2. INDUSTRY PROFILE - FMCG
The
FMCG
Industry
Rising income and growing
young population
Increasing rural demand
1.9% of total FDI inflow April
2000 – September 2012
$34.8 billion industry (CAGR
17.3% in 2006-11)
43% Food Products
22% Personal Care
12% Fabric Care
66.5% Urban
33.5% Semi-Urban and Rural
3. KEY TRENDS IN FMCG INDUSTRY
• Consolidation
• Product innovation
• Global expansion
• Backward integration
• Focus on rural markets
• Third party manufacturing Growth
Drivers
Rise of Rural
Consumers
Organized
Retail
Increasing
per capita
income
4. SALES MANAGEMENT IN THE
FMCG INDUSTRY
Sales
Management
Strategic
Roles
Setting Sales Targets
Quotas
Sales Forecasting
Demand Planning
Sales Planning
Control
Roles
Setting up Sales
Routes
Analysis of Sales
Reports
Recruitment and
Training
5. SALESFORCE HIERARCHY - NESTLE
National Sales
Manager
Zonal Sales
Manager
North
Zonal Sales
Manager
South
Regional Sales
Manager
Sales
Administration
Executive
Area Sales
Manager
Pallet
Salesmen
Territory In
Charge (SO)
Distributor
Salesmen
Zonal Sales
Manager East
Zonal Sales
Manager West
Zonal Sales
Manager
Central
6. ORGANIZATION DESIGN BY
TERRITORY
Vice President
(Marketing)
National Sales
Manager
Division Manager
(East)
Regional Sales
Manager
District Sales
Manager
Sales Staff
Division Manager
(North)
Regional Sales
Manager
District Sales
Manager
Sales Staff
Division Manager
(West)
Regional Sales
Manager
District Sales
Manager
Sales Staff
7. ORGANIZATION DESIGN BY
MANAGEMENT FUNCTION
Vice President
(Marketing)
Sales Manager
Sales People
Line Function
Manager (Market
Research)
Staff Function
Advertising/Sales
Promotion Manager
8. ORGANIZATIONAL SALES STRUCTURE –
HINDUSTAN UNILEVER LIMITED
Product
Customer
Geographic
Functional
Chairman of
the Board
Vice President –
Human
Resources
Vice President –
Sales &
Customer
Development
Marketing
Manager
(India)
General
Manager
(Whole Sale)
General
Manager
(Consumer
Care)
Division
Manager
(Food)
Division
Manager
(Home &
Personal Care)
Division
Manager
(Nutrition)
Division
Manager
(Health &
Beauty)
Division
Manager
(Water)
Marketing
Manager
(International)
Vice President –
Supply Chain
Management
CFO & CIO
9. SALES ORGANIZATION –
GEOGRAPHY BASED (HUL)
HUL Sales
Organization
South West
East
Bihar Orissa
Bhubhanehswar Konark
Puri
West Bengal
North
10. SALES STRUCTURE - ITC
Marketing Organization
• Consumer Behaviour
• Brand Matrix
• Product Performance
• Direction to Brand
Manager
• Advertisement Roll Out
• POS Activities
• Market Research
Brand Manager
(National) -> Assistant
Brand Manager
• Promotional Budgets
• Trade Schemes
• Inventory Logistics
Sales Organization
• On Field Sales
11. SALES MANAGER FUNCTIONS
Regional Sales Manager
• P&L of assigned territory
• Ensuring compliance of
company policies
• Manages cohesiveness of
sales team
• Training and development
of ASM
Area Sales Manager
• Primary target
achievement
• Communication of
company philosophies and
values
• Managing relationships with
clients, government
entities, major accounts
and legal entities
• Training and development
of sales officers
• Accompanying sales
executives on call
Sales Executives
• Secondary target
achievement
• Ensuring execution of all
strategies-
selling/promotions
• Managing relationships with
dealers, distributors and
retailers
• Training and development
of distributor salesmen
12. TYPES OF SELLING JOBS
• Product type or specific products.
• Account type or specific account.
• Type of distribution method
• Order size
13. RECRUITING AND SELECTION
Skills Required Improvisation Skills
Productivity
Selling Skills
Education
Requirements
Area Sales Manager
Hired from premier business schools
Sales Executives
Screening – HR Team
Final Selection – ASM
Graduates or from smaller business schools
14. TRAINING AND DEVELOPMENT
• Area Sales Manager
• Management Trainee program
• Sales stint – 3 to 6 months
• Regular training programs
• Sales Executive
• 15 day induction program
• Tag along
• Salesmen
• 3-4 day training
• IT and computer system training
• Market introduction
• SKU analysis and information
16. QUOTAS AND TARGETS
• Industry growth
• Last year sales
• Company growth
• Advertising budgets
• Annual operating plan
• Top down approach – data flows
• Targets based on 2D matrix of pack and brand
18. DISTRIBUTION CHANNEL - ITC
ITC
Company
Appointed
Distributor
Secondary
Wholesaler/Stockist
Retailer
Consumer
Distributor
Appointed
Salesmen
Retailer
Consumer
Company
Appointed
Salesmen
Retailer
Consumer
19. DISTRIBUTION CHANNEL - NESTLE
Last level purchase points
Supply happens in weekly beats
Multiple purchase points per region
1 Re-Distributor per region
1 distributor per city
1300 in 2010
1 Super Stockist per city
1 C&F per state
7 plants across India
Manufacturing
Plant
Carrying and
Forwarding
Agent (C&F)
Super Stockist
Re-Distributor
Retailer Wholesaler
Modern Trade
DCs
Cash Distributor
Retailer Wholesaler
STING
20. CRM IMPLEMENTATION
• Uses technology to organize, automate and synchronize sales, marketing,
customer service and technical support
• Effective tool for managing company-customer relationships
Collecting
customer
information
Analyzing
data to
predict
customer
behavior
Applying the
results of
analysis
Measuring
results
21. CRM IMPLEMENTATION
Business Areas affected
•Customer Analysis
•Operations and Cost Management
•Product and Sales Analysis
•Inventory and Distribution Management
•Promotion Analysis
Benefits
•Database management
•Accurate demand forecasting
•Automated product tracking from supplier to retailer
•Access to real time competitor and customer information
•Easily available product information
•Effective monitoring of sales performance
•Automated route scheduling
•Increased sales productivity with timely follow up of leads
23. MOBILE RETAILING
• United Villagers is using
mobile technologies to
bring big brands to rural
India.
• Dabur and HUL use
technology to improve
sales and reach
UV’s Sales men take
order from retailer
Use mobile
application to
place order to
city warehouse
Products are
delivered in
boxes to the
retailers
Dabur Urban Sales Force
(Hand Held Device)
Understand buying patterns
Customize selling strategies
Rural Sales Force
(Mobile Devices)
Maps showing
demographies and market
potential
Report sales
