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By: Group 11 (DoMS, IIT Roorkee)
Saurabh Paul 12810073
Saurav Kumar 12810074
Shailendra Shankar Gautam 12810075
Sharad S...
Company Profile:
ITC was established on August 24, 1910
Indian public conglomerate company headquartered in Kolkata,
West ...
About ITC Ltd. (Contd.)
Vision
• Sustain ITC’s position as one
of India’s most valuable
corporations through world-
class ...
About ITC Ltd. (Contd.)
FMCG
Hotels
Agri-
Business
Packaging
Paper
Boards
IT
Diversified Product Categories:
4
Objective
To create, communicate and deliver superior value to
consumer though effective sales and distribution
management...
Problem Statement
Causes:
– Lack of proper training to distributor’s salesmen.
– Poor Infrastructural support (TPS softwar...
Context
Time Context: 2010
Viewpoint: Y C Deveshwar
7
Background
Sales Management means “the planning, direction, and control
of personal selling including recruiting, selectin...
Strength
 Strong brand recognition
 Experienced Management
 Diversified Product Portfolio
 Well established distributi...
Presence of ITC Ltd..
NORTH
Division
EAST
Division
SOUTH
Division
WEST
Division
10
Sales Hierarchy of ITC
Sales Trainee
Area Executive
Area Manager
Assistant Manager
Branch Manager
Regional Branch Manager
...
Recruitment
• Assistant under Training (AUT)Top B- Schools
• Sales Trainee
Other
B- schools
• Lateral Recruitment (for the...
Level 5
Quality of hire
Level 4
Level 3
Level 2
Recruitment (Contd.)
Written Test - 3 sections. Total of 55
questions. Num...
Training and Development
Induction
Training
On Job
Training
Internal
Training
Competency
Development
14
Training and Development
(Contd.)
Sales Trainee
Duration: 1 week
Place: HO
Induction Training:
15
Training and Development
(Contd.)
Process
Training
Through NIS
New Sales
Personnel
On Job Training
Distributor’s Sales
Per...
Training and Development
(Contd.)
For Sales
Trainee and AUT
Duration: 1
month
In Branch office
Internal
Training:
17
Branch Manager
recommends AE and AM
for training
Location: Head Office
Duration: 6 Days
Training and Development
(Contd.)
...
Compensation (Contd.)
Position CTC (in Rs. Lakhs
annually)
Variable
Branch Manager 18 - 20 20% of CTC
Assistant Manager 12...
Performance evaluation of sales
personnel
• Monthly Sales Target
• Visibility Target
Monthly
Target
• Sales Volume for eac...
STAR WARS:
Quiz
Motivation
Updated
Performance evaluation of
sales personnel
21
Wholesale Distributor (WD)
WD
Salesmen Supervisors Delivery Boy
Driver/
Thelawala
22
WD employees: Recruitment
and Compensation
• Their fixed salary is paid by the distributor but
is reimbursed by the compan...
Salesmen Evaluation and Compensation
• The compensation received by salesmen
depends upon the target achieved by them
• Ta...
Control mechanism:
• The performance and work of WD employees is evaluated by
company’s officials weekly.
• Their daily sa...
Role of Salesmen:
• Prospecting- Searching for new outlets
• Targeting- Visiting potential outlets
• Communicating- Inform...
27
Distribution Channel
FACTORY
CNF
WHOLESALE
DISTRIBUTOR
WHOLESALE
DEALER BASE
RETAILER
28
Channel Type
Company
Wholesale
Distributor
Wholesaler Retailers Consumer
Company
Wholesale
Distributor
Wholesaler Consumer...
Distribution Type
Exclusive (Textile)
Selective (Paper
Boards & Cigarettes)
Intense (Other
FMCG Products)
30
Physical Distribution/Logistic
Mother
Hub/Factory
Warehouse Service
Provider
WD Godowns
Outlets
Central
Warehouse
31
Effective Working of Channel
Members
32
Performance is measured on
following broad parameters:
Distribution Health
(Outlet...
Effective Working of Channel
Members (Contd.)
Score card for Measurement of WD Performance:
Bands Score
Platinum > 95%
Gol...
Essentials Check Bands Follow up action
Not Qualified Non Performing Replace
Not Qualified Bronze On Notice
Not Qualified ...
