KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Sales Management and Strategy Report for FMCG products

Submitted to:

Asst. Prof. Birat Shrestha

SALES AND DISTRIBUTION MANAGEMENT (MKT 511)

Submitted By:

Group-1

Aayush Kumar Chaudhary (21305)

Saraswati Karki (21309)

Jesika Rajlawat (21324)

Himal Thapa (21335)

MBA Spring 2021

Submission Date: August 10, 2022

 Acknowledgement

We would like to express sincere gratitude to our Assistant Professor Mr. Birat
Shrestha for giving us this sales report as part of the Sales and Distribution Management
course at Kathmandu University. This research would not have been completed without your
continuous support, comments, guidance, encouragement and assistance.

We would also like to thank Kathmandu University School of Management (KUSOM)

for providing us this course to enhance great learning and gain valuable exposure.

We owe special thanks to all the respondents of our research. This study would have been
incomplete without them. Finally, all of us are thankful to all the team members who have
worked diligently and shown proper team work to complete this report.

Thank You

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Table of Contents
Introduction 1
Chapter 1: Khajurico 1
1.1 Introduction 6
1.1 Vision 6
1.1 Mission 6
1.2 Sales Practice6
1.2.1 Sales Objective 6
1.2.2 Sales Strategy 6
1.2.3 Products 6
1.2.4 Market Segmentation and Target Market 6
1.2.5 Sales Channel Setting and Distribution Management 6
1.2.6 Sales-Force Management and Organization Structure 6
1.2.7 Recruitment of Sales Team 6
1.2.8 Selection Procedure 6
1.2.9 Sales Control 6
1.2.10 Sales Evaluation 6
1.2.11 Sales-Force Compensation and Motivation 6
1.2.12 Dealers Relationship Management 6
1.2.13 Trade marketing 6
1.2.14 Consumer, Trade and Sales Force Schemes 6
1.2.15 Customer Relationship Management 6
Chapter 2: Hilife 1
2.1 Introduction 6
2.2 Sales Practice6
2.2.1 Sales Objective 6
2.2.2 Sales Strategy 6
2.2.3 Products 6
2.2.4 Segmentation 6
2.2.5 Sales-Force Management and Organization Structure 6
2.2.6 Sales Channel Setting and Distribution Management 6
2.2.7 Recruitment, Selection, Compensation, Motivation Approaches 6
2.2.8 Sales Control and Evaluation Methods 6

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 2.2.9 Sales Territory Management 6
2.2.10 Dealer Relationship Strategy 6
2.2.11 Consumer, Trade and Sales-Force Schemes 6
2.2.12 Customer Relationship Management Approach 6

Chapter 3: Barahsinghe 1
3.1 Introduction 6
3.2 Sales Practice6
3.2.1 Sales Objective 6
3.2.2 Sales Strategy 6
3.2.3 Products 6
3.2.4 Sales-Force Management and Organization Structure 6
3.2.5 Sales Channel Setting and Distribution Management 6
3.2.6 Recruitment, Selection, compensation, motivation approaches 6
3.2.7 Sales control and evaluation methods 6
3.2.8 Consumer trade and Salesforce scheme6
3.2.8 Customer relationship management approach 6

Chapter 4: Tuborg 1
4.1 Introduction 6
34.2 Sales Practice 6
4.2.1 Sales Objective 6
4.2.2 Sales Strategy 6
4.2.3 Products 6
4.2.3 Products 6
4.2.4 Segmentation 6
4.2.5 Sales-force management and organization structure 6
4.2.6 Sales channel setting and distribution management 6
4.2.7 Recruitment, selection, compensation, motivation approaches 6
4.2.8 Sales control and evaluation methods 6
4.2.9 Sales territory management 6
4.2.10 Dealer relationship strategy 6

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 4.2.11 Consumer, trade and sales-force schemes 6
4.2.11 Customer relationship management approach 6
Chapter 5: Sales Planning Process 1
5.1 Barahsinghe 6
5.1.1 SWOT Analysis 6
5.1.2 Target Market 6
5.1.3 Marketing Mix 6
5.2 Khajurico 6
5.2.1 SWOT Analysis 6
5.2.2 Target Market 6
5.2.3 Marketing Mix 6
Chapter 6: Comparison Between Similar Industries 1
5.1 Food Industry: Khajurico and Hilife 6
5.1.1 Similarities 6
5.1.2 Differences 6
6.2 Beverage Industry: Barahsinghe and Tuborg 6
6.2.1 Similarities 6
6.2.2 Differences 6
Conclusion and Recommendations 1
References 1
Annexure 1

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 Introduction

Consumer goods that sell quickly and cheaply and have a shorter product life cycle are called
fast-moving goods (FMCG). Packaged foods, drinks, toiletries, candy, cosmetics, over-the-
counter medications, dry goods, and other consumables are examples of non-durable household
items. Due to the high level of customer demand, FMCGs have a short shelf life. These products
are regularly purchased, quickly consumed, affordably priced, and easily accessible. When they
are on the store's shelf, they also experience a high rate of turnover. Almost everyone regularly
consumes fast-moving consumer items. Even though these transactions are typically simple ones,
FMCGs nevertheless make up more than half of all consumer expenditure.

The market is not only tremendously large, but also incredibly competitive, due to the fast
turnover rate of fast-moving consumer items. In this sector, some of the biggest businesses in the
world, including Tyson Foods, Coca-Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and
Danone, compete for market share. To intrigue and attract customers to acquire their items,
businesses like these must concentrate their marketing efforts on fast-moving consumer goods.
FMCGs are regarded as a dependable source of income because they are sold in big volumes.
The large number of sales also makes up for the small profit margins on each individual sale. All
sales professionals share some traits that help them flourish in their work, including an outgoing
attitude, the capacity for organization, and the capacity to manage multiple accounts at once.
Building relationships is a vital skill of a successful FMCG sales professional.

We have chosen a few of Nepal's major FMCG companies, including Hilife, Khajurico,
Barahsinghe, and Tuborg to better understand their sales strategies and how they differ from one
another. While Barahsinghe and Tuborg belong to the beverage industry, Khajurico and Hilife
are in the food sector. These businesses produce a wide range of goods.

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 Chapter 1: Khajurico

1.1 Introduction

The family owned leading FMCG brand, Khajurico Nepal was established in 1990 with a single
product, baked bread (pauroti). After registering the company under the trademark of
KHAJURICO, its growth journey started. Khajurico is committed to provide the best offering
with reasonable price. The primary competitive advantages are the customers centric approach,
most competitive prices, hygienically processed, effective packaging solution, strict quality
control process, upgraded manufacturing facility, expert team of professionals. Through state of
art machinery, stringent quality measures and finest grade ingredients, Khajurico maintains high
grade food standards. The company’s dedication to research and development, and to their
valuable customers has led it to be the best food manufacturing industry in Nepal. Today,
Khajurico serves customers all over Nepal and offers 36+ products under the product category of
cookies, puff pastries, and biscuits. The company is yet constantly expanding its distribution and
product offering to better serve the needs and opportunities that competitive market place offers
and demands. In 2009, the company opened its new factory in India in the name of Khajurico
India Pvt. Ltd. Not to mention, the company has also started its export to countries like Australia,
Tibet, Ghana, etc.

