Sales And Distribution Assignment on

ONN Premium Innerwears

SUBMITTED BY:
16PGDM-BHU013 ARPIT AGRAWAL
16PGDM- BHU023 FAISAL KHAN
Company Overview and History
Lux Industries was set up as the Biswanath Hosiery Mills in 1957 by the late
Girdharilalji Todi. Girdharilalji's sons took over the operating responsibilities in
1964. The next 20 years saw the company growing 100 times in size through a
series of marketing and manufacturing innovations. This included launching
the Consumer Coupon Scheme in 1992 (Mazedar Mauka). In the same year,
Lux became the first company in the industry to use celebrity brand
ambassadors. In 1992, Lux launched their first television commercial with the
famous yeh andar ki baat hai tagline. The following year saw the company
launch their export operations and quickly established a strong presence
overseas, with offices in the Middle East, Europe, and Africa. In 1994, Lux
organised the first Dealers Conference in the Indian hosiery industry and also
established the industrys first International Dealers' Tour. 1995 saw the
company officially changing its name to Lux industries limited. This was
followed in short order by the establishment of over 500,000 retail outlets all
over India, and has offices in Kolkata, Delhi, Agra, Indore, Mumbai, Ludhiana,
Jaipur, and Roorkee. Bollywood actor Sunny Deol was signed on as Lux's brand
ambassador in the year 2000. He has been the face of the company ever since.
In 2001, Lux went public and for the first time, ownership of the company was
available outside of the Todi family. In 2003, the company launched its first
IPO. The IPO was massively oversubscribed. In 2010, Bollywood star Shah Rukh
Khan was signed as a brand ambassador for Lux. Despite not directly involved
in promotions of the Lux brand, Shah Rukh continues to be associated with the
Lux family.
 Lux Ltd.

ONN (Premium
Lux Gaments Lyra Leggings
Garments)

Lux Industries Ltd. has its market in different segments of the garments.
1) Lux Garments- It is the oldest of the all brands. Lux Garments has its
strong customer base since 1960s. Lux Garments target each consumer
from rural as well as urban population. The categories in Lux Garments
are Lux Cozi, Lux Venus, Genx etc. The brand ambassador of Lux
Garments is Sunny Deol.

2) ONN This brand is the brand extension done by Lux Industries in

premium segment market. The products of ONN are costlier than Lux
Garments. The brand ambassador of ONN is Shahrukh Khan.

3) Lyra Leggings- Lyra is the product extension done by Lux Industries to

enter ladies segment. The brand ambassador of Lyra leggings is Prachi
Desai.

About the project

In this project, we will discuss about the sales and distribution of ONN
premium innerwears and how its Sales force work in the Bhubaneswar
Market.
Distribution Strategy of ONN
ONN is the Premium Inners/Men's Underwear Brand from the house of Lux
Industries Limited. Crafted with the latest technology, the ONN range of
innerwear effectively touches the style nerve of the fashionable Indian male. A
vast range of designs, top notch quality and sensible styling has been
presented to meet the standards and aspirations of today's youth. In addition,
the very fact that the great fashion icon actively endorses it - Shahrukh Khan -
adds yet another feather to its cap.

Distribution Channel

Factory Outlet

Direct Major Chains

Distributors Factory outlet
Marketing (eg. Pantaloons)

Wholesalers

Retailers
Competitors
ONN competing with brands like Jockey and Calvin Klein in Indian market. ONN
is a premium innerwear which started in Indian market in 2010. Jockey became
an aspirational brand, and as middle-class incomes grew, an affordable one.
That is where Page's strategy of focusing on quality, generating brand pull and
creating a new paradigm in innerwear display and retailing paid off.
Jockey had enjoyed a very dominant position in the premium innerwear till
introduction of ONN. Jockey has successfully positioned its product in the mind
the Indian consumers. Jockey had a very strong consumer perception because
of its aggressive marketing campaigns. Introduction of ONN was the biggest
challenge for Lux Industries Ltd. To support and create awareness of the brand
ONN. The company made a contract of 2 years with Shahrukh Khan to promote
and advertise the product.
Lux Industries Ltd. has its strong distribution base of its product in Indian market
since 1970s. Instead of setting up its new distribution channel for ONN category,
Lux Industries used its old distribution channel but chosen to distribute its
product only to A class of its distributors and wholesalers.
Setting up in the markets requires a precise execution of the marketing
campaigns and the fact that Onn was supposed to penetrate the premium
segment of the inner wear segment which was already occupied by the likes of
Jockey and Calvin Klein. Breaking the perception of the consumer which was
associated with lux which was regarded as the brand for the middle class
segment and Onn was supposed to break the clutter and for the same they set
up 2 plants in Kolkata for the purpose of procurement which was setup to keep
up to the demand of the Eastern Region.
Bhubaneswar Market
Odisha is divided into 3 division i.e. North Division, Central Division, and South
Division.
Lux Industries Ltd. has setup 2 distributors in Central Division to capture
Bhubaneswar and other markets of district in Central Division. The distributors
in Central Division are:
1) Jitendra Textiles Cuttack

