SALES AND CHANNEL

MANAGEMNT
Exam File

VISHAL KARAMCHANDANI
MJ18CMM042
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Part A

b) 1) In pharma industry mostly the network model followed is through wholesaler, so here for
OTC products we will be using wholesaler network. In wholesaler network the reach of the
company is bigger and they can reach to much larger outlets to distribute their products. As
once delivered to wholesaler they can further use their own ways to distribute the products.
Wholesalers usually are the intermediary between the retailer and the company keeps all the
brands of the categories they operate in. Whole sellers have credit arrangements, bill to bill
arrangements. Until previous bill is cleared the next stock would not be released
– Stock adequately
– Redistribute where gaps exist
– Provide feedback on competitive activity

2) Following factors will help him in deciding the criteria for classifying outlets:

Catchment Area: it is one of the most important factors which suggest that accessibility is an important
determinant. There’s a large variability in providing services within different catchments in the same
area depending upon actual travel time to the facility.

Demography: it involves the population, age and income level of the people.it studies the statistics to
illustrate the changing structure of populations.

Street combing: it is something will help us understand the competitors around the location. Marketing
research will tell us what is there target market and their preferences.

Warehouse/transportation: the accessibility of warehouse and transportation facility for the ease of
business.

Profit Margin: profit margin for each outlet will be different as the product in each outlet may differ as
well as the transportation cost also may vary from place to place.

Range of Products: range of products as there’s a wide variety of products available in each outlet
depending upon the target market for different locations.

After-sale services: after sale services for providing servicing of electronic products in case any problem
arises in near future.

Work-force: maintaining the same service level for each store is necessary.
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Number of
Classification Outlets distribution (%) Revenue (%)
outlets
A: 25% 375 70%
B: 35% 525 20%
C: 40% 600 10%

total number of
1500
outlets
Total
Outlets classification Number of calls Percentage
calls
A 4 25% 1500
B 2 35% 1050
C 1 40% 600
Total 3150

Here we have given the outlet distribution as A- 25%, B-35%, c- 40% these outlets will generate the
revenue as 70%, 20%, 10% respectively. So, since outlet category A will be giving more revenue we will
be making 4 calls and then with B category 2 calls and with C category 1 call which will lead to total call
of 3150. These classification is such because A category will be giving more business followed by B and
C.
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3.)

Total calls 3150

Total Time for calls 9 hours
540 minutes
Lunch break 30 minutes
Smoking and Toilet break 30 minutes
Transit Time 40 minutes
Mobile calls 20 minutes
Total spare time 120 minutes
Total Time on calls per day 420 minutes
Call Time per month 9240 Minutes
Time per call (Assumption) 15 Minutes
Total Time in minutes 47250 minutes (15*3150)
Workers Needed 5.113636364
Workers Needed aggregate 6
Total work force (1Supervisor per 3
salesman) 8

4) HR department: -

 They will make sure that they will hire right resources.
 Motivation is given by HR department
 Training and coaching is organized by HR department
 Vision and Mission is set by the HR department.

Finance Department: -

 Salary Hikes and bonus will be given by finance department

 They will ensure perks and dues are clear on time for every employee
 Appropriate budget will decide the type of work and distribution strategy.
 They will make sure that working capital is available to run and support of business.

As mentioned above these are the few ways in which these 2 departments can help the distribution
strategy is well executed.
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Part -B

4)

S. No. Description Case 1 Case 2 Case 3

1 Monthly Turnover ($ Mn.) 12 20 30
2 Stock Level carried (days of monthly sales) 14 18 25
3 Market Credit 1 - (% of monthly sales) 25 35 50
Market Credit 1 (days of monthly sales) 10 22 12
4 Market Credit 2 - (% of monthly sales) 30 25 30
Market Credit 2 (days of monthly sales) 15 16 10
Balance
5 Market Credit 3 - (% of monthly sales) 45 % 20
Market Credit 3 (days of monthly sales) 7 12 Cash
6 Claims unsettled (days of monthly sales) 3 4 7
7 Company gives Credit (days) 15 21 30

27.15 38.5 41
12.15 17.5 11
0.405 0.583333 0.366667
Working Capital (in $) 4.86 11.66667 11

5) Agree & Disagree

i. Agree
ii. Disagree
iii. Agree
iv. Agree
v. Disagree

A sales competency is defined as the level of skill required for a job levels in sales. Agreed, it is true
that for job level in sales different types of skill are required, for example sales planner and organizer
will have different competency and would require different skills to handle the things.

