Sales Force And

Channel
ManagementAssignment 2
Presented by:

Gem Soaps and Detergents Ltd

[GSDL]

1) Akshita Sinha
(2015D03)
2) Anupam Kacker
(2015C60)
3) Debabrata Sahana
4) Gaurav Bist (2015C59)
5) Akshaya Iyer
(2015D02)

Gem Soaps and Detergents Ltd [GSDL]

Major Player in Industry for 30
years
Detergent
Powder
Tablet form
Market Leader in some
Geographies

Neglect Coverage of Weaker

Markets
New Extensions and Localities
not covered
Reduce credit % in beat plans
Credit used to lure each other
customers
Competition brand nibble into
GSDL
Market Share
Retailer, Semi-Retailer take
advantage
for added benefits

Distributo
rA

Main Mandi
Market
Bs Customer
Discounts

Violation of GSDL
Norms
ASM Murli Counsel
session Separately/togethe
r
Complain about
reduced margins
Not admit their
problems

Location Mandi
Wholesale Stores
100
yards from each
other
Low Volume
earlier
Manifold
One
Such
increase
City

GSDL:
2 biggest Channel
Partners
Clearly Defined
Territories
Equal Sales
Revenues/month
Signed Agreements
Rules of
Operations
Terms & Conditions

Distributo
rB

Call them
with better
terms
Calls As
customer
from Mandi

A & Bs ROI was in

excess of
Idea of 3rd
Distributor
Teach A &B
Lesson
Better Direct
coverage of
Entire City
3rd Distributor gets
New Extension
Carve territories out of
A&B

The Solution of GSDL brings more

Problems
GSDL launches Shampoo
Not give A & B at all
Considers Distributor C

Good with Competitive

Products

A & B argue
Not content with
Detergent only
Say they built GSDL in
city
Forgot the Marketing
efforts of GSDL

Decision Risks:

GSDL:
Succumb to Pressure
A & B were given the
Shampoo
C was given Territories from
A&B

Selling in Each others Territory wont stop

New Shampoo wont reach the desired Width or Depth of Distribution
Will contribute only 10% of revenue in 1st 2yrs
GSDL will give additional markup of 1% for 1yr on condition theyd put at least 25%
of effort.
Selling in each others territory wont stop
Aggressive selling efforts by A & B wont let C succeed

What do you think is

the future for GSDL
distribution in the city?

FUTURE OF GDSL DISTRIBUTION

In the given case study there is a situation of conflict between
the loyal distributors of GDSL.
IS THE CONFLICT GOOD OR BAD?
Conflict is sometimes required between different channel
partners so as to enhance the quality provided by all of them
For example, a solution which helps GSDL keep happy each of
the channel partners will help it create a stronger distribution
network across the place
Lack of any channel conflict indicates gap in market coverage.
We can only work towards minimizing the conflict.
Following are some ways in which the whole conflict can be
reduced :

Solution 1
A, B
and C must be asked to sign
agreements not to sell in others
territories or competitors products.

Penalties of reduction in Markups can be

put on paper.
If Cases with competitors product is found
they would get blacklisted.

GDSLs goal should be to maximize

sales of its products rather than
go into the Distributors Dynamics

Murali the ASM should mediate

the fight only up to a point and
only when it hurts sales.

A & B have learnt a lesson. Have

to share territory with C.

This
will
ensure
a
heavy
competition, will not try to get
customers
not
from
their
territories

If problems occur, it should be sorted in a

meeting with Murali as the mediator.
Additional
new
territories
will
be
assigned by GDSL on basis of their
performance.
Subtly give A, B & C a message that GSDL
wont
tolerate
anti
competitive
behaviour,

could introduce a 4th Distributor

replacement
Assign Shampoo to only C

or

Feasible Solution 2:

Discounted Pricing:- The best

way to ensure that the channel
conflict is reduced is to give a
suitable discounted price to
the channel which has
acquired the maximum
percentage of its consumers in
the territory allotted to them

This will ensure a heavy

competition, but in no way
the different distributors will
now try to get customers not
from their territories

Feasible Solution-3

We divide the 3
different products and
give it to the different
distributors.
For example, A gets
Soap, B gets detergents
and C gets shampoos as
it is a new product and C
is a comparatively new
distributor

The geographical expanse of the town

has to be covered by all of the three
distributors now. So the feasibility has to
be checked in terms of infrastructure,
distribution expenses, reshuffled beat
plans etc. If the company manages to
apply the solution as per case1, it will
have following benefits:

The channel
partners can
share costs as
they are not
rivals any more

Further there
will be no price
wars between
all the
distributors

All
distributors
can cater to
same
customers

Feasible Solution 4- Distributors

Market development
programs
Quarterly or half yearly
assessment ofdistribution
practices
market penetration in terms
of width and depth of
distribution
There should be monetary
rewards linked to these
programs

Expenses reimbursements
The

companies generally reimburse the expenses incurred in

schemes and discount offered in the market in two ways- in the
invoicing itself or post sales.
To

monitor the use of schemes, the company should go for post

sales reimbursements. In this case the executives first examine
the pattern of discounts offered. This will act as a control
mechanism

Feasible Solution 4 Retailers &

Wholesalers
Relationship building programs:
The

company should run relationship building programs with major retailers and wholesalers
to get assured business over a period of time.
This

can be done, for example, if there are rewards for taking a certain quantity of products
over a period of say, three months.
These

rewards can be monetary or non monetary like consumer durables. This will
automatically do one thing for the company, the rewards will be passed on to thecustomers
only through the distributors who are supposed to cater them. If they take it from another
distributor, off the record, they will not get the long term rewards.
Moreover,

dealers performance will also be judged on the basis of success of these plans.
Defecting will be a loss for them.

Feasible Solution 4 For

salesmen
Incentives attached to goals:
The

incentives should be properly linked to-

Regularity
Proper

of billing at a particular outlet in their respective beats.

placement of products in the outlets

Inclusion

of new accounts in the assigned area

No incentives should be given if a salesman is found to be selling to other

retailers or wholesalers.

What should GSDL

do to resolve the
channel conflicts
and also ensure the
successful
marketing of
shampoos?
GSDL has already given 1% extra
margin for successful marketing.
Convey the message that
shampoo will be taken off from
underperforming distributors at
the end of the year
(The shampoo has already proven
good in test markets)
C is an established distributor and
can handle competition from A & B
Murali should focus on building
good relations with C