1st session:

Lone Wolf: Advantage & disadvantage

Marketing & sales

Location is being neutralised bcz of globalisation

Lead generation

NPD scenario: pricing is a typical area of conflict between marketing & sales

Existing area: Budget allocation for sales promotion & operations… sales forecast target & expectations

Build credibility is one of the

Seimens: B2B sales.. Institutional sales…. long journey.. trusted advisor by adding value to clients by optimising
their operations, fulfilling needs & even to an extent of supporting the clients in product development.. etc

Oracle- Top specialist.. very knowledgeable in product development.. at a given point of time, they should be
constantly dialoguing with the product development team to fulfil and optimise existing products based on
evolving needs of customers

ITC has got highest reach in INDIA….it belives that they win by just build competitive advantage by sheer
development of their width & depth of reach/distribution.. that’s their philosophy; given the feasible product

General electric: global leaders.. they do a lot of job rotational & evolve as Global leaders having sales exp as a
must as they operate globally ; Empathy is the soul of organisations sales

3M: Customer rvenue manager.. they look at the revenue from the customer point of view.. has the customer
share revenue gone up In our revenue? Not just organisational revenue..

1million: 30% for 3M.. next years 40%.... know customer’s customers

Numbers are a must….

Shorter product lifecycle…. educating is v v imp…. dynamically changing market scenarios

Sales manager should be on toes & Retaling shelf stocking at local level to slow down competitors growth &
throwt the new product launch.. market knowledge is v v imp

Proliferation: sheer no of brands.. the rate at which brands are growing retailers are not growing… winning with
the retailers… roi for retailers, bargaining power is more with retailers… example of local small super market.. ex:
milk products

NestoMalt.. nestle’s milk substitute for pregnant women.. horlecks manager did 3 month Shelf lock of imp
retailers in prime locations…so, a big challenge to nestles & didn’t launch in India that time

India has got 13 million outlet.. highest

A, B , C , D clas: business throughput is v imp(typically A class

D: pan bida shops

BC: general kirana and other moderate stores

Utilising air space efficient in D & C class.. and specific products are suitable for such specifications/sellers..
shasheys

Transactional vs Solutions

Long term solution selling: Fairness cream :Titanium oxide, Melenon pigment………..With examples
 Sales man is equally the brand and thus building the trust

Customer lifetime value:

Customer

Acquisition cost: demo, promotion , follow up, human resource etc

Transaction cost: online, offline, human resource… etc

Relationship cost: maintain relationship cost

Sales dept has to be a step ahead : product knowledge, customer knowledge, changing dynamic market
knowledge

Sales ladder:

4: 31 PM…

Time management difference:

Planning is more significant in middle & top management

2nd Session:

Profitable sales is what make sense for organisation

Staffing cost is very important...

A+B+C (in first five minutes of class)

Trainer

Leading

Controlling

Customer wellbeing: distributor both financial

Distribution:

Intentisive: Mass penetration to earn market share.. uniliever, ITC etc

Selective: Geography.. metro suitable products… so.. super markets

Exclusive: Rolex…

4 P has to be synergistically for brand to take off successfully….

Chennai mall ..Spensors: helvettica..(premium watches.. salesman are so trained that they decide whether to spend time
or not.. men.. belts & shoes.. women.. handbags & shoes

Sales performance.. achieve goal with integrity, ethical, efficient, effective manner
Should know what rules are breakable and thus shouldn’t break.. it helps us monitor our salesperson effectively

Cost efficient in the least time possible.. lead generation

Not all sales are equal:

Time you took to get that sale

Whats the gross margins profiles you got and just volumes..(mass vs premium..80-20 rule)

Level of price discounts: whats the % discount you have given to earn the sales… weakens, imbalnaces the
brand.. good brands & salesman don’t need to give bulky discounts..

Amount of promotional support…. Some local geography oriented sales promotional support… also shows
weakness of the brnad… bcz more promotional budgets rather than product development.. ur product show earn u the
leadership

P&G..

Post Sale support: 3 years assigned a sales support to a product post sale

Potential for future sales:

Good sales characteristics: Stability & predictability

Sales is stable: lower peaks and lows.. from production & capacity investment

Predictability: back end & front end dependencies.. can only manage equity if u can predict accurately

The entire system is very matured & satbilised because the FMCG consumption is more or less the same & only increases
over period of time… oreo biscuits.. ITC gold flakes etc.. so understanding this & not pushing distributors or retailers for
volumes & thus avoids backfire, losses.. etc

Over dumping: shelf life expire>damaged goods>Loss to company

Forecasting efficiency is one of the important KRI’s

UTC: 50-60% geography market coverage

Godrej: 20-25%

Unorganised Channel Intermediaries:

Tata beverages: tata tea…Tee shops…multiple times the households... exponentially high compared to households

Direct coverage as strategies & distribution system.. cuppage efficiency communication drive… more than Taza
(major competitor): Impact volumes.. 70% of sales….

