REPORT By
Godrej-Direct Sales
Acknowledgements
This project is being part of the curriculum at PGXPM program conducted by Great
My sincere thanks to the management of Godrej & Boyce Mfg. Co. Limited who
I am thankful to Prof. V.K. Murti for his valuable guidance in applying the models and
concepts for understanding the current scenario in details, measure its effectiveness in
current form & devising various strategies to make it more effective, vibrant & universal
I am grateful to my sales team at Godrej & Boyce Mfg. Co. Ltd for their unstinted
support and helping me tirelessly in conducting the field work effectively & to help
project take the shape & making channel beneficial & profitable to the organization. This
My special thanks to all faculty members of PGXPM9 for making me understand various
current concepts those are more practical and used globally and for sharing the results to
2 Project Scope 6
9 Project Findings 19
10 Project Methodology 20
11 Customer Profiling 21
12 Survey Findings 25
15 Immediate Action 33
18 References/Additional material 56
1 Executive Summary
Direct Sales (also referred as Godrej Direct) is a separate vertical under Godrej
Appliances Division (GAD) Service function responsible for generating revenue through
sales of home Appliances and Annual Maintenance Contracts. The Direct Sales channel
Sales channel is growing fast year after year and present in about 40 cities with more than
Initially, sales of Contract was initiated through Mckinsey under the Project News since
the year 2002. After successful operation for 3 years, Appliance Sale was added to the
same in 2005 and the initiative now is called GodrejDirect in consultation with BCG.
Godrej Appliances is the only consumer durable company in India to have this kind of a
personal selling & a channel for risk mitigation in terms of products promotion.
Today after successful operations for last 10 years and a CAGR of 25% in revenue it is
now pertinent to understand the effectiveness of the channel. This study is to assess the
Customer Transactions thru Direct sales of Godrej Appliances and Re-devising the model
2 Project Scope:
Objectives of Project:
1. To assess the level of Customer Satisfaction amongst its customers who have
Qualitative impact:
Would be to further scale up the channel and create an alternate channel for Godrej
Methodology:
Field work.
Face-to-Face interviews to be conducted with proper questionnaires. The
interviews will be conducted from the existing database of direct customers with
Godrej & Boyce Mfg. Co. Ltd. Database will of customer who had purchased the
products in the recent months from Godrej executives through the Godrej Direct
The respondents will be informed that the study is being conducted for better
deliverables in future.
Market intelligence
Studying the inclusion of other Godrej Products in the portfolio of Direct sales.
It is into business since 1897.
One of the largest privately held industrial corporations.
With annual turnover of over 8000 crores
All India Presence with 25 branches & 50 showrooms
Family of 11000+ employees.
Mission:
Vision:
Values:
Godrej Appliances is one of the flagship Division of Godrej & Boyce Mfg. Co. Ltd. with
annual turnover of over 2400 crores. Godrej Appliances is positioned among consumers
Indian consumers more closely & design products according to the current conditions.
Further innovations are too based on this principal. Continuous product innovation has
made us leader in many of the appliances categories in the market beating Korean giants
in the over competitive Indian market. I belong to this division in sales & had seen the
division growing leaps & bounds for last 10 years. Various products that we deal in are:
5 Introduction to Godrej Direct Sales
Godrej & Boyce Mfg. Co. Ltd. is one of the largest engineering & consumer Products
Company in India. Godrej Direct is a sales channel of Godrej & Boyce Mfg. Co. Ltd.
which adopts the direct sales path of selling consumer durables and annual maintenance
Godrej Direct falls under the umbrella of Godrej Appliances. Godrej Direct employs sales
force of over 1200 across India visiting customers directly on a daily basis. Each sales
customer touch points daily & over 17 million customers annually. That is the extent of
As of now Godrej Direct is doing a business of over Rs. 700 million annually with a
productivity of 0.24 appliances per day per executive. The salary & incentive costs are
massive owing to this less productivity to 15% of total revenue. Objective nowadays is to
improve the productivity of executives to over 0.30 appliances per day thereby reducing
the salary component. This is only possible with an effective module of training
programs.
