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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
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