Sdm ppt final
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The document discusses and compares the sales and distribution functions of Hindustan Unilever Limited (HUL) and ITC Limited in India. It outlines their product lines, market shares, growth rates, profits, organizational structures, order processes, training programs, performance evaluations, and distributor relationships. Key differences noted are HUL providing credit to distributors while ITC does not, as well as variations in order cycle times, late payment policies, and cash discounts.
Sdm ppt final
- 1. SALES AND DISTRIBUTION FUNCTION Presented by- Swati Singh (165) Garima Sanger (133) Karan S Bora (137) Mohd. Sadiq Khan (205) Mohd. Saad Rashid (143) Vikas Yadav (170)
- 2. • At present, the fourth largest sector with a total market size in excess of $13 billion as of 2012. • Expected to grow to a $33 billion industry by 2015 and to a whooping $ 100 billion by the year 2025. • Highly fragmented FMCG market and a considerable part of the it comprises of unorganized players selling unbranded and unpackaged products. 3/21/2013 Sales and Distribution Management 2
- 3. • India’s largest consumer goods company based in Mumbai, Maharashtra. • Owned by British- Dutch company Unilever, controls 52% majority stake in HUL. • Headquartered in Mumbai, India. 3/21/2013 Sales and Distribution Management 3
- 4. • Incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited • Changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. • Headquartered in Kolkata, West Bengal, India. • Employs over 29,000 people; more than 60 locations across India. • Listed on Forbes 2000. 3/21/2013 Sales and Distribution Management 4
- 5. HUL ITC Product lines Soaps, shampoos, detergents, Cigarettes, foods, apparel, beverages, packaged foods, personal care, stationary, personal care, cosmetics. safety matches and agarbattis. Market share 36.4% 30.3% Growth rate Net profit grew at the rate of Net profit grew at the rate of 17% . 25%. Profit 2011- 2012- 2599.23 crores 2011- 2012- 1,333 crores Turnover 2011- 2012- 21,735.6 crores 2011- 2012- 4,071.32 crores 3/21/2013 Sales and Distribution Management 5
- 6. I.T.C. LIMITED HINDUSTAN UNILEVER Regional Sales Manager Regional Manager Branch manager Regional sales manager Assistant manager Area sales Manager Area manager Sales officer Area executive Territory sales incharge Supervisor 3/21/2013 Daily sales officer Redistribution stockist Sales and Distribution Management 6
- 7. I.T.C. LIMITED HINDUSTAN UNILEVER • Merchandising. • Selling and marketing of products. • Checking stocks. • Booking orders. • Getting distributor’s feedback. • Reporting on a daily basis. • Maintaining good PR with • Getting feedback from the the distributors distributors. 3/21/2013 Sales and Distribution Management 7
- 8. I.T.C. LIMITED HINDUSTAN UNILEVER • SAP is used for improving • HHT machines are transparency in billing and provided for taking the order placing. orders and billing purpose. • Sify online’s distribution • UNIFY software is used. management. • VAJRA machine for booking orders. 3/21/2013 Sales and Distribution Management 8
- 9. I.T.C. LIMITED HINDUSTAN UNILEVER • Non- tobacco division: • Minimum billings per month. stock availability in every outlet. • Sales volume • Tobacco division- 1. Stock availability in every outlet. 2. Sales volume- (+20%) of the last month sales. 3/21/2013 Sales and Distribution Management 9
- 10. I.T.C. LIMITED HINDUSTAN UNILEVER • Past records • On the basis of area size: – Less experienced in retail • On rotational basis. outlets & kirana stores. – More experienced in high frequency stores. 3/21/2013 Sales and Distribution Management 10
- 11. I.T.C. LIMITED HINDUSTAN UNILEVER • Monthly basis • Performance evaluation is • Amount of sale of different done using QOC model. products. • Achievement of sales targets • Quantitative- 80% • Feedback form. Qualitative- 20% 3/21/2013 Sales and Distribution Management 11
- 12. I.T.C. LIMITED HINDUSTAN UNILEVER • Initial training- 20 days; • Initial training on product senior salesperson knowledge. accompanies the salesperson. • Fortnight training on field • Skill training- job. – WEP; every 6 months – Training and development 3/21/2013 Sales and Distribution Management 12
- 13. I.T.C. LIMITED HINDUSTAN UNILEVER • Best salesman competitions • MOC awards given on the are held. basis of QOC score. – QOC score > 4.5: 7-star • Awards and trophies are award provided to the winners. – QOC score > 4: 5-star award – QOC score > 3.5: 3-star award 3/21/2013 Sales and Distribution Management 13
