ISBN : - 978-93-88936-10-1 A HANDBOOK ON FMCG SALES Published by International Society for Green, Sustainable Engineering and Management ISO 9001:2015 certified Laboratory Member • Quality Council of India Member • The Indian Science Congress Association • • Indian Statistical Institute Indian Meteorological Society Dr. Raja Roy Choudhury Director Academic Affairs, Universal Business School, India Dr. Chandan Thakur Associate Professor of Marketing , Universal Business School, India [Type text]
[ A HANDBOOK ON FMCG SALES ] CONTENT 1. 2. 2.3. 2.4. 2.5. 3. The FMCG Sales & Distribution Overview Organizational Structure 2.1. Organogram 2.2. Job Description and Personal Profile – SR/TSI/SO Job Description and Personal Profile – ASM Job Description and Personal Profile – RSM Job Description and Personal Profile – NSM Area Planning 3.1. Coverage Plan 3.1.1. Coverage Master Plan 3.1.2. Key Town Master Plan 3.2. PJP(Permanent Journey Plan) 4. 4.1. Field Systems In the Market 4.1.1. Daily Sales Report (DSR) 4.1.2. Retailer Card 4.1.3. Merchandising Kit/Use of POS/Visibility 4.1.4. Planogram 4.1.5. Order Book 4.1.6. ASM Market Visit Report 4.2. At the Distributor 4.2.1. Distributor Monthly Stock & Sales Report (DMSSR) and Inventory Management 4.2.2. Distributor Appointment Process 4.2.3. Distributor Termination process 4.2.4. Claim settlement process 4.2.5. Damage and Expiry Policy 4.2.6. Order Generation Process 4.2.7. Distributor ROI 4.3. At the Super Stockist 4.3.1. Order Generation Process 4.3.2. Inventory Management 4.3.3. Outstanding Management 4.3.4. Super Stockist ROI 1
[ A HANDBOOK ON FMCG SALES ] 5. Meeting and Conferences 5.1. Weekly Meetings Schedule 5.2. Monthly& Quarterly Meetings Schedule and agenda 6. 6.1. Rewards & Recognition Incentives 6.2. Recognitions 2
[ A HANDBOOK ON FMCG SALES ] Abbreviations SR TSI Sales Representative Territory Sales Incharge SO Sales Officer ASM Asst. Sales Manager RSM Regional Sales Manager NSM National Sales Manager DSR Daily Sales Report POS Point of Sales DMSSR Distributor Monthly Stock & Sales Report ROI Return on Investment SKU Stock Keeping Unit PJP Permanent Journey Plan FIFO First in First Out FMFO First Manufactured First Out SO Standard Organogram HQ Head Quarter CFA Carrying Forwarding Agent SD Sales Development MIS Management Information Agent S&D Sales & Distributer CMP Coverage Master Plan KTMP Key Town Master Plan MJP Monthly Journey Plan JC Journey Cycle POSM Point of Sales Material NDC No Dues Certificate HO Head Office 3
[ A HANDBOOK ON FMCG SALES ] POA Power of Authority DOGP Distributer Order Generation Process MSSR Monthly Stock Sales Report SS Secondary Sale OGP Order Generation Process 4
[ A HANDBOOK ON FMCG SALES ] List of Tables Table.2.2.A. Personal profile for SR/TSI/SO Table.2.2.B. Job Description for SR/TSI/SO Table.2.3.A. Personal Profile of ASM Table.2.3.B. Job Description of ASM Table.2.4.A. Personal Profile of RSM Table.2.4.B. Job Description of RSM Table.2.5.A. Personal Profile of NSM Table.2.5.B. Job Description of NSM Table. 3.1.1.A. Coverage Master Plan Table.3.1.2.A. Key Town Master Plan Table.3.1.2.B.Key Towns Summary Table.3.2.A.Permanent Journey Plan Table.3.2.B.Monthly Journey Plan Table. 4.1.1. Typical DSR Table. 4.1.2. Retailer card Table.4.1.5. Order Book Table.4.1.6.A.ASM Market Visit Report Table.4.2.1.A.DMSSR Table.4.2.2.A.Distributor Appointment Table.4.2.4.A.Normal Trade Schemes Table.4.2.4.B.Visibility Schemes Table.4.2.4.C. Sampling Scheme Table.4.2.6.A. Order Generation Process Table.4.2.7.A.Distributor ROI Table.4.3.1.A.Order Generation Process Table.4.3.2.A. Table.4.3.3.A. Inventory Management Super Stockist outstanding monitor 5
