular region or district. Then it should consider as exclusive distribution
channel strategies.
Selective distribution
Selective distribution combines the features of intensive and exclusive
distribution strategies and is used to limit distribution to a few types of
Intermediaries or retail outlets. In this case when the bottles supplies to Coke
distributers from the manufactures that should considered in exclusive
distribution strategies and when distributer supplies this bottles to the retailers
than it should be considered as Inclusive distribution strategies.
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D Coke distributers
R -- Retailer
(Exclusive distribution) (Inclusive distribution)
M D R
Selective distribution strategies
1. Left to right (first way of distribution with full cases)
2. Right to left (second way of distribution with empty bottles)
(Figure 1.2)
Coke Performance Measurement
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M 1
Manufactur
ing unit
D
D
D
D
D
R
R
R
R
R
R
R
R
R
R
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During this project, I have covered four coke distributers out of them three
distributers are from Karnataka and one from Mumbai. For Performance
measurement in coke, I have one standard template, which mainly focuses on
the physical distribution, which includes Order Processing, Warehousing,Material and Inventory control and Transportation.
Physical Distribution
1. Order processing
(a) Permanent dispatch plan (PDP)
(b)Continuous replacement system (CRS)
(c) Basis of CRS
2. Warehousing
(a) Closed area of warehouse
(b)Open area of warehouse
(c) Expendable open and closed area
(d)Cleanness in warehouse
(e) Mesh and metal roof in the warehouse
(f) Ventilators and windows
(g)Parking area
3. Material and Inventory Control
(a) Stock out method (FIFO/LIFO)
(b)BBD bottles handling
(c) Drainage facilities for BBD bottles
(d)Arrangements of cases according to brands or not
(e) Arrangements of RGB bottles and empty shell
4. Transportation
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(a) Coverage outlets
(b)Farthest outlets covered by distributer
(c) Vehicles which used for distribution
(d)Vehicles servicing dates
(e) Number of vehicles of 709, 407, Tata Ace, Pick up
Coke Audit
In coke audit, we are looking on the physical distribution system of coke
distributer in which all the above mentioned points are taken into account to
know the following facts.
1. To measure the operational efficiency and activeness of a distributer.
2. Coverage outlets/retailers of a distributer
3. Farthest distance covered by a distributer
4. Available vehicles and Coke brandings on the vehicles
5. Services and maintenance of vehicles
6. Open and closed area of warehouse
7. Arrangements of Cases
8. BBD status
9. Stock out method (FIFO/LIFO)
10.Parking and expendable area
11.Ten days sales according to the brands, which help to measure the
market, demand accordingly.
12.Stock keeping points
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Motivating Factors
1. It was a great learning opportunity provided by Channel Play to
understand the end distribution system of Nokia and Coca Cola.
2. Company had provided me an opportunity to visit the southern and
western part of India.
3. Company has shown confidence on me for Audit and Mystery
Shopping work, which gave me positive self-confidence for future.
4. I found that company critically measures the performance of Channel
Executives and company rewards the best performers.
5. Company managers always remain in touch with the Channel
Executives and enquire about their well-being on a regular basis.
6. Immediate actions were taken and solutions were provided then &
there for the problems encountered in the field.
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Limitation
General limitations:
1. Sometimes the Route plans were not properly structured.
2. Settlement of the claims submitted by the channel executives was not
carried out timely.
3. Some of the addresses of Nokia priority and Nokia Care were not
updated.
4. Local expenses for coke outlets were insufficient because most of the
warehouses are located in outer part of the cities.
LIMITATIONS IN COKE TEMPLATE:
1. Not all the products of coke product line are mentioned in the stock
valuation list.
2. Space provided in template for mentioning vehicles number is not
sufficient.
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Suggestions
1. Company should update the Nokia Care and Nokia Priority addresses on
a regular basis.
2. Company should specify a specific time for data punching for a particular
channel executive.
3. Company should communicate to their channel executives in advance for
his/her rail reservation for long journey.
4. Company should increase local travel allowance for coke audit at least
two times, as Coke Distributors are located in outer areas.
5. Company should specify to their channel executives about their working
hours.
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6. The list of coke brands are needed to be updation as follows:
Coke 200ml 300ml 330ml 600ml 1.25ltr
Fanta 200ml 300ml 600ml 1.25ltr 2000lt
350ml
Fanta Apple 200ml 600ml
Sprite 200ml 300ml 330ml can 600ml 1.25ltr
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2000ml 350ml
T.up 200ml 300ml 330ml 600ml 2000ml
Citra 200ml
Limca 200ml 300ml 600ml
Maza 200ml TTP 250ml 600ml 1200ml
400mmpo
Soda 300ml 500ml
Water 1.5ltr 1ltr 2ltr
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