sdm by vikas bagga

8/12/2019 SDM by Vikas Bagga

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Sales & Distribution Management

Instructor: Vikas Bagga

Introduction:

Sales and Distribution is a key component for the success of any organization. This is a criticalfunction and determines to a large extent the position and market share that an organization wouldachieve in the industry that it operates in.

S&D is equally important be it a !"#$ durables or services industry in consumer %" space orindustrial good manufacturing$ office automation$ software & hardware provider in %% space.

The S & D strategy that a company implements to execute its annual business plans is key be itinstitutional$ retail or a combination of institutional and retail sales.

The ob'ective of the course is to provide an in(depth and through understanding of variouscomponents of S&D.

The overarching ob'ective of the course would be to give the participants a thorough understandingof evolution of need for sales$ the setting up of sales processes$ the physical distribution channel$management of this channel and improving effectiveness$ managing the people who manage thedistribution function$ managing multi(pronged distribution strategy$ creating templates formeasurement of sales productivity & efficiencies$ support required from sales promotion activities &measuring effectiveness of the same . )astly the back bone of S&D which is the supply chain andlogistics management * its critical impact on the impactful delivery from sales channel.

The imparting of the course would be supported with case studies$ where some of the challengesfaced in each aspect of S&D would get covered in detail. The course framework can be used by

participants as a tool to systematically evaluate the factors that would influence an organizationsSales & Distribution strategy. +t would allow the participants in their business roles to effectivelyevaluate options at each level in the S&D process and implement strategies that are relevant to their

industry & best suited to their company to give it a competitive edge in the business arena theyoperate in.

Objectives:

a, Demonstrate understanding of the criticality of S&D in an organization across industriesb, Demonstrate appreciation of sales function and how it works as a cog in the wheel of

marketing. +t will ensure understanding of how sales is an integral part of marketing andhow sales and advertising work in tandem to complete the entire marketing cycle.

c, -ecognize how sales management function and how the sales force is managedeffectively to deliver desired results for an organization Sub #oal /.,


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d, 0nderstand the distribution channels that will be used$ the conflicts and competitionbetween various channels used and how these should be managed effectively to drivesynergies and deliver best possible outcome for the organization

e, 0nderstanding the importance of warehousing$ inventory management * logistics andsupply chain management

Teaching pedagog

1 study mix of class room discussions$ relevant case studies$ term pro'ects and presentations isenvisaged to progress with the following course outline.

Session !lan:

!art "

2art / will cover definition of sales$ ob'ectives and function of sales in an organization. +t will detailthe sales function and classification of sales management$ how does selling fall under theoverarching 3all(encompassing marketing function$ the interdependence of advertising the other keyelement of marketing, and the sales management. +t will also cover the 4Sales organization5 and its

purpose$ principles and policies.

Session " # $volution o% Sales Management

6 7hat is Sales !anagement6 +mportance of selling and sales !anagement6 %uying Decision 2rocess6 %uying Decisions and types of 2urchases +ndividual or 8ousehold users,6 %usiness to %usiness Sales

!art

2art will cover an introduction to Sales management. +t will cover sales strategies and policies$management of sales force i.e. planning and organizing sales force$ recruitment & selection ( staffingthe sales force$ training$ directing the sales force$ motivating and leading the sales force$ contests&rewards & regular compensation.

9uestions like determining the required size of sales force$ division of territories & the rationale$routing and scheduling$ controlling the selling process & the budgets available for costs against the

benchmark budgets.

Sales management will also cover the personal selling process$ sales budgeting$ sales quotaallocation and territory management.

+t will also cover controlling3supervision and evaluation of the sales force and last but not the leastwill also cover the social$ ethical and legal aspect of selling.


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Session #Sales as a 'areer

6 -oles and -ewards in a sales "areer6 "hanging role of sales force6 Sales :b'ectives$ Strategies and Tactics

6 Selling(2rocess and 2reparation6 ;ffective "ommunication6 The


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6 !ore than ABB 82 "hannel 2artners are part of this programme with over CBBB salesrepresentatives participating.

