Sales & Distribution Management under the guidance of Prof. Jaydeep Mukherjee Essay Example for Free

Sales Distribution Management under the guidance of Prof. Jaydeep Mukherjee EssayIntroductionThis report is a part of our Project submission for the eccentric Sales Distribution Management under the guidance of Prof. Jaydeep Mukherjee.The Company which we pass selected for our Project is Mondelz International, work onerly know as Cadbury India. As the first part of submission of our project this report includes the details of distribution channel of three intersection category, which are as follows leng whereforeedIntensivePerishableThis report focus on produce level analysis which includes the economics of business, the paradigm of service output desired by the node and the service provided, decision making elements of the intermediaries, challenges faced, skill required by the gross revenue and KRAs of the gross sales team. As sales and distribution pick outment is a subject which is highly practice oriented, we visited and interacted various shops in nearby markets w ithin new old Gurgaon along with our visit to M/S Chandana Enterprise, a re-allocator of Cadbury India and sales merchandising emplacement of Mondelz International, Vatika Tower, Golf course road, Gurgaon.This report is prepared on the basis of face to face interviews conducted with few retailers, store managers of Modern trade homogeneous Le Marche, SRS Value bazaar, along with that face to face interview with the distributor and the sales team of Mondelz International. Some of the information like phoners backdrop and factual details has been gathered th about internet. The reference of those sites has been kick the bucketn at the end of the report.BackgroundAbout Mondelz InternationalMondelz International, Inc., is an American multinational confecti one and only(a)ry, food, and beverage keep company based in Illinois which employs about 107,000 mess around the worldly concern. It consists of the global snack and food brands of the former kraft Foods Inc after the Oct ober 2012 spin-off of its northwards American grocery operations. The Mondelz name, adopted in 2012, was suggested by Kraft Foods employees and is derived from the words mundus (Latin for world) and delez (a proxy for the word delicious).Name Mondelz International compositors case Public.Industry Food Processing.Predecessor Kraft Food Inc.Founded October2, 2012.Founder Thomas H. McInnerneyHead Quarters Chicago suburb of Deerfield, Illinois.Area Served World Wide notice Owned Belvita, Chips Ahoy, Nabisco, Oreo, Ritz, TUC, Triscuit, LU, Club Social, Barni, and Peek Freans (cookies and crackers) Milka, Terrys, Cte dOr, Toblerone, Cadbury, Freia, Marabou, Frys, Lacta ( java), Trident, Dentyne, Chiclets, Halls, Stride (gum and cough drops) and Tang (powdered beverages). harvest-times Baby Food, Coffee, Dairy Products, Breakfast Cereals, Confectioneries, Bottled Water, Pet Foods etc.Revenue US$25.92 billion (2016)Website www.Mondelz international.comAbout CadburyCadbury, formerly Cadbury s, is a British multinational confectionery company wholly owned by Mondelz International (originally Kraft Foods) since 2010. It is the second-largest confectionery brand in the world after Wrigleys.2 Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk coffee berry, the Creme crank and Roses selection box, and many other confectionery crops. One of the best-known British brands, in 2013 The Daily Telegraph named Cadbury among Britains most successful exports.Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to authorize the companys workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the rec ipe compared with rival products. By 1914, the chocolate was the companys best-selling product. Cadbury, alongside Rowntrees and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth century.Cadbury was granted its first Royal Warrant from king Victoria in 1854. It has been a holder of a Royal Warrant from Elizabeth II since 1955.5 Cadbury merged with J. S. Fry Sons in 1919, and Schweppes in 1969. Cadbury was a constant factor of the FTSE 100 on the London downslope Exchange from the indexs 1984 inception until the company was bought by Kraft Foods in 2010Cadbury in India The operations of Cadbury India initiated in 1948. The head office is situated in Mumbai, Maharashtra with 4 sales offices at New Delhi, Kolkata, and Mumbai Chennai. It has five manufacturing social units all over India at Thane (Maharashtra), Induri (Maharashtra), Malanpur (Madhya Pradesh), Bangalore (Karnataka), Baddi (Himachal Pradesh) and Hyderabad (Te lengana) .The Company is planning to open its seventh manufacturing unit in Andhra Pradesh. It has one cocoa operations office at Dharapuram (Tamil Nadu)Cadbury India has a share of over 67% in the market, which is the highest Cadbury brand share globally.Cadbury Indias one of the most popular brands, Cadbury Dairy Milk is a benchmark for other chocolates in India and is regarded as the gold standard.Some of the other popular brands are 5 Star, Perk, Bournville, Celebrations, Halls, clairs, Tang and Oreo. The main brand in the Milk Food drinks segment is Bournvita, which is known as the leading Malted Food Drink (MFD) in the country.In the medicated category, Halls is a favorite candy while Cadbury India has also entered the biscuits category by launching Worlds no.1 biscuit brand Oreo.Cadbury has also been the leaders in the development of cocoa cultivation in India since 1965. The research work has been carried out in collaboration with the Kerala Agricultural University. The tea m from Cadbury also conducts training sessions for the cocoa farmers on cultivation aspects to have an increased cocoa productivity.In India Cadbury reaches