Emami Limited

SALES MANAGEMENT

Name | Course Title | Date

 Table of Contents
FMCG Industry in India.................................................................................................................2
Sales structures in FMCG...............................................................................................................3
About Emami Limited....................................................................................................................4
Vision:........................................................................................................................................4
Mission:......................................................................................................................................4
Key numbers...............................................................................................................................5
Sales structure of Emami................................................................................................................6
Reason for the Geographic Sales Structure:................................................................................6
Drawbacks for the Geographic Sales Structure:..........................................................................7
Roles and Responsibilities..............................................................................................................8
President of Sales:......................................................................................................................8
Vice President of Sales:..............................................................................................................8
Regional Sales Manager:............................................................................................................8
Area Sales Manager:...................................................................................................................8
Sales Executives:........................................................................................................................8
Sales Strategy.................................................................................................................................9
Recruitment and Training..............................................................................................................10
Compensation and Evaluation........................................................................................................11

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FMCG Industry in India
Fast Moving Consumer Goods (FMCG) is the 4th largest sector in Indian economy with
Food and beverages accounting for more 50% of the sales. Second leading sub sector is
Household and personal care with almost 30% of the share. Though urban India accounts
for larger share of the pie, but semi-urban and rural areas are the major force in driving
the growth in recent years. Growing awareness, easier access and changing lifestyles
have been the key growth drivers for the sector.

Advantages to FMCG sector in India:

1) Growing Demand: India’s contribution to global demand is expected to get doubled to

5.8% by 2020

2) Attractive Opportunities: Increase in disposable income of rural India and lesser

penetration in rural market offers room for growth

3) Policy Support: Initiatives like Food security bill and transfer subsidies reach to about
40% households in India

4) Higher Investments: New players are expanding into new geographies and segments

Retail market in India is expected to reach USD 1.1 Trillion by 2020 from USD 840 Bn
in 2017 backed by the growth of Modern Trade expected to grow at about 25% annually.
Growing of MT has boosted growth of FMCG sector too. From USD 52.7 Bn in 2017,
this sector is expected to grow to USD 103.7 Bn by 2020 spurred by increasing
awareness, increase in organized players, rural penetration and online support.

Led by a combination of increasing incomes and higher income levels, demand in rural
areas have increased. The rural FMCG market in India is expected to grow to USD 220
Bn by 2025 from USD 23.6 Bn in 2018. Online portals and e-commerce have helped
FMCG in a big way. It is estimated that 40 per cent of all FMCG consumption in India
will be online by 2020. The online FMCG market is forecasted to reach US$ 45 billion in
2020 from US$ 20 billion in 2017. The government is helping in boosting FMCG sector
by allowing 100 per cent Foreign Direct Investment (FDI) in food processing and single-
brand retail and 51 per cent in multi-brand retail. This would bolster employment and
supply chains, and also provide high visibility for FMCG brands in organized retail
markets, bolstering consumer spending and encouraging more product launches. The
sector witnessed healthy FDI inflows of US$ 13.63 billion, during April 2000 to June
2018.

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Sales structures in FMCG
Depending upon company’s strategic objectives and capital muscle, different distribution
channels and sales structure can be adopted. For example Amway follows and direct sales
network whilst Nestle and ITC follow much hierarchical sales structure.

There’s a national sales head supervising either sales head of geographies or sales heads
of certain channel. These middle managers are further supervising Salesforce in
individual districts and on-ground Salesforce. Sales men help in providing market
research and demands to top management and from there decisions are flowed top to
bottom. So, information flow is bottom to top and decision flow is top to bottom.

Here are the sales structure of leading FMCG companies in India for reference:

Salesforce
structure -
Nestle

Salesforce
Structure - ITC

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 About Emami Limited
Emami Limited is one of the leading and fastest growing personal and healthcare
businesses in India, with an enviable portfolio of household brand names such as
BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief
and Kesh King.

Established in 1974, we have a portfolio of over 300 products based on ayurvedic

formulations. Its current operations comprise more than 60 countries including GCC,
Europe, Africa, CIS countries and the SAARC. Over 121 Emami products are sold every
second somewhere around the world. Emami Limited, the flagship company of the
Group, recorded a turnover of Rs 2541crore, 2017-18. Emami acquired the heritage brand
Zandu in 2008 on the basis of huge business synergy between the two brand portfolios.
Emami also acquired Ayurvedic Hair & scalp business of "Kesh King" as a business
strategy in 2015. It employs nearly 3300 people, reach out to 40 lakh plus retails outlets
through a network of 3150 distributors and have invested in eight plants, four regional
offices, 1 overseas unit, nine overseas subsidiaries and 31 distribution centers and 1
Associate across India.

VISION:
Making people healthy and beautiful, naturally

MISSION:
 To contribute whole heartedly towards the environment and society integrating all our
stakeholders into the Emami family
 To make Emami synonymous with natural beauty and health in the consumers mind
 To drive growth through quality and innovation in products and services.