Objectives

6 +ncrease sales through enterprise channel partners6 +ncentivise the sales force of 82 through a points based program6 ;ducate channel partners about 82 products through a variety of interactive media6 ;ncourage channel partners to attend training programmes6 +ncrease frequency of contact with channel partners6 -eward channel partners for positive behaviour

0ction plan

6 2oints based$ sales linked incentives for all6 2roduct knowledge through quiz 3 surveys

6 Training and certification6 -elationship building6 -ewards through comprehensive multi(country rewards catalogue6 :ffer attractive bonus multipliers and dynamic seasonal promotions1esults

6 !easurable increase in new registrations and sales6 +ncrease in region wise channel penetration and revenue6 +mprovement in the communication index

Targets

6 "hannel 2artners across 1siapac countries

'ase Stud . :2la3oSmith4line !lc # Sales compensation

Background:

+n uly B/B$ #laxoSmith?line 2lc #S?,$ one of the world@s leading pharmaceutical companies$announced that it would replace its existing system of evaluating and compensating its sales

professionals in the 0S.

1s part of the new system$ the bonuses of the sales professionals would be based on customerfeedback and adherence to company policy rather than the widely used practice of focusing onindividual achievement of sales targets. +ndustry observers viewed #S?@s new sales forcecompensation plan as a radical change and their opinion was divided regarding the effectiveness ofthe new sales force compensation system.

Objectives:

6 To understand the various issues and challenges associated with evaluating and

compensating a sales force.6 To understand the pharma selling environment in the 0S.


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6 To analyze the new sales force compensation system of #S? in the 0S and discuss the prosand cons of the system.

6 ;xplore ways in which the system can be improved further.

'ontents

6 +ntroduction6 1bout #S? 6 "hanging Dynamics in the 2harma Selling ;nvironment6 #S?@s Sales orce in the 0S6 Delinking Sales orce "ompensation and Sales Targets6 -eactions6 )ooking 1head6 ;xhibits SourceE+"!-,

Session 5 # 'ontrolling the sales *orce

6 Sales and !arketing +ntelligence System6 Secondary Data6 Discussions with "ustomers and +ntermediaries.6 Sales orce expenses.6 Types of expense plans.6 !arketing and sales 1udits.6 ;valuation of ;ffectiveness

!art (

2art C will cover distribution management and types of distribution channels * primary & secondaryriding on other distribution companies existing distribution network,$ marketing channels$ channelinstitutions$ ownership of channels * company owned Fs. franchisee$ web enabled3 electronicchannels$ non( store retailing. 1spects of channel planning channel management & channelinformation systems will get covered.

+t will also cover aspects on how successful companies build competitive channels ascomplimenting and not conflicting channels. Distribution management will cover the wholesaler$

distributor$ "& agent and the retailer and marketing decisions regarding retailing reach to endconsumer,

Session 6 # Introduction 7De%inition o% Distribution Management

6 >eed for Distribution "hannels ( are intermediaries necessaryG6 8ow does Distribution add value6 Distribution "hannels used6 Different kinds of distribution networks6 2atterns of Distribution6 -ural distribution

6 +nternet as a Distribution tool


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'ase Stud . ( 8ikon India 9 S & D Strateg 9 a %or;ard

0bstract

+n !ay BBH$ >ikon "orporation$ one of the world=s leading manufacturers of optical and imaging

equipment$ entered +ndia by setting up >ikon +ndia 2rivate )imited >ikon +ndia, as a wholly(ownedsubsidiary. >ikon +ndia had witnessed good sales growth and by early BBI$ had established marketleadership in the premium DS)- camera segment and also cornered a JK market share in thecompact camera segment. +n the financial year BBI(/B$ the company was ramping up its presence inthe country by expanding its retail presence with a shop(in(shop retail model. +t was also putting asales organization in place that included a BB(strong sales force. 7ith these channel developmentinitiatives$ the company expected to double its market share in the compact camera segment andfurther consolidate its leadership position in the DS)- camera segment by the end of BBI(/B.

Issues:

6 Sales and distribution strategy6 Sales organization6 "hannel development

Introduction

+n early BBI$ the #lobal 2resident of >ikon "orporation $ !akoto ?imura$ said that the company@sgrowth in +ndia had been impressive and that >ikon expected the country to be a vital market for its

products by B/L...