Values of Godrej group on which we expect each & every individual to stand by & own
up are:
1. Integrity
2. Trust
3. To serve
4. Respect
5. Environment
Huge potential for scale up (For both product portfolio & reach)
7 Godrej Direct Sales Channel Structure:
No of camps 130
No of cities 40
CSR - 4200 people trained in Sales Skills (Retail, Trade, Direct Sales )under
Skill
Development initiative
8 Godrej Direct Sales Financial Results:
Background:
10 Project Methodology:
Face to Face interviews were conducted from the database of Direct sales
from customers who bought appliances from Direct channel both Door-to-
Door & Tele-appointment
Mumbai 46 36
11 Customer Profiling:
Key Strategic Highlights:
12 Survey Findings:
3. Customer Executive
4. Payment
5. Delivery
6. Demonstration
Do you find this mode of sales offered by Godrej & Boyce useful:
To what extent do you find this method of purchase different from other similar
companies:
-All figures in %
13 Key issues to be addressed:
Low salary
Lack of knowledge
Customer rejection
Target pressure
Limitations in Expansion
Warehouse availability
Follow 4 I methodology:
Information gathering -> Issues -> Insights -> Ideas
Retention
1) Pick & Drop facility
2) Family get-togethers in a year
3) Family lunch with performers
4) Quarterly get-togethers of executives
5) Salary disbursal for <2 months executives in regular intervals
(10days)
6) Recognitions of Performers
7) Revision of Incentive structure
Challenge Action Plan for improvement
JUST DO IT EVALUATE
1) Consumer Referral Scheme 1) Expansion of Territories
2) Focus on Specific SKUs 2) Relook at Exchange Pricing
Focus on All PRODUCT Tablets for BDMs &
3) Categories 3) Executives
4) Focus on team size increase 4) Online Portal
HIGH
5) Camp without Display 5) Incentivize Agencies on
I
6) Combo Offers recruitment
M
7) Increase teams 6) Dedicated team for institutions
P
8) Business Development Executives 7) Revamping Incentive structure
A
C LOW PRIORITY PARK
T 1) Employee discount scheme for 1) Adding new products
Abroad Trip of BDMs &
LOW executives 2) Executives
3) Newspaper advertisement for
manpower
With encouraging results in the findings as stated above, we got involved in launching
Interio products through direct sales channel. This will give an opportunity to acquire
better customer realization per customer.
I got personally involved in extending our channel & drafted the process to promoted
Interio products as follows:
Points agreed between Godrej Appliances and Godrej Interio on the sale of
Cupboardand Mattress through Direct sales channel
Both GAD (Godrej Appliances Division) & Godrej Interio had a discussion on exploring
the opportunity of selling Cupboards & Mattresses of Interio division through the Direct
Sales Channel of GAD. During the discussions, following points were mutually agreed
by GAD & Interio & this will be considered as the basic guideline for all the business
transaction.
Applicable for the following product categories of Interio division to be sold by Direct
i. All Cupboards
The scope for the sales activity will be for all locations where Direct Sales of GAD has
its presence.
3. Arrangement of Manpower:
Arrangement of manpower will be at the sole discretion of GAD Direct Sales Team. They
may or may not decide to have dedicated manpower for selling Interio products.
4. Training:
Training for the Direct Salem team needs to be provided by the Interio team. Direct Sales
Manager would intimate the Interio team and schedule training for the Direct Sales team
5. Activities:
5.1) Recruitment & Management fees for hiring Sales Team: All costs related
5.2) Salary & Incentive for Sales Team: Salary for the Sales team would be paid
by the Direct Sales team, GAD along with the pay out of salary for other
members in the Direct Sales team, GAD. The incentive structure for the Sale
5.4) Order Booking in Baan: All orders generated by Direct Sales team would
will be responsible for booking orders in Baan system. They will also be
responsible for maintaining extensions for all such orders which is necessary
5.5) Invoicing: Activities related to order invoicing lies with the Interio team.
5.6) Product Inventory: All activities and space required for product storage
created for Direct Sales team which would be used for booking orders of
Direct Sales Team. No other team should be allowed to book orders from this
warehouse. It may, however, be noted that since Direct Sales team takes
Warehouse then the same can be booked from other warehouses of the branch.
5.7) Product Supply and Delivery: Once the orders are booked in the system the
5.8) Cash collection: Collection of cash from the customer (in case of cash on
commercial team. Subsequent submission of the cash to the accounts team and
the new product. The responsibility of the same lies with the Interio team in
coordination with the commercial team. All such old products need to be
responsibility of Godrej Interio. Direct Sales Team, GAD will have no role in
this activity. All product installations should be done within 24 hours from
product delivery.
5.11) Service and Warranty: All activities related to product servicing and
norms. Direct Sales team need to be updated and trained on all such norms of
Godrej Interio.
cupboard/mattress would lie with the Commercial team & Direct Sales Team,
GAD. Direct Sales team in coordination with the commercial team would
5.13) Order Linking: Order Linking needs to be done by the Accounts team.