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 To strengthen and foster in the employees, strong emotive feelings of oneness with the
company through commitment to their future
 To uphold the principles of corporate governance
 To encourage decision making ability at all levels of the organization

KEY NUMBERS:

#1 In cooling oil segment- Navratna Oil

In antiseptic cream- Boro Plus
300+
In fairness cream for me- Fair & Handsome
Diverse products
In balm category-Zandu Balm, Mentho Plus

121 3150
Products sold every second Direct distributors

2500+ 40 lac
Front line sales Retail stores with
force Emami

2541Cr
INR Revenue

Sales structure of Emami

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 The Sales structure of Emami is highly centralized. Although the organization runs in a
traditional way, creativity and innovation is always encouraged. Vice President of Sales
reports to the President, who directly reports to the founder. The Regional Sales managers
report to the Vice President. The Area Executives are responsible for distributor
management, extension of distribution in new areas/towns as per the given targets,
implementation of company system and policies at distributors point, collection of NPC
from all Stockists and on the job training to Area Salesmen. The Salesmen are divided area
wise and report directly to the Area Sales Executives.

REASON FOR THE GEOGRAPHIC SALES STRUCTURE:

Lack of market duplication was the foremost reason to opt for this structure. Secondly, the
board wants to monitor sales according to area wise and thereby plan its sales activities as
per every region. Some of the other advantages are:

 Close communication with local customers

 Strong collaborative teams at each location

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 The ability to better serve local needs and tailor their approach to the local market
 The ability to encourage positive competition between different departments
 Good level of autonomy
 A customer-oriented sales force is consistent with the marketing concept with its
increased emphasis on consumer satisfaction
 This specialization enables the salespersons to become more knowledgeable about the
unique problems and needs of each group of customers

It makes sense to divide an organization by region

if different cultures, rules, languages and customer
preferences exist in the area where the business operates.
Logistics relating to shipping, resources and staff also
sometimes make geographical structure a good choice.
Alongside is the distribution of region wise sales.

DRAWBACKS FOR THE GEOGRAPHIC SALES STRUCTURE:

One major drawback is that delay in decision making due to presence of many levels in the
hierarchy. While at the same time, product feedback might not reach to the higher
management levels. Some of the other disadvantages are:

 Limited specialization
 Lack of management control over product or customer emphasis
 Salespersons need to be responsible for the entire product line in their territory even
though they may not be having uniform knowledge about all products
 Within their territory, they may choose to concentrate on products and customers that are
easy prospects
 Geographical territories may typically overlap

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 Roles and Responsibilities
PRESIDENT OF SALES:
 Effectively partners with senior management
 Owns development and execution
 Define, monitor and achieve sales Metrics
 Strengthens KAM, Opportunity management, leverages CRM and drives best practices

VICE PRESIDENT OF SALES:

 Ideate the GTM
 Establish Sales Targets (Brand wise, pack wise, etc.)
 Plan & Implement local promotion
 Focus on new channels, institutional trade and E commerce

REGIONAL SALES MANAGER:

 Drives regional sales objective
 Regional Strategic plans and reviews (By identifying needs)
 Forecasting: Expanses, budgets and sales
 Expand customer base
 Support new customer initiatives

AREA SALES MANAGER:

 New market penetration
 Improve product visibility at POS
 Derive customer insights
 Evaluate distributor process
 Monitor stock flow at depots
 Analyze primary and secondary data to improve sales

SALES EXECUTIVES:
 Trade Schemes
 Appoint Distributers and Retailers
 Feedback on Competition
 Collating sales data
 Analyzing demand and providing inputs for Sales plan

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Sales Strategy
Emami Sales Managers are loyal to the distributors and helps the distributors in
increasing their businesses and sales.

The Area Sales Manager looks after the salesforce in a particular geographical area. The
Sales executives take orders from the retailers in the region and report it to the ASM.
This is the Secondary Sales part of the whole sales process. The ASM then indulges into
primary sales by supplying distributors with the products that are required by the retailers
in that area.

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 Recruitment and Training
The company currently has about 3150 distributors and 6500 Sub-Stockists across the
country. To cater to them, they have hired around 2700 sales executives pan India. For
the mid managerial positions, Emami actively and consistently engage and participate
with premier Business Schools to recruit Interns and Management Trainees with an
objective of inducting and nurturing fresh and quality talent within the organization.

Their five step process for recruitment is:

For training purposes, various factors are taken into consideration and accordingly the
sales force is trained at various locations throughout the country. The Sales executives are
trained in the following areas:

 Product Training
 Sales Pitch – Onboarding, Repeat order and store wise pitching
 Application Training
 Soft Skills and communication skills

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Compensation and Evaluation
The compensation structure is based on the hierarchy in the sales function for the various
stakeholders. For the various job roles, the evaluation period has been defined
distinctively by the company:

POSITION TARGET
President Annually
Vice President Annually
Regional Sales Manager Annually
Area Sales Manager Quarterly
Sales Executive Monthly

The sales team of Emami has also defined the Key Performance Indicators (KPIs) to
measure and evaluate the various members of the function:

- Monthly Sales Growth - Lead to Sales Percentage

- Retention and Churn Rates - Average Profit Margin
- Average Conversion Time - Monthly Sales Booking

Sales targets are set on the basis of the revenue targets set by the company and growth
rate in that area. For an employee in sales, personal growth can be gauged through
previous performance. Additionally, a monthly tracking schedule is set before the
quarterly meeting of the Area Sales Manager with the seniors.

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