LPG DISTRIBUTION SALES BASIC TRAINING

Contents

Country Over view LP Gas Industry What is Sales & Salesman Elaboration Introduction salesman, customer, consumer & client Key Responsibility of Salesman Why People Buy & quit ? Perfect salesmanship skills LPG Business category and strategy Incentive policy Price calculation processTarget Market End

Area 144,000sqkm

Population 150million+

Capital Dhaka

Population in City Area 40 Million Population In Rural Area 110 Million Per capital income USD975+

Economy 43rd largest Economy Growth Rate 6-7%per year

Country Over view

A brief journey of LP Gas in Bangladesh….

Government owned company BPC initiated LPG use in 1978 with the commissioning of the Chittagong refinery

With increasing demand for LPG Govt. allowed private companies to construct LPG facilities and to import

LPG in 1998.

Now Govt. supplies approx. 5% of the market demand and the remaining 95% is imported by private

operators.

LP Gas Industry in BangladeshCompanyName

Approx.LPGStorageCapacity(MT)

Location Commissioning Year

Approx Yearly Sales (MT)

Bashundhara LP Gas

3000 MT Mongla 2000 25920 MT

BPC 1400 MT Sylet / CTG 1978 10,200 MTJamuna Gas 1000 MT Bogra /

Mongla1999 23,040 MT

Petregaz 1800 MT Mongla 2001 17,280 MTTotal Gaz 2500 MT CTG 2001 14,400 MT Omera 4350 MT Ghorashal/

CTG/Bogra/Mongla

2015 On Process

BM LP Gas 3000 MT CTG 2015 On going

What is Sales ? Sales is all about wining hearts, accessing consumers needs, giving them the true information, enabling them to purchase and ensure repurchase.

Elaboration of Salesman ……. S = Subtle A = Attentive L = Linkman E = Energetic S = Sophisticated M = MethodistA = ActiveN = Never offensive

Who is Salesman ?

The one who generate sales. Who is Customer ? Immediate Buyer / Purchaser (Distributor/ Dealer/Retailer)

Who is Consumer ? End User / End Customer

Who is Client? Repeat Customer / Consumer “ All Consumer can be customer, But all customer must not

consumer”

KEY RESPONSIBILITY OF SALESMAN Target Achievement Execution Area plan & measure performance on regular basis Competitor’s activity information up to date. Ensure Business growth, Brand visibility & Customer service

People Buy For 6 Reasons Making Gain Avoiding Loss Customer will buy when you

appeal to the right motive Avoiding Pain Self Satisfaction Gaining Social prestige To Boost in Pride

Why Customer quit ? 1 % Die 3 % Move away 5 % Other Friendship 9 % Competitive reasons 14 % Product dissatisfaction 68 % Indifference attitude

A Perfect Salesman Skills Product Knowledge Company Knowledge Customer knowledge Convince Skills Presentation skills Body Language

LPG Business Category

Business Process Profit LP Gas Company Target Based incentive from

company

Distributor Distributor (Retail to Commercial)

Dealer / Retailer Wholesale to dealer

End User / Commercial / Industrial Customer Retail to End

User

Incentive /Commission

Monthly Incentive = Target Incentive + Transport Subsidy Target Incentive = Company will assign number of Cylinders

quantity to be refilled, If distributors are able to achieve the monthly target then they will be applicable for this target based incentive.

Transport Subsidy = Distributor send their own/rental vehicle to company plant premises for take cylinder gas refill, So Transport cost will be additional counted with refill cost. End of the month Company will return an amount which is consider as a subsidy of transport cost.

Example : 320pcs cylinders capacity truck hired both way from Dhaka to Chittagong , If approx transport fair is 16,000. 1 pc cylinder carrying cost is

(16,000 /320pcs) = 50 Taka each. Where company may recover maximum 20 taka each cylinder as a subsidy.

Price Calculation CP (Contract Price) LPG (Mixture of propane & butane) basically Imported from middle

east based few Arabian countries. USD price of propane and butane (percentage ratio) with freight and other logistics cost contract price will be change and updated several times in a year.

Ex-Factory Plant Price Based on CP (contract price) with company’s operation and logistics

cost including profit margin, Company will announce Ex-factory Plant price to nationwide.

Ex-Factory RDC Price Based on Ex-factory plant price in addition with transport cost to RDC

from plant, Ex factory RDC price will announce and distribute to all regional

distributors.

Distributor/Dealer /MRP (Retail Price)

Ex-Factory Plant / Ex-Factory RDC + Transport Cost until Distribution point + Loading/Unloading Cost = Distributor Get Price.

Distributor Get price – Company incentive = Distributor Nett Price

Distributor Nett Price + Transport cost until retail/dealer point + Loading/Unloading Cost + Distributor Profit = Dealer Price

Dealer Price + Retail delivery cost + Dealer profit = MRP / Retail Price

Focus Target Market

Thank You

Prepared ByMd . Abu Bakar Siddiqui

H D. Hospitality Management Lincoln University, USA

(Malaysia Campus) & Bachelor of commerce (NUB) Asst. Manager – Sales & Marketing , Dhaka Division

BM Energy BD LtdEmail: siddiqui@bmenergybd.com