Mattel Toys India Ltd.

Submitted by: Group B-05 M Gireesh Babu 12P084 Manish Gupta 12P085 Mohit Batra 12P086 Nikhil Gupta 12P087 Nitish Gupta 12P088

Distribution Network : 1987 to 1996

Sales organization Sales Officer First level of companys sales organization ASM Looked after a territory like Delhi Zonal Manager Looked after a zone like North Zone VP Sales Located in Bombay and looked after whole of India

Distribution Structure C&F Agents They handled stock in all major states and dispatched goods to the distributer
Distributers- They covered about 100 retail outlets, and were expected to carry stock of 4 weeks sales Retailers Got 20% markup, while unorganised players gave 30-35% - Covered around 5000 retail outlets, 50% toy shops(high penetration of 60%)

Distribution Network : 1997 to 1998

Mattel Toys

Sales officers/ C&F agents

Distributers

Large Retailers

Large Retailers

Small retailer

Small Retailers

Dual Distribution Policy adopted Large retailers served by companys own sales force/C&F agents Small retailers served by Distributers New plan first tested in Delhi and then Implemented across India Net saving exxpected to be Rs. 18 lakh from Delhi, more than Rs. 1 crore per year from all India

Changes Made by Mattel:1999 to 2000

Discontinuation of Direct Dealer Policy except for servicing chains like Nanz and Shoppers Stop Sos redesignated as Territory Sales Executives(TSE) and focus changed to developing their territories, channel relationship management etc ISOs responsible for generating sales Change in distributors margin to 8.5% further reduced to 8% Sharing of ISOs salary on 50:50 basis Increase in credit period for distributors to 10 days Retailer Margin increased to 25% Higher sales levels and effective advertising support

Understanding the problems in the channel looking at the signs of latent opportunity
Opportunity Existing Recommendation/ Solution

Unhappy end users Unexplored new channels Gaps in market coverage Deteriorating economics

No No No No

N/A N/A N/A N/A

Complacent Intermediaries

Yes

ISOs and TSEs should be incentivized to develop their territory

Generation of secondary sales data at distributors counter Adoption of ERP (like inventory replenishment system as the toy market thrives on new product)

Dated system for interfacing with channels

Yes

Thank You