Manish Mishra

Learning with GPI @ Ahmedabad and Jaipur

•

Flow of Presentation

Introduction

Product Information

Objective Wise Learning

• The objective of the training is acquire the knowledge of the working of different people involved in the system.

• To understand the role of an AM and the importance of the role.

• To understand the market dynamics.

• To understand the distribution model and the processes involved.

INTRODUCTION

ITCGODFRE

Y PHILLIPS INDIA

VAZIR SULTAN

TOBACCO COMPA NY

GOLDEN TOBACCO COMPANY

Major Players in the Industry

• Through retail product reached directly to the end consumer.• Retail market is the root of our distribution channel.

Retail

• Dealers are the whole sellers who buy and sell in bulk. • Dealers cover those retailers which remain uncovered by the sales man.

Dealer

Types of Market

•

Distribution Channel

FACTORY

C & F AGENT

WD GODOWN (Whole Sale Dealer)

DEALER

RETAILER

CONSUMER

Sales Man

Primary Sales

Modern Trade

Secondary Sales

Tertiary Sales

Pan/Cigarette

Grocery Stores

Departmental Stores

Non Traditional

Outlets

Mobile Vendors

Tea Stalls / Restaurants

Type of Retail Outlets

Very High • Retailer whose daily sales is more than Rs 3000.

High •Retailer whose daily sales is between Rs 1801 - Rs 3000.

Medium •Retailer whose daily sales is between Rs 650 and Rs 1800.

Low •Retailer whose daily sales is between Rs 301 and Rs 650.

Very Low •Retailer whose daily sales is below Rs 300.

Classification of Retail Outlets

Cigarette Tea

Funda Goli

Pan Vilas

Cigar

Four Square Kings, Marlboro, Stellar, FSP, R & W, Cavender Gold Leaf, Prince, Cavender Gold

Pan Vilas is available in Pouch, Zipper, Tin.

Funda Goli.

Symphony, Super Cup, Rangoli, Utsav

Cohiba, Montecristo, Guantanamera

Products of GPI

Super Kings (97 mm) •Insignia from ITC

Kings (84 mm) • Marlboro, Stellar, and Four Square Kings from GPI.• Classic, Gold Flake, India King, B&H from ITC.

Longs (74 mm) • Wills Navy Cut from ITC.

R.S.F.T (69 mm) • FSP, R & W, Cavender Gold Leaf (Non Filter) from GPI.•Gold Flake Premium, Flake Excel. From ITC.

Mini Filter (64 mm) • Prince and Cavenders Gold from GPI.• Gold Flake Super Star and Flake Liberty from ITC.

Classification of Cigarettes

BrandsPrice to

Dealer (per ‘m’)

Price to Dealer (per

pack)

Price to Retailer (per m)

Price to Retailer

(per pack)M.R.P

Marlboro 6795 67.95 6850 68.50 75

Stellar 5258 52.58 5300 53 60

FSK 4960 49.60 5000 50 55

FSP 4265.90 42.65 4300 43 47

R & W 4265.90 42.65 4300 43 47

CVGL 4067 40.67 4100 41 45

Prince 2182.50 21.82 2200 22 25

CVG 1675 16.75 1720 17.20 20

GPI Products and Prices

Brand SKU Price to Dealer

PTR MRP

Pan Vilas (2.04 gm)

55 Pouch 188 193 Rs 4/Pouch

Pan Vilas (4 gm) 50 Pouch 348 352 Rs 8/Pouch

Pan Vilas (20 gm)

1 Zipper 34.50 35 Rs 40

Pan Vilas (100 gm)

1 Tin 162 165 175

Pan Vilas

Brand Dealer Retail MRP

Funda Goli (600 gm Jar)

Rs 84.50 Rs 87 Rs 100

Funda Goli (2.4 Kgs Jumbo Jar)

Rs 338 Rs 348 Rs 400

Candy

BrandsPrice to Dealer

(in Rs)Price to Retailer

(in Rs) M.R.P (in Rs)

Super Cup Tin 1kg

333 335 339

Super Cup Premium 1 kg

308 310 339

Super Cup 1 kg (Laxmipati)