Alternate Choices
• Change in salesforce structure
• Improvement in sales management
35
Improve Management
• Proper training should be provided to salesmen.
• Salesmen should be regularly informed about the cha...
Thank You
37
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Presentation - Sales & Distribution at ITC

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Presentation - Sales & Distribution at ITC

  1. 1. 1 By: Group 11 (DoMS, IIT Roorkee) Saurabh Paul 12810073 Saurav Kumar 12810074 Shailendra Shankar Gautam 12810075 Sharad Srivastava 12810076
  2. 2. Company Profile: ITC was established on August 24, 1910 Indian public conglomerate company headquartered in Kolkata, West Bengal, India ITC's gross revenue for FY2013 stood at Rs. 43044 crores and market capitalization of Rs. 244245 crores The company is currently headed by Yogesh Chander Deveshwar (Chairman) It employs over 25,959 people (as on 31st March 2013) at more than 60 locations across India. Among India's Most Valuable Companies by Business Today. 2
  3. 3. About ITC Ltd. (Contd.) Vision • Sustain ITC’s position as one of India’s most valuable corporations through world- class performance, creating growing value for the Indian economy and the Company’s stakeholders Mission • To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value 3
  4. 4. About ITC Ltd. (Contd.) FMCG Hotels Agri- Business Packaging Paper Boards IT Diversified Product Categories: 4
  5. 5. Objective To create, communicate and deliver superior value to consumer though effective sales and distribution management. 5
  6. 6. Problem Statement Causes: – Lack of proper training to distributor’s salesmen. – Poor Infrastructural support (TPS software not updated on regular basis). – Inefficient sales strategy (territory allotted to salesmen doesn’t consider sales potential of region). Effect: – Problem of product recall by salesmen. – More focus on sales target rather than business expansion. (Salesman focuses more on large outlets which purchases in large volume). – Poor level of motivation among sales staff. 6
  7. 7. Context Time Context: 2010 Viewpoint: Y C Deveshwar 7
  8. 8. Background Sales Management means “the planning, direction, and control of personal selling including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal salesforce”. – American Marketing Association • The objectives of sales management are sales volume, contribution to profit and continuing growth. “We … recognize that selling only works when everything is right for the customer—when we deliver value.” – Rick Makos (President, NCR-Canada) 8
  9. 9. Strength  Strong brand recognition  Experienced Management  Diversified Product Portfolio  Well established distribution network Weakness  Dependence on tobacco revenues  Negative Connection of Tobacco  Low export levels Opportunity  Low per capita consumption of personal care products  Untapped rural market  Collaboration with foreign players  e-retailing Threat  Competition both Domestic & International  Ban on smoking  Competition from unbranded products  High competition from established companies SWOT Analysis 9
  10. 10. Presence of ITC Ltd.. NORTH Division EAST Division SOUTH Division WEST Division 10
  11. 11. Sales Hierarchy of ITC Sales Trainee Area Executive Area Manager Assistant Manager Branch Manager Regional Branch Manager Division Manager 11
  12. 12. Recruitment • Assistant under Training (AUT)Top B- Schools • Sales Trainee Other B- schools • Lateral Recruitment (for the post of AE) by BM and HRM Employee References and Consultancy 12
  13. 13. Level 5 Quality of hire Level 4 Level 3 Level 2 Recruitment (Contd.) Written Test - 3 sections. Total of 55 questions. Numerical - 15, Analytical - 20, Verbal - 20 questions. Group Discussions / Business Plan Competition Interview round 1st Round Level 1 CV Short listing Interview round 2 13
  14. 14. Training and Development Induction Training On Job Training Internal Training Competency Development 14
  15. 15. Training and Development (Contd.) Sales Trainee Duration: 1 week Place: HO Induction Training: 15
  16. 16. Training and Development (Contd.) Process Training Through NIS New Sales Personnel On Job Training Distributor’s Sales Person & Supervisor Top distributors 3 Salesman are selected New Entrant (S. Trainee & AUT) Duration: 3 days On Job Training: 16
  17. 17. Training and Development (Contd.) For Sales Trainee and AUT Duration: 1 month In Branch office Internal Training: 17
  18. 18. Branch Manager recommends AE and AM for training Location: Head Office Duration: 6 Days Training and Development (Contd.) Competency Training: 18
