Group 10_FMCG SECTOR

Amee Thaker (2013024)

Anshul Karn(2013044)
Arun R (2013061)
Balaganesh (2013073)
Chetan Guleria (2013082)

Introduction
Four friends started the company in a garage by
the year 1942
Market leader in paints since 1967
Went public in the year 1982
Recently the company is into an expansion spree.
They have acquired 51% stake in sleek modular
kitchen.
Acquired the bathroom fitting brand ESS completely .
Entered into the segment of water proofing.
Entered into segment of wallpapers.

The Network Strategy
They follow a unique network strategy,
something different from other FMCG
companies.
They dont have a distributor in their supply
chain.
They follow a direct to dealer strategy
They believe their dealer network is the pillar
rocks of their success

Pros Of Having Distributor
Burden on the company is reduced
Easier to cover a larger area/number of
dealers
Feedbacks and research gets easier
Local demand can be met.
Lesser credit risk

Pros Direct To Dealer Concept
Risk of loosing customers is less as competition is
not dealt.
A pan India dealer landing price could be fixed.
There is No Middle man between the company
and its dealer
Changes can be made in national level.
Better supply chain efficiency and reduced stock
outs
New products can be launched using the existing
network.

Classification Of Dealers
Shops
Colour store (company owned but does not sell)
Colour idea store (50:50 setting up investment by
company and the dealer)
Colour world (owned by dealer)
Dealers
Retailers (< 45lacs)
Critical Retailers (> 45 lacs)
Premium counters (the 10% trailing PPC)
Privileged premium counters (top 10 percent)

Sales Force Structure
General manager
Regional managers
Area managers/Unit heads
Territory sales officers (TSOs)
Divisional managers
Sales Force Targets
Targets are set in each category based on the
past volume movements.
A great part of the salary of TSOs are based on
variable pay.
An average TSO can make variable pay of
above 1lakh by just meeting his targets.

Dealer Incentive Schemes
Trip Schemes
Monthly Credit Notes
Gifts
Annual Credit Notes

Applicator Network
An applicator data base is maintained
These applicators are split based on the
volume of purchase into categories like gold,
silver, etc.
These applicators and contractors are used
for home solutions paintings by the company
Home solutions team is compulsorily trained
Other applicators can also opt for training in
voluntary basis.

Applicator Incentive Schemes
Coupons & Vouchers
Master Stroke
Gifts
Gatherings, Training & Dinner

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