Group3 - SDRM Presentation

SDRM-2 Presentation
AN IRATE DISTRIBUTOR:
THE QUESTION OF
PROFITABILITY
Presented by (Group-3)
Content
01 Introduction
02 Background
03 The problem
04 Solutions
05 Key Takeaways
06 Conclusion
07 Case questions
Introduction The c a se i s a bout A m i t Kuma r, a n a rea
sa l es ma na ger a t N utri Pa c k I ndi a , a
01 mul ti na ti ona l c om pa ny tha t ma rkets
fa st-m ovi ng c onsum er goods (FMCG)
produc ts i n I ndi a .
A m i t Kuma r fa c es a c ha l l enge when he

meets wi th a di stri butor i n J a l ga on,
Ma ha ra shtra , who questi ons the
profi ta bi l i ty of hi s busi ness a nd the v a l ue
02
of N utri Pa c k Indi a 's produc ts.
A m i t Kuma r m ust fi nd a wa y to a ddress
03
the di stri butor's c onc erns and
ma i nta i n a posi ti ve rel a ti onshi p whi l e
a l so ensuri ng the profi ta bi l i ty of
N utri Pa c k I ndi a 's busi ness.
The c a se study hi ghl i ghts the

c ha l l enges fa c ed by FMCG c om pa ni es
in I ndi a
eff ec ti ve
a nd the i m porta nc e
c omm uni c a ti on
of
a nd
04
rel a ti onshi p ma na gem ent wi th
di stri butors.
Background
US based
company with Products include
annual turnover jams and health
of $10.5 food drinks
billion.
Revenues from
emerging
CAGR of 18 per
markets are
cent in India
now at 20 %, up
from 5% fi ve
years a go
The Problem
• A distributor in Jalgaon, Maharashtra, who sells NutriPack India's products,
questions the profi tability of his business and the value of NutriPack India's
products.
• The distributor complains about not receiving credit and inconsistent pricing,
and expresses frustration with the lack of support from NutriPack India.
• The distributor also mentions that he is facing competition from other

companies that off er better margins and incentives.
SOLUTIONS
• One approach is to analyze the distributor's business, pinpoint
profi tability issues by studying sales data, inventory, and
competition. Amit Kumar can then collaborate with the
distributor to create a tailored plan for improvement, which
may involve price adjustments, improved credit terms, and
enhanced sales team support and training.
• Another approach is to enhance communication and

relationship management with the distributor. This includes
scheduling regular meetings to discuss performance, sharing
market insights, giving timely feedback and support, and
collaborating on joint marketing and promotional eff orts for
increased regional sales and brand awareness.
KEY TAKEAWAYS
Eff ective Un de rs t an din g Cus tomizing Inve s tin g in FMCG companies

commu nication t h e local s olutions to mee t trainin g and ne ed to be
and relations hip m arke t the s pecifi c s upport for proactiv e an d
managemen t dy n am ics an d ne eds and dis tributors is re s pons iv e to the
with dis tributors com pe t it ion is challe nge s of importan t for changing nee ds
are critical for im portan t for e ach dis tribu tor. building the ir and prefe re nces
t he s ucce s s of FM C G capabilitie s and of cus tome rs and
FMCG com pan ie s t o improving their dis tributors.
companie s in de v e lop pe rformance.
India. e ff e ctiv e
s trat e gie s an d
plan s .
Case Questions
01 H ow did Kumar choose the Jalgaon district for the expansion plan in his
territory?
Kum a r c ho se the Ja lgao n di stri c t fo r the ex pa n si o n pla n i n h is terr i to r y bec au s e it
w a s o ne of the 35 distr ic ts in th e s tate o f Ma h a ra s htr a, w es tern Indi a, a n d h ad a
s tro ng distributio n ma r ket - o ne o f th e bi ggest i n term s o f bu s in ess tu rno v er in
the regio n. Additio nally , Jal gao n w a s a m aj o r pro duc ti v e agr ic u l tu r al c en ter th a t
a c ted a s a feeder m arket fo r a n u m ber o f su rro u ndi ng v i l la ges , w h ic h m a de i t a n
a ttr a c tiv e loc a tio n fo r ex pa ndi ng m ar ket c o v era ge.
Case Questions
02 Analy ze the diff erent perspectives of Kumar (company) and Mandore
(distributor), regarding their approaches to going to market.
Kum a r a nd Ma ndo re ha d diff eren t pers pec ti v es rega rdi n g thei r a ppro a c h es to go in g to
m a r ket.
Kum a r , as the a rea sa les m a n a ger o f Nu tr i Pa c k Indi a, w a s fo c us ed o n ex pan din g th e

c o m pan y 's ma rket share a nd in c rea s in g s al es by sel li n g m o re pro du c ts to ex i sti ng
c u sto m ers a nd a ttra c ting new c us to m er s . H e bel i ev ed th at th i s c o u l d be ac h i ev ed by
a ddi ng new outlets to his c o v era ge a nd hi r in g m o re sa l es per s o n s . Ku m a r w a s a ls o
c o nc ern ed abo ut the serv ic e l ev el s pro v i ded to c us to m er s a nd th e c o m pla i nts h e rec ei v ed
fro m so me o utlets abo ut no t rec eiv i ng c redi t a n d the s c h em es a n d c a sh di sc o u nts n o t
bei n g u nifo rm. H e felt that th ese i s su es needed to be a ddress ed to i m pro v e c us to m er
s ati sfa c tio n a nd lo y a lty.
O n the other ha nd, Ma ndore, as th e dis tri buto r fo r th e Jal gao n di str ic t, w a s fo c u s ed o n
pro fi ta bility a nd questio ned th e n eed fo r i n c rea sed i n v es tm en ts w ith Nu tri Pa c k Indi a. H e
w a s a ngry a nd felt that his a gen c y 's pro fi ta bil ity fo r th e pas t y ear needed to be j u sti fi ed
befo re a ny further inv estm en ts w ere m a de. Man do re h a d sto pped v i si tin g the m a rket
h im s elf and ha d delega ted the en tire a ff ai r s to th e s a les m en an d o ther s taff . H e beli ev ed
tha t th e salesmen a nd deli v er y bo y s w ere best s u ited to h an dle th e m a r ket a n d tha t
Case Questions
03 If you were Kumar, how would you convince Mandore to put in the required
investment?
If I w ere Kuma r, I w ould take the fo l l o w i n g steps to c o n v i nc e Ma n do re to put in th e requ ired