20-30% sales volume in Household…

Rural geography: Retailer influence is very high… even cycle shops: they have to be taken care effectively…

Last mile connectivity:

Wholesaler vs Retailer :

Wholesaler: throughput, turnover, move fast, no space to display

Retailer: Showcase our product, selling story, shelf space to display,

Over the period of time, long run… direct reaching is the most efficient way..morrico, ITC, Britania, Godrej, Nestle etc
The Chain:

Carrying & forwarding agent(CFA), company appointed agents… local, geography friendly….

Ex: 20 marricco factories… 100 CFA… set of distributors…

CFA is where the first invoicing happens.. first sale for the company.. primary sale.. CFA invoice stock..

CFA to Distributor: Primary sale

Distributor-wholesalers/retailers: needs to be regularised…(Secondary sales).. generally non-conflicting distributors

End user: off takes/ demand... demand estimation, forecasting...

What may be the pipeline stock requirements?.. replenishment rate..i.e service frequency,…

CFA geography.. not much stocking required…metro location:.. tier 2-3 cities.. 2/3 days etc

Stock holding… which have less shelf life.. milk product.. straightaway.. expiry date.. no second thought

Innovation to break the bulk into discrete sellable volumes for wholesalers & retailers

CFA: Area sales manager & regional managers. no targets to achieve, they are admin entities…

CFA:

Merchandising norms: detergent cant be stored beside food products…

Costs for : Carrying>transportation>invoicing>merchandising norms etc

Class PPt:

Rethink loyalty to get more share of life, love & wallet

Loyalty: purchase terms conventionally…8 times of 10 purchases… 80%

Attitudinal loyalty... mind share of brands as against market share

High mind share and not market share.. Latent loyal….push customers to buy through efficient product
development & marketing.. Apple.. affordability needs to addressed...

Availability…no Dove is available & so buy hammam

When, high market share & low mind share…spurious loyalty….build brand equity in mind to increase mind share..

When u have both.. Europe markets for apple…true loyalty…eminently poachable situation…watchful of competitions…
loyalty programs…innovation, product development

What should Hamam Do?

Core benefit overlap: vastly benefitting?> brand migration> product redefinition , re-packaging etc>

Hamam: medical.. dove : cosmetic benfit.. very less synergy & repositioning is difficult & is migration worth it..
consumers wont migrate and only brand managers migrate in such migration..

Colgate toothpast..oral care category.. entry to kitchen segment… cuisine segment.. this flopped very badly

Equity that we have in the parent brand may or may not be directly in the destined brand.. marketer have to be
cautious…
Uniliver tool: Brand Key

Is target market exercising worth it? Market size? Is it futuristic?

Brand extension possibility? Product line extension..

Brand extension is successful? Synergy between where u want to reach from where u r…

Example: lays.. adding flavours.. impulse product..

3rd Session:

Brand repositioning:

Beat-Plan: Important to track distributors profitability according to the routes he supplies to retailers

SKU’s: different packaging/grams of the same brand

Giving consumer offers etc.

How to allocate salesman to different beats?

Good salesman for most difficult routes or bad beats to have

Distributor salesman: very poachable… he must be on our side..nd build a great relationship with him to get the
nerve of the market.. at the same time.. a lot of ground level intelligence is required to validate the info from DS.

`` Productivity: whenever u visit a outlet, did u at-least sell one product?

Journey plan: important to know where the sales man is ?

ROI:

Quantitative:ROI

Qualititative:…(not discussed nw)

ROI:

How much of working capita is locked up? Owning a place as investment & opportunity cost/rent a place? Rental as
expenses…
Kanyakumari: credit market for 2-2.5 weeks
How do we calculate ROI?

QPS: Quantity Purchase Scheme

Temporary rewards can be withdrawn anytime.. so don’t give anything w.r.t credit.. it goes on & on..
What is good roi?

Market factors: distributors roi fall in some range

What is competitor’s ROI in market? Britania: 30% and Parle 70%... losing

Shadow Costing for ROI

Informal networking ability at the ground level in the market is very vital

Absolute number: roi is high & amount of turnover is very less.. that doesn’t attract distributor.. and vice vera is also not
attractive

Recent trends: environmental factors, govt regulations, new launches etc also effect roi..

