Sales Force Management.

Kashish Mehrot
Manvi Jain
Isha Yadav
Arush Sharma
Deeksha
Kavita

Our Business.

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