Professional Documents
Culture Documents
By: Group 11 (Doms, Iit Roorkee)
By: Group 11 (Doms, Iit Roorkee)
By: Group 11 (Doms, Iit Roorkee)
Vision Mission
3
About ITC Ltd. (Contd.)
Diversified Product Categories:
FMCG
IT Hotels
Paper Agri-
Boards Business
Packaging
4
Objective
5
Problem Statement
Causes:
– Lack of proper training to distributor’s salesmen.
– Poor Infrastructural support (TPS software not updated on regular
basis).
– Inefficient sales strategy (territory allotted to salesmen doesn’t
consider sales potential of region).
Effect:
– Problem of product recall by salesmen.
– More focus on sales target rather than business expansion. (Salesman
focuses more on large outlets which purchases in large volume).
– Poor level of motivation among sales staff.
6
Context
Time Context: 2010
Viewpoint: Y C Deveshwar
7
Background
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
8
SWOT Analysis
Strength Weakness
Strong brand recognition Dependence on tobacco revenues
Experienced Management Negative Connection of Tobacco
Diversified Product Portfolio Low export levels
Well established distribution network
Opportunity Threat
Low per capita consumption of personal Competition both Domestic &
care products International
Untapped rural market Ban on smoking
Collaboration with foreign players Competition from unbranded products
e-retailing High competition from established
companies
9
Presence of ITC Ltd..
NORTH EAST
Division Division
SOUTH WEST
Division Division
10
Sales Hierarchy of ITC
Division Manager
Branch Manager
Assistant Manager
Area Manager
Area Executive
Sales Trainee
11
Recruitment
Other
• Sales Trainee
B- schools
Employee
• Lateral Recruitment (for the
References and post of AE) by BM and HRM
Consultancy
12
Recruitment (Contd.)
CV Short listing
Level 1
Group Discussions / Business Plan
Level 2 Competition
Interview round 2
Quality of hire 13
Training and Development
Induction On Job
Training Training
Internal Competency
Training Development
14
Training and Development
(Contd.)
Induction Training:
Sales Trainee
Duration: 1 week
Place: HO
15
Training and Development
(Contd.)
On Job Training:
Top distributors
Distributor’s Sales
Person &
Supervisor
3 Salesman are
selected
On Job Training
16
Training and Development
(Contd.)
For Sales
Trainee and AUT
Internal Duration: 1
Training: month
In Branch office
17
Training and Development
(Contd.)
Competency Training:
Branch Manager
recommends AE and AM
for training
Duration: 6 Days
18
Compensation (Contd.)
Position CTC (in Rs. Lakhs Variable
annually)
20
Performance evaluation of
sales personnel
STAR WARS:
Quiz
Motivation
Updated
21
Wholesale Distributor (WD)
WD
Driver/
Salesmen Supervisors Delivery Boy
Thelawala
22
WD employees: Recruitment
and Compensation
Recruitment:
The salespersons of distributors are appointed
by the distributor himself in consultation with
ITC officials
Compensation:
• Their fixed salary is paid by the distributor but
is reimbursed by the company.
• The variable salary of salesmen is decided on
his meeting of sales target.
23
WD employees: Recruitment
and Compensation
Salesmen Evaluation and Compensation
25
WD employees: Recruitment and
Compensation
Role of Salesmen:
• Prospecting- Searching for new outlets
• Targeting- Visiting potential outlets
• Communicating- Informing about products and offers
• An order taker- As per requirement in retail and
convenience outlet
• Selling to retailers and convenience outlet
• Servicing- Removal of damaged/expired(DND)products
• Information gathering- About needs/ preferences of
customers
• Allocating- Fixed time to each outlets
• Cash collection 26
27
Distribution Channel
CNF
FACTORY
WHOLESALE
DEALER BASE
RETAILER
WHOLESALE
DISTRIBUTOR
28
Channel Type
3-level Distribution Channel:
Wholesale
Company Wholesaler Retailers Consumer
Distributor
Company Wholesale
Retailers Consumer
Distributor
Wholesale
Company Wholesaler Consumer
Distributor
29
Distribution Type
Exclusive (Textile)
Selective (Paper
Boards & Cigarettes)
Intense (Other
FMCG Products)
30
Physical Distribution/Logistic
Mother
Hub/Factory
Central
Warehouse
Warehouse Service
Provider
WD Godowns
Outlets
31
Effective Working of Channel
Members
Performance is measured on
following broad parameters:
32
Effective Working of Channel
Members (Contd.)
Score card for Measurement of WD Performance:
Bands Score
Platinum > 95%
Gold 85-95%
Silver 80-85%
Bronze Star 75-80%
Bronze 60-65%
Non Performing < 60%
33
Effective Working of Channel
Members (Contd.)
Actionable basis for WD evaluation:
34
Alternate Choices
35
Improve Management
• Proper training should be provided to salesmen.
37