220 222 -

Rangoli 168 170 208

Rangoli Leaf/Dust 168 170 208

Rangoli Jar 216 220 -

Utsav 180 182 236

Symphony 427 430 470

Symphony Green 517 520 600

Symphony Darjeeling

620 625 680

GPI Tea City

BrandsPrice to

Dealer (per pack)

Price to Retailer (per

m)M.R.P

Classic Ultra Mild/Menthol

136.41 137.50 150

Classic Mild/Regular

142.36 143.49 154

GFK (Red) 142.36 143.49 154

GFK (Light) 136.41 137.50 150

GFP 54.56 55 60

Flake Excel 36.71 37 40

Super Star 17.11 17.25 20

Competitor Pricing

There are two ‘Ms’ in this market:

1) m (small m)

2) M (Capital M) 1 m = 1000 Sticks and,

1 M = 1000 m (i.e. 1 million sticks)

1 outer = 200 Sticks = 20 packets (For Example - FSS)

Cavander Gold leaf 1 outer = 250 sticks

So, 1 m = 5 outers

1 CFC = 12 m (12,000) (FSS/FSP, Cavanders, RSFT)

Marlboro 1 CFC = 10 m.

1 CFC of Stellar = 6 m.

Business Terminologies

• Funda Goli :- Jar Packing – 600 Gram (200 units).

1 CFC = 18 Jar’s

• SKU’s of Pan Vilas - 2.04 gm, 4 gm, 20 gm, 100 gm

• 1 MP of Pan Vilas (2.04 gm) = 55 pouches.

• 1 MP of Pan Vilas (4 gm) = 50 pouches.

• 1 MP of Pan Vilas (Zipper) = 26 Zipper.

• 1 MP of Pan Vilas (Tin) = 6 Tin.

• 1 CFC = 100 MP

Business Terminologies

Factors to be Considered for Outlet Mapping

OUTLET SELECTION

Location

Footfall

ProfileOutlet timings

Cigarette Sale

Structure of

Outlet (TEMP/PERM

)

Competition

Visibility

Objective Wise Learning

Day 1 • Spend Time at an Identified WD Point.

Systems & Processes: WD Ledger, Remittances, Stock Receipts.

Documents Maintained, Spot Test/Smoke Share.

Sales Plan, Sales Review, Town Reports, WD Stock Register.

SKU Sold, PTR, Billing, Delivery of Stocks, Trade Margins (Retailer, Dealer, WD)

Day 2 •Work a Rural (PRISM) WD Town.

What is R&R?.

What are the documents maintained by the WD – Stock Register / POP Register / Sales Reporting.

SE Payout?

What is identical about the market.

Day 3 •Work with a moped outstation SE.

Appreciate difference between an urban and rural market.

Different Service Mode.

Day 4 •Work with a Dealer Salesman.

What are Dealers? How are they different?

Behaviors and Trade Dynamics

Day 5 •Work with a TL (Rural) on his beat.

How is a TL beat plan made?

What is the ideal beat plan of a TL?

Day 6 •Work with a TL on his beat.

Role of a TL.

Day 7 • Work with a TMS on his beat for the whole day.

Role of a TMS.

AM’s Reporting

• AM need to report to ASM.• Weekly reports are prepared for secondary sales on 8th, 15th, 22nd and 1st of every month.• Sales Plan Estimation is also prepared on 22nd of Every month. Basis SPE, dispatch plan is

made.• Actual sales plan report are to be made on 1st of every month.• Spot test reports, sales track report, PCC reports are also prepared as and when needed.• Other reports are prepared as and when required and demanded from higher authorities.

WD Task

• Wholesale Dealer is majorly responsible for the sales and distribution in their town.• They have to visit Local, outstation and dealer market regularly and planning for man power

accordingly.• With the help of sales team they distribute the product in the market.• They also have to maintain the weekly sales reports and have to punch in the system weekly.• They have to manage D&D register, POS register and have to send D&D on said time and

location.• They need to submit Debit notes timely and with all supporting signed by AM or ASM.

SFA – Sales Force Automation(Through

Blackberry)