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Session > # 'hannel Institutions#1etailing

6 +ntroduction3Definition of -etailing6 The -etailer as a Salesman6 Theories in retail

6 #lobal -etailing Scene6 -etailers :wn brands32rivate )abels6 -etail relationships6 The evolving retail scene in +ndia6 Types of -etailers6 -etail Strategies.6 -etail 2erformance measures6 -etail +nitiatives in -ural +ndia6 ;(retailing

'ase Stud . +: !antaloon?s retailing strateg

0bstract:

The case is set in BBL and talks about 2antaloon -etail +, )td. 2-+),$ which emerged as one of themost successful companies in the still nascent +ndian organised retailing industry. The case brieflytalks about the changing retail industry in +ndia$ and the changing consumer habits$ led by its cities$with improving purchasing power. +t describes how 2-+) was addressing the unique issues that arefaced by organised playersM how 2-+) developed its four main formats to target various segments inthe market and the strategies it was adopting for branding$ marketing and operating these stores. The

case highlights the key elements that go into creating viable retail operations in a dispersed marketwith diverse buying habits. +t also highlights the factors that affect profitability in retailing indeveloping markets such as +ndia.

Issues:

6 :rganised retailing industry economics6 0nique issues faced by organised players in the +ndian retailing industry6 %uilding competitive advantage in retailing6 +mportance of understanding consumer attitudes in a growing$ traditional economy6 1nalyse if 2-+) can replicate its category management method across all its retail formats6 "an in(house brands succeed the same way in all product categories6 8ow would 2-+)=s plans change if foreign investment is allowed in +ndia.

'ase Stud . 5 9 I'I'I !ru 9 'hoice o% distribution channels

0bstract:

This caselet discusses +"+"+ 2rudential@s entry into the private insurance segment and its distributionnetwork. The company started with a base of N advisors and then slowly expanded its distributionchannels through bancassurance$ direct marketing$ and other measures. +"+"+ 2rudential also


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ventured into the rural segment through various state(level and non(government organizations.inally the caselet discusses the distribution strategies of other insurance players.

Issues:

6 >eed for alternative distribution channels in insurance6 %ancassurance as an effective medium for selling insurance6 !ethods of distribution in rural areas

Introduction:

+"+"+ 2rudential )ife +nsurance "ompany )imited +"+"+ 2ru, was set up in uly BBB as a 'ointventure between +"+"+ and 2rudential plc of 0?. +t came out with its first insurance policy onDecember /$ BBB. +nitially$ it offered a variety of products in life insurance (( Single 2remium%ond$ Save @n@ 2rotect$ and orever )ife...


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prices and high margins. The case concludes with a discussion on the challenges 7al(!art is likelyto face due to the +ndian government=s policy on D+ in retail.

Issues:

6 The retail business in +ndia.6 oreign Direct +nvestment in +ndian retail.6 7al(!art@s cash*and(carry operations.6 oint ventures in retail.

Introduction:

7al(!art Stores$ +nc 7al(!art,$ one of the largest retailers in the world$ entered +ndia in BBH withan equal 'oint venture with %harti ;nterprises %harti,$ a leading +ndia(based business group. The%harti(7almart venture operated wholesale cash(and(carry stores and also provided back(end supply

chain support to the %harti@s retail stores. +t opened its first cash(and(carry wholesale store named@%est 2rice@ in +ndia in BBI. 1nalysts said that the 'oint venture operating wholesale cash(and(carrystores had proved a good deal for +ndian retailers$ who could get products at low costs...


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0bstract:

The case focuses on the growth of the direct selling company$ Tupperware$ in the +ndian market. +tgives a background of Tupperware$ its products and its unique selling method$ the 2arty 2lan.

The case explains Tupperware@s growth over the years to become one of the leading companies inthe direct selling market. +t then discusses Tupperware@s entry into the +ndian market in /IIN and thevarious strategies adopted by it to establish itself in the country.

The case stresses on how the company changed its marketing methods to suit the needs of +ndianconsumers.

