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Blow Plast India Limited: Eastern Zone Sales
Presented By:Shivangi Jharkharia (2011184)Supratim Bose (2011201)Urvika Saxena (2011213)Vinamra Kumar (2011227)Neer Prajapati (2011239)Sheetal Saxena (2011255)
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Brief Background
• Manufacturer of moulded plastic and later shifted to moulded luggage segment
• Wide network covering major cities and state capitals
• Strong dealer network• Competition from few national and
multinational players
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Retail Stores
• Trolleys
• Luggage carriers
• Make-up boxes
Manufactur
ersBlow Plast
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The Situation
• Mr. Reetinder Wadhwani, VP (Sales) wants to reorganize the eastern zones into four territories
• Presently, sales running at Rs. 75,00,000
Company Policy: When sales in one territory exceeded Rs. 25,00,000, it needs to be broken down into smaller territories
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Sales force Compensation Policy
Fixed
Salary
Performance based annual bonus
Total
Salary
Travel expenses according to the company norms were reimbursed Sales officer provided with a company car for travel
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Reasons for Revising Sales Territories
1. Providing proper market coverage
2. Controlling Sales Expenses
3. Assisting in evaluating sales personnel
4. Contributing to sales force morale
5. Coordination of Personal Selling and Advertising
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The Issues
• Locating salespeople at the home state is complex
• North-east is well spread with less market potential
• Size and market potential of states are very diverse
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Reorganization of TerritoriesC
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Adjusting for coverage difficulties and redistributing tentative territories
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Maps of regions under consideration
Note: In this case Jharkhand is still a part of Bihar
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City Number of retail stores
Number of firms
Value added by firms (in lakhs)
Power Index (BPI)
Number of eastern zone customers
Eastern zone sales (000's)
Square miles
Sales Territory
Bihar
Patna 1485 421 67 0.012 85 980 396
Gaya 567 76 43 0.005 32 657 282
Muzzafarpur 653 69 34 0.007 21 34 143
Kissanganj 453 54 52 0.006 32 48 154
Darbhanga 546 53 18 0.005 21 71 134
Samastipur 387 34 14 0.004 23 45 231
Bhagalpur 290 26 23 0.005 12 34 301
Munger 267 53 31 0.003 21 29 231
Biharsarif 321 41 16 0.002 9 28 127
Nawada 129 19 23 0.003 4 24 234
West Bengal
Medinapur 659 85 51 0.006 32 56 341
Khadagpur 569 73 54 0.004 34 59 328
Bankura 248 54 45 0.004 22 34 236Total 2099 3138
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City Number of retail stores
Number of firms
Value added by firms (in lakhs)
Power Index (BPI)
Number of eastern zone customers
Eastern zone sales (000's)
Square miles
Sales Territory
OrissaBhubaneswar 1786 673 69 0.11 97 760 450Cuttack 678 98 54 0.09 43 435 345Puri 321 43 37 0.005 23 46 351Balasore 343 54 51 0.004 31 35 342Bhadrak 254 24 19 0.003 10 43 237Sambalpur 323 28 20 0.005 12 41 126Bolangir 210 19 16 0.006 7 84 126Rourkella 320 51 52 0.004 40 57 132Berhampur 375 54 34 0.003 32 49 143Koraput Jaipur 287 43 21 0.005 21 34 147Few States of A.PVijaywada 560 71 34 0.006 54 59 341
Vishakhapatnam 642 45 43 0.009 34 123 236Total 1766 2976
Sales Territory
Rest of A.PKhamam 342 65 41 0.0034 5 67 328Hyderabad 2180 426 76 0.15 47 1230 876Secunderabad 2359 570 43 0.176 54 245 998Cuddapah 275 54 12 0.034 32 23 342Guntur 305 46 21 0.029 24 21 236Nellore 298 45 34 0.004 10 98 245Raichur 236 85 12 0.002 5 59 325Mehboobnagar 327 34 34 0.004 10 87 431Total 1830 3781
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City Number of retail stores
Number of firms
Value added by firms (in lakhs)
Power Index (BPI)
Number of eastern zone customers
Eastern zone sales (000's)
Square miles
Sales Territory
West BengalKolkata 3752 689 179 0.179 85 1256 985Burdwan 498 34 43 0.004 12 67 342Haldia 459 76 61 0.005 32 65 321Barhampur 543 46 39 0.004 21 54 267Darjeeling 231 43 34 0.003 12 45 311Krishnanagar 654 71 76 0.006 25 43 452Balughat 348 39 53 0.003 12 37 186AssamGuwahati 679 76 34 0.001 34 34 432Dispur 562 82 24 0.001 32 45 231Tezpur 342 48 27 0.001 16 27 195Bangaigaon 187 19 19 0.001 5 18 184Dibrugarh 438 43 17 0.001 23 34 165Kokrajhar 237 34 23 0.001 13 19 149North-eastern statesAgartala 123 24 21 0.002 10 32 127Aizwal 321 45 12 0.001 5 21 98Imphal 541 38 11 0.001 2 23 76Kohima 342 42 13 0.001 12 27 65Itanagar 127 19 11 0.001 8 19 93Grand Total 1866 4679
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Recommendations
On the basis of our study we came to the conclusion that the territories can be divided into the following:
1. Assam, other north-eastern states and West Bengal sans the south-western part
2. Bihar and south-west West Bengal
3. Orissa and northern Andhra Pradesh
4. Southern Andhra Pradesh
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