sales organisation of 3 fmcg and 3 consumer durable companies
TRANSCRIPT
Final Research Projecton
“Comparative analysis of sales organization of FMCG and
Consumer Durable companies”
Faculty GuideDr. Shekhar Trivedi
Presented ByMohd DanishRoll no. 1348
Introduction• This research project is conducted to understand the sales organization of
the FMCG and Consumer durable companies. This project highlight the organizational structure of the various companies based on their marketing strategies. A comparative analysis is done between the sales organization of FMCG and Consumer durables companies to get the understanding between the two industry.
• Title of the project “Comparative Analysis of sales organization of FMCG and Consumer
durables”
Research Methodology
• Type of research:- Exploratory Research• Sample Sample of my research is FMCG companies and Consumer durables
companies. • Sample Size 3 FMCG companies and 3 Consumer durable companies.• Sampling Technique:- Convenience sampling and Reference sampling• Primary data Personal meeting with sales person of FMCG and Consumer durable
companies. Open ended questionnaire is used to collect data.• Secondary data Internet Books Research Papers
Conti…
Research Objective • To study the sales organization structure of FMCG and Consumer durables
companies.• To compare the organizational structure of FMCG and Consumer durables
companies.
ITC Ltd.Division of Uttar Pradesh• Type of division
Tobacco division Confectionary division Key account division Stationery division
• Number of Sales Employees 125 in Lucknow region and 50 in
Saharanpur region• Separate sales team for every
channels. • Sales representative of the
company sell their product only to distributors and not to every retailers.
• BEAT Plan of 30-40 shops in a day.
Sales Organization Chart
Area sales manager
Sales Head
Regional Sales manager (Lucknow)
Sales promotion Officer
Area executive
Distributors
Regional Sales manager (Saharanpur)
Area sales manager (9+)
Area executive
Sales promotion Officer (5+)
Description• UP have two regional head one handling Lucknow regional office covering
UP north, UP east, UP central while other handling Saharanpur covering UP west.
• Area Sales Manager handles out sales work of 5 to 6 cities and surrounding areas.
• There are 2 area executives under every area sales manager. They handles sales work of 2 cities and a surrounding towns.
• There are approximately 6 sales promotion officer under every area executive they handle out the potential of a part of the city and surrounding towns.
• Distributor has roll to further distribute these products to their respective whole seller and retailers in a nearby region.
• At the distributor level has 1000 sales employee for tobacco division, 1000 employees for food , stationary and beauty products.
• A sales person selling the product in his division can sell the products of all the divisions but only to those outlet belonging to his channel only.
RSPL LtdDivision Of Uttar Pradesh• List Of Products
Household Products Personal Care product
• Number of Sales Employees• 150 sales employees in UP• Same sales team for every
channels. • Sales representative of the
company sell their product only to distributors and not to every retailers.
• Distributors has their own field sales employees (not in the direct pay roll of the company)
Sales Organization ChartGeneral Manager
Regional sales manager (UP central)
Area sale manager
9
Regional sales manager (UP East)
Regional sales manager (UP West)
Area sale manager (2+)
Territory sale Officer
Territory sales Incharge
Distributors
Territory sale Officer
Territory sales Incharge (5+)
Description• Every region has their own regional sales manager who supervises the
sales of his whole region. • There are 4 area sales manager in UP west, 3 in UP central and 4 in UP
west. Area sales manager handles sales of 10 cities and surrounding towns.• Their are two or three territory sales officer under every area sales
manager. Territory sales officer are assign on the basis of area an area sales manager has to cover.
• Territory sales officer handles out the sales works of five cities and the surrounding towns.
• There are 6 to 7 territory sales incharge under every territory sales officer. In UP central there are 15 to 20 territory sales incharge who handles the distribution of FMCG products from the big cities to the village
AmulDivision Of Uttar Pradesh• Type of divisiom
Diary division Ice cream division• Number of sales employees In UP there are fifteen sales
representative.• Same sales team for both channels. • Sales representative of the
company sell their product only to distributors and not to every retailers.
• Largely dependent on distributor’s network of sales force (not in the direct pay roll of the company)
Sale Organization ChartGeneral Manager
Sale Head (UP)
DIC (UP central)
Senior sales Executive (Kanpur)
32 milk,4 Ice Cream distributor
DIC (UP west)DIC (UP east)
Senior sales Executive (Lucknow)
Senior sales Executive (Agra)
Senior sales Executive (Faizabad)
24 milk,4 Ice Cream distributor
38 milk, 6 Ice Cream distributor
22 milk, 3 Ice Cream distributor
Description
• There is one sales head in UP who supervise depo incharge of three different region of UP. Depo incharge handles out work of the whole region in his region.
• UP central has further divided in four area’s Lucknow , Kanpur, Agra and Faizabad.
• Every area has been assigned to a senior sales executive working as the area manager in his territory. They handle around 6 to 7 towns in his area.
• Distributors have their own sales force that are used for the distribution of the products on the daily basis.
NilkamalDivision of Uttar Pradesh• Types of Division
Furniture division Material handling division Mattress division @Home retail outlet
• Number of Sales employees• 350 sales employees in India,
Uttar Pradesh has 22 sales employees.
