This document provides an overview of Godfrey Phillips India Limited's sales force management strategies. Some key points:
- Godfrey Phillips is the second largest player in India's domestic cigarette industry with an annual turnover of approximately INR 4011 crore.
- The company uses a multi-level distribution channel consisting of distributors, wholesalers, and small retailers to reach consumers. Quotas are set for distributors to push sales.
- Assistant sales managers are responsible for managing sales representatives in assigned territories and evaluating their daily sales and performance against quotas.
- Forecasting methods include deriving a sales forecast based on last month's sales and collaborative forecasting with dealers. The forecast is broken
This document provides an overview of Godfrey Phillips India Limited's sales force management strategies. Some key points:
- Godfrey Phillips is the second largest player in India's domestic cigarette industry with an annual turnover of approximately INR 4011 crore.
- The company uses a multi-level distribution channel consisting of distributors, wholesalers, and small retailers to reach consumers. Quotas are set for distributors to push sales.
- Assistant sales managers are responsible for managing sales representatives in assigned territories and evaluating their daily sales and performance against quotas.
- Forecasting methods include deriving a sales forecast based on last month's sales and collaborative forecasting with dealers. The forecast is broken
This document provides an overview of Godfrey Phillips India Limited's sales force management strategies. Some key points:
- Godfrey Phillips is the second largest player in India's domestic cigarette industry with an annual turnover of approximately INR 4011 crore.
- The company uses a multi-level distribution channel consisting of distributors, wholesalers, and small retailers to reach consumers. Quotas are set for distributors to push sales.
- Assistant sales managers are responsible for managing sales representatives in assigned territories and evaluating their daily sales and performance against quotas.
- Forecasting methods include deriving a sales forecast based on last month's sales and collaborative forecasting with dealers. The forecast is broken
This document provides an overview of Godfrey Phillips India Limited's sales force management strategies. Some key points:
- Godfrey Phillips is the second largest player in India's domestic cigarette industry with an annual turnover of approximately INR 4011 crore.
- The company uses a multi-level distribution channel consisting of distributors, wholesalers, and small retailers to reach consumers. Quotas are set for distributors to push sales.
- Assistant sales managers are responsible for managing sales representatives in assigned territories and evaluating their daily sales and performance against quotas.
- Forecasting methods include deriving a sales forecast based on last month's sales and collaborative forecasting with dealers. The forecast is broken
About us. Godfrey Phillips India Limited is the leading company of K.K Modi Group. Second largest players in the domestic cigarette industry after ITC. The Company with an annual turnover of approx. INR 4011 cr.(2012-13) A collaboration between Modi Group and PMI.
Sales Management. 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 customerwhen we deliver value. Rick Makos .
Distribution strategies
factories
C&F agents
Distributo rs
Wholesale rs
Small wholesale r
retailers
Distribution Channel CNF
FACTOR Y
WHOLESALE
DEALER BASE
WHOLESAL E DISTRIBUT OR
RETAILE R
Distribution No. of distributors depends on the demand. They provide warehousing for the goods. Handle volumes of up to Rs. 5-6 Crore /Month. An Assistant Manager along with 1-2 sales assistants on the payroll of GPI are present. Sales teams are paid and managed by the distributors. All transactions are cash and carry.
Organizational structure/hierarchy Corporate V.P Sales General Manage Sales Senior Manager Manager Assistant Senior Manager Area Manager Sales Area Executive Sales Trainee
Retailers Small Retailer (Pan Shop) Sells 15-20 packs a day Makes a margin of about Rs.10-18per pack Procures cigarettes from a sub-whole seller on daily basis Large Retailer Gets his goods from the company distributors directly The goods come to his shop via the sales team Cash and Carry Point of Purchase displays Super stores and Hypermarts Sell larger packs. A very new concept in India.
Sales Quotas Quotas are fixed to every distributor to ease the sales to the point of retailers. Quotas have a time frame and change with in a month or year. Quotas in Cigarette industry are quantity based. The evaluation of a Asst.Sales manager depends upon achievement of quotas. Least role of marketing to pull demand, thus huge pressure on the sales team.
Type of quota used by the company
Sales Volume Quota. The stress is on how much quantity is to be pushed in a time frame of a month. They are geography centric. Unit sales is what is aimed for. Our target one billion sticks
How volume Quotas are
set? Territory potential- North and west vs South and East part of country. Past sales experience. Sales person set their own quotas in south and east part of country.
Duties of Asst. Sales
Manager Manage sales in the geographic territory. The performance of the sales rep is evaluated weekly . Their daily sales order is evaluated by the area executive. Each sales rep is given a geographical territory but sales potential is not considered and they are expected to cover at least 30 outlets daily and are provided with a beat/journey plan . Uses TPS software which tells them about the stocks available , details , client details and easy billing.
Selling Process TargetingVisiting potential outlets
Communicati ngInforming about the products
Servicing removal of damaged goods.
Selling
Order taker as per the
requirement
Information gathering
Allocatingfixed time to each outlet
Cash collection
Prospecting -Searching for new outlets
Forecasting ITC aims at forecasting system peaks using the following method. A sales forecast is derived . ( demand estimation- collaborative forecasting (with dealers) and is based on last months sales ) A load factor is modelled which tells the usage of the product. thus, peak demand= average demand/ load factor
Break down method
Forecast is divided by average sales per person. It is best used when a organization wants to achieve certain sales volume.
Forecast sales Avg. Sales Person
Sales force appraisal
Input measures No. of days worked, Service calls, distributor meetings, Product sampling. Outcome method Sales volume generated, No. of new retailers approached,.
GPI SALESMAN PROFILE
70% motorized; 30% on bicycle Makes an avg. of 60 calls/day 42% of retailers receive 2 calls daily
Sell on an average 8,000 sticks a day
Receives limited credit facility from GPI WD credit extended by WD only during launch period
Salesman offers daily credit to top end trade
40+ % illiterate
19
WHOLESALE CHANNEL SITUATION ANALYSIS: 58% of industry volume is driven by wholesale channel, 68,000+ nationally Wholesale universe
IPM handling coverage
Passive Limited ability to expand Low margin product Cash based limited, no credit facility Poor handling Trader mentality Not 20 motivated new brands
Source: GPI/IPM estimate
% Volume generated through
wholesale
ALTERNATE DISTRIBUTION CHANNEL PHERRIWALLA
ISSUE: Low numeric & weighted distribution at retail for Marlboro SITUATION ANALYSIS:
GPI direct retail coverage is only 36% of the universe within the 3 focus cities 117k outlets rely on alternate product sourcing methods (wholesale, pherriwallas)
IPM weighted distribution 37%, Numeric distribution 20%
Industry has little knowledge of Pherriwalla modus operandi
23 Source: Nielsen
PERSONALIZED
2010 BRAND AMBASSADOR PROGRAM
Program commenced on trial basis with 14 brand ambassadors in 2010
Brand Ambassadors Informal interaction
Connecting/sampling to adult smokers in LA
parties Large reach, low cost Low impact/WOM
Customized events
Inviting LAS friends to exclusive events only for
them Low reach, very high cost High impact/WOM
Key challenges in scaling up program:
Right profile of people to be ambassadors and managing supervision/logistics 27 Creating greater experience/WOW factor with program greater Word of Mouth
