Sales & Distribution

Management
Submitted By: Group 7
Submitted To: Prof Prantosh Banerjee
Pragya Verma (PGP10219)
Priya Kumari (PGP10223)
Jinesh Rambhia (PGP10225)
Santosh Mishra (PGP10228)
Sejal Ved (PGP10230)
Siddharth Gautam (PGP10233
MARUTI SUZUKI
Distribution System
• Distribution Strategy: Responsiveness, as it is focused on
reducing the time gap
• Distribution Channel: 1-level distribution channel, i.e.
there is only one intermediary between manufacturers
and customers
• Extensive distribution & network system Comprises of-
a) 400 sales showrooms
b) 600+dealer workshops
c) 1900 Authorized service stations spanning across over
1190 cities
d) The company also have 30+ Express Service Stations on
30 National Highways across 1,314 cities in India.
e) Service stations are managed on franchise basis, Maruti
trains the staff & service is handled by them

Manufacturer
Suppliers Transporters Transporters Dealer Transporter Customers
s
CHANNELS
ARENA NEXA Showroom Maruti Suzuki Commercial
With Arena Maruti Suzuki With premium retail In 2016, Maruti Suzuki entered the
rebranded itself channel NEXA Maruti commercial segment
Suzuki entered the high-
end car segment
It has more than 400 showrooms, They offer premium cars They cater to a lower segment of
and hot selling cars are included in like Brezza, Ignis, S-Cross, the hierarchy of income.
this segment Baleno,Ciaz etc.

They offer a friendly and warm Their focus is to offer Customers are small traders, small
environment for the clients exclusive automotive businessmen, or self-employed
experience.

They often use digital technology Their aim is to offer an They offer a range of light
to attract and delight customers in exceptional level of commercial vehicles for various
several ways. sophistication to high-end business
consumers
Dealer Margins
Range Car Model Dealer Margin
(Example)
< 4 Lakhs Alto 800 5%-6%

4Lakhs- 6lakhs Wagon-R 4%-6%

6lakhs- 8lakhs Ertiga 5%-7%

8lakhs- 12lakhs Vitara Brezza 5%-7%

•The company  has around 3,080 dealerships across 1,960

cities and towns in the country
•Salesforce recruitment is the sole discretion of the dealer 
and happens at the dealer level
•6-8 sales executives per dealer who in turn are supported by
3-4 executives
 Sales Promotions

M MARKETING PLAN 2.0

 Available Offers:
Sales Force Hierarchy
Economy: Discount factor-like exchange bonus,
corporate discounts, government employee
discounts, and cashback are made available to
customers.
Value for money: Small discounts are given along
with gifts to the end consumers such as
accessories and attachments
Premium: Discounts as high as 20000-30000 is
given along with some accessories

Model Consumer Exchange Special

Offer Bonus offers (up
to)

Maruti Alto 20,000 15,000 2000

Vitara NA 20000 NA
Brezza

Ertiga 5000 NA 2000

Impact of COVID-19 on Sales
Post-COVID Sales Approach
•  The company reported a slump of 97.5 per cent in
production at 3,714 units  • Customer are completing the entire car buying
• Maruti's domestic sales (including sales to OEM) process without visiting the
declined by 89 per cent to 13,865 units as • 90 percent of its customer is currently using the
compared to 125,552 unit in the same month last digital platform
year • 88% of the post COVID sales is attained bu using
• The company’s sales slid by 89% in the month of new SOPs
May • The company also launches COVID-19 safety
• The share prices of the company is declined over accessories for its car to woo customers
33% since the starting of 4th quarter, till June
 Distribution Channel
NESTLÉ
• NESTLÉ India – 8 manufacturing facilities and 4 branch offices
• First manufacturing facility - Moga (Punjab) in 1961
Manufacturer • The Branch Offices - Delhi, Mumbai, Chennai, and Kolkata
• Head Office is in Gurgaon, Haryana
• Distribution Network
C&F Agent
Channel Presence

Manufacturer 8 across India

Distributor Super-Stockist C & F Agent 1 per State

Distributor 1700 across India(appointed by the company for every urban city)

Redistributor 7000+ across India

Wholesaler Retailer Redistributor
Wholesaler 2600+ across India

Retailers Supply happens every week, Covers urban and 52000+ villages

Retailer Retailer • The product category understudy is Maggi and its variants
Economic Value for Money Premium

2 min Maggi Noodles Veg. Atta Noodles Cuppa Mania

 Distribution Strategy
The company has strengthened its distribution and has
launched over 60 new products over the last couple of
years
They divided the country into 15 consumer clusters and
Volume-led Growth the idea is to offer more focused solutions to
Approach consumers.

