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SALES TERRITORY AND

PLANNING MANAGEMENT

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Company Background

Started in 1958 by two friends G. Ramesh and P.Muthuswamy

The launchof MCB was the turningpoint.

Believed in joininghands with best players in theindustry

Wonnumerous export awards

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Increasing Sales but Decreasing Profitability

Sales up by 48% and 18% above Target

Profitability is 12% lower than last year

Disproportionate Rise of Sales & MarketingExpenses

Poor Performance in Non-Metros

Outstanding Credit of `6 Crore with `3.2 Croreunsettled for over a year and half.

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North East South West

Satisfactory

Growth in Sales &

persalesman

productivity.

75% Outstanding

greater than 60

days .

Salesgrowth - 16 %.

12 % of all India

Sales.

`1.1 crore

outstanding.

`86 lakh formore

thanayear

Lower thanoverall

growth.

50% increase in

sales & marketing

expense.

34% increase in

outstandingabove

60 days.

Recordedhighest

Growth.

Highest Outstanding

over 90 day

Category.

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1 IncreasingCompetition

2

Pricesof non MCB productsnot competitive

3 Growingnumberof complaints

4

Loss inmarket share in tier2 cities

5 Territor infringement

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Sales Territory

Groupof customersorageographical area

assigned toasalesunit.

It mayormaynot have ageographic boundaries.

It representsagroupof customeraccounts,an

industry,amarket oraspecificgeographical area.

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Reasons to establish Sales Territories

Toobtain entire coverage of the market.

To establishasalespersonsresponsibilities.

To evaluate performance. To improve customerrelations.

Toreduce sales expenses.

Toallow bettermatchingof salesperson to

customers.

To benefit salespeople and the company.

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Designingsales territories.

Selectinga basicgeographical control unit (State).

Determiningsalespotentials incontrol unit.

Combiningcontrol units into tentative territories.

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Meritsof Sales Territoryof Geographical Continuity

Equal distributionof areas

Bettermarket coverage

Lesspossibilityof territorialinfringement

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Sales Territory of Equal Demand Potential

MERITS

1 Motivatedsales team

2 Reduces territory infringement

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Sales Territory of Equal Demand Potential

DEMERITS

1

Business limited tometros

2 Lessergrowthof new markets

3 Increase incost due to varyingdemand

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Cut In Margins for Dealers

Market Share: 42.6%

Growth: 26% over industry

Constitutes 62% of APEL sales

Growthof 40% to 50% innext fewyears

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y Reducingdealersmarginandutilizing the funds towards brand

promotion will help the company.

y MarginCut of MCB products byasmall percentage whichmay be

compensated byacorresponding increase fornon-MCB products.

1. Convince dealersof higher volumes inplace of lowermargins.

2. The dealerscould be given incentivesonnon-mcb products thus

helping the sale of these products.

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MCB as FMCG Products

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Expertise

Strongdistributionnetworkrequired

Separate trainingmodule for employees

Brand building

Heavy investment

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y Rate Dealers basedonCredit amount Outstanding.

a) Higher Rating Increasedmargin

b) Lower Rating Decreasedmargin