Sales & Distribution Management

Introduction
• Founded in 1926
• The Bajaj Group is amongst the top 10
business houses in India.
• Bajaj Auto, is ranked as the world's fourth
largest two-and three-wheeler manufacturer
• Bajaj Auto is well-known across several
countries in Latin America, Africa, Middle
East, South and South East Asia.
 Sales Channel Design
• Various players involved in the channel design
are:
• Manufacturing Plants
• Depots
• Carrying & Forward Agent
• Dealers
• Sub Dealers
• Logistics
 Sales Channel Design
• Channel Design is dependent on the
segmentation that Bajaj have done in the
geographic and product category segments.
 Sales Channel Design

Geographic Geographic
Segmentation

National Global
Level Level
 Global Level Partnerships
• Concept of Business partners.
• Investment include setting up strategic
manufacturing or assembly units, apart from
a well-established nation-wide network for
marketing, distribution and after sales
services
 Global Level Partnerships

Assembling Hub &

Plant In Business Partner
India

Transport &
Logistics(Third
Party Vendor)
 National Level Partnerships
• There is an exisisting
generic channel which
is used for
segmentation of this
category of two-
wheelers and three
wheelers.
National Level Partnerships
 Manufacturing Plant
• Bajaj Auto vehicle manufacturing capacity currently
stands at 3.96 million units comprising 3.6 million two-
wheelers and 360,000 three-wheelers.
 Key Deliverables in terms of Sales &
Distribution Management
• Order Tracking-Taking a daily account of the
order received from various dealers and Regional
Offices (RO).
• Packaging-Packaging in factory is outsourced to
third party vendor
• Despatching Goods-Goods need to be despatched
via third party vendor
• Generating Invoice & Waybill-These documents
need to be generated and despatched to the
respective dealer
 Depot and C&F Agent
• Setting up depots is a geographical strategy
adopted by Bajaj Auto
• Depots are meant to cater to any sudden rise
in demand of vehicles, and to cover the
existing geographic span of India.
Depot and C&F Agent
 Depot and C&F Agent

• Giant dealer of a particular region acts a

carrying and forwarding agent for Bajaj
Auto
• A giant dealer is one who secures an A+
rating from the company, or has strong
financial muscle in the region in
comparison to the other dealers.
 Transport & Logistics
• The function of distribution is not owned by
the company in any form.
• It is outsourced to the third party vendors.
• The third party here is Transport
Corporation of India (TCI) and a few other
private vendors.
 Key Role & Deliverables
• Packaging
• Logistics
• Goods Tracking
• Key Documents Generation
 Dealers
• The company has a network of 498 dealers
and over 1,500 authorised service centres
and 162 exclusive three-wheeler dealers
spread across the country.
• Around 1,400 rural outlets have been
created in towns with population of 25,000
and below.
 Dealers
• Dealers can be classified under 3 heads
• COCO-These are Company Owned &
Company Operated showrooms. These
concepts exist only for Pro-Biking showrooms
• CODO-These are Company Owned & Dealer
Operated showrooms.
• DODO-These are Dealer Owned & Dealer
Operated. These dealers are fewer in number
because they are generally the giant dealers
Services provided by Bajaj Auto
to the dealer
• Workshop Training
• New Product Launch
• Promotional Activities
 CHANNEL MEMBER
MANAGEMENT
• Monetary Methods to Reward Channel Members
• Dealer can be rated A+
• Company owned showrooms are a way in which the
company rewards the dealer.
• Non Monetary Methods to Reward Channel
Members
• Workshop Training
• New Product Launch
• Promotional Activities
 CHANNEL MEMBER
MANAGEMENT
• Target Setting Mechanism
• Area Sales Manager(ASM) negotiate with
headquarters and decide sales target for a
region.
• ASM then sets the target for the various dealers
in the region considering their past
performance.
• If a dealer has not met the previous target, that
gap is added on in his new target
 Spare Parts
• There is a separate channel exclusively for
distribution of spare parts
• The channel has 73 distributors, who cater
directly to over 15,000 retail shops across the
country.
• This channel now accounts for sales of over 70%
of total spare parts of Bajaj Auto Ltd.
• Other 30% is distributed via the distribution
channel of the bike itself.
 Usage of IT at all Levels
• SAP’s mySAP Enterprise Portal has been
implemented for their sales, service employees,
dealers and suppliers
• Business information is available to the company’s
external community in real time.
• The company’s field sales teams get full visibility on
all dealer activities while the dealers get real-time
access to relevant information on operational
activities.
• Bajaj has linked 390 out of its 498 dealers through
this system.