PRESENTATION ON SALES MANAGEMENT

PRESENTED BY: PRITI DAS

DM14C23

MARKETING-HR

DABUR

• INDIA’S LARGEST AYURVEDIC MEDICINE COMPANY

• FOUNDED 1884

• FOUNDER DR. S.K BURMAN

KEY INFORMATION

• SALES- RS.4349CR (2014)

• PROFIT- RS.590CR (2014)

• MARKET CAPITALIZATION- RS.33561CR (2014)

• HAJMOLA- ONE OF THE FIVE MAJOR BRANDS OF DABUR

• HAJMOLA DIGESTIVE TABLETS- 60% MARKET SHARE OF

DIGESTIVE TABLETS

• RURAL MARKETS- 75% CONTRIBUTION OF THEIR SALES

PRODUCTS

• DABUR – NATURAL HEALTHCARE PRODUCTS

• VATIKA – PREMIUM PERSONAL CARE PRODUCTS

• ANMOL –AFFORDABLE PERSONAL CARE PRODUCTS

• HAJMOLA – DIGESTIVES

• REAL ACTIV – FRUIT BASED DRINK

PRODUCTS OF DABUR

HAJMOLA

PRODUCTS OF HAJMOLA

HAJMOLA

HAJMOLA

YUMSTICK

HAJMOLA

CANDY

HAJMOLA

MAST

MASALA

HAJMOLA

TABLETS

HAJMOLA

ANARDANA

DETAILS ABOUT SATARA

Actual Population 30,03,741

Average Literacy 82.87

Rural,

81.01%

Urban,

18.99%

POPULATION %

Rural,

81.42%Urban,

89.02%

LITERACY RATE %

MAPS

SEGMENTATION AND TARGET

Demographics

Age & Income

• Candy : Kids b/w 4-12 years

• Tablets: All age and income

groups

Geographic

Rural/Urban &Country

• Tablets & Anardana for rural

markets

• Candy : Rural & Semi Urban

Market

Behavior

Kind of Users

• Regular / Loyal Users of Dabur

SALES REVENUE BUDGET

Skin care

6%Oral care

18%

Home care

8%

Hair care

30%

OTC &

ethicals

12%

Digestive

8%

Health

supplements

18%

Sales

Skin care Oral care

Home care Hair care

OTC & ethicals Digestive

Health supplements

Calculation of Sales forecasting

Operating Profit (Rs. In Cr) 825.72

Digestives(Rs. In Cr)66.0576

Population of India 1192614189

Population of Satara 30,03,741

Expected revenue from Satara (Rs. In Cr)

0.16637394

ALLOCATION OF SALES FORCE

Break-down process of Hajmola in Satara, Maharastra

Actual Population 30,03,741

Average Literacy 82.87

Rural Urban

Population (%) 81.01% 18.99%

Total Population 24,33,363 5,70,378

Average Literacy 81.42% 89.02%

Sex Ratio 995 959Estimated customers 495311 126938

Expected purchase per household (Monthly) 3 2

Price Per litre ₹ 25.00 ₹ 25.00

Total sales potential (in Rs.) 37148328 6346881

Salary paid to per Sales person per month ₹ 15,000.00 ₹ 15,000.00Expected return from each sales person (YPM) ₹ 3,00,000.00 ₹ 3,00,000.00

No. of sales person to be employeed 124 21

CONT.….

Build up process of Hajmola in Satara, Maharastra

Rural Urban

No. of outlets 1200 800

No. of visits required 4 4

Total visit per month 4800 3200

Expected working days in a month 25 25

No. of visit per sales person per day 40 40

No. of visit per sales person per month 1000 1000

No. of sales person required 5 3

SALES FORECASTING METHOD

EXECUTIVE OPINION METHOD

DELPHI METHOD

SALES FORCE COMPOSITE METHOD

SURVEY OF BUYERS INTENTIONS

TEST MAKING METHOD

FULL-BLOWN TEST MARKET

CONTROLLED TEST MARKETING

SIMULATED TEST MARKETING

GENERAL TRADE

• DIRECT DEALERS

• DISTRIBUTOR

• WHOLESALERS

• BRAND SHOPS

MODERN TRADE

• HYPER MARKET

• DEPARTMENTAL STORES

• DISCOUNT STORES

• SPECIALITY STORES

• ONLINE STORES

• DIRECT SELLING

• CASH AND CARRY STORE

SELECTING CHANNEL PARTNERS

• PRODUCT AND MARKET FACTORS

• COMPANY CHARACTERISTICS

• CHANNEL CONSIDERATION

• CHANGE IN CHANNEL MEMBERS

FACTORS AFFECTING SELECTION OF SUPPLY CHAIN

CONSIDERATIONS RELATED TO PRODUCT

UNIT VALUE OF THE PRODUCT:

WHEN THE PRODUCT IS VERY COSTLY IT IS BEST TO USE SMALL DISTRIBUTION CHANNEL. FOR EXAMPLE, INDUSTRIAL

MACHINERY OR GOLD ORNAMENTS ARE VERY COSTLY PRODUCTS THAT ARE WHY FOR THEIR DISTRIBUTION SMALL

DISTRIBUTION CHANNEL IS USED. ON THE OTHER HAND, FOR LESS COSTLY PRODUCTS LONG DISTRIBUTION CHANNEL IS

USED.

STANDARDISED OR CUSTOMISED PRODUCT:

STANDARDISED PRODUCTS ARE THOSE FOR WHICH ARE PRE-DETERMINED AND THERE HAS NO SCOPE FOR ALTERATION.

FOR EXAMPLE: UTENSILS OF MILTON. TO SELL THIS LONG DISTRIBUTION CHANNEL IS USED.

PERISHABILITY:

A MANUFACTURER SHOULD CHOOSE MINIMUM OR NO MIDDLEMEN AS CHANNEL OF DISTRIBUTION FOR SUCH AN ITEM OR

PRODUCT WHICH IS OF HIGHLY PERISHABLE NATURE. ON THE CONTRARY, A LONG DISTRIBUTION CHANNEL CAN BE

SELECTED FOR DURABLE GOODS.

TECHNICAL NATURE:

IF A PRODUCT IS OF A TECHNICAL NATURE, THEN IT IS BETTER TO SUPPLY IT DIRECTLY TO THE CONSUMER. THIS WILL HELP

THE USER TO KNOW THE NECESSARY TECHNICALITIES OF THE PRODUCT.

CONSIDERATIONS RELATED TO MARKET

NUMBER OF BUYERS:

IF THE NUMBER OF BUYER IS LARGE THEN IT IS BETTER TO TAKE THE SERVICES OF MIDDLEMEN FOR THE DISTRIBUTION OF THE

GOODS. ON THE CONTRARY, THE DISTRIBUTION SHOULD BE DONE BY THE MANUFACTURER DIRECTLY IF THE NUMBER OF

BUYERS IS LESS.

TYPES OF BUYERS:

BUYERS CAN BE OF TWO TYPES: GENERAL BUYERS AND INDUSTRIAL BUYERS. IF THE MORE BUYERS OF THE PRODUCT BELONG

TO GENERAL CATEGORY THEN THERE CAN BE MORE MIDDLEMEN. BUT IN CASE OF INDUSTRIAL BUYERS THERE CAN BE LESS

MIDDLEMEN.

BUYING HABITS:

A MANUFACTURER SHOULD TAKE THE SERVICES OF MIDDLEMEN IF HIS FINANCIAL POSITION DOES NOT PERMIT HIM TO SELL

GOODS ON CREDIT TO THOSE CONSUMERS WHO ARE IN THE HABIT OF PURCHASING GOODS ON CREDIT.

BUYING QUANTITY:

IT IS USEFUL FOR THE MANUFACTURER TO RELY ON THE SERVICES OF MIDDLEMEN IF THE GOODS ARE BOUGHT IN SMALLER

QUANTITY.

SIZE OF MARKET:

IF THE MARKET AREA OF THE PRODUCT IS SCATTERED FAIRLY, THEN THE PRODUCER MUST TAKE THE HELP OF MIDDLEMEN.

CONT.…

DISTRIBUTION PROCESSManufacturing plant

company ware house

Regional ware house

Regional stockist

Super stockist

Stockist

Distributor

Retailer

STANDARD ROUTE CHART

CHANNEL PARTNER’S MARGIN

MARGINAL DISTRIBUTION OF DABUR:--

• FOR RETAILORS IT IS 8-10%

• FOR DISTRIBUTORS IT IS 3-4 %

• FOR STOCKISTS IT GOES AROUND 2-3 %

LOGISTICS MANAGEMENT

Calculation of distributor

Total retail outlets (in India) 2500000

Total distributers (in India) 5000

Total retail outlets (in Satara) 2000

Total distributers (in Satara) 4

Thank you