1.1.1 Vision

Our vision is to become a familiar brand of daily life to all customers by providing the best with
reasonable price at all.

1.1.2 Mission

Our mission is to provide the best with reasonable prices. We are committed to continuous
improvement, research and development for better performance, sustainability and for the benefit
of all stakeholders.

2.1 Sales Practice

1.2.1 Sales Objective

The company sets sales objectives every year. Department conducts meetings with the sales
representative and executive committee to set sales objectives every year. But the overall sales

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objective of the company is to make their products available for every geographical region. The
company believes in offering best quality products at a reasonable price. As a FMCG company
focused on pull based sales strategy, its main sales objective is to increase their access to every
nook and corner where products are demanded.

1.2.2 Sales Strategy

In order to sell its products, Khajurico focuses on pull based strategy. It’s not concerned about
pushing its product through hook and crook. The company believes in producing quality
products at a reasonable price so that customers demand the products. The company therefore
prioritizes fulfilling customer demands by reaching throughout the regions where their customers
are located and making demand.

1.2.3 Products

Khajurico’s portfolio comprises more than 36 products under 6 product categories. As per the
changing needs and preferences of the customers, the company researches and manufactures new
products like stick noodles, Choco-choco, Glucose, Powdered milk and Vita milk biscuit.
Khajurico puff is one of the oldest, popular and highly demanded products of Khajurico. The
various products offered by the company are:

Fig: Products offered

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1.2.4 Market Segmentation and Target Market

The market for FMCG can be segmented based on these dimensions:

Demographic Segmentation:

 Age: The Company targets people of age group 5 years and above as it offers foods
suitable to everyone.
 Gender: Female and male.
 Class: The company segents the customer based on class as lower, middle and upper
class. The company focuses on offering products at reasonable price however there are
premium cookies available that might be more appropriate for middle and upper class.

Geographic Segmentation:

 Country: The Company has focused on Nepali customers but recently has started
exporting to countries like Australia, Tibet and Ghana that have similar fooding habits
like Nepali.

Psychographic Segmentation:

 Lifestyle: Khajurico is more inclined towards people that prefer biscuits, cookies, pastries
rather than purely home cooked foods.

Behavioral Segmentation:

 Usage: Khajurico mainly targets people that frequently purchase their products or that
have higher usage rate.
 Purchase behavior: Most preferably the customers that purchase based on ease of access.
 Customer loyalty: Loyal customers.

1.2.5 Sales Channel Setting and Distribution Management

As its name implies, FMCG products are shorter life cycle, are comparatively cheaper, and sell
quickly. They are highly demanded and are to be produced in a large quantity. Hence the sales
channel used for distributing FMCG products is intensive as the manufacturer of such products

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need to make those goods available in as many places as possible. Khajurico’s distribution
channel depends on the business model: B2B and B2C.

In the B2B model, the company has distributors, wholesalers and retailers to supply to the
modern trade and general trade like Bigmart. The company has both its own distributors and
independent distributors. For independent distributors there are certain terms and conditions that
they have to comply with. The company also owns its consumer store chain called “Khajurico
Pasal '' in 8 major locations like Patan, Lalitpur, Bhaktapur, Kathmandu that sells 2500+
products of various companies. Khajuri ko pasal (retail outlet) purchases directly from the
factory while others are looked after by distributors that might charge less price than the factory
itself. The factory is located at Hetauda, Chitawan, Chapagaun.

In the B2C model, a longer chain is used. The primary focus of the company is on keeping direct
touch to the retail outlets.

Fig: Distribution channel

1.2.6 Sales-Force Management and Organization Structure

Khajurico’s sales team consists of regional sales managers, area sales managers and sales
executives. The company has huge demands for its products, so merchandisers are not really
required for the company. However, some merchandisers visit stores and outlets. In order to
streamline the supply chain process, ERP software is used by the company. Moreover, to track
whether the products have been distributed on time or not, the company has set the following
hierarchy in the sales team. The regional sales manager categorizes the territory to be visited by

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the sales representative. The performance is tracked on the basis of sales plan and sale quota
determined at the beginning of every month.

Fig: Sales Structure

1.2.7 Recruitment of Sales Team

For the recruitment of the required sales personnel, the company first analyzes the job position
and then prepares job description and job specification aligning it with the core value of the
company and including all the requirements necessary to perform the job.

Sources of recruitment

For sourcing the required personnel, Khajurico uses the following sources:

 Sources within the company: In order to fill the vacancy, Khajurico firstly prioritizes
internal employees. For this, it announces internal vacancy and does job posting to
current employees in higher positions. The company also values employee referrals. It
considers candidates recommended by the sales representatives, area sales managers, and
executive committee members. However, as long as they don't comply with core values
of the company they are not considered to be selected for the position.
 Source outside the company: The Company relies on social media, newspaper, LinkedIn
and the company’s website to attract a large pool of candidates. The company also uses
job portals like Mero job and Ramro job to get qualified candidates for the sales position.

1.2.8 Selection Procedure

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The candidates are firstly screened through their CVs to check if their skills, qualification match
with the job description and specifications stated in the vacancy announcement. The shortlisted
candidates have to go through interviews to prove they are worthy of the positions they are
applying for. Generally the interview is conducted by the head of the department along with HR
and the executive committee. HR personnel make sure that the employees’ core values align
with that of the company while the head of department looks after the required qualifications and
skills. The interview technique used by the company might include patterned questions,
structured questions and stress handling questions.

1.2.9 Sales Control

a. Territory management: Each sales person looks after their territory. The territory is assigned
based on the area. The main responsibility of the ASM is to evaluate and maintain relationships
with distributors and wholesalers who can further integrate the product to retailers. Every sales
manager reports to the sales in-charge, who looks after the sales performance of all the sales
representatives. Similarly, the company also has a territory management for their institutional
sales which includes the sales in supermarkets, franchise stores and their own outlets.

b. Sales Quota: Every year the area's sales managers sit together with the executive committee
members to set the sales plan aligning with the company’s sales objective generated from their
annual company objective. Once the sales plan is prepared, it is further divided on a quarterly
and monthly basis. The sales head prepares a monthly itinerary to evaluate the sales and the
performance of the sales force. Following factors are considered while preparing a sales quota:

 Past trends
 Season and climate analysis
 Budget allocated for production

The sales quota can be segregated on the basis of volume of products to be sold by the individual
in the area assigned and number of retail stores and institutions in the assigned area. The
company also has distributors. For the company’s own distributors the quota is area based
whereas for outside independent distributors it is target based.

1.2.10 Sales Evaluation

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The performance is evaluated based on the sales quota (activity and volume) assigned to each
sales person. The company uses a human resource information system to evaluate the
performance of the employees. The marketing department looks after the performance of the
sales personnel while of those marketing department, the HR department looks after their
performance. Every performance of the employees is tracked and recorded in the system. The
performance however is evaluated on following basis:

a. Past performance

b. Percentage of target met

c. Number of orders generated

d. Number of stores visited

For accessing the employee performance, qualitative factors like communication skills,
interpersonal skills are also included in their key performance indicators “KPI”. Based on these
evaluations, the need for training is assessed.

1.2.11 Sales-Force Compensation and Motivation

For the compensation of the sales persons, fringe benefits like vacations, incentives and awards
for good performance. The company also has a provision of giving bonus salary as a reward to
the representative who outperforms the sales quota.