[ A HANDBOOK ON FMCG SALES ] Table.4.3.4.A. Super Stockist ROI Table. 5.2.1.A. SKU wise Target Vs. Achievement Table.5.2.2.A. SO Wise / Month Wise Primary Achievement Sheet Table.5.2.3.A.Secondary Achievement Sheet. SO Wise / Month Wise Table.5.2.4.A. Manpower Structure Update Table.5.2.5.A. Distribution Update Table.5.2.6.A. Outlet Coverage Update Table.5.2.7. Inventory & Stock Statement Table. 5.2.8.A. Monthly Summary sheet Table. 5.2.9.A. Next Month Action plan Table.5.2.10.A Sales Forecast Table. 6.1. A. Incentives Table. 6.1.B. Incentives Structure 6
[ A HANDBOOK ON FMCG SALES ] List of Figures Fig.1 Fig.2.1 Standard Organogram Structure of the Supply Chain Fig. 4.1.3 A. Merchandising Kit/Use of POSM/Visibility Fig. 4.1.4.A. Planogram 7
[ A HANDBOOK ON FMCG SALES ] 1. The FMCG Sales & Distribution Overview FMCG or Fast Moving Consumer Goods industry is one of the most penetrated industries in every country. These include items of daily household consumption like cereals, staples, salt, oil, soap etc. The Typical structure of the Supply Chain is as shown below: Procurement Feedback Manufacturing Consumer Company Godown Retailer Super Distributor Wholesale Fig.1 In a country like India, there are 29 States& 6 Union Territories, 640 Districts, 7936 Towns, 641000 villages. The FMCG distribution caters to the entire population directly or indirectly. 2. Organizational Structure 2.1. Organogram The Organogram depicts the Sales Organization at a glance. The hierarchy of Sales start at the frontline with a Sales Representative (SR) or a Sales Officer (SO) 8 Distributor
[ A HANDBOOK ON FMCG SALES ] For every 5 to 10 SO/SR there is one ASM For every 5 to 7 ASMs there is one RSM Typically, in FMCG companies, there are 4-5 regions each headed by RSM. All the RSMs report to a national sales head known as the NSM (National Sales Manager) In addition to the line reporting functions, there are support functions in sales at the regional and national level.These are Sales Development, Trade Marketing and Sales Training. Standard Organogram NSM RSM (East) RSM (West) RSM (North) RSM (South) National Trade Marketin g National Sales Training National Sales Develop ment National Modern Trade Manger ASM 1 ASM 2 ASM 3 Regional Trade Marketing Regional Sales Training Regional Sales Develop ment Regional Modern Trade Manager TSI/SO Fig.2.1 9
[ A HANDBOOK ON FMCG SALES ] 2.2. Job Description and Personal Profile – SR/TSI/SO The SR/TSI/SO is the first line in the Sales Force. These are the people who sell to retailers and hence are the first level of contact between the Retailers and the company. However, in certain companies, the SO is a senior level between the TSI/SR and the ASM. Personal Profile Table.2.2.A 1 Around 20 to 30 years of age 2 Minimum 2 years’ experience with Food FMCG Companies 3 Graduates with diploma in Sales & Marketing 4 Minimum 6 months experience in the proposed geography 5 Thorough knowledge about the market under consideration 6 Fluent in local language 7 Sound Arithmetic Skills 8 Basic Computer Skills 9 Excellent rapport with trade 10 Energetic and enthusiastic 11 Job Description Table.2.2.B S.no Functional area Tasks 1 Market Work Cover 40 shops