+t also highlights how +ndia became the fastest growing market for the Tupperware company andhow the company developed to become one of the leading direct selling companies of +ndia. Thecase also gives a note on the network marketing industry in +ndia and compares the strategies of

different direct selling companies in the country.Issues:

6 Structure and nature of competition in the +ndian Direct selling market and its influence on theentry of new players.6 "hallenges faced by a direct selling !>" in the unique market of a large developing country.

'ontents:

6 Tupperware@s Tryst with +ndia6 %ackground >ote

6 The Tupperware !odel6 !arketing Strategy6 uture :utlook 6 ;xhibits

Source +"!-,

Session "" 9 'hannel management

6 0se of 2ower %ases in this context6 +dentifying and -esolving "hannel conflicts$ "hannel coordination

6 Stages and reasons of "onflict6 Types of "onflict6 7ays of managing conflict6 0se of "hannel 2ower 6 ive Sources of 2ower 6 2rinciples of "hannel management6 Selection and termination of "hannel members6 Distribution !anagement for Services


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'ase Stud . >: 'hannel 'on%lict # 0pple

0bstract:

1pple "omputer$ +nc. 1pple, was the leader in the personal computer 2", market until +%! 2"

and its clones gained popularity. 1pple@s market share slipped in spite of the popularity of its!acintosh !ac, range of computers$ which were sold through authorized resellers and largeretailers. To regain its market share$ 1pple started selling online /IIH, and through company(ownedretail stores BB/,. The authorized resellers alleged that 1pple showed undue preference to its storesduring the shipment of its products. They accused 1pple of following unfair practices and channelstrategies aimed at eliminating them. The case describes 1pple@s approach to retailing and puts forththe arguments of the resellers and details of their lawsuits.

Issues:

6 8ybrid channel system$ channel functions$ and channel integration.6 ;xercise of power by a company channel leader, over the channel members.6 "hannel conflict and resolution.

'ontents:

6 +ntroduction6 The Dawn of 1pple6 rom 1pple to )isa and !acintosh6 ;xit of obs and the Decline of 1pple

6 -e(;ntry of obs6 The +ntroduction of i2od6 The 1pple :nline Store6 1pple #oes -etail6 The Trouble %egins6 1pple -evises the Terms and "onditions6 The "onflict #athers !omentum6 "onsumers and Dealers ile a "lass 1ction )awsuit6 "onclusion6 ;xhibits

SourceE +"!-,

Session " # Sales !romotion

6 Definition and :b'ectives6 %enefits and drawbacks6 Stakeholders( !anufacturers$ Traders$ consumers.6 Types of Sales 2romotions6 "onsumer$ Trade$ %usiness$ Sales orce.6 ;valuation of Sales 2romotions

!art +


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!art +

+t will cover order processing i.e. order acceptance to manufacturing & also manufacturing to orderprocessing depending upon industry specifications,$ logistics of distribution$ warehousing&inventory management$ transportation and the concept of logistics and supply chain management.

Session "( # Market ,ogistics and suppl 'hain Management

6 :rigin and definition of logistics6 Scope3material handling3:rder processing6 Supply "hain !anagement6 +nfluencing factors and integration.6 actors influencing supply chain$ Supply "hain +ntegration.6 ocus 1reas of S"! and )ogistics(warehousing 3 Transportation6 +T enabling the logistics and Supply "hain6 )ogistics$ S"! performance evaluation$ 2opular measurement ratios.

6 )ogistics for -ural !arkets6 2roduct specific S"!

'ase Stud . @ S'M 9 McDonald?s ualit assurance

0bstract:

!cDonald@s is a fast food chain with restaurants all over the world. +t serves burgers and other fastfood customized to local tastes. +t@s philosophy has been @one world$ one burgerM@ which meant thatthe burger must be consistent in terms of cost and quality. To meet such high standards$ it wasessential to have an excellent supply chain management system. +n +ndia as in other parts of theworld$ !cDonald@s had a very well orchestrated supply chain$ called the @"old "hain@. The case studylooks at !cDonald@s supply chain management system in +ndia and discusses in detail itsoutsourcing mechanism.