• Separate sale organizations for different division.
• There is one C&F in all 20 city. Sales person sell their product to dealers.
Sales Organization Chart
Branch manager (Kanpur)
Area sales manager
Sales executive(12)
Area sales officer (4)
Vice President
Sales Head
Zonal manager
Regional manager
Branch manager (Gaziabad)
Area sales manager
Area sales officer (2)
Description
• Zonal manager look after North Zone of India. Regional manager have 2-3 states under him.
• Uttar Pradesh is a bigger state hence 2 branch managers is appointed here.• A sales officer covers 10 to 12 district while a sales executive working
under him cover 3 to 4 district.• Sales executive frequency of visit to each dealer in a territory is once in a
month. He covers 10 to 12 dealers in day.
CEAT TyresDivision Of Uttar Pradesh
• Types of Products All type of tyres except for bicycle
and airplane.
• Number of sales employees• 44 sales employees in Uttar
Pradesh.• Single sales team for all type of
tyres division.• Company has the channel to sell
their product to the dealers through C&F. There are distributors(only in case of two wheeler tyres) but they are very few in number.
Sales Organization
Regional Manager
Managing Director
General Manager sales
Executive Director
Regional Manager(4+)
Territory leaders(3)
Area sales manager Customer service territory leaders
Sales Associates(3)
Description
• CEAT has divided Uttar Pradesh in 5 Regions• Every region has one regional manager, one area manager, three territory
leaders, one customer service territory leader and three sales associates.• Each territory leader or a sales associate handle two or three district in his
region only.• Sales associates are independent sales officer not under the direct payroll
of the company. They are taken on lease from Adeco company.• Area sales manager superwise and handles the sales territories assigned to
sales associates.• Service engineer look’s at after sales services and claim of faulty tyres.• Sales man frequency of visit depends on the grades allotted to these
dealers.
Berger PaintsDivision Of Uttar Pradesh
• Types of Division Decorative paints divisions Auto GI paints division Protective paints divisions.
• Number of sales employees• 56 sales employees in Uttar
Pradesh.• Separate sales organization for
each division.• There is no authorized
distributors of Berger Paints. Company has a channel to sell their products to the dealers through C&F.
Sales Organization ChartManaging Director
Regional Manager (UP/MP)
Area sales Manager (Lucknow)
General Manger
Area sales Manager (Kanpur)
Area sales Manager (Gorakhpur)
Area sales Manager (Jabalpur)
Area sales Manager (Varanasi)
Sales Supervisor(3)
Sale Officer
Sales Supervisor(3)
Sales Supervisor(3)
Sales Supervisor(3)
Sales Supervisor(3)
Sale Officer Sale Officer Sale Officer Sale Officer
Description• Berger Paint has combined Uttar Pradesh and Madhya Pradesh in one
region.• Uttar Pradesh have four branch offices in Lucknow, Kanpur, Gorakhpur
and Varanasi.• Every branch office has an Area sales manager allotted for selling their
products in their respective area.• Area sales manager cover 10 to 12 districts under his branch. There are at
least 3 sales supervisor working under him.• Sales supervisor are allotted on the basis of work load of area sales
manager.• For B class cities like Kanpur 2 or 3 sales officer is appointed looking after
the sales of whole district while small district have one sales officer appointed by the area sales manager.
• Sales officer has to visit 20-25 dealers every day. His frequency of visit to each dealer is once in a weak.
Comparative Analysis
• FMCG companies has a distribution channel from company to depo and depo to distributor while consumer durable has a distribution channel from company to C&F and from C&F to dealers.
• Territory assigned to sales employee in FMCG companies at the bottom level are much smaller generally part of the city while territory assigned to consumer durable companies are much larger in size generally comprising of 2 or more towns.
• Frequency of visit by FMCG sales person is once in a week to every distributor while in consumer durable it is twice or once in month.
Conti…• Paints being less durable than tyre’s and furniture’s. We can analyze from
the sales organization structure of these companies that lesser the durability of the product, large number of sales employees are required at the bottom level. Since most of this company follows a network from company to dealers hence more is the effort required by berger paints industry than Nilkamal.
• In FMCG company products ranges from perishable products to consumable products. Sales organization structure is smallest in Amul and largest in ITC . It was analyse that an FMCG companies like amul required a more efficient distribution channels and effort at the distribution end. These companies rely mostly in the sales employees of the distributors.
Conti…
• Region formed in FMCG companies are on the basis of dividing UP in three parts. These regions are further get smaller from Area sales manager handling 6 to 7 cities. Area sales manager further reduced the work by appointing area executive who handles 2 or 3 town and further field sales employees handle part of the city.
• In Consumer Durable companies formed regions considering big cities having high potential. Like in CEAT regions are Kanpur region, Meerut region, Agra region, Lucknow region, Varanasi region. Regional manager assigned in all the three companies under consideration handle out different area depending upon the type of the industry they belong.
Limitations• In some company knowledge about sales team was
provided by the bottom level sales employee.
• In Consumer durable sectors companies belonging to white good product category is not taken under consideration due to location constraints.
• In depth knowledge of sales territory is not shown in finding because of less time given by respondent.
Thank You