i nv estm ent:
• U n dersta nd Ma ndo re's c o n c ern s : I w o u ld tr y to u nder sta nd Ma n do re's c o n c ern s abo u t

pro fi ta bility a nd the need fo r fu rth er in v es tm ents . T h i s w o u l d h el p m e to a ddress hi s
c o nc erns and pro v ide hi m w ith a c l ear un der s ta n din g o f th e ben efi ts o f the pro po s ed
ex pansio n pla n.
• Pro v ide da ta -driven insigh ts: I w o ul d pro v i de Ma n do re w i th da ta -dri v en in s igh ts a bo ut
the po tential of the ma r ket a n d the ben efi ts o f ex pa n din g th e c o m pa n y 's rea c h to m a n y
m o re outlets fo r depth o f dis tr i bu tio n . T hi s w o u ld h elp hi m to s ee the po tenti al ben efi ts
o f th e pro po sed ex pa nsi o n pla n .
• H i gh l ight the c ompetitio n : I w o u l d hi ghl i gh t th e c o m peti ti o n in th e m a r ket a n d h o w they
w ere ex pa nding their rea c h to m a ny m o re o u tlets. T h is w o u ld hel p Ma ndo re to s ee the
i m po rtanc e o f ex pa nding th e c o m pa ny 's rea c h to rem a in c o m petitiv e in th e m a r ket.
• Address his c onc erns a bo ut pro fi tabi li ty: I w o u l d a ddres s Ma ndo re's c o n c ern s a bo u t
pro fi ta bility by sho w ing h im h o w the pro po s ed ex pa n si o n pl a n w o u ld i n c rea se s a les a n d
i m pro v e c ustom er sa tisfac ti o n , w h ic h w o u l d u lti m atel y lea d to i nc reas ed pro fi ta bil ity fo r
h is a genc y.
Case Questions
04 Based on the information available in the case, what should Kumar ’s
recommendations be for strengthening Sachin Agency and for tapping into the
potential of the Jalgaon district?
Ba sed o n the info rmatio n av a ila ble in th e c a se, Kum a r 's rec o m m en dati o n s fo r stren gthen in g
Sac h i n A genc y a nd ta pping into th e po ten tia l o f th e Ja l ga o n dis tri c t s ho u ld be a s fo ll o w s :
• In c rea s e rea c h to ma ny mo re o u tlets fo r depth o f di s tr i bu tio n : Ku m ar sh o ul d fo c us o n

ex pan ding the c o mpa ny 's rea c h to m a n y m o re o utl ets to ta p in to the po tenti al o f th e
Ja l ga o n distric t.
• Im pro v e serv ic e lev els pro v i ded to c us to m er s : Kum a r s h o u l d a ddres s the c o m pl ai n ts he
rec ei v ed fro m som e o utlets a bo u t n o t rec eiv i n g c redit an d th e sc h em es an d c a s h dis c o u n ts
n o t bei ng unifo rm. H e shoul d w o rk w i th Sa c h in A gen c y to im pro v e th e s erv i c e l ev els
pro v ided to c usto mers a nd ens u re th a t they a re sa tis fi ed w ith the c o m pa n y 's pro duc ts a n d
s er v ic es .
• Pro v ide training to salesper so n s an d o ther s taff : Kum a r s h o u l d pro v ide tr ai n in g to
s al esperso ns a nd o ther staff to i m pro v e th ei r s kil l s an d kn o w l edge a bo u t th e c o m pa n y 's
pro duc ts a nd serv ic es. T his w o u l d h el p th em to better ser v e c us to m er s a nd in c rea s e sa l es .
• Mo ni to r performa nc e a nd m ake n ec es s ar y a dju s tm en ts: Ku m a r s ho u ld m o n i to r th e
per fo rm anc e o f the c o mpan y a n d Sac h i n A gen c y a n d m a ke nec ess a ry adj us tm ents to the
THANK
YO U

Group3 - SDRM Presentation

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SDRM-2 Presentation

A m i t Kuma r fa c es a c ha l l enge when he

A m i t Kuma r m ust fi nd a wa y to a ddress

The c a se study hi ghl i ghts the

• The distributor also mentions that he is facing competition from other

• Another approach is to enhance communication and

Eff ective Un de rs t an din g Cus tomizing Inve s tin g in FMCG companies

Kum a r , as the a rea sa les m a n a ger o f Nu tr i Pa c k Indi a, w a s fo c us ed o n ex pan din g th e

If I w ere Kuma r, I w ould take the fo l l o w i n g steps to c o n v i nc e Ma n do re to put in th e requ ired

• U n dersta nd Ma ndo re's c o n c ern s : I w o u ld tr y to u nder sta nd Ma n do re's c o n c ern s abo u t

• In c rea s e rea c h to ma ny mo re o u tlets fo r depth o f di s tr i bu tio n : Ku m ar sh o ul d fo c us o n

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