Issues:

6 %enefits reaped by !cDonald@s because of its supply chain"ontents

6 +ntroduction

6 %ackground >ote6 +n Search of 2erfect )ogistics ( The Story of the "old "hain6 :utsourcing at its %est6 ;xhibitsSourceE +"!-,


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'ase Stud . "A Cnilever 1e# structuring the S'M

0bstract:

The case examines the supply chain management S"!, restructuring initiative undertaken by0nilever$ one of the world@s largest food and consumer goods companies. +t explains in detail howthe company restructured various components of its S"! practices including supply chainorganization$ procurement$ warehousing and distribution.

The case also examines how 0nilever used the +nternet and various information technology tools toimprove the efficiency of its supply chain. +t concludes with a discussion on the benefits reaped by0nilever due to these measures.

Issues:

6 0nderstand the importance of an efficient S"! system for improving operational efficiencyfor a multinational consumer goods company

6 #ain an insight into the ma'or supply chain components for a consumer goods company

'ontents:

6 Short(Term #ains ( )ong(Term 2erspective6 %ackground >ote6 Supply "hain -estructuring6 %uilding the #round for )ong(Term #ains

6 ;xhibits

SourceE +"!-,

Session "+ # International sales and Distribution Management

6 >ature of +nternational !arkets6 "hoosing the !arkets6 )egal 1spects and -isks +nvolved6 "ulture and +nternational %usiness

6 Selling in +nternational !arkets(:rganising3;ntry Strategies6 +nternational Salesperson(profile and Training6 2ricing and 2ayment terms 3 "urrency implications6 2acking and Shipping


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0ssessment method in alignment ;ith learning outcomes

Students will be evaluated on the basis of case analysis$ pro'ect$ quizzes$ class participation$ mid(term and end(term exam. The weightage given to each of these units is listed belowE

"lass 2articipation BK #roup 2ro'ect submission /BK #roup pro'ect presentation /BK 9uizzes BK ;nd Term ;xam LBK

Specific 1ssessment !ethod 7eightage +ntended sub'ect learningoutcome to be assessed

d

2roup 0ssessment Methods

#roup 2ro'ect Submission /BK O

#roup 2ro'ect 2resentation /BK O

Individual 0ssessment Methods

"lass 2articipation BK O

9uiz BK O

;nd(term ;xam LBK O

2eneral guidelines %or conduct o% class:

2lease ensure that you enter the class before the instructor. >o delay shall be permitted underany circumstances unless it is intimated in advance and is due to official reasons

+n case you fail to appear in class due to any reason you would be marked absent. 1llowancefor official duty should be taken care with the 12: and will not be handled by the instructor.

Do not use your laptops and mobile phones inside the class. ailure to comply with thisrequest would make you eligible for expulsion from that class.

2lease go through mandatory reading if applicable, for the session before entering the class

Do contribute constructively to the class.

2uidelines %or group project:

"lass would be divided in teams of C people for each group

;ach team would be provided a field pro'ect related to concepts discussed in the course

2ro'ect would be finalized during the first couple of sessions


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Teams are required to submit a brief synopsis covering introduction to the pro'ect$ itspractical applicability in the business environment$ scope $ methodology and key milestones

Teams would be required to submit progress reports $ first would be (C weeks and secondwould be J(N weeks after the commencement of the the pro'ect

inal report should be submitted by the second week of une$ date for the same would becommunicated in the class

inal submissions should be fairly exhaustive in nature covering all necessary aspects of thepro'ect. They should be typed in !S 7ord with /.J line spacing$ normal margins$ font size/ in Times >ew -oman font type on 1L sheets.

inal report should be tentatively formatted as followsE

a, ;xecutive Summaryb, )ist of abbreviationsc, )ist of tables3 charts3 graphs3 figuresd, +ntroduction 3 background of the studye, :b'ectives of the studyf, Scope of the studyg, !ethodologyh, Data presentation and analysisi, -ecommendations

', "onclusionsk, -eferencesl, 1ppendix 1 soft copy of the report should be emailed to vikasbaggaPhotmail.comby /Ithune B/C

1ll submissions would be compulsorily put to plagiarism check.+f fonud guilty of plagiarismteams would be awarded zero marks and submission would be forwarded o higher authoritiesfor disciplinary action.

2uidelines %or presentation:

2resentations of the team pro'ect should be in the form of a powerpoint or any other formatcompatible with 7indows H operating system

"opies of the presentations should reach the instructor LA hours prior to the scheduled date ofpresentations.