on a daily basis, as per PJP and beat plan Placing all the SKU in the right quantity in the retail stores Ensure visibility of the products at the stores Ensure FIFO/FMFO at the stores Launching & placing new products as per the company guidelines Maintain relationship with retailers Solving queries of the retailer regarding schemes, returns/expiry etc. 2 Distributor Management Ensure a good relationship with a distributor Managing distributor's inventory and product ageing Help provide healthy ROI to distributors To influence the distributor to provide credit & services in the market 10 Distributor Salesman of A grade companies or Sales Representatives of Mid-Sized Companies to be targeted
[ A HANDBOOK ON FMCG SALES ] S.no Functional area Tasks 3 Market Intelligence 4 Reporting Tracking competition and reporting new developments in the market To prepare and post his DSR Prepare the monthly stock and sales report of the distributors Maintain all sales reports as per company guidelines 2.3 Job Description and Personal Profile – ASM Personal Profile Table.2.3.A 1 Around 30 to 35 years of age 2 Minimum 8-10 years’ experience with Food FMCG Companies 3 Graduates with Diploma/MBA in Sales & Marketing 4 Minimum 2 years’ experience in the proposed geography 5 Thorough knowledge about the market under consideration 6 Fluent in local language 7 Sound Arithmetic Skills 8 Good Computer Skills 9 Excellent people and leadership skills 10 Excellent rapport with trade 11 Energetic and Enthusiastic 12 Sales Officers of A grade companies or ASMs of Mid-Sized Companies to be targeted Job Description Table.2.3.B S.no Functional area Tasks 1 Market Working To ensure availability & visibility in the market Proper Merchandising Identify & solve the problems in the market Checking Coverage vs. Beat Plan and PJP working by the SOs Increase in Productive Outlets per beat Building relationship with Key Outlets Manage Wholesale 11
[ A HANDBOOK ON FMCG SALES ] S.no Functional area 2 Sales Planning & Distribution Enhancement / Excellence Tasks Plan Targets scientifically & Plan to achieve them through various Sources of Distribution Growth Cost Control - Ensure that the operative costs are managed and there is no wastage or over expenditure 3 Team Management 4 CFA/SD 5 Market Intelligence 6 MIS & Reporting Ensure there is no vacant HQ in your area Proper Induction of the New Joinees Supervision of employees and their functioning Employee Motivation Stock inventory management Getting involvement of the CFAs/SDs Setting service standards and implementation of standards Damaged &expired stocks management Understanding the needs of the Market & Opportunities and keeping track of competition Ensure that the required MIS / Reports are sent regularly 2.4 Job Description and Personal Profile – RSM Personal Profile Table.2.4.A 1 Around 35 to 40 years of age 2 Minimum 12 years’ experience with Food FMCG Companies 2 Graduates with diploma in Sales & Marketing 4 Minimum 3 years’ experience in the proposed geography 5 6 7 8 9 Good Computer Skills 10 Energetic and enthusiastic 11 Excellent people and leadership skills 12 Area Manager of A grade companies or RSMs of Mid-Sized Companies to be targeted 12 Thorough knowledge about the market under consideration Fluent in English and local language Conceptually strong in S&D Sound Arithmetic Skills