Sales Planner Organiser

KRA Focus Territory Organiser
Team Objective Setting Selector/ Retainer
Vision into Action
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Challengers can make only marginal changes and not transform sales organization.

Disagreed, because they can use their deep understanding of the business to push their thinking and
take control of the conversation. They’re not afraid to share even potentially controversial views and are
assertive — within the organization. (Can build, communicate and execute a vision … in other words, can
lead).

7) Calls Made - It is the total number of time a sales person visited the market to make a deal. This will
provide the clear idea about how many times an outlet need to be visited and which can be further used
for classifying the outlets and thus maximizing the revenue by making a call to important outlets.

Productive calls - Calls where a Bill was cut/Total Calls Made in the day. This will provide the clear
picture how many successful calls are made within the territory, this will generate the working capital
needed to run the business. Also, when calls are made some of them are not successful, this will let us
know that our products are successful or not and will get the feedback from the distributor if the
product is not that much effective.

New outlets added – This parameter will help to find that whether the objectives set are achieved or
not. Every organization has the objective to increase their sales territory. This will let me know whether
the objectives and goals are achieved, if not one can analyze the distributor strategy and can motivate
them and help them to build such a strategy that can increase reach and thereby increasing revenues.

6)

As we can see from the sales funnel that as we go down the number of people to make business deals
keeps on decreasing. This will happen in every business. But huge dropout is a concern. So here in this
case we are not tracking effectiveness and efficiency. It is quality of effort and way of working that
matters in every success in the field of sales. Tracking efficiency and effectiveness will guide us the loop
holes and disciplines where one is lacking so that we can look up to those areas. Since it is a crockery
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business the quality of crockery matters a lot, we are not getting enough feedback from distributors
about the product which can help to improve in making better products. There can be other reasons
that skilled sales person are not present in the environment who can project the sales pitch to make the
deal successful. Training and mentoring is required for low performers sales people. In this way by
finding the loopholes our crockery business can improve and leverage.

Part C

8) Working Capital defines the finances required by the Distributor to run his business smoothly and in
line with sales & growth objectives. Working Capital has often been described as the “life-blood” of an
organization. Just as sufficient quantity & right quality blood is essential in making the human body work
efficiently, so also adequate Working Capital is critical to run a Distributor’s organization. Working
Capital has 2 clear aspects to consider:

 The current requirement i.e. to run the current level of business

 The additional future requirement i.e. to realise the growth ambitions of the company in
the Distributor territory.

Therefore, an important part of Managing Distributors is ensuring their Working Capital requirement
and calculating it timely.

12) Five key roles are: -

 Strategic planner
 The client focused positioner
 The focused catalyst
 The efficient Boss
 Value driven Guardian

Strategic Planner

They are strategic oriented and can see big picture and have the ability to tie long term vision into short
term goals. They are straight‐forward and have high intellect. They are problem‐solver and a fact
finder.

Efficient boss
They are great educator of whole selling cycle. They can influence others and are good at
administration. They are goal oriented and can use the authorative decisions which help to follow
the structure in the organization.
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9) a) Width and depth –

Width - Total number of retailers holding a product in the retail universe. This will help us to know hold
of our product in market.
Depth - how close to the final consumption location does an intermediary deliver the
products. This will let us the reach of our product or the territory occupied.

d) Credit and Collection= company maintains a limit and period and payment method of credit with the
retailers.

f) Goodwill and reputation= good network, product and service the company reputation rises.

11)

• How long are the MINUTES TO BUY?

The time taken by a sales person to make a successful call (How much time does the sales
person takes to convert his sales). Thus, this will tell the conversion time.

• How do we deliver ARMS LENGTH availability?

The consumer must travel the least distance to get a Company brand. Don’t be far from each
other. So, this will help us in determining the distance travelled by consumer.

And we can improve upon these disciplines if needed.