1.2.12 Dealers Relationship Management

The Area Sales Managers are responsible for managing relations with distributors (company
owned as well as outside contract based distributors) and wholesalers. The distributors are given
schemes, cash discounts and other facilities on the basis of sales targets set by the company. To
maintain a good relationship with the distributors, to make them feel heard and give them a sense
of belongingness, the company organizes distributors & dealers meet once a year and listens to
all their complaints and talks about how the sales are going on.

1.2.13 Trade Marketing

In order to motivate the sellers and outlet owners, the company provides discounts. Different
schemes are run so as to boost the sales during certain periods. Also based on the sales done,

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discounts are provided to the intermediaries. However, the company doesn’t have the policy of
granting credit. All the sales done by the company to the intermediaries are based on cash.
Moreover, the company consists of exclusive dealers that aren’t allowed to sell close
competitors’ products. So to incentivize them, the company offers discounts and schemes. But as
mentioned earlier that the company already has high demand from customers, it doesn’t readily
invest its resources in incentivizing the middlemen.

1.2.14 Consumer, Trade and Sales Force Schemes

The company doesn’t focus much on promotion because it is an already established brand and
has no new products in the product line. Just for the new products, it is engaged in promotion and
advertisement. For customers also no schemes or discounts are provided by the company.

1.2.15 Customer Relationship Management

Khajurico is more focused on door to door availability of the daily essential items like puff,
biscuits and doesn’t provide discounts to customers. However, customer complaints are taken
seriously by the company and are directly handled by the team. The company has a return policy
on expired products.

Chapter 2: Hilife

2.1 Introduction

A successful food production business called Hilife Foods Pvt. Ltd. was founded in 2019. The
company's main line of business is the production of food items such oatmeal, muesli, choco
chips, soy chunks, cornflakes, beaten rice, puffed rice, and grain flours. In a short period of time,
Hilife has established a solid reputation and is progressively maintaining the brand by continuing
to provide quality and adequate proportions along with numerous marketing initiatives. Hilife
has already established its business over the entire nation and is currently concentrating on
innovation to expand its product offerings and quality development to satisfy its hospitable
customers. They aspire to provide everyone with high-quality food goods at reasonable pricing.
Their goal is to establish a global food supply network that is incredibly efficient.

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Hilife’s key principles include open communication, a courteous workplace, and dedication to
one's goals, ongoing development, and cooperation with others rather than rivals, compassion at
work, etc. Currently employing 200 people, the company has plans to increase its product
offerings in the near future. The business, which is just getting started, has been actively
concentrating on brand exposure and brand awareness efforts.

Vision

Our vision is to make high quality food products accessible to everyone at affordable prices.

Mission

Our mission is to create a highly efficient supply chain of food products spanning across the
globe.

2.2 Sales Practice

2.2.1 Sales Objective

The main objective of Hilife is to become number one brand in the category of healthy foods.
They want to give their consumers high-quality food. Currently they are focusing on increasing
brand visibility and awareness. They want to attract more clients and by offering their items in
every outlet, they hope to satisfy customers. They treat all of their consumers equally, giving
them the same value. They believe on price, value for price and availability. Hilife aspires to
create healthy communities. It is concerned with making high-quality food that is easily
accessible and affordable.

2.2.2 Sales Strategy

Most of the company first pushes its product into the market to make people experience and like
it. Once the product is accepted by customers, it is rapidly pulled to the market. The same
strategy is followed by Hilife. The company initially pushes its new product in the market which
is then pulled by its customers. But before pushing the product in market, they do well research
about the consumer’s taste and preferences.

2.2.3 Products

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Hilife has diversified its product into four categories:

● Hilife Morning
○ Consumed in morning
○ People who are health conscious and have busy lifestyle consume this product
○ Oats, cornflakes, Chia seeds

○
● Hilife Essentials
○ Daily consumable goods
○ Oil, Wheat flour, Refined wheat flour
○ Everyone consumes this category of products

○
● Hilife Elements
○ Needs other things to be consumed
○ Besan that goes with pakora, Ketchup, Pasta, Chiura

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The company is currently working to launch its fourth product category which is impulsive
products. It is in product development stage. It will include product like kurkure. The consumer
make purchase decision to buy these impulsive products in the store itself.

2.2.4 Market Segmentation

 Demographic: It has targeted all people with variety of products that can be consumed
from the small child to elder one.
 Psychographic: People with busy lifestyle who are looking for healthy life is targeted as
they need something healthy to eat without much effort. Different types of oats can fall
under this category.
 Geographic: The product has reached to almost all urban area of Nepal. Now the
company is completely focused to make its product easily accessible in rural areas too.

2.2.5 Sales-Force Management and Organization Structure

A sales force management strategy is essential for any company that wants to generate revenue.
It makes it possible to comprehend the most effective method for hitting and even exceeding
sales and revenue goals. Hilife is concentrating on building a sales force that entails coordinating
sales activities, as well as training and using sales techniques that have assisted them in reaching
their sales targets.

Hilife initially designs its sales force objective, strategy and the size of sales force. Based on
these objectives sales force is hired and they are subjected to trainings where the sales force learn
to deal with their customers in convincing way. After the training they are pushed to the field
assigning them the quota that they have to meet. Failure in meeting the quota will first time lead
to warning and if it repeats then the managers look for replacement. Commission and bonuses
are provided on exceeding the quota. Managers regularly monitor the work assigned to sales
force and evaluate their performance based on which they are either promoted or terminated in
long run. The efficient sales force management technique has helped Hilife in generating leads
and forecasting sales.

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 Fig: Sales Organization Structure

2.2.6 Sales Channel Setting and Distribution Management

The products produced by manufacturer has to be pushed to the market. In order to reach the
largest potential consumer base, the corporation uses a variety of marketing and sales initiatives.
The channels are nothing more than avenues or places to market and sell goods. Creating a better
relationship between the client and the product is the ultimate goal of any firm. The development
of a plan for customer service and sales inside a particular channel is assisted by channel
management. The goal is to simplify interactions between a company and its clients.

Hilife’s channel management has aided in creating a plan for marketing to and providing
customer service through a certain channel. Both B2C and B2B channels are available in Hilife.
In B2C channel setting, the product moves from producer to regional distributor. Regional
distributor supplies to the small distributor in its regions. From the distributor, it reaches to
secondary sales and consumer gets the product from secondary sales.

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 Fig: B2C channel

In B2B setting, the regional distributor receives goods from producer. The regional distributor
then supplies to other small distributor in its region. These small distributors then supplies to
institutions like hotels, restaurants, cafeteria and party. Hilife has separate distributors for
supplying to these businesses. It also supplies to general trade and modern trade like Salesberry,
Big Mart, Bhatbhateni, etc.

Fig: B2B channel

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2.2.7 Recruitment, Selection, Compensation and Motivation Approaches

There is separate HR department for managing all kind of recruitments. The senior manager
defines the roles and responsibilities and assign it to HR department. The HR department then
looks for several sources for hiring new staffs. The job description and specification for vacancy
is posted on several platform like their own websites, Merojob and other digital platforms. They
also make use of referrals which help them to save the cost of advertising for vacancy. Besides
these, they hire through external agency and sometime does head hunting for hiring top sales
position.