[ A HANDBOOK ON FMCG SALES ] Job Description Table.2.4.B S. No Functional area Tasks 1 Market Working To ensure availability of all SKUs in the market Plan Proper Merchandising and Visibility Identify & solve the problems in the market Plan Increase in Productive Outlets per beat Building relationship with Key Outlets Wholesale Management Strategy 2 Sales Planning & Distribution Enhancement / Excellence 3 Distributor Management Plan Targets scientifically & Plan to achieve them through various Sources of Distribution Growth Cost Control - Ensure that the operative costs are managed and there is no wastage or over expenditure. Ensure excellent relationship with the Distributors/SDs Increase the “effectiveness of relationship” with the Distributor 4 Team Management Ensure there are no vacancies in your area Proper Induction of the New Joinees Supervision of employees and their functioning Employee Motivation 5 CFA/SD 6 Market Intelligence 7 MIS & Reporting Stock inventory management Getting involvement of the CFAs/SDs Setting service standards and implementation of standards Damaged & Expired Stocks management Understanding the needs of the Market & Opportunities Ensure that the required MIS Reports are received and sent regularly 13
[ A HANDBOOK ON FMCG SALES ] 2.5 Job Description and Personal Profile – NSM Personal Profile Table.2.5.A 1 Around 40 to 45 years of age 2 Minimum 15 years’ experience with Food FMCG Companies 3 Graduates with diploma in Sales & Marketing 4 Minimum 5 years’ experience as head of a region and above 5 6 7 8 9 Thorough knowledge about at least 2 regions Fluent in English and local language Conceptually strong in S&D Sound Analytical Skills Good Computer Skills 10 Energetic and enthusiastic 11 Excellent people and leadership skills 12 Regional Area Manager of A grade companies or NSMs of Mid-Sized Companies to be targeted Job Description Table.2.5.B S.no Functional area 1 Sales Strategy 2 Sales Planning & Distribution Enhancement/Excellence 3 Distributor Management 4 Team Management Tasks Plan and Implement Strategy for continuous growth Plan market Visibility and Trade Marketing Activities Identify & solve problems in the Market Wholesale Management Strategy Plan Targets scientifically & Plan to achieve them through various Sources of Distribution Growth Cost Control - Ensure that the operative costs are managed and there is no wastage or over expenditure. Ensure excellent relationship with the Distributors/SDs Increase the “effectiveness of relationship” with the Distributors Ensure there are no vacant positions of RSM Supervision of RSMs and their functioning 14
[ A HANDBOOK ON FMCG SALES ] S.no Functional area 5 CFA/SD Employee Motivation, rewards and recognition Tasks Stock inventory management Getting involvement of the CFAs/SDs Setting service standards and implementation of standards Damaged & Expired Stocks management 6 Market Intelligence 7 MIS & Reporting Understanding the needs of the Market & Opportunities present Keeping a close tab on competition Ensure that the required MIS Reports are received, analyzed and solutions are implemented 3 Area Planning Area Planning consists of the following: 3.3 Coverage Plan 3.3.1 Coverage Master Plan The Coverage Master Plan gives an overall picture of the area in terms of Super Distributors, Distributors, Outlets, Manpower and Infrastructure. It is important to review the progress on Master Plan from time to time.It also gives an idea of the estimated Sales and Manpower Cost to Sales Ratio. Table. 3.1.1.A S.No SSO HQ town SD AREA 1 Ghaziabad 2 Ghaziabad Meerut 3 Bareilly 4 Bareilly 5 Agra 6 Mainpuri 7 Kanpur 8 Jhansi 9 Varanasi 10 Varanasi 11 Gorakhpur 12 Gorakhpur 13 Lucknow 14 Lucknow 15 Dehradun Bareilly Shahjahanpur Agra Mainpuri Kanpur Jhansi Varanasi Allahabad Gorakhpur Gorakhpur Lucknow Faizabad Dehradun 16 Dehradun Rudrapur No. of Towns Covered Ghaziabad 35 26 22 15 15 20 8 18 16 24 199 No. of Distributors 40 27 23 20 13 17 13 13 21 28 215 Total Cost of two ASMs No of SSO 1 1 1 1 1 1 1 1 1 1 10 No of SR 2 1 2 1 1 1 1 2 2 1 1 1 2 1 1 1 Tentative cost of SSO 15,000 15,000 12,000 10,000 12,000 10,000 12,000 12,000 15,000 14,000 Tentative cost of SR 17,000 7,000 16,000 7,000 8,000 7,000 7,000 14,000 15,000 7,000 7,000 7,000 18,000 7,500 8,000 8,000 Total cost 39,000 38,000 20,000 17,000 19,000 24,000 34,000 26,000 40,500 30,000 Expected Business 50,00,000 50,00,000 25,00,000 25,00,000 25,00,000 37,50,000 50,00,000 37,50,000 50,00,000 37,50,000 21 1,27,000 1,60,500 2,87,500 387,50,000 60,000 3,47,500 232,50,000 1.49% 15 Cost Percentage
[ A HANDBOOK ON FMCG SALES ] 3.3.2 Key Town Master Plan The Key Town Master Plan is a detailed geographical plan for each major town in terms of infrastructure and manpower planning. This is illustrated in the Chart Below: Table.3.1.2.A Name of Key Town: Delhi S.No. District/Area Name of Distributor 1 West Delhi RAM ENTERPRISES 2 West Delhi SAI ENTERPRISES 3 North Delhi KOHLI ASSOCIATES 4 North Delhi SHYAM TRADERS 5 South Delhi SETHI BROS. 7 8 Distributor Location UTTAM NAGAR PUNJABI BAGH BURARI MALVIYA NAGAR 6 South Delhi RADHEY ENTERPRISES OKHLA East Delhi ROHAN SALES MAYUR VIHAR East Delhi SHRI KRISHNA ASSOCIATES GEETA COLONY No. of Beats SHALIMAR BAGH 18 14 8 12 20 16 110 12 14 20 14 12 14 22 16 No. of Beats 124 1 1 1 1 1 1 1 1 8 1 1 1 1 1 1 1 1 8 No. of Outlets 400 480 720 560 320 480 800 640 480 560 800 560 480 560 880 640 No. of Sales 4,400 4,960 A summary of all key towns is illustrated in the chart given below: Table.3.1.2.B Town Varanasi Kanpur Agra Aligarh Bareilly District Lucknow Lucknow Gorakhpur Gorakhpur Varanasi Allahabad Allahabad Jhansi Jhansi Kanpur Nagar Agra Aligarh Bareilly Moradabad Moradabad Shahjahanpur Shahjahanpur Meerut Meerut Ghaziabad Ghaziabad Saharanpur Saharanpur Hardwar Hardwar Popu (000's) Expected Outlets Expected Distributors 2765 831 1332 1097 476 2513 1202 719 847 570 330 1346 912 476 Muzaffarnagar Muzaffarnagar 356 Dehradun Dehradun 462 240 1383 416 666 549 238 1257 601 360 424 285 165 673 456 238 178 231 120 3 1 1 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 9 1 1 2 1 1 1 2 1 No. of Units 0.5 0.5 0.5 0.5 0.5 0.5 1 Average Sales Current Proposed Current Proposed Current Proposed Current Proposed Current Proposed Current Proposed 10 12 0.5 2,50,000 2,50,000 0.5 2,50,000 2,50,000 1 2,50,000 5,00,000 2,50,000 2,50,000 0.5 10 0.5 5 0.5 2,50,000 2,50,000 0.5 2,50,000 2,50,000 1 5,00,000 5,00,000 0.5 2,50,000 2,50,000 5 22,50,000 25,00,000 16
[ A HANDBOOK ON FMCG SALES ] 3.4 PJP(Permanent Journey Plan) & MJP(Monthly Journey Plan) A PJP is a visitation schedule town wise or beat wise for a Frontline Sales person (SO/SR/SSO). This captures the number of days to be spent on different towns/beats. In a PJP 21 days are fixed and 4 days flexible. The 21 Days also define the sequence of visitation of Towns. The flexible days are kept for emergencies. In addition to this there are 4 Sundays and 1 day for