Interio team needs to ensure that it is done within 7 days from the date of
invoicing.
Godrej Interio has to provide the item code and pricing details of the products that needs
to be sold through Direct Sales channel. The pricing should have the clarity of MRP of
the
product along with the MOP. Pricing details should clearly specify the Basic price of the
product along with the various tax details applicable for a particular branch location.
Godrej Interio also has to inform about any customer scheme, if applicable.
All details pertaining to any price change or scheme implementation should be informed
All materials related to product promotion and marketing needs to be supplied by Godrej
Interio to Direct Sales Team, GAD whenever required. Direct Sales Manager, GAD and
Branch Sales Manager, Godrej Interio should co-ordinate amongst themselves for such
activities.
17 Customer Questionnaire drafted & followed:
DIRECT (1-7)
CUSTOMERS QUESTIONNAIRE
DOOR TO
DOOR
FI E LD WO R K LO CAT I O N :
West
Mumbai
Mumbai Central
R E S PO N D E NT D E TAI LS
Name of the
customer
Address
Phone(with Mobile
District
STD Code) Number
I N TE R VIEWE R DE TAI LS
Interviewer Name
Supervisor Name
Date of Interview
Back Checked
Scrutinize
Accompanied P T d
TL 1 1 5 1
OFE 2 2 6 2
EIC 3 3 7 3
FM 4 4 8 4
Introduction
Good __________! I am ____________ from Godrej. We are currently conducting a
survey on behalf of Godrej & Boyce Mfg .Co. Ltd to find out how satisfied you are
with the
products and services provided by them. We would also like to know what you think
should be the areas of improvement for them, so that they are able to serve you
I would like to assure you that there is no right or wrong answer and we are only
interested in your opinion. I would also like to assure you that this discussion is entirely
confidential. Could you please spare the time to answer a few questions?
If YES, Continue
If NO, Terminate
Thank you.
Through which route did the customer purchase the latest appliance from Godrej &
Boyce.
Door to door 1
Telecalling 2
AB Have you taken part in any market research survey in the last 6 months?
Y
1 THANK & TERMINATE
es
N
2 CONTINUE
o
Q1a Could you please tell me which appliances of Godrej & Boyce do you own?
(PLEASE RECORD THE ANSWER IN THE GRID BELOW)
AMC
02
None 03
Dont
Remember/Refused
08
>0- 3 months
1
old
>3-6 months
2
old
>6-12 months
3
old
>1-2 years old 4
Q2a Lets consider the overall quality of products & services that is offered by the
various companies whose products you own.. Taking into consideration all your
experiences with the company please tell me how would you rate the overall
quality of products & services of GODREJ & BOYCE MFG. CO. LTD. Would
you say it is? (READ OUT
SHOW CARD EXCEPT FOR DONT KNOW AND REFUSED)
Q2b On the basis of your recent most experience of purchasing an appliance from
Godrej and Boyce, how would you rate your overall experience of going
through the purchase process of buying your new appliance from Godrej and
Boyce. Would you say it is? (READ OUT SHOW CARD EXCEPT
FOR DONT KNOW AND REFUSED)
Godrej & Boyce
Mfg. Co. Ltd
EXCELLENT 5
VERY GOOD 4
GOOD 3
FAIR 2
POOR 1
DONT KNOW 8
REFUSED 9
__________________________________________________________________
______
Q3a Do you find this mode of sales offered by Godrej and Boyce useful?
Code
YES
01
NO
02
Cant say/Refused
08
Q3b To what extent do you find this method of purchase different from other similar
companies?
Code
Very different from
others
01
Same as others
02
Cant say/Refused 08
Q4a Was there any notice put up by the company informing about the free appliance
check up in the society?
Code Instructions
YES Continue with Q
01
4b
NO
02
Go to Q5a
Dont
Remember/Refused
08
Code
1 day in advance
01
2 days in advance
02
1 week in advance 03
Others 04
Dont
Remember/Refused
08
Q4c Was the notice clear enough to understand that a free appliance check up was
going to be held in the society?
Code
YES
01
NO
02
Dont
Remember/Refused
08
Q5a Did the executive give you a free appliance check up?
Code
YES Continue with Q5b
01
NO Skip to Q6
02
Dont
Remember/Refused
08
05 04 03 02 01 99
Q5c Which appliances did he
check?