Min of 12 mnths to draw ROI.. bcz it considers seasonality & erratic trends to calculate avg ROI

Company Norms:

Other investment options:

Defend an ROI with empathy as a sales manager for distributors

High ROI?

Results in price undercutting as he has high stocks & wants to invoice as many stock as possible at the earliest & make
profits.. so don’t allow it & thus engage him in following:
When ROI is less… help him with..
Stability to Legacy: qualitative..

ROI: Quantitative

Do your homework with the team internally & pitch in to the distributor with solution oriented discussion
Investment optimisations: Real estate, stocks, Trucks(transportation)
Often, decision makers is a

Objection handling is very important because they are seeking classifications to make themselves clear about…Be away to
walkaway from the prospect after iving him knowledge & all details about product/services

Standard vs Problem solving selling style:

When there is a grievance handling, often many sales team fail.. it is one opportunity to earn loyal customer relationship …
so its very importance:

1. Functional justice… how can I create tangible justice…Car service..

2. Interactive justice.. how polite & considerate are the employees while dealing with customers during
grievances
3. Procedural justice..How is the whole procedural clarity designed to resolve the grievance
Customer who complain are very imp because you get an opportunity improvise… than people who quit silently

Good sales ppt:

1. Syndicate report, trend analysis, geography knowledge etc.. nothing impresses customer as much as knowledge
2. Tech.. to build loyalty, physical interaction always helps
3. Clear benefits: temporary vs permanent benefits
4. Build capacity to Cut through vernacular language barrier
5. Product demonstration is very critical when the customer is not closing the deal
a. Even give a buyback guarantee etc
b. 1-month free trail & will have become a habit to let go…
c. Testimonial, existing user contact deails
6. Handle objections precisely: what is that customer trying to solve when is a asking a question; if u are able to
handle these well, u will build a impactful reputations
7. Call for action & mutually agree on it; then track

When we pitch to institutional buyers: re-affirming the need is very vital; don’t assume the need..

FAB:

Closing the deal:

a. Service/Feature needs to be translated into customer benefits; articulate what it means to customer

B2C

a. Ex: pampers… work on advertisements.. P&G worked a lot on end user interactions & research…
a. When talking to any new young mothers, in first 5-10 mins, they invariably complain about lack of
sleeping bcz of various reasons….
b. Thus, diapers were not just giving dry & safe diapers..but also a good peaceful sleep for young
mothers… empathetic positioning is what takes you long..
b. Costing & cost driving parameters are very imp to know

Sales presentation methods:

When product is less technical, straight forward go to stimulus response or canned presentation even in mass address

Formula AIDA: attention, interest, desire, action..

(Needs & wants….Demand: desire with affordability factor)

Loyal customers dynamic:

Brand development, influencers, less marketing cost, customer acquisitions, … etc; now loyalty needs
to continuous frequent communications

B2B is very rational than B2C pitch…

Consultative Selling:

a. u may have all process involved stakeholders..(even tech expert, R& D to explain products)
b. know the process well; key people at even low levels who know the maximum information.. who is he?(4:25
PM)
c. Prediction is the sheerest form of understanding something well..
d. If u need some external expertise temporarily, go for it
Objection handling:

We should be able to read between the lines to increase effectiveness

Ex: Priced high

Perceived cost vs benefit is low; thus u need to do a value articulation very clearly

‘ refer Table for examples ‘

Give the real picture (+ves & even the -ve’s diplomatically)

Closing the sale…. buying signals..

1. Closing techniques

The bottom line

Omni channel:
Session 5:

Combination of any of these, there is no straight structures as such, …

As more & more channel intermediaries… u get a great network.. but it effects pricing, margins, etc when worked
backwards…

Within the same geography/town.. we may have different distributors.. bcz one distributor may not give exhaustive
coverage and even different products needs different way of reach to retailers & customers… so we have to carefully
design this

Key account manager & KA policies:

Customer account management: Depending on different segment of customer

Management of these different dynamic customer segment is key account management policies
Sales force organisation.. human power planning

First 15 mins ….

Channel distributor appointment:

1. Financial networthyness: deep pockets

2. Administrative ability: transportation, manpower, real estate, conflict management, data management &
reporting
3. Business appetite : hunger for conducive business growth

Planning, forecasting & budgeting:

Also includes, target setting & achievements

Ironically, Final act of target achievement is not taught..you will have to experiment & learn with experience

Deployment, territory, design:

Conducive constructive competition should be nurtured by the sales leader

Transparent communications, best practices sharing etc

Motivation, inspiration etc : the more & more u do, the more u can reap from the team

Salesman come from different shapes & sizes… so you should know what appeals to whom & design your
approach accordingly

Relationship management..