2) Santosh Textiles Pvt. Ltd. Puri

These distributors cover a wide range of Central Division in Orissa. The districts
covered by these distributors are:
1. Balasore
2. Bhadrak
3. Cuttack
4. Jagatsinghpur
5. Jajpur
6. Kendrapada
7. Khordha
8. Mayurbhanj
9. Nayagarh
10.Puri
11. Bhubaneswar City

Jitendra Textiles operates in half of the Bhubaneswar city. The districts which
comes under Jitendra Textiles are: Cuttack, Balasore, Bhadrak, Jajpur,
Kendrapada and Mayurbhanj
Santosh Textiles Pvt. Ltd. operates in half of the Bhubaneswar city. The districts
which comes under Jitendra Textiles are Nayagarh, Jagatsinghpur and Puri.
Wholesalers and Retailers
The company has decided to distribute its premium segment brand only to
limited wholesalers because of its 30 days strict credit policy. Therefore, the
company distributes its product only to its A class customers.
Total wholesalers in Bhubaneswar of ONN are 14
Total retailers in Bhubaneswar of ONN are 170 approx.
Total wholesalers covered by both the distributors are approx. 36

As per the policy of the company, Small cities like Balasore and Badrak there
should not be more than 1 wholesaler in the city. Company does not want to
sell its product in small outlets. Reason behind this decision is to maintain its
premium value.

There is some strict policy from the company which is to be followed by

Distributors and Wholesalers:

1) Distributors and Wholesalers should clear their dues within 30 days of

receiving the goods. And by clearing the dues within 30 days the
company gives the cash discount of 2%.

2) Neither Distributors nor wholesalers can sell their product outside their
region. i.e. Central Odisha.

3) The towns specified by the Marketing Manager where there should not
be more than 1 wholesalers. The Distributors should follow it.
Salesforce
Lux Industries Ltd. has a large salesforce in all over India. Lux Industries Ltd. has
setup its completely different salesforce in the ONN division.
The company has setup different Area sales manager in different region and
under each sales manager there are 4-5 area sales executive.
Marketing
Manager

ASM ASM ASM

ASE ASE ASE

ASE ASE ASE

How does salesforce team work in Lux ONN?

1) Area sales manager of the region controls sales personnel of ONN.

2) The companys HR Training Department are training each sales

personnel.

3) Sales personnel gets the weekly schedule of the visits they need to do.

4) Distributor keeps direct contact with the sales force and the sales force
keeps the distributor updated with the orders.
Roles and responsibilities of ASM (Area Sales Manager) of
ONN
1) ASM must prepare a monthly chart in advance to each ASE to which
market to visit each day.

2) Ensuring weather each sales force is visiting to their assigned place or

not.

3) Managing the salaries and expenses of the sales force.

4) Monitoring sales team performance, analysing sales data, periodical

forecasting and reporting to marketing manager.

5) ASM coordinates with the distributors about the inventory to be

maintained, sales force activities and orders given by the wholesalers
and retailers.

6) ASM visits each area once in a month to coordinate and take the
response of the market situation from wholesalers.

7) Create strong relationship with the wholesalers and retailers.

Roles and responsibilities of ASE (Area Sales Executive) of

ONN
1) Sells products by establishing contact and developing relationships with
wholesalers and retailers.

2) Attending trade exhibitions, conferences, and meetings wherever and

whenever ASM calls for.

3) Report their visits and order received to Area Sales Manager.

4) Identifies product improvements or new products by remaining current

on industry trends, market activities, and competitors.
More about Sales force
1) Sales force is getting trained in Kolkata headed by Mr. Almas.

2) Area Sales Executive is getting paid around 15,000 - 18,000.

3) Area Sales Manager is getting paid around 20,000 - 23,000.

4) Soon, company will distribute tablets to the Area Sales Executives to

track their location and time spend at each outlet.

5) The sales executives should spend at least 15 min. in each outlet

according to company standards.

Company owned outlets:

ONN showroom
Forum Mart
Industrial Area, Kharabela Nagar
Bhubaneswar, Odisha 751007

These outlets are the Joint Venture between the company and the distributor.
These outlets are mostly based on the cost allocation model. Company pays for
the onetime cost and a certain percentage of rent while the distributor pays
for the staff salary and equipment and the remaining portion of rent.

Supply Chain (Showroom)

Factory Warehouse Showroom