- 14. DISTRIBUTORS 3/21/2013 Sales and Distribution Management 14
- 15. Hindustan Unilever ltd. Carrying and Forwarding Agents Redistribution Stockist Wholesalers Urban retailers Rural retailers Consumers 3/21/2013 Sales and Distribution Management 15
- 16. Company Hub Factory Carrying and Forwarding Agent Distributors Retailers Small Wholesalers Consumers 3/21/2013 Sales and Distribution Management 16
- 17. I.T.C. LIMITED HINDUSTAN LEVER • Distribution & promotion of • Provide logistics support. goods. • Financing. • Gather information • Make the brand available in regarding the demand and rural areas. competition. • Inventory management. 3/21/2013 Sales and Distribution Management 17
- 18. I.T.C. LIMITED HINDUSTAN UNILEVER • Financial reputation. • Goodwill. • Infrastructure • Market reach • Delivery vans • Past reputation. • Degree of computerization. • Availability of sales force. • Past performance. • Warehouse & infrastructure. • To deal in cigarettes, it is • Investment capacity must to deal in other goods. 3/21/2013 Sales and Distribution Management 18
- 19. ITC HUL Mode of payment Cheque. RTGS Initial deposit No initial deposit NIL Margin 3% 5.5% Credit limit No credit; only cash No credit to distributor Order placed Online software- sify online Online software- Unify 3/21/2013 Sales and Distribution Management 19
- 20. ITC HUL Order cycle time 7 day pipeline reserve In 2-3 days. alongwith the replacement of order sold in a day. Time period for late 0 days. 4-6 days. payment Interest on late payment Yes; 8-10% Not mentioned; demand draft is taken. Cash/ trade discount NIL NIL Mode of transport of 3- wheelers, pick- up vans. Delivery vans, mini- trucks. goods 3/21/2013 Sales and Distribution Management 20
- 21. Parameters Weightage Rating Satisfaction Index Product quality 25 5 125 Service quality 20 3 60 Promotional 20 3 60 activities Field work 15 4 60 Trade promotion 20 3 60 Total 100 18 365 5 Very good 4 Good 3 Average 2 Below average 1 3/21/2013 Dissatisfied Sales and Distribution Management 21
- 22. Parameters Weightage Rating Satisfaction Index Product quality 25 2 50 Service quality 20 3 60 Promotional 25 5 175 activities Field work 15 4 60 Trade promotion 15 5 75 Total 100 19 420 3/21/2013 Sales and Distribution Management 22
- 23. RETAILERS 3/21/2013 Sales and Distribution Management 23
- 24. ITC HUL Role Sales to the customer, Sales to the customer, determining trends in the trends determination in the market market Payment Cash Cash Margins on different Upto 10% 2-10% products Average sales per month 1) Rs. 20-25 thousand per 1) Rs. 70-80 thousand per month month 3/21/2013 2) Rs. 10000 per Management Sales and Distribution month 2) Rs. 48000 per month 24
- 25. ITC HUL Promotional activities Bingo display stands are Display packs, gifts to provided to the retailers, retailers. dummy packs. Transport service Delivery vans, 3- wheeler Delivery vans, autos. autos. Average order cycle time Next day 2-3 days Credit period from Credit period of 1 week Credit period of 1 week distributor from distributor from distributor Service of sales person Pay frequent visit to them Come once or twice in 4-6 months Acquisition of products Distributor (Govindpuri) Wholesaler (Kalkaji) from3/21/2013 Sales and Distribution Management 25
- 26. Parameters Weightage Rating Satisfaction Index Delivery time 15 4 60 Quality of product 20 5 100 Incentives 10 3 30 Promotional 15 3 45 activities Transport service 15 5 75 Commercial terms 10 2 20 Service of 15 2 30 salesperson Total 100 24 360 5 Very good 4 Good 3 Average 2 Below average 3/21/2013 Sales and Distribution Management 1 Dissatisfied 26
- 27. Parameters Weightage Rating Satisfaction Index Delivery time 15 5 75 Quality of product 15 4 60 Incentives 15 4 60 Promotional 20 5 100 activities Transport service 10 4 40 Commercial terms 10 3 30 Service of 15 4 60 salesperson Total 3/21/2013 100 29 Sales and Distribution Management 425 27
- 28. I.T.C. LIMITED • Provide credit period facility to distributors. • Provide greater margin. HINDUSTAN UNILEVER • Provide credit period facility to distributors. • Salespersons should pay frequent visits to the distributors and retailers. • More prompt in order delivery. 3/21/2013 Sales and Distribution Management 28
Editor's Notes
- #9: system is installed; gives complete control of supply chain management and sales forecasts. used to effectively track and manage the sales orders and invoice.
- #12: 4 components of QOC model: Secondary sale (2.5 points)Eco/ width pack target (0.5 points)Focus/ depth pack target (0.5 points)Field Capability Score (0.5 points)