Evaluating channel performance:

Effectiveness:

Delivery: no over stock, under stock

Demand simulations

Equity:

Map the universe of outlet in your geography, their reach, infrastructure investments etc

50 thousand to 1 L: feeder market… typically have wholesalers..

Tata tea: A sales manager convinced a wholesale to park 1-1.5 % of margins to a cycle man
who delivers fresh daily tea packets to small tea shops… etc

What are the things that you have done extra do generate more value for stake holders

Efficiency:

What are the things we can do to improve beat profitability?

1. Product portfolio development: Beat allocation happens based on efficiency & not on convenience
2. What are the new retailers that the distributor is adding every month?: Coverage
3. NPLaunch should always be accompanied by new outlet coverages
4. More effective Sales man
5. Daily

Channel Power Channel Conflict:

As a sales manager you have to try having ‘Equivalence of power’.. creating a platforms & strategies on how all
can make similar amount of sales & profits
 Alternatives: ‘BATNA: Better alternative to a negotiated agreement’…you should also have planned a better
alternative & have a Plan B… and this has to be a confidential with you.. Play smartly…

Countervailing power:

Market development is very necessary

Channel conflict:

Distributor with other distributor, cfa, retailers etc

You can never solve the problem at the same level where you found it; raise abve it & you can solve the problem-
Albert Einstein

Can be solved with efficiency in a well-oiled system

Nippon paints: 40-50K for 100Sq feet.. in hardware shops,… where many different products are stored.., heavy
market area…and housewife, women is one of the important decision maker, her purchase experience was pathetic… so
Nippon launched exclusive outlets with consultants etc

Stages of conflict:

Measure the intensity of conflict:

Even a performance of sales executive is the conflict dimensions aswell

Conflicts is a function of historical conflict situations

B2B Purchase dynamics:
Sales promotion:

Including trade promotion: shelf display, incentive temp schemes etc anything that incentivising the sale is trade

Value collection in the eyes of consumer.... 5rs Oreo made affordable by giving discount etc

Coverage & visibility in market are important metrics

Breakeven:

Few examples are missed

B2B selling:

We may have to Invest a lot even before we get sales; long term relationship

No ‘One size fits all’ , customised solution for specific optimal solution

B2B Dynamics

Stakeholders: printer example… breakout the customers into different departments

Purchaser

Gatekeeper: very imp to get the ground level info.. attender in govt office example; handle him with
care to gain maximum information

User

Educate the different decision maker who may upsell your sales even further,

Ex: Steel industry..tata steel to shipping corp India….

Mutual agreement before building capacity

HBR Learnings:
 1. Call center is less effective
2. Referrals have high conversion rate & peer recommendation is even better
3. Scale & approach method’
4. Social selling: influence in the early cycle
5. Problem solving selling is very important
6. Coach the customer on how to buy.. leave him with goodwill & win trust
7. Avoid ‘Purchase grit’ for the customer
8. Empathetic thinking is a must coupled with compelling action towards winning them

Barrier:

Different people has different information, so obtain reliable information from gatekeeper; & avoid
redundant information analysis

Tie-braker selling:

Qualitative insights to pull up slight rice premium of 3-5%

Appeal to Behavioural aspect of the customer & the salesperson should have in-depth
domain knowledge to really get this

Allocation grid:

Vv important to understand…

Common across all..

1. Too much contact,

2. Lack of knowledge
Saes support:

Goldilocks quandary

Sales administration: Non selling tasks should be avoided..

Sales operations: SKU’s etc

Customer facing issues: another small dept in sales team which doesn’t have sales target, disputes, collections,
credit & services…. wherever field presence is required, they can coordinate..

don’t make the non sales tasks overtake core sales tasks.. avoid clerical & other not related works for field sales resource

1. Freeing front line

2. Span of control for sales managers 1:10
3. Go digital & save time etc

Outcomes:

Match sales force to business cycle

1. Talent management over time:

a. Cannot peak early & burn out later.. we have to be consistant
2. Structure:

a.
Research says that don’t make initial sales people on variable pay based on sales number… as they are building
organisation, & needs to nurture the culture… so make them a permanent salary associates so that they have less
pressure to achieve targets & thus don’t quit

Startup stage:
Growth stage:
Maturity:
Decline:
Distribution channel:
Prmotional mix chart:

V v imp.. tells us the complexity & range of promotional activities for Sales team..

Stagger them to have a blanced approach…..dont invest all during same period of time… if org. is
running any promo, as a retailer, u run after that promo is done

Sometimes, promotion or price may became the only differentiator….