BIKANO NAMKEEN

Presented by :ABHISHEK KUMAR

PIBM

Analysis of Jehanabad

A clove leaf approach can be followed.

Demographics of Jehanabad

Methods of setting & evaluatingSales Quota

• Territory potentialEstimated market potential of a part of Jehanabad is Rs.13.50 million. Multiple factor index using population & buying power is estimated at 0.25.[Suppose the territory has 0.5 population of target areas, weight given is 0.3 & buying power is 1%, weight allotted is 0.1]Then expected industry sales is 13.50*0.0025=33.75 thousand.Considering estimated market share of 20% the sales volume quota for Jehanabad’s salesperson would be (Rs.13.50*0.00025*0.2 = 67.5 thousand.

• Past Sales Experience• Total Market estimates• Executive Judgment• Sales person’s estimates• Compensation plan

Distribution Systems• Bikano Namkeen follows all forms of trade. It is not the

market leader of India and extensively follows intensive distribution too.

• Bikano Namkeen is also sold online through its dedicated website but a cash on delivery system is not available.

• Talking about the modern trade it occupies shelves in modern supermarkets as well as food courts such as Spencer’s, Big Bazaar, Dmart etc.

• To conclude its strategy Bikano Namkeen tends to penetrate all forms of distribution system other than exclusive distribution pattern.

Stocking of product

• Modern Trade :The product is bought in bulk according to the distribution capacity of the trade partner. This gives a national presence of the product and helps in brand promotion too.

•General Trade : Jehanabad occupies intensive distribution, the product is widely distributed in almost every grocery stores which goes through a fixed format of distributors based on territory. A majority of the product is sold in liquor shops. The stocks are weekly or fortnightly replenished due to the increased demand . Retailers can be found at a distance of an average of 400m.

Distribution Management Needs

• Distributors are hired to :1. Reach markets where the company cannot reach.2. They facilitate smooth flow & create time, place &

possession utilities.3. They also provide contacts, experience, specialization &

scales of operation.• Bikano utilizes distributors as:1. Sales Channel Partners – Perform all above mentioned tasks,

negotiate fair bargains & motivate buyers.2. Delivery Channel Partners – Ensure physical delivery of

products. Example : C&Fa

Training, Motivation• Distributors are trained with comparative pricing techniques

as well as with product worth in the rural parts.• They are fielded with the company’s policies and are

strategically trained on their responsibilities and roles through operating manuals.

• Motivation is instilled by providing ad on perks like extra benefits in stocks and promotional offers. They are motivated through different non financial aspects like quick replacement of old & damaged stocks.

• Financial motivation comes when they are given extra cost benefits and other incentives according to the company’s policy. They are also provided with additional stock for promotion.

Evaluation of the channel• The company evaluates them on monthly results and

additionally track their return on investments too. An increased ROI results to additional tasks by the company.

• Evaluation parameters:1. Volume generated2. Profit Contribution3. Exclusivity of the channel partner4. Quota achievement5. Support to the brand6. Extent of customer relationships7. Ethics & Values

Channel Conflict & Power Channel power in the case of Bikano Namkeen in this

territory lies in the hands of the manufacturer as:1. The territory is a rural belt and less capital is required to

become the dealer.2. Bikano is spread to a great extent in the territory & with the

comparative pricing and promotional schemes it becomes a pull brand rather than a push brand.

Channel conflict is unavoidable in the territory as a large number of retailers are present in the territory and living up to the demands and expectations can sometimes become gruesome. Channel conflict amongst the dealers are not much as the number of dealers is clearly geographically distributed. These conflicts are sometimes amplified by the company & most of the time a win-win approach is followed.

Logistics Arrangement• Bikano Namkeen keeps the following as considerations in

arranging logistics :1. Customer Service2. Demand Forecasting3. Distribution Communications4. Inventory control5. Materials Handling6. Order Processing via e-portals7. Procurement8. Packaging9. Reverse Logistics10. Traffic & Transportation

Delivery Mechanism• The mentioned logistics points are covered by:1. Having dedicated C & F agents.2. Using an electronic model for registration of orders3. E-Invoice and billing systems.4. The deliveries are made weekly and fortnightly depending on the

consumption.5. According to the topography of the territory a clove leaf approach is

followed, a fixed beat plan is allotted to save time and costs.6. Additional stock is allotted to overcome exigencies.7. Packaging and stocking is done to occupy least space and increase

efficiency.8. Delivery is done by utility vehicles rather than bigger counterparts to avoid

delay and ease in transportation.9. Priorities are set according to the ABC classification of the channel partners.10. Logistics also cater to the data of consumption thus help in sales forecasting

too.