Applicants submit their CVs and if they are according to the duty and responsibilities for
required position then they are called for the interview. Interviews are conducted by the
marketing and sales teams to see whether candidates are physically and intellectually capable of
performing as described in the job description and specifications. Finally, applicant is selected
after which they have to go through a three-day induction session to help them become
acquainted with other employees and have a better understanding of the company.

When we look at the compensation to staffs, there is straight salary plan which is followed by
commission and bonuses if the sales force are able to exceed the quota assigned and generate
profit for the company. This bonuses and commission motivate the employees to perform better.
Also the company conducts lot of training and development session for their employees which
again motivates employees to stay with the company as in long run they will have great learning.

2.2.8 Sales Control and Evaluation Methods

Sales quota is assigned to sales representatives. If the sales executives is not able to meet the
target then they are provided training to perform better or they can switch to some other region
if they find comfortable. Once they are into the field, they have to update their daily activities in
mobile and web applications managed by IT team of Hilife. After visiting the particular store,
the sales agent must enter the information into the application. The senior managers have real
time access of the activities of sales force based on which they are evaluated. The company
make use of data stored in application to properly analyze the past sales records based on which
they revise their plans and policies. It also helps them in sales forecasting.

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2.2.9 Sales Territory Management

It is a geographical area assigned to sales team or a specific sales person. It is based on criteria
other than geography, including company size, industry, demographics or any segments defined.
Hilife has assigned Salesforce depending on the size of territory. The number of sales force vary
with size of area. Based on the company’s focus on store category/segment, area sales managers
define the beat which is actually an area to identify which stores the salesperson should visit and
when they should visit them. The salesperson then ensures that stores are well-stocked with in
demand merchandise and replenishes them on a regular basis. The sales person manages the
point of sale such that their products are easily visible to the customers. They also explore the
possibilities to acquire new market segments. They prioritize and manage a group of customers
and prospects belonging in their area.

2.2.10 Dealer Relationship Strategy

Hilife offers credit and free transportation facility to their dealers. If the dealers are able to push
their products in market then for those dealers discount rate is increased. The company provides
their own staff to the dealer for managing their daily business. It helps the company to keep an
eye on the dealer whether they are selling all of their products or focusing only on those which
generate maximum profit. The staff help the dealers to sell all of the company’s products
equally. This way company has been able to establish good relation with their dealers.

2.2.11 Consumer, Trade and Sales-Force Schemes

For consumers, the company regularly conducts sales contests. They provide giveaways to their
customers for increasing customer segment. Sometime they also provide buy get one free offer.

Traders are provided with credit facility which has helped their traders to order even sometime
they have run out of cash. There is free transportation facility and the company staffs are
themselves responsible for loading and unloading the goods.

Sales force are provided with salary and they are eligible for commission and bonuses if they
exceeds the quota assigned and brings profit to the company.

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2.2.12 Customer Relationship Management Approach

They have a Facebook page where consumers share their experience about the product
consumed. Through its Facebook page, the company promptly reaches out to customers who
have left negative comments in order to understand their issue and quickly resolve it. This quick
and immediate action has made customer feel that the company cares about them and this way
the company has been able to generate more number of loyal customers.

Chapter 3: Barahsinghe

3.1 Introduction

The beer brand Barahsinghe from Nepal is the ideal illustration of how nature and technology
can coexist. The first dry-hopped beer in Nepal is called Barahsinghe Craft, however it has a
Pilsner-style finish. The company's greatest asset is its faith in a future they create today with a
vision of that future. It is prepared while combining and providing new flavors to its diverse
populace, keeping in mind the rich artisan legacy of Nepal. Malted barley, rice, hops, yeast, and
spring water are the ingredients needed to make the beer.

Yak Brewing is committed to sustainable development and effective energy use. With the
appropriate intention and action, the company thinks industrialization can continue to be
environmentally benign. Their brew house is equipped with equitherm technology from Krones
Germany, allowing us to consume up to 30% less energy than other traditional brew houses.
Instead of utilizing electricity to cool the wart, they are using a VAM (vapor absorption machine)
powered by a non-fossil fuel boiler. They have erected a CO2 recovery machine to collect lost
CO2 from the fermentation process and store it so that it may be used again during the bottling
process. Additionally, they have switched from using kieselguhr to smart membrane filters to
filter their beer, which has resulted in a 50% reduction in the solid waste stream at a substantially
lower level of energy usage. In a similar way, they supplement the usual effluent treatment with
an anaerobic digester from the Paques IC reactor for waste-water treatment, which aids in further
lowering COD and BOD. The amount of main non-fossil fuel needed is reduced by 15% due to
the methane gas that was also collected from the digester and stored. They have also harvested
320 KW AC power using solar panels on the roof. Similar to this, all of the condensate from the

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steam line is also collected and returned to the boiler house, and the rejected RO water is also
collected and transformed into soft water for the boiler house water requirements.

3.1.1Sales objective

The objective of Barasinghe brand is to create the craft beers, keeping in mind the rich craft
heritage of Nepal while blending and introducing new flavors to the diverse population and
focuses on the quality the product rather than quantity. Its main objective is to distinguish itself
from the harmonious diversity.]

3.1.2Sales strategy

The company focuses on pull strategy for selling its products in the target market. They are more
focused on maintaining the quality of their product and customer satisfaction rather than
applying push strategy to sell its products. They believe that unless and until quality products are
provided to the customers and the customers are happy with their products they don’t need to
apply push strategy to sell their products.

3.2 Sales Practice

3.2.1 Products

Various kinds of beer with different tastes are manufactured by Barasinghe brand. Four kinds of
craft beers are available in the market. They are shown below:

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3.2.2 Segmentation

The company has demographically segmented its products mainly to youths and has targeted
people between the ages of 20 to 49 years. Similarly, in geographical segmentation, the craft
beers are mostly targeted to the urban areas like kathmandu, Pokhara, Butwal whereas beers like
Bilson are targeted to rural areas because most of the people in rural areas prefer brand which are
cheaper.

Likewise, in psychographic segmentation, the company has targeted people who wants to have
fun and relax drinking beer with friends, families. Also, for behavioral segmentation, it has
targeted mainly to those people who want quality in their products and focus more on HORECA
who consume their products consistently and have higher usage rate.

3.2.3 Sales-force management and organization structure

Sales-force management:

In the sales hierarchy, the area sales manager are responsible for dividing the territory for each
salesperson. They are divided based on their past performance and their skill. The salesforce are
responsible for meeting the sales Quota as instructed by the area sales manager. They have
divided the sales quota into 3 types: missed quota, exceeded quota and average quota. After this
they are trained to improve their skill set, product knowledge, the responsibilities, the quotas, the
activities that they should perform while in the field and so on. The performance of every
salesperson are tracked and supervised on weekly basis. To improve their performance, they
continuously focus on the sales contest, fringe benefits and incentives for exceeding quotas and
so on.