;ach presentation should necessarily carry the mobile number of the person who should becontacted in case the instructor wishes to get some changes3iterations made during those LAhours. +t must be ensured that the person responsible is willing to and available for makingthose changes during that time.

2resentations should range between /B(/J minutes covering vital aspects of the pro'ects. Donot give introductions to company 3brand. ocus on rationale$ ob'ectives$ methodology$analysis$ outcomes$ recommendations and implications of the same.

ailure to complete the presentation within /J minutes would make the team liable todeduction of marks which will be at the sole discretion of the instructor.

1ecommended readings:
mailto:[email protected]:[email protected]:[email protected]


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!rescribed te3tbook :

Sales !anagement by -ichard -. Still$ ;dward 7. "undiff & >orman 1.2. #ovoni

,ist o% re%erence books:

!arketing "hannels by )ouis 7. Stern$ 1del +. ;l(1nsary & 1nne T. "oughlan !arketing "hannel !anagement by 2ingali Fenugopal. Sales and Distribution !anagementE Text and "ases an +ndian 2erspective$ S ) #upta Sales and Distribution !anagement$ 3e$Tapan ?. 2anda & Sunil Sahadev

Booksother suggested readingsE

-osenbloom$ %ert BBL, !arketing "hannelE 1 !anagement Fiew$ "enage 2ublications$

Delhi Q-%R "hurchill$ ord and 7alker=s Sales orce management BBI, Ith edition$ Tata !c#raw

8ill$ Delhi Q"7R "reating a Distribution 1dvantage in +ndia$ %"# #roup. -einventing Distribution * ! S %anga Supply "hain )ogistics !anagement ( %owersox$ "loss & "ooper * !c#raw8ill$ nd +ndian ed. 7orld "lass Supply !anagement ( %urt$ Dobbler$ Starling $ T!#8$ Hth ed. #lobal operations & )ogistics( 2hilippe ( 2ierre Dornier$ ohn 7iley & sons +nc$ >ew ork$ BB. Designing and !anaging the supply chain ( David Simchi$ )evi & 2hilip ?aminsk$ !c#raw(8ill "ompanies +nc.$ BBB. :perations >ow * inch$ !c #raw 8ill$ Crd ed "ase Studies in !arketing ( +ndian context ( -.Srinivas "ase study solutions ( 8.?aushal

Fournals7$conomic Dailies:

ournal of +nternational !arketing ournal of +nternational %usiness Studies 8arvard %usiness -eview

i. Stern$ ).7.$ and Sturdivant$ .D. /IAH, "ustomer driven distribution systems$ 8arvard%usiness -eview$ Fol NJ L,$ pp CL(L/

ii. 8lavacek and !c"uiston /IAC,$ 4+ndustrial Distributors * 7hen$ 7ho and howG5 8arvard%usiness -eview$ !arch(1pril

iii. Trailer %arry and im Dickie BBN,$ 40nderstanding 7hat your Sales !anager is up1gainst$5 8arvard %usiness -eview$ uly( 1ugust

iv. oltners BBN,$ 4!atch your sales force structure to your %usiness )ife "ycle$5 8arvard%usiness -eview$ uly( 1ugust

Fournal o% Marketing 1esearch


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7all Street ournal inancial Times "hannel conflict( when is it dangerous. %ucklin et al$ !c?insey 9uarterly #illiland$ D.+.$ BBL, Designing channel incentives to overcome re'ection$ +ndustrial

!arketing !anagement$ Fol.CC$ AH(IJ 4Distribution "hannel Structure +n -ural 1reasE 1 ramework and 8ypotheses$5 Decision C

/,$ an(une BBJ. -andall$ . ;. and -andall$ ".8. BB/, 1 current review of hiring techniques for sales

personnel$ ournal of !arketing Theory and 2ractice$ Spring$ HB(A. #entry$ .7.$ !owen$ .". and Tasaki$ ). /II/, Salesperson evaluationE 1 systematic

structure for reducing 'udgmental biases$ ournal of 2ersonal Selling and Sales !anagement$Fol. // >o.$ H(CA

sdm by vikas bagga

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