to 1.2 million retail stores and 490, 00,000 RDs. Its traditional trade to modern trade ratio is 9010.Intensive Product Cadbury clairsExtensive Product Cadbury Silk PralineIntensive Distribution A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually e realwhere they go supermarkets, drug stores, gas stations etc.Exclusive Distribution Situation where suppliers and distributors enter into an exclusive agreement that only allows the named distributor to sell a specific product.Product Cadbury clairsAbout the product Cadbury clairsare a confectionery currently manufactured byCadbury. Introduced in the United domain in 1965, they were adapted into aDairy Milkversion of clairs after Cadbury was acquired by the privately owned companyHYPERLINK https/ /en.wikipedia.org/wiki/Pascall_(company) o Pascall (company)Pascallin 1922.They are gettable in bags or rolls and can be found in theCadbury Heroesselection. clairs are currently available inSouth Africa,United Kingdom, Ireland,Kenya,Hong KongandIndia where they are known as Dairy Milk clairs. In 2013 Mondelz International updated the UK ingredients list to add in the inclusion ofpalm oilin the recipe.clairs was launched in 1971 in Indian market. In 2013 Cadbury rebranded its product to Choclairs in India.Distribution System IntensiveDistribution SystemCadbury clairs is manufactured at xyz manufacturing unit of Cadbury India. This is the only preparation which manufactures the product to attain the demand of several regions across India.Once ready the product is transferred to the State depot of various states the country through roadways /airways. Product form these state depots is then transferred to various CF located at different cities/districts. These CFs acts as a warehous e for the company.Mondelz appoints some private firm as its CF agent. CF agent further supplies the product to the redistributors. Mondelz employs employees either on direct pay role or on an indirect payroll department through the CF agent for operating these CF agencies.The RD or the re distributor receives its supply from the CF agency. An area sales manager is appointed to manage and monitor the RD centers in his/her area.The distributor is supposed to have its own sales team, which is groomed and trained by the Sales Team of Mondelz . Usually 12 to 15 sales executives are appointed by the distributors. all(prenominal) sales executive is designated to a particular territory known as Beat. Each such beat comprises of 30 to 40 outlets.Distribution Flow Chart- Cadbury EclairsCFState DepotBaddi FactoryThane FactoryInduri FactoryMalanpur FactoryBangalore FactoryDirect gestateDistributor (RD)Sub-StockiestMarket Modern TradeE.g. Big Bazaar, Le Marche, Reliance etcTradition Trade Reta ilers E.g. grocery store stores, Betel Shop, Med Shops, and Stationeries etc.Tradition Trade Retailers E.g. Grocery stores, Betel Shop, Med Shops, and Stationeries etc.Indirect ChannelConsumerSelection of Channel PartnersSelection of channel partner is based on following parametersBusiness Capacity Salesmanship realization worthiness, financial and social status.Expertise experiencePresence in MarketProducer Channel FitInvestment Made by Channel PartnersThese CF agencies and Re-distributors have to make investment in terms ofSecurity money to the company.Infrastructure which includes Temperature Controlled Go down with (Self owned/rented).Stock.LogisticsSales TeamTo supply product on credit in the market.Distribution Channel ManagementChannel Management is done throughRewards Monetary Non-monetaryTarget Setting and monitor culture capacity buildingCash FlowMonetary BenefitsIn GT is around 4.5% and 1% is employment basedIn MT margin is around 4.5% and % is activity basedSuper S tockiest margin is around 2%Retailers have a margin of 15% on clairs pouch 12% on clair Jar.Incentives to the Sales executives after surpassing the target.Non- Monetary BenefitsA scheme called Udaan, which includes trips to abroad, based on the performance of RDs and Super Stockiest.Visicoolers to food stores and chemists based on their weekly sales.Mass dispensers to Chemists Betel Shops.Borrow Dispensers are given to small shops and Betel shops.Target Setting and Monitoring periodic target is set separately for Traditional trade, Modern Trade and Institutional Trade. Incentives are given only after surpassing the give targets.A rough figure of avg. monthly targets for Modern Traditional trade are as listed on a lower floorModern Trade oer 20 lakhsTraditional Trade Over 1 Cr.These targets vary from city to city. For example one of the RD located in Gurgaon M/S Chandana Enterprise alone give a business of INR 8, 00, 00,000 alone.The monitoring is done by the companys sales force by analyzing the invoice breedd by the distributors.Cash FlowDistributor make the payment to the company through rtgs and pre-paid cheques .The cash flow cycle of the distributor varies form 1- 7days.Only those Firms which are financially sound are appointed as companys distributors. This is because if a company is not financially well to then its wont be able to provide credit to its retailer thereof wont be able to sustain in the market.The cash flow between the company, the CF and the retailer has to be well synchronized as any break or halt in the payment process can put a break on the entire cycle of events. In Modern trade and institutional Trade cash flow cycle varies from 16 days to a month.The distributors are liable to pay salary to its sales force but the incentives are given by the company.SEQ Figure * ARABIC 1 Direction of Cash FlowMode of TrasportSEQ Figure * ARABIC 2 Mode of TransportSkills Required by the Sales TeamIts very important that the sales team should have certain skill sets, which athletic supporter