Sales and Distribution

1. PI FOODS LTD.
BY :-
LOKESH CHANDRA

2. CASE OVERVIEW :-
• PI Foods Ltd. product -mix consists of baby foods, dairy products like milk
powder, ghee, chocolates, confectionary & beverages.
• Ramesh Kulkarni, Regional sales manager, western region, of PI Foods
discussed, the direct complaints of shortage of supplies by some of the
distributors and non-receipts of company’s products by C and D class retail
outlets with his area sales managers.
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• Ramesh was totally dissatisfied as none of the three area sales managers had
informed him about these problems earlier.

3. • Distribution Channel of PI Foods Ltd. :- 3

4. • Each distributor’s salesperson was given a geographic area (or a sales
territory) to cover all types (or classes) of retail outlets located in his territory.
• The Norms of frequency of visits is as follows :-
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5. • Mr. Ramesh told his sales manager that the distributors sales person did not
visits C and D class retailers on a regular basis.
• He further said that it will not only affect the company’s sale and leadership
position in the market, but also the satisfaction levels of retailers.
• Mr. Ramesh allotted 1 week time to the Area sales manager and said that
the issue should be resolved on priority.
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• However, regarding shortage of supplies to the distributor, the main reason
were incorrect Sales Forecasting by Distributors, Factory Production
Constraints and Misallocation of dispatches from warehouses to distributors.

6. • Q1 : - If you were the area sales manager what would be your suggested plan
of action to resolve the problems ?
• Sol : -
• 1. By using Work Load Method :-
The retailers with small sales potential (like Class C and Class D) will be looked
after by telemarketing people or the company’s dealer.
• 2. Setting policies on performance evaluation and Control :-
Evaluating the salespeople’s performance monthly by the Area Sales Manager.
• 3. Using the Outcome-based and Behavior-based viewpoint :-
Help in evaluating the performance of the Salespeople.
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7. • Q2 : - Do you agree with Ramesh that issues involved were important and
should be resolved on priority?
• Sol : - Yes, the issues involved were important and should be resolved on
priority as :-
• 1. it will not only affect the company’s sale and leadership position in the
market, but also the satisfaction levels of retailers.
• 2. If the product will not be available in small class outlets it will promotes the
product of the competitor's in the market.
• 3. It will also affects the loyalty of the regular customers and they will switch
to other brand.
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