19
Sales organization structure:

The sales team of Barasinghe comprises of country/National sales director regional sales
managers, area sales managers, senior officers and sales executives. To distribute the products in
time and track the flow of products in the market, the company have divided the hierarchy in the
sales team which is shown below:

Country/National Director

Regional Manager Regional Manager

Area Sales Area Sales

Manager Manager

Senior Senior
Officer Officer

Sales Sales
Executive Executive

3.2.4 Sales Channel Setting and Distribution Management

Barasinghe uses intensive sales channel level for distributing its products as their main motive is
to sell through as many outlets as possible and make the products available in almost all the
places of our country. They follow both B2C and B2B distribution which are shown below:

20
 Factory

National Distributor

Regional Distributor

Distributor

Wholesaler

Retailer

Consumer

B2C Sales Channel

In the B2C model the products manufactured in the factory are supplied to the national
distributor at first, then to the regional distributor, then wholesaler, retailer and then finally
reaches to the customer. This model follows a longer path to reach the products to the consumer.

Factory

National Distributor

Regional Distributor

HORECA

B2B Sales channel

21
In the B2B model, the company follows a shorter path to reach the products. The manufacturer/
factory which is located in kurintar chitwan supplies its products to the national distributor, then
to regional distributor, then finally it reaches to HORECA. The company has its own
distributors.

Barasinghe sells its beers directly to consumers through Daraz online and also through
wholesalers and retailers. It also sells beer brewery taps and bulk purchase through full-service
dealers and sales force.

Similarly, Barasinghe doesn’t ask channel members to enter into the contract of not carrying
competitors' products. Rather they focus on competing with other products. It doesn’t focus on
exclusive dealing and full-line forcing strategy. It often focuses on tying off strategy, where the
company refuses to sell the 8848 and old durbar until and unless the Barasinghe beer is
purchased as it is new in the market.

Sales Distribution management

The sales distribution management of Barasinghe is Selling for resale:

22
Selling to retailers- The company has been selling its beers to the retailers mainly to different
departmental stores and convenience store chains.
Trade Marketing- Barasinghe sales people have been doing different POS promotions such as
merchandising activities like building up shelves, providing window stickers, Barasinghe shelf
talker, beer display, streamer, Dangler, beer tank and Barasinghe BBQ Grill stand to HORECA .

3.2.5 Recruitment, Selection, Compensation, Motivation Approaches

There are few steps for recruitment of employees in Barasinghe. First step in the recruitment
process they follow is:

Step 1: Preparation of Job Description and Job Specification

The Job Description consists of the title of the job, the duties and responsibilities that the
salesperson must follow, the technical requirement. The job specification consists of the

physical requirements like speech, qualification, aptitudes and quality required for selling the
products and so on.

Step 2: Identification of sources of recruitment

The employees are selected from sources outside company as well as inside the company.
Sources outside the company includes vacancy ads of Barasinghe brand in newspaper, head
hunting for high caliber sales executives, salesforce from competing companies like Tuborg.
Sources inside the company include the recommendation from the company executives.

Step 3: Designing an effective application form

The sales head and HR personnel jointly design an application form with variables including
personal (name, contact), education, employment history and other qualities he/ she possesses.

Step 4: Interviewing the shortlisted candidates

Patterned interview and interaction (stress interview) are the two interview techniques that they
follow for selection of the candidates.

Step 5: Selection of the candidate after the interview

23
The selected candidates are given a call and a written email is sent to them by the HR
department.

Compensation

Based on the ranking, position, job classification and the worth of the sales personnel of
Barasinghe they are compensated. They don’t provide commission to their employees. Instead,
they follow three compensation elements i.e., straight salary plan (every month), fringe benefits
like trip, cash, gifts based on the performance and combination of salary +incentive plan but
don’t provide commission.

Motivation approaches

It is crucial for every organization to motivate the employees for better results. Barasinghe also
uses various motivation approach to motivate its employees such as recognizing the sales
personnel through awards (best salesperson of the year, best territory with high sales of the year)
They provide target-based incentives and also provide flight tickets to Malaysia, Goa, Singapore
for exceeding quota.

3.2.6 Sales Control and Evaluation Methods

Sales Quotas

Barasinghe assigns the salesperson traders sales quota as a standard to measure their sales
performance. They are focused in mainly two types of sales quota:

A. Sales volume quota

 The sales volume quota is the quota in terms of the units of beers sold in the territory. If
the salesperson exceeds the quota, they are provided with two kinds of benefits:
 Fringe benefits (insurance, trip tickets)
 For example: They have been providing tour schemes for countries like Singapore, Goa,
Malaysia, Thailand and also providing gadgets to their salesperson.
 Combination of salary + incentive plan

B. Activity quota

24
  Most of the companies in Nepal don’t follow activity quota at all. But being a new beer
company in Nepal, they have been following the activity quota also which includes
displays, visits, product demonstrations and so on.

Sales contests

Barasinghe has been rigorously following the sales contests when they are organizing special
selling campaigns where incentives are offered in the form of prizes or rewards. They are
doing sales contests mostly in Dashain and Tihar where they come up with different products
that facilitate the beer. For example: Last year in Dashain they came up with a BBQ stand and
beer brewery equipment/beer tank and the beer holder mostly focused on HORECA to attract
their customer base. They have been providing best salesperson of the year award, honors and
cash, travel and merchandise to the deserving salesperson every year.

Evaluation methods

The sales force of Barasinghe are evaluated based on quantitative factors such as the sales
revenue of the company that year, the net profit of the company and qualitative factors such as
the amount of provide knowledge among the sales force and the sales skill they have for selling
the beers.

3.2.7Sales Territory Management

The salesperson of Barasinghe brand assigns the sales territory to individual salesperson who
frequently visits the prospects and is more focused on building loyalty among the customers and
prospects. They are focused more on split sales territory management.

Sales territory

The salesperson of Barasinghe brand assigns the sales territory to individual salesperson who
frequently visits the prospects and is more focused on building loyalty among the customers and
prospects. They are focused more on split sales territory management. For sales reporting

they haven’t created software or any tools to check the sales people work. They are focused on
the traditional sales reporting style where the salesperson daily sales report is recorded in their
respective territories.

25
Barasinghe Sales Territory setting procedure

The sales territory setting procedure includes few steps. First one is Selecting and analyzing the
basic geographical control unit by the marketing and sales team of Barasinghe jointly. Then the

sales head determines the sales potential in each control unit based on the past sales and the
market research. After that the regional sales manager and area sales manager are provided with
the tasks that they should do and are provided with the territories based on their ability and skills.
Lastly, the alignment of the right person to the right territory based on their past performance is
checked by the head of the sales department of Barasinghe.

3.2.8Dealer relationship strategy

The area sales manager of Barasinghe maintains good relationships with its distributors by
organizing distributors & dealers meet once a year. The senior level officers in both the
marketing and sales department and other employees listen to all their complaints and feedback
about the position of the product in the market. For motivating the dealers, they are provided
with fringe benefits, schemes for exceeding the target. Below is one of the findings from a dealer
(Binayak store) we visited:

Binayak store is located at Ekantakuna Road, Lalitpur. The owner of the Binayak store is Niru
Thapa. The store is a retail outlet and are focused on Modern Trade. The products are brought
from Phoenix distributor (Barasinghe distributor in Lalitpur area). They take the order through
phone call and provide free delivery to their customers and provide a credit facility of 1-2
months (cheque payment). Because of on time delivery and quick response, they have
maintained goof relationship [ with the customers. They have also maintained friendly
relationships with company managers Mr. Bikram sir and Nabin sir. It is seen that there are more
satisfied customers with Barasinghe brand compared to others like Tuborg. This is because of
POS elements like dangler, streamer, poster and other trade marketing that Barasinghe follows. It
shows a digital display video placed in front of the shop which is continuously showing the
product, Barasinghe. In the store they declined Barasinghe offer of a refrigerator due to a lack of
space. They have a fridge of their own. However, we could see that there was room for
Barasinghe to install its refrigerator.