  19. 19. Compensation (Contd.) Position CTC (in Rs. Lakhs annually) Variable Branch Manager 18 - 20 20% of CTC Assistant Manager 12 - 14 20% of CTC Area Manager 8 - 8.5 20% 0f CTC Area Executive 5.5 - 6.5 20% of CTC Sales Trainee 2.5 - 2.6 20% of CTC Variable salary is decided on the basis of performance and target met by sales personnel 19
  20. 20. Performance evaluation of sales personnel • Monthly Sales Target • Visibility Target Monthly Target • Sales Volume for each product category • Market share growth rate Performance of the branch 20
  21. 21. STAR WARS: Quiz Motivation Updated Performance evaluation of sales personnel 21
  22. 22. Wholesale Distributor (WD) WD Salesmen Supervisors Delivery Boy Driver/ Thelawala 22
  23. 23. WD employees: Recruitment and Compensation • Their fixed salary is paid by the distributor but is reimbursed by the company. • The variable salary of salesmen is decided on his meeting of sales target. Recruitment: The salespersons of distributors are appointed by the distributor himself in consultation with ITC officials Compensation: 23
  24. 24. Salesmen Evaluation and Compensation • The compensation received by salesmen depends upon the target achieved by them • Targets under consideration: 1. Monthly sales target 2. Product wise sales target 3. Category wise WD employees: Recruitment and Compensation 24
  25. 25. Control mechanism: • The performance and work of WD employees is evaluated by company’s officials weekly. • Their daily sales order is monitored by Area Executive. • The salesmen is given a geographical territory which doesn’t consider sales potential. • Salesmen has to cover 30 outlets each day. • They are given a beat plan for each day. • If a WD employee is not performing then the company can sack him. WD employees: Recruitment and Compensation 25
  26. 26. Role of Salesmen: • Prospecting- Searching for new outlets • Targeting- Visiting potential outlets • Communicating- Informing about products and offers • An order taker- As per requirement in retail and convenience outlet • Selling to retailers and convenience outlet • Servicing- Removal of damaged/expired(DND)products • Information gathering- About needs/ preferences of customers • Allocating- Fixed time to each outlets • Cash collection WD employees: Recruitment and Compensation 26
  27. 27. 27
  28. 28. Distribution Channel FACTORY CNF WHOLESALE DISTRIBUTOR WHOLESALE DEALER BASE RETAILER 28
  29. 29. Channel Type Company Wholesale Distributor Wholesaler Retailers Consumer Company Wholesale Distributor Wholesaler Consumer Company Wholesale Distributor Retailers Consumer 2 -level Distribution Channel: 3-level Distribution Channel: 29
  30. 30. Distribution Type Exclusive (Textile) Selective (Paper Boards & Cigarettes) Intense (Other FMCG Products) 30
  31. 31. Physical Distribution/Logistic Mother Hub/Factory Warehouse Service Provider WD Godowns Outlets Central Warehouse 31
  32. 32. Effective Working of Channel Members 32 Performance is measured on following broad parameters: Distribution Health (Outlet coverage, availability, visibility levels, etc) Business Health (Sales Performance benchmarked to relevant Circle)
  33. 33. Effective Working of Channel Members (Contd.) Score card for Measurement of WD Performance: Bands Score Platinum > 95% Gold 85-95% Silver 80-85% Bronze Star 75-80% Bronze 60-65% Non Performing < 60% 33
  34. 34. Essentials Check Bands Follow up action Not Qualified Non Performing Replace Not Qualified Bronze On Notice Not Qualified Bronze Star/ Silver On Notice BM to revert with follow up plan Qualified Non Performing On Notice Qualified Bronze On Notice Time bound action plan Qualified Bronze Star/ Silver Encouragement for further improvement Actionable basis for WD evaluation: Effective Working of Channel Members (Contd.) 34
  35. 35. Alternate Choices • Change in salesforce structure • Improvement in sales management 35
  36. 36. Improve Management • Proper training should be provided to salesmen. • Salesmen should be regularly informed about the changing offers and schemes on the products. • Territory allotted to salesmen should consider the sales potential and concentration of outlets in that area • Salesmen should be provided incentive for adding new outlets. • TPS should be updated regularly to show current stock details. • The incentive of the salesmen should be based on the number of outlets served by them too rather than merely on sales volume . 36
  37. 37. Thank You 37

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