AUDITING CURRENT AND DESIGNING EFFECTIVE DISTRIBUTION NETWORK FOR EDIBLE OILS BUSINESS IN Click to edit Master GURGAON

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Presented To: Mr. Alok Goyal
4/15/12

Presented By: Arjit Sharma

FMCG in India

Defination: Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples: toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. The total FMCG market in India is estimated in excess of Rs. 85,000 Crores

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SWOT Analysis: Indian FMCG Sector

Strengths: Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Weaknesses:
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Cargill In India

In India, Cargill has an access to over 1000 towns and 2, 50,000 retail outlets.

Products & Services

Cargill has activities in the following areas in India: Animal Nutrition Coal
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Cargill Refined Oils

Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils and fats to wholesale trade, industrial and household consumers across India. Cargill own and operate three vegetable oil refineries located at Paradeep (Orissa), Kandla (Gujarat) and Kurkumbh (Maharastra).
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Cargill Refined Oils Brands

Nature Fresh Acti-Lite Nature Fresh Purita Nature Fresh Oliante Gemini Rath Sweekar (Sweekar and its trademarks are 4/15/12 registered marks owned by Cargill India

The Brands

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Distribution Channel of Cargill India Pvt.Ltd.

Distribution Channel of Cargill India Pvt.Ltd. Manufacturer

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Hierarchy Structure of Cargill India Pvt. Ltd.

Chairman

Director

National Sales Manager

Zonal Sales Manager

Regional Sales Manager

Area Sales Manager

Senior Sales Officer

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Sales Officer

Project Objectives

Storming Exercise Design an optimum distribution channel for new area development Mechanism for sustenance of new productive outlet Tracking of outlets

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METHODOLOGY

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Suggestions of the Retailers & Customers

Leakage problem should be looked after and the replacement of the leaked packets should be given to them. The company should reduce the cost of their products and the margin of the retailers should be increased.

There should be proper channel of information, whenever any scheme is 4/15/12

Problems Faced By Retailer (Retailers Plight)

Low margin: - Most of the retailers complained that they get very low margin in all the products of cargill as compared to its competitors thats why unable to sell the local brand. Leakage problem: -The retailers also complained about the leakage problem faced by them in the cartoons of Gemini and no 4/15/12 replacement, but other companies

Learning

Managerial capabilities as we had to manage the salesman who accompanied us as well as the shop owners. Convincing capabilities. Knowledge of how an FMCG company works at the ground level. How sales can be enhanced. Team management skills.

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Contd

Leadership skills. Analytical approach towards data analysis regarding sales. How to cover an untapped market where complete reach was not there previously and then sustaining the sales in the specified territory. How to carry out the daily operations in rigorous pressure.
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How to increase product visibility.

Limitations Of Project

Low Print & Media advertisements made it difficult to convince retailer to buy our product. Time limitation was a big concern. General awareness of the product and company was low. Excessive price fluctuations in oil market.

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Contd

Convincing to the retailer in low income residential area was a tough task as they were very less health conscious. Some dispute between the distributor and retailer were unsolved. Excessive dependence on price strategy of competitor market leader in oil segment.
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Recommendations

In every beat A class counter should be pointed out and special benefits or tie up could be set up. The company should go for regular Print & Television Commercial Ads to regular reinforce the consumer demand and to gain consumer confidence. The company should try to make stronger Distributor who has a very good hold in 4/15/12

Contd

There must be regular surprise visit of higher officials to check the ground realities in that market. There must be a new system set up where smooth coordination between consumer pack team and Commercial Pack team must be established. Paper work should be reduced and more 4/15/12

Non monetary incentives should be also given to the retailers in each and every city. They should be given glow sign boards and other sales promotional materials. This will boost up their spirits. Service level regarding order inquiry must be improved as compared to current status. The company should execute initiatives 4/15/12

Contd

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