26
Few things that Barasinghe company should improve is there is poor shelf visibility of craft
beers as the product is placed at the end of the store. Although, other product lines like Old
Durbar, 8848 Vodka were properly visible and were properly displayed in the store, there was no
in-store display of Barasinghe brand and were poorly visible on the shelves. When we looked at
other brands like Tuborg there were availability of large Tuborg banners which were present
there since they worked with Tuborg first before any other beers. The Barasinghe Company has
also offered to let them put banners in the store, but they have declined due to a shortage of
space.

3.2.9 Consumer, Trade and Sales-Force Schemes

Promotion is one of the crucial factors for Barasinghe as it is focused on advertising its product
on social media, marketing campaigns on festivals, through its beer tap, beer holder and BBQ
stand where its name is written in the product which serves as the promoting tools for 24/7 even
if the sales person isn’t available. The company follows two salesforce schemes:

 Sales incentive scheme

 Contest as per quota

3.2.10 Customer relationship management approach

We all know that customers are the king of the market and it’s the responsibility if the company
to take care of their needs and listen from them.

Barasinghe maintains good relationship with its customer. They get the feedbacks from the
customers from social media platforms or in-person when sales personnel visit the stores. They
often perform follow- up and provide appreciation email to its customers as well. They also often
visit with the technical staff to check installation of beer taps, dangler, screener, and other POS
elements. To keep the brand image in the minds of the customer the company uses different
promotional techniques to keep the customer engaged like the beer handler, keyrings, boards,
celebrity endorsement for ad, factory visit and so on.

27
 Chapter 4: Tuborg

4.1 Introduction

Carlsberg Breweries, a Danish multinational corporation based in Copenhagen, Denmark, and

the Khetan Group, a prominent Nepalese business house, jointly founded Gorkha Brewery Pvt.
Ltd. in 1989. With more than 80% of the market share, Gorkha Brewery manufactures Carlsberg
Beer, Tuborg Beer, San Miguel Beer, Royal Danish Tuborg Strong Beer, and Gorkha Beer.
Presently, Gorkha's product line comprises strong, mainstream, premium, and local beers. The
first foreign company to set up shop in Nepal was Tuborg, which Gorkha Brewery founded in
1990. The most widely consumed beer in Nepal is Tuborg, which has been cherished since 1990
for its superb quality and delectable flavor. The Gorkha Brewery has launched "Tuborg Classic,"
the country's first premium strong beer made with scotch malts. With the slogan "Stronger &
Smoother," the top-notch imported scotch malts offer Tuborg Classic a well-rounded flavor that
makes drinking experience easy and smooth.

In Nepal, Tuborg is currently the most popular brand. Gorkha Brewery recognized the
consumer's desire for ongoing innovation and in 2014 unveiled the new look of Tuborg with the
ground-breaking Pull-Off Cap. Additionally, Tuborg has a strong connection to music and has
participated in a number of musical events throughout the years with the motto "Open for
Fun...wherever you are." Tuborg is available in 500ml cans and 650ml bottles. The goal of
Gorkha Brewery is to brew for a better today and tomorrow and to create beers that are at the
center of socially significant occasions.

4.2 Sales Practice

4.2.1 Sales Objective

The product Tuborg is launched with an objective to create beers that are at the center of socially
significant occasions, provide the beer drinker with the highest quality product, expand all
around the Nepal by using brand awareness and turn their profits into long term growth.

4.2.2 Sales Strategy

28
They follow push strategy for newly launched products and pull strategy for well established
brands. It also uses differentiated targeting strategies as most of its offerings are intended for
various client groups.

4.2.3 Products

Based on the taste and preference of customers, Gorkha brewery is currently selling three types
of Tuborg beer. It is available in 650ml bottles and 500ml cans. The three brands differ in the
measurement of alcohol by volume.

4.2.4 Segmentation

Demographically, it has targeted people between the ages of 18 and 49.. Geographically it has
targeted mostly urban area where there is more count of pubs, bars, restaurants, hotels, etc. who
orders in huge volume generating high revenue. It has also slowly able to rural areas as well but
these areas have not generated much revenue because most of the people in rural areas prefer
local cheaper brand.

Because everyone has various interests, it might be challenging to target the precise clients the
company wants. For Psychographic segmentation, it has targeted people who stays in groups and
look for fun in life. Behaviorally, it has also well targeted those who drinks occasionally i.e.,
during festive seasons and weekends. The company has rightly been able to place its product to
the right customers and this is the reason there is always demand and profit for the company.

29
4.2.5 Sales-Force Management and Organization Structure

After the selection of sales executives they are assigned specific territory where they need to
meet their quotas. The area sales manager fixes the sales quota for each sales force. Manager are
responsible for supervising the activities of sales representatives and help them in case of any
problem. Sales force are given training for better performance and still if they cannot perform
then the company looks for some replacement. Salesforce are also motivated to perform better by
providing bonuses for exceeding the quota set. The management are seeking all kind strategies
that may encourage their staff to work harder.

Fig: Sales Organization Structure

4.2.6 Sales Channel Setting and Distribution Management

The company operates in both B2B and B2C channel. In B2C channel, the product reaches to
customer from retailer. The regional distributor collects products from producer which is passed
to wholesalers belonging in that region. From wholesalers, retailers purchases it and finally it
reaches to the hand of consumer from retail outlets.

30
 Fig: B2C Channel

B2B customers includes HORECA businesses. These businesses purchase from regional
distributor which directly buys from producer. The distributor in each region is responsible to
supply to all HORECA businesses in that area.

Fig: B2B Channel

4.2.7 Recruitment, Selection, Compensation, Motivation Approaches

There is a separate HR department for recruitment of new employees. The company posts
vacancy ads on different platforms as well as its own websites. The applicants apply for jobs
digitally. If the applicant is fit for the job then an interview is scheduled. A patterned interview
and psychological test is conducted and after qualifying both the rounds, the candidate is hired.
Candidates are also hired through internal referrals. Also sometimes they make use of external

31
agencies as well. After the selection, there is induction program for newly joined staff to make
them comfortable with the office environment.

Besides salary, sales executives are also provided with extra commission after meeting the target.
This approach motivates them to strive to sell high volume.

4.2.8 Sales Control and Evaluation Methods

Sales control is crucial to the operation of a company because it enables managers and staff to
carry out their duties and achieve their objectives, which in turn help the company succeed. The
company maintains employee awareness of the duties and expectations of their position through
an accountability system. Evaluation guidelines are clearly set based on which staffs are
evaluated. Sales quota is assigned to sales executive. Senior managers have regular meetings
with the sales executives to help and motivate them with their work. Also there is a digital
record of all the activities performed by the employees based on which they are selected for
appraisal. The company also sometimes meets with their customers to get feedback from their
sales executives.