them to increase the productivity in terms of Sales output and market capture.Few of the skills which Mondelz International expects from its sales team are as listed belowBusiness Generation.Target Oriented.Product KnowledgeKnowledge of Customer.Should know how to pitch in the cost of the product in the market.Justify the product as per products marketing plan.Should know the seasonality pattern.Should know about the competitorsShould have a sound knowledge of distribution management.KRA of a Sales OfficerTo achieve the give monthly targetTo identify the market potential in the beat assigned.Business Expansion.To continuously work in increasing Product visibility and comportment in the market.Re-distributor handling.Team HandlingApart from the Sales officer, sales executive working directly in the market are the first line of user interface between the company and the market. Although these sales executives are employed by the Re-dist ributors, their incentives and training expenses are borne by the company.These sales executives are responsible forBringing order form the retailer.To check and ensure the visibility the presence of product at retailers shop floorTo collect the money from retailers on behalf of the distributor.Apart from the above mentioned responsibility the sales executives are involved in a 8 step called as per the training given to them by the company.This 8 step call includesGreeting the Retailer.Checking the Stock Available.Merchandising.Taking the Order.Negotiating with the retailer.Revising the order and order confirmation.Greet the Retailer.Pre pare for next call.The inventory management system of Mondelz works on a very prompt basis. The replenishment of stock with the distributor is done based on an automatic ERP system.Let us suppose that the minimum stock that M/S Chandana Enterprise needs to keep for say Dairy Milk is 10 cartons. M/s Chandna Enterprise receives an order of say 3 cart ons out of these be cartons today. As soon as an invoice is generated at the end of M/s Chandna enterprise the system updates the same and the very next day 3 cartons of Dairy milk will be send to the distributor form the CF warehouse and the same will be updated in the system.This process ensures the timely replenishment and availability of minimum stock with the distributor as specified by the company.Product Cadbury Silk Praline.About the product Cadbury Silk Praline is a premium gifting range of luxury chocolates currently manufactured byCadbury. The product was first introduced to the Indian market in September 2014. Cadbury Glowwas inspired by the warm glow of felicity that comes from seeing dear ones light up with happiness when they receive a special gift. In a busy world where emotions are forgotten and people have less time for their near and dear ones,Cadbury Glowaimed to empower people with a thoughtful gift to show how much they care. Staying true to this philosoph y, the chocolate gift is filled with little details that are symbolic of the care that went into creating it. The chocolate pralines are crafted in Europe, and special attention is required post doing in designing and furtherance, making it more than just a chocolate and something sincerely yours worthy of gifting to a loved one. The beautiful gold and purple packaging ofCadbury Glowis reminiscent of a treasure chest that glows from the inside out, filled with delicious chocolate pralines that would leave a precious feeling.To make the gifting experience truly personalizedCadbury Glowwill also be launching in September a unique gifting website that will connect both the gifter and recipient. The websitewww.cadburygifting.inallows consumers to experience the world ofCadbury Glow, and to add a personal touch to their gift ofCadbury Glowby writing a personal note, sending a lovely song or experiencing again fond memories by videos and photos.In 2017 Cadbury rebranded its product to Cadbury Silk Praline in India.Distribution System ExtensiveDistribution SystemCadbury Silk Praline is manufactured at Mondelezs manufacturing quick-wittedness at Slovakia. The product is the Imported by Mondelez India food Pvt Limited and is packed by M/S Ameya Plastics, near Pune, Maharashtra.The Product form Slovakian facility is imported through air freight, which further is sent to the packing facility in insulated trucks. Once packaging is done Cadbury Silk Praline is sent to various CF in insulated trucks through roadways. The CF agent further distributes the product to the re-distributors from where it is supplied to the retailers modern trade market.Cadbury Silk Praline is an exclusive range of luxury gifting chocolates, which is seasonal in nature. Mondelez register peak sales of the product in india market during the festive months of October November.Cadbury Silk Praline is major sold through Modern Trade and Institutional Trade. The product is meant for the niche marke t and hence not available at every nick corner shops. Being a temperature sensitive product its very important to store Silk Praline at a company prescribed temperature of 24 degree Celsius .Mondelez assign the dealer ship and retailer ship to only those business units which have facilities to maintain the prescribed temperature for storage of the product. The Product is also meant to transported through insulated temperature controlled trucks and mini vans.For this particular product the system in Mondelez is designed in such a manner that even if the distributor tries to supply the product to certain retailer who is not well equipped with the visicoolers or storage facility ,the system wont allow to generate the invoice.Apart for the exclusivity and seasonality of the product rest of the factors remains same as explained above.