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JOHN DEERE EQUIPMENTPRIVATE LIMITED
JohnDe
ere
SALES AND DISTRIBUTION
Nailesh JacobAnish PandathPradeep KumarRishabh SoodGovindarajan ASymbiosis Institute ofInternational Business,Pune
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INTRODUCTION
Founded in 1837, presently employees around 56000
employees.
Its business is spread over 52 countries in the world,
with its headquarters located at USA.
For 2008, its net sales from equipments account for
about 26000 million USD.
John Deere
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John Deere consists of three major business segments:
agriculture and turf- includes farm equipments,
irrigation equipments, tractors, golf course equipmentsetc.
construction and forestry- leading manufacturer of
forestry equipments and construction equipments aswell.
credit- in addition to financing of its agricultural andconstruction equipments, also offers operating loans tofarmers, crop insurance etc.
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INTRODUCTION
The GREEN AND YELLOW TRACTORS
Entered in India in 2002 and is at fifth position in Indian
Market.
In Indian market JD potential competitors are Mahindra
and Mahindra, TAFE, Escorts, New Holland Ford etc.
It is the No. 1 exporter of tractors in India exportingalmost 60% of the production.
Offers a wide range of tractors from 35 hp to 70 hp.
John Deere
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JOHN DEERE EQUIPMENT, SANASWADI PUNE
John Deere Equipment Private Limited is a subsidiary ofDeere & Company, USA in India. Its factory, locatednear Pune, manufactures 5000 Series agriculturaltractors.
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THEMODELSOFFEREDIN INDIA
MODEL Hp5103 Economy 35
5103 405103 Super 42
5104 455203 47
5203 Super 505204 505310 55
5310 MFWD 555410 65
5310 Super 70
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John Deere
SALES ORGANISATIONSTRUCTURE (INDIA)
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John Deere
SALES ORGANISATION STRUCTURE(MAHARASTRA)
Territory
Manager
Assistant
territory
Manager 1
Assistant
territory
Manager 2
Assistant
Territory
Manager 3
Assistant
territory
manager 4
Office
Assistant
Demonstrat-ors
and exchange
experts
Dealers & sub
dealers
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In Maharashtra, state is roughly divided into four zonesviz. east, west, north, south.
Each assistant territory manager is assigned one zonewhich comprises of five to six districts.
Demonstrators and Exchange experts play vital role instrategic selling.
John Deere
SALES ORGANISATION STRUCTURE
(MAHARASTRA)
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Different theories that companies adopt for selling theirproduct, JD prefers AIDAS Theory. AIDAS means:
A - Attract
I - Develop Interest D - Deliver
A - Action
S - Satisfy
John Deere
SALES ORGANISATION STRUCTURE
(MAHARASTRA)
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John Deere
DISTRIBUTION NETWORK
INDIA
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Head office (PUNE)
Factory(PUNE)
Area office(14)
Learning & DevelopmentCentres(4)
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AREAOFFICES
Ahmedabad
Bangalore
Bhopal
Bhubaneswar Chandigarh
Chennai
Hyderabad
Jaipur
Kolkata
Lucknow
Patna Pune
Raipur
Udaipur
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Operating sales forecast is a prediction of how
much of a companys product can be soldduring a future period.
Following are the techniques for forecasting: Jury of Executive Opinion
Poll of Sales Force Opinion
Projection of Past SalesSurvey of Customers Buying Plan
John Deere
SALES FORECASTING
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How sales force actually works andachieve targets at ground level.Territory Assignment
Budget & Sales Expenditure
Job Responsibilities
Pricing Policy
John Deere
SALES FORCE EXECUTION
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TRAINING CENTRES
JD emphasises on quality training and development ofits employees as well as dealers and his staff.
JD has four training centres in India. These centres arelocated at
Maharashtra - Pune
West Bengal - Burdwan
Karnataka - Bengaluru.
Haryana - Yamuna Nagar
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TRAINING CENTRES
JD conducts customised training programmes at thesetraining centres. Few of which are listed below.
Product training programme
Tractor overhaul programme Certified salesman programme
Refresher programme etc
It also conducts lectures by different consultants forsales staff and dealers.
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TERMS OF TRADE
Payment Terms
o
No credit provided to dealers with the exceptionof big dealers with a good track record - at thesole discretion of the company .
o Big dealers Max of 15 days credit
o Max credit is 35 % of the total amount
o Goods dispatched from manufacturing unit onlyonce payment is received .
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o Payment is through RTGS or DD drawnon nationalized banks only .
o Margin 15 20 % of the cost of thevehicle .
o Commission The sales staff are
provided 10 % commission on thetotal margin of dealer .
o Individual customers are provided loansat attractive rates by GE money via atieup with John Deere .
o NABARD or other co-operative banksalso provide subsidized loans .
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DELIVERY TERMS
The tractors are insured by the company & a PDC ( Pre-Dispatch Check ) is done at the manufacturing unit of thecompany . A unique PDC no is also issued to every tractor .
The total transportation costs & the insurance costs areborne by the company .
Dealer Delivery terms
o The company is responsible for the vehicle till it reachesthe dealers warehouse & the dealer signs the PDI form
(Pre- Delivery Inspection) .
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The dealer checks for any damages & reports it
to the company immediately & also bills the
company for any repairs required
The company does not take back vehicles oncesold to the dealer .
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Replacement Terms
The company has long term contracts with transporters & in transit damage isborne by the transporter (outside the ambit of insurance ) .
If vehicles meet an accident then it is the responisbility of the transporter toreturn the damaged vehicles back to the manufacturing unit .
If a vehicle is found to be damaged during the PDI , the dealer informs thecompany & if it is covered under insurance the company claims it . The dealer isprovided a holding charge for the damaged vehicle till the insurance is cleared .
If during PDI any mechanical problem is found , the dealer repairs it and bills thecompany the repair amount .
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Linefill Rate
Replenishment Time 15 days
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THANK YOU JohnDeere