4.2.9 Sales Territory Management

The area is segmented based on density of population. The larger area has more sales executives
compared to smaller one. They are required to visit each and every store that belongs to their
area and look for any problem their customers are facing. Also they manage point of sale and
look that their product is easily visible to customers. The team members are evaluated and based
on their skill set and experience, a particular sales representative is assigned an area. It enables
the business to concentrate on the most valuable leads, prospects, and clients by making the most
use of its resources, experience, and talents. The size of the deal, average length of the sales
cycle will vary with the size of sales territory. The in-depth understanding of territory has helped
them to deepen their customer relationships by customizing their communication with new leads
and customers.

4.2.10 Dealer Relationship Strategy

Dealers are very important for businesses to succeed as it can reach out to mass customers.
Therefore, dealers should be provided with all sorts of tools that will help them to boost our

32
products in the market. The company not only focuses on their success but also helps their
dealers to be successful by providing them quality drinks that have high demand. This way
dealers have become loyal advocates to the brand. The company provides credit facilities to their
dealers. Also they offer them discounts based on the volume ordered. If the dealers are able to
push high volume in the market then they are provided with commission. They are involved in
regular communication with their dealers and quickly respond to them in case of any queries.
Sales representatives also help their dealers to develop the convincing way of communication
that has helped them to increase their customer base.

4.2.11 Consumer, Trade and Sales-Force Schemes

The company regularly runs offers like buy two get one free for their consumers. Also it offers
giveaways like glasses, headphones, etc.

Fig: Giveaways to customers

Traders are provided with discounts on their order. They also get a very good margin to sell their
products. They personally send their staff to manage their store and also provide Tuborg fridges
to place their beers.

Sales forces are provided commission after exceeding their quota. They also receive a lot of
perks and benefits besides salary. The representatives are also provided training to improve their
performance which will ultimately help them to exceed their target and receive bonuses.

4.2.12 Customer Relationship Management Approach

33
Customers are very important for all businesses. Businesses exist because of customers. So
companies should take care of each and every customer. There is a Facebook page where
customers can post their happiness and grievances with the product. The staff immediately reach
out to the customers having negative experiences. This way the customer feels that the company
cares about them and thus they spread positive word of mouth for its products.

Chapter 5: Sales Planning Process

Sales planning is the process of creating strategies for the sales team to achieve the target goals
followed by establishing sales quotas, determining sales territories and positioning products in
ways that differentiate them from their competitors. Sales manager often start the sales planning
process considering the cues derived from the marketing plan and assessing the factors that
might affect the sales of the product in the competitive market environment. Therefore, in this
section, we have comprised SWOT analysis, Target Market and Marketing Mix of Barahsinghe
and Khajurico based on our findings and discussions from the field visit and interview with the
sales people of the respective companies.

5.1 Barahsinghe

Barahsinghe Beer is a truly Nepali Beer Brand which has taken market positioning as a pioneer
in craft beer in Nepal. With the Germany based highly automated technology into brewing Craft
beers, Barahsinghe has offered Nepalese customer with the experience of true craft beer quality
and taste that the sales revenue has increased by 70% per year since the introduction of
Barahsinghe beer in Nepalese market.

5.1.1 SWOT Analysis

Strengths Weaknesses

 Automated technology- quality control

34
  Small Batch production of craft beer.
and production efficiency
 Imported ingredients-risk of currency
 Selection of Quality ingredients
exchange risk on profitability without
 Focused marketing with clearly
compromising pricing strategy.
defined goals and strategies
 Liability of newness for craft beer in
 Pioneer in craft beer in Nepalese
Nepalese market.
Market and Authentic Nepalese
 Increasing competitors in craft beer
Brand.
industry in Nepal. E.g. Carlsberg,
 Fleet of products with distinct flavors
Gorkha have introduced craft beer
that spread word of mouth publicity.
already.
 Limited lifespan of product.

Opportunities Threats

 Promising growth in craft beer  Legal and tax policy changes.

industry-switching to craft beer.  Risk of loss to aggressive rivalry in
 Increasing Beer Culture and outgoing the market.
culture among Nepalese youth.
 Expansion of product range.

5.1.2 Target Market

35
 Demographic Segmentation
 AGE: Strictly 18+ responsible
people.
 Class: middle class upper class
who can afford to spend
disposable income.
 Gender: Both male and
female, but market report
shows majority of frequent
buying customer are male.
Psychographic Segmentation
 Patriotic: Positioned as true
Nepali Brand to incline
Nepalese people toward local
brand.
 Youth: Beer culture and
cultivating premium quality beer
experience towards new
adopters.
5.1.3 Marketing Mix
Geographic Segmentation
 Territory: Focused more on urban dense
population living in city area of Terai and
Hill region. Yak brewery has strategically
implemented geography focused product
such as BISON Beer introduced to tap low
price market segment in rural part of Nepal.
Behavioural Segmentation
 Benefits- people who do not want hangover
and head pain after having beer. Quality and
price sensitive.
 Purchase Behavior: people who enjoy beer
in term of taste quality and soothing
experience and frequent buyers as well as
people who order refill container for special
events and restaurants.
36
 Marketing B2B B2C
mix

Product 20-50 liter steel container delivery of Glass and Canned bottle unit
Draft Beer (skipped pasteurized process) product range with distinct flavors
to institutional buyers. (Pilsner, Paleale)

Price Price policy transparent and reasonable. Price policy transparent and
comparatively reasonable

Place Major cities HoReCa and events –area All nation distribution-wholesaler-
sales distribution retailer/GT-MT

Promotion Refrigerator, beer tap. Gifts, sponsorship, Ads, factory

visit, Beer Garden at premises

5.2 Khajurico

Khajurico is a household name since decades in Nepal for its tasty and healthy cookies and puff
that accompany to our everyday morning tea and breakfast. Khajurico has a strong brand image
in the Nepalese market and has been successful in retaining its customer loyalty with consistent
quality and reasonable price product for decades. With that advantage from loyal customer base,
Khajurico brand has leveraged on pull strategy to generate sales and realize growth in revenue.

5.2.1 SWOT Analysis

37
 Strengths Weaknesses

 Strong brand presence in Market  Uncategorized market segment and

overlapped distribution channel.
 Positioning of quality taste and
affordability.  Product specified Brand loyalty.

 Truly Nepal brand identity.

 Loyal customer base.
 Dominant market share in Puffed bread.
 Excellent market knowledge and
production experience

Opportunities Threats
 Leverage brand image to expand product  Foreign brands and increasing
line. competition.
 Explore foreign market for its product.  Raising raw material cost and
 Upscale wholesale and retail chain to distribution cost
build eco system on food based product  Alternative products and easy
category. substitute.

5.2.2 Target Market

38
 Demographic Segmentation
 Mass market, indiscriminate.
Psychographic Segmentation
 Patriotic: Positioned as true Nepali
Brand to incline Nepalese people toward 
local brand.
 Youth: Decade long brand associated to
people, accustomed to tea culture in
Nepal
5.2.3 Marketing Mix
Marketing B2B
mix
Product Undifferentiated to B2C
Price Reasonable and comparatively cheaper
than foreign brand alternative.
Geographic Segmentation
 Territory: Distribution network across
Nepal to cover as much mass population.
Behavioural Segmentation
 Benefits- Taste and ready breakfast.
Purchase Behavior: Morning rituals to buy
milk and biscuits from nearby small shops
in most Nepalese household.
B2C
Plastic color labelled package of
standard size.
Reasonable and comparatively
cheaper than foreign brand
39
 alternative.