Products Appliances Checked
Refrigerator 01
AC 02
Washing Machine 03
Microwave 04
Water Purifier 05
Others. Pl specify:_________ 06
Q5d How would you rate the overall quality of inputs/tips that the Godrej and Boyce
Executive gave you related to your appliances? Would you say it was _____?
(READ OUT SCALE
EXCEPT DONT KNOW & REFUSED)
05 04 03 02 01 99
Q6a Did the Executive carry any promotional material / flip charts with him?
Code
YES Continue
01 with
Q6b
NO Skip to
02
Q7
Dont
Remember/Refused
08
Q6b Based on the last time you saw the promotional material brought by the customer
executive how would you rate Godrej & Boyce on the overall quality of the
promotional material? Would you say it was _____? (READ OUT SCALE
EXCEPT DONT KNOW &
REFUSED)
Q7a Was there any display van present in the society compound?
Code
YES Continue
01 with
Q7b
NO Skip to
02
Q8
Dont
Remember/Refused
08
Q7b Did you see the display van / canopy / tent closely?
Code Instructions
YES Contine with
01
Q7c
NO Skip to Q8
02
Dont
Remember/Refused
08
Q7c Based on the last time you saw the display van / canopy / tent how would you rate
Godrej & Boyce on the overall quality of the display van / canopy / tent?
Would you say it was
_____? (READ OUT SCALE EXCEPT DONT KNOW & REFUSED)
VERY
EXCEL GOOD GOOD FAIR POOR DK/ CS /
LENT REFUSED
05 04 03 02 01 99
Q7d I would now like to discuss with you, specific aspects related to the Display van
/ canopy / tent. As I mention each aspect, I would like you to rate the Display van
/ canopy / tent, keeping in mind the last time you saw the display van / canopy /
tent in your society. How would you rate on _____________ (READ EACH
STATEMENT ONE AFTER THE
OTHER). Would you say it is ____________ (READ OUT SCALE EXCEPT DONT
KNOW & REFUSED).
EXCELLENT: 5, VERY GOOD: 4, GOOD: 3, FAIR: 2, POOR: 1, DONT KNOW: 8,
REFUSED: 9.
Q7e How many appliances were kept in the display van / canopy / tent?
Code
1 TO 4 01
5 TO 8
02
8 TO 11 03
Others 04
Dont
Remember/Refused
08
Q7f Which appliances were displayed in the display van / canopy / tent?
Refrigerator 01
AC 02
Washing Machine 03
Microwave 04
Water Purifier 05
Others. Pl 06
specify:____________
Code
YES Continue
01 with
Q7h
NO Skip to
02
Q7i
Dont
Remember/Refused
08
Q7h Which other appliances would you want that should be displayed and are currently
not displayed in the van/ canopy/ tent? PROBE
__________________________________________________________________
______
__________________________________________________________________
______
__________________________________________________________________
______
Q7i Could you give 2 suggestions that would help Godrej & Boyce make the display
van / canopy / tent better and more useful?
__________________________________________________________________
______
__________________________________________________________________
______
__________________________________________________________________
______
SECTION3: CUSTOMER EXECUTIVE
Q8a Based on your last interaction with the customer executive of Godrej & Boyce,
how would you rate Godrej & Boyce on the overall quality of the customer
executive who came to your house for the appliance check up? Would you say
he was _____? (READ OUT
SCALE EXCEPT DONT KNOW & REFUSED)
Q8b I would now like to discuss with you, specific aspects related to the Customer
Executive who came to your house for the appliance check-up. As I mention
each aspect, I would like you to rate the Executive, keeping in mind the recent
visit by the Godrej & Boyce executive to your house. How would you rate on
_____________ (READ EACH STATEMENT ONE AFTER THE OTHER).
Would you say it is ____________ (READ
OUT SCALE EXCEPT DONT KNOW & REFUSED).
EXCELLENT: 5, VERY GOOD: 4, GOOD: 3, FAIR: 2, POOR: 1, DONT KNOW: 8,
REFUSED: 9.
EX VE GO FA PO DK/
CE RY OD IR OR CS /
LL GO REFU
EN OD SED
T
Appearance of the
1 05 04 03 02 01 99
Customer Executive
Knowledge of the
2 05 04 03 02 01 99
Customer Executive
Politeness and
Courtesy
3 of the Customer 05 04 03 02 01 99
Executive
Ability of the Customer
Executive to guide you/
4 help you in making a 05 04 03 02 01 99
decision to purchase
the
appliance
Pro-activeness in
5 offering information to 05 04 03 02 01 99
you
Ability of executives to
6 resolve your queries, if 05 04 03 02 01 99
any
Knowledge of the
customer executive
7 05 04 03 02 01 99
about the competition
products
Ability of the customer
executive to explain
you
8 the benefits of 05 04 03 02 01 99
becoming an ACE
customer
Code
YES 01
NO
02
Dont
Remember/Refused
08
SECTION 4: PAYMENT
Q9a Based on your last experience during the purchase of an appliance with Godrej &
Boyce how would you rate Godrej & Boyce on the overall quality payment
procedure? By payment procedure I mean advance payment, payment options
available, flexibility available in payments, etc.Would you say it was _____?
(READ OUT SCALE EXCEPT
DONT KNOW & REFUSED)
05 04 03 02 01 99
Q9b Based on your last experience during the purchase of an appliance with Godrej &
Boyce how would you rate Godrej & Boyce on the adequacy of payment
options? Would you say it was _____? (READ OUT SCALE EXCEPT DONT
KNOW & REFUSED)
05 04 03 02 01 99
Q10a Did the Customer Executive take any advance payment on booking the appliance?
Code
YES Continue
01 with
Q10b
NO Skip to
02
Q10f
Dont
Remember/Refused
08
ASK Q10b ONLY IF 1 CODED IN Q10a, ELSE SKIP TO Q10f
Q10b Based on your last experience during the purchase of an appliance with Godrej &
Boyce how would you rate Godrej & Boyce on the flexibility in amount to be
paid as advance? Would you say it was _____? (READ OUT SCALE EXCEPT
DONT KNOW &
REFUSED)
EXCE VERY GOOD FAIR POOR DK/ CS /
LLEN GOOD REFUSED
T
05 04 03 02 01 99
Q10c What was the amount paid by you on booking the appliance?
Code
Rs 250
01
Rs 500
02
Rs 1000
03
Dont
Remember/Refused 08
Q10d What was the mode of payment for the advance payment?
Code
Cheque
01
Cash
02
DD
03
PO 04
Others 05
Dont
Remember/Refused 08
Q10e Did any one call /SMSyou from Godrej & Boyce to confirm to you that they have
received the advance payment?
Code
YES
01
NO
02
Dont
Remember/Refused
08
Code
Cheque
01
Cash 02
DD
03
PO 04
Others 05
Dont
Remember/Refused 08
Code
YES
01
NO
02
Dont
Remember/Refused
08
Q10h Were there any free gifts that you got with the appliance?
Code
YES
01
NO
02
Dont
Remember/Refused
08
SECTION 5: DELIVERY
Q11a Based on your last experience during the purchase of an appliance with Godrej &
Boyce how would you rate Godrej & Boyce on the overall quality delivery
process?Would you say it was _____? (READ OUT SCALE EXCEPT DONT
KNOW & REFUSED)
05 04 03 02 01 99
Q11b Did any one from Godrej call you to confirm the date and time for the delivery of
the appliance?
Code
YES
01
NO
02
Dont
Remember/Refused
08
Q11c Based on your last experience during the purchase of an appliance with Godrej &
Boyce how would you rate Godrej & Boyce on the flexibility of delivering the
appliance at your convenience? Would you say it was _____? (READ OUT
SCALE EXCEPT DONT
KNOW & REFUSED)
05 04 03 02 01 99
Q11d After how many days were you promised about the delivery of your product by the
customer executive?
RECORD VERBATIM AND POST CODE IN THE GRID BELOW
Verbatim:___________
Q11e How long did the Godrej & Boyce actually take to deliver your appliance?
RECORD VERBATIM AND POST CODE IN THE GRID
BELOW Verbatim: ___________
Q11d Q11e
Immediately
01 01
8 - 10 hours
02 02
10 24 hours
03 03
24 48 hours 04 04
Dont
Remember/Refused 08 08
Q11f Was the delivery of the appliance made on the date and time fixed with you on the
phone?
Code
YES
01
NO
02
Dont
Remember/Refused
08
Q11g Did any one call you from Godrej and Boyce informing you about the delay in the
delivery of the appliance?
Code
YES
01
NO
02
Dont
Remember/Refused
08
Q11h Did the delivery boy or the customer executive give you the call centre number?
( ????)
Code
YES
01
NO
02
Dont
Remember/Refused
08
THANK RESPONDENT AND TERMINATE
18 References/Additional material
Godrej Journals