To expand scope Different regions in India have different consumption

beyond 100 towns patterns for different products
(Target of 200-300
new towns) Different regions in India need to have different route
to marketing and distribution strategies

Different regions in India need to have different route

to marketing and distribution strategies
 Margins
% Margin
Payment & Policies
Range ● The distribution network places the products with various retailers
Distributor Retailer
● Sales - over calls or visit by the salesperson ; Delivery period is 1-2 days
Economy Products 3-5% 10%
(Maggi 2-minute noodles)
● Post-COVID, the online sales/telephonic order is high; Delivery period - 1 day

Medium Range Products 4-7% 15%

● Credit period - Order to Order cycle flows; maximum days is 7 days
(Maggi Atta Noodles) ● Minimum 10k sales per week to avail credit
Premium Range Products 8-12% 18-20% ● Annual sales higher than 1.5 lakhs to avail the cooler/fridge by Nestle
(Maggi Cuppa Noodles)

Credit Policy Stock Policy Lead Period Storage Policy Return policy
 Distributors are charged  Stock maintenance for 3  Lead periods differs from  The distributor needs to  The company follows a
before the stock is weeks or 30 lakhs the SKU and quantity maintain Cold Storages and policy of return when the
delivered (approx.) ordered (3-5 days) Deep Freezers product has passed its
expiry date, damaged or
 Connected all the  Distributor: Order  A higher quantity ordered  The distributor also has to has a defect
distributors online; ERP is Placement before 7-10 has to be reloaded from bear all infrastructural
followed days; Order confirmation in the Warehouse to the expenses  Replenishment is done
2-3 days retailers with cash and happens at
 The distributor sells goods the end of every six
on credit to the retailers;  Distributor - slow-moving months
Credit period - 1-2 week SKU's clubs
Retailer - fast-moving SKU's
 Sales Hierarchy, Skills & Experience National Sales
Manager

Skills required for Salesforce Experience required for Salesforce Zonal Sales
Manager

● Should be able to work in - groups or ● Cold calling experience lasting one full Regional Sales
alone; committed towards the good of the year or more preferred. Manager
whole. ● Exposure to food processing or Quality
● Excellent attention to detailing, balances, Assurance is beneficial to identify the Area Manager
examines, analyses, and takes appropriate concerns and challenges of the customer.
action. ● Contact list or network of food safety- Territory In-
● High level of stress-tolerance and ability related or quality assurance contacts Charge
to maintain stable performance under preferred.
pressure or opposition required, such as ● Experience working in/with an analytical Sales Associate
time pressure or job ambiguity. laboratory is preferred
Roles Responsibilities
National Sales Manager • Developing and implementing effective sales strategies, Incentives Offered
• Leading nationwide sales team members to achieve sales targets •
• Establish productive and professional relationships with key personnel in assigned
They have a bonus payment for completed targets
customer accounts • Flexible time, health insurance and trainings abroad.
Zonal Sales Manager • Drive identified Initiatives in the Zone to achieve sales objectives • Nestle vacation plan, Performance bonus. Salary
• Implement Key initiatives at zonal level in the areas of Market Development, above average is constantly reviewed and works
Distribution expansion & Sales Operation
• Identify the critical/burning issues of the Zone affecting sales & take remedial action/ under specified salary bands that allow to constant
escalate wherever needed growth
Regional Sales • Overall P&L of assigned territory • Proud to be Nestle – Super awards for super
Manager • Ensuring maintenance of Company policies achievers” – How does it Work?
• Manages cohesiveness of sales team
• Training and development of ASM Area Sales Manager • Qualifying Criteria
Area Sales Manager • Forecast and achieve the budgeted volume and market share for the region. 1. 100% achievement of internal target for 3rd
• Implement Marketing activations & Merchandising programs, Monitor competitor quarter (Invoicing)
activities, trends, issues & opportunities and Build channel strategies along with the
Regional Sales Manager.
2. Min. 10% RDBN turnover growth over last year
• Set annual performance goals for the Sales Team, monitor performance and provide 2nd quarter
constructive feedback to improve performance 20. 
• Ensure business partner engagement through claim settlement, stock management
and commercial hygiene
• Lead, coach and develop sales officers to implement the channel and customer plans, Motivation of Channel Partners
Identify training and development needs of the Sales & Merchandising Team Ranking
Territory In charge • sell to the retailers needs and also to site point of sale to improve impulse purchases All ASM’s who fulfil above criteria are ranked on the basis
and increase the overall rate of sale
• convert retailers to the Nestle Reward Scheme by explaining the features and of Index.
benefits Top ASM’s(as fixed by the branch) win
• achieved my individual KPI’s and team targets by building up good rapports with
clients sharing best practice with team colleagues and overcoming objections when
 The winning team comprise of All SOs in the ASM team
speaking to business owners  Two top ranked CDs in each SO Zone
Sales Associate Secondary target achievement • Ensuring execution of all strategies- selling/promotions •  Two distributor salesmen in each of the top two CD
Managing relationships with dealers, distributors and retailers • Training and  One Merchandiser in each of the top two points
development of distributor salesmen
( Performance will be assessed by S.O. on quality of
merchandising achieved)
 The Top ranked ASM team also wins a TEAM TROPHY
and certificates
 Promotional Strategies

• Nestle's brand was pushed forward by the excellent product

quality
• Used witty and innovative product campaigns for Maggi
• A campaign focused on your Maggi story, where customers
came up with various innovative ways in which they had
Maggi
• Thereby, Maggi utilizes emotional connect with the
audience

PULL vs PUSH Differentiation

Product Category Segmenting Differentiation Price
PULL strategy PUSH strategy

• Induces customers to pull • Directs distribution partners 2-minute Economy Mothers and Youth Fast cooking Rs 5-12
products from channel to push products Noodles
• Advertising heavily • Capitalize by offering
• Offering discounts or incentives to partners
promotional offers • Provide price discounts and
Veg Atta Value for Health conscious Health quotient Rs 20-25
• Coupons or rebates allowances for marketing Noodles Money crowd
activities
Cuppa Mania Premium Working people, Food on the go Rs 45-50
Travellers
Thank You