Place Wholesale-Stores Wholesaler-retailer/GT-MT

Promotion Not any. Not any.

Chapter 6: Comparison Between Similar Industries

6.1 Food Industry: Khajurico and Hilife

6.1.1 Similarities

 As both the companies, Hilife and Khajurico are FMCG companies, both have intensive
distribution systems to allow easy availability of their products to every nook and corner
of the country.
 The territory and quota setting is similar in both these companies. The territories are set
based on area and sales targets are based on volume of sales and activities.
 Recruitment, selection and performance evaluation is similar in both the organizations.

6.1.2 Differences

40
S. Hilife Khajurico
N

1 Hilife follows a push strategy it might be Khajurico follows a pull strategy to sell its
because Hilife is on its journey to build a products. This might be because of the fact
stronger brand. that Khajurico has already built the brand
name and established itself in the market.

2 Hilife focuses on advertising and Khajurico is not focused on advertising and

promoting itself, promoting itself, merchandising, sponsoring
merchandising, sponsoring events, and events, and creating brand awareness.
creating brand awareness/brand visibility.

3 Hilife does provide credit facilities to Khajurico doesn’t provide any credit
incentivize the middlemen to sell more of facilities to dealers or middlemen.
their products.

4 To make the customers more loyal Khajurico doesn’t have such schemes made
towards the brand, Hilife conducts for the customers.
giveaways, and runs various schemes that
lure the customers

5 Hilife is engaged with institutional sales Khajurico is not engaged in institutional

to HoReCa sales.

6 Hilife’s portfolio is well diversified as it Khajurico only consists of biscuits, pastries

includes oats, cornflakes, chia seeds, oil, and the like.
wheat flour, besan, etc.

7 Hilife shows its innovativeness in Khajurico is not much involved in

packaging to suit different needs and customizing its packaging. Similar
preferences of its customer segments. For packaging is used for export as well.
example, Hilife has different packaging Khajurico’s puff comes in the same standard

41
 and comes up with different flavors of packaging and no new flavors have been
Papad. introduced in its puff since its inception.

6.2 Beverage Industry: Barahsinghe and Tuborg

6.2.1 Similarities

 Sales channel distribution management for b2b is similar for Barahsinghe and
Tuborg( producer- regional distributor-wholesaler-retailer-consumer)
 For setting channel strategies both are using tying strategies.
 Both follow hybrid management systems.
 Recruitment and selection process of the candidates is also quite similar.
 Digital records of activities performed by Salesforce.

6.2.2 Differences

S. Tuborg Barahsinghe
N

1 Focused on flagship Tuborg beer Focused on product differentiation through craft

sale with mainly push strategy. beer, beer culture with mainly pull strategy.

2 Regularly runs offers like buy two Doesn’t run offers like buy two get one free
get one free for their consumers. offers.
Offers giveaway like glasses,
headphones, etc.

3 Salesforce are provided Salesforce are not provided commission but there
commission for exceeding quota. is a straight salary plan and salary+incentive plan.

42
 4 Lack of provision of factory visits. Provision of factory visit. Special small batch
facility to control the quality of craft beer and
provides draft beer in a big cylindrical tank for
special events and parties.

5 More focused on rigorous sales More focused on maintaining the quality of the
rather than quality of the product. products rather than the rigorous sales.
Adopted market penetration strategy using product
differentiation and new product range.

6 Less environment friendly More environment friendly approach on

approach on production. production.

7 Sales lead by heavy advertisement Selective distribution strategy.Geographical area

on ATL, promotion through wise product differentiation. For e.g “Bison” for
sponsorship on festivals like holi the far western region.
events, dashain, tihar.

Conclusion and Recommendation

The businesses have different sales approach depending on their marketing plan, nature of the
product and the consumer behavior. In this study we had explored the detail sales management
and strategy of two companies residing on FMCG industry with different product offerings and
made comparison with other related companies and their sales management strategy. In the
conversation with sales managers from respective companies, we have found distinct strategies
and approach towards their sales of the product. Khajurico, which has already established strong
customer base and brand recognition sustain its sales lead from pull strategy and do no spend
their budget on sales promotion activities such as ATL marketing, POS materials and customer
schemes. Instead, Khajurico strongly believes that with consistent quality and timely delivery, it

43
can retain its customer loyalty and build sustainable brand without much effort on heavy
advertisings. On the other hand, Hilife Company, which is at its initial brand building stage, has
adopted intense marketing campaign to make its brand visible to the customers with the help of
different marketing tools. Also, in order to focus on brand building and systematize the
marketing channel, Hilife has tie up with dealer contracts and has separated branding and sales
department to aggressively push the product and retain customer in their early brand growing
stage. In addition Hilife has clearly draw a line to categorize its product into three product lines
for cascading marketing campaign of all products as well as to evaluate the product performance
in the market. The trained sales force periodically visit the outlets on their territory and push the
product with attractive trade scheme, customer scheme, POS materials and enhancing product
visibility to the customers. Khajurico Company, which has already established brand, focuses
more on business development and expansion while sustaining the market share for its flagship
product. Both companies have shared strong notion that quality of the product is of top most
priority.

Likewise, for our second comparison, we had considered Tuborg and Barahsinghe to explore
their sales management and distribution strategy. We found that Barahsinghe, which is
comparatively new to the market, focused on differentiated strategy to penetrate the market.
Barahsinghe entered with craft beer and has been successful to make its space in highly
competitive beer industry in Nepal. The brand has used geographical segmentation for its sales
and distribution operation. For that, dealership contract is assigned to look after designated
territory. We found that, Barahsinghe focused on supply chain partner intimacy and relationship
to substantiate sales promotion and also ensure the territory would not overlap for dealer to
maintain fair trade practices. Barahsinghe has inclined toward quality focused pull strategy and
word of mouth promotion for its product. On the other hand Tuborg has inclined towards push
strategy with comparatively more aggressive brand promotion through advertisements in
frequent basis. We found that Barahsinghe does not exert pressure on sales force to meet the
sales quotas and revenue target. As the sales manager told us that sales growth happens from
repetitive purchase, for that, customers need to be satisfied with our product. Force sales would
not sustain long.

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After the detail interviewing and discussion with the sales people of respective companies and
group members and substantiating with our learning from sales and distribution course, we
would recommend Khajurico Company and Barahsinghe to explore and capitalize more on
technology based sales management systems. Also, Tracking and assessing the performance of
sales force and providing them with a scope of development and career advancement would help
motivate the sales team to enhance their performances. Likewise, we would as well recommend
Khajurico to invest in brand management to timely remind and aware about brand to its large
customers and attract new loyal customers into its brand loyalty. In Addition, Khajurico could
expand its brand identity to include a range of products that customers associate to adopt new
products offering from Khajurico. Similarly, Barahsinghe could also promote its brand by
training its sales team to become a brand promoter and communicating shared goal and
objectives to all members in the sales, marketing and distribution team. We found that sales
people typically have a busy schedule and work pressure, we suggest both companies to consider
those work pressure and treat the sales force with what they actually deserve and streamline the
hassle leveraging technology that would also help maintaining mutual relation with all member
associated in the whole supply chain system.

References

https://barahsinghe.com/about-us-barahsinghe-eight-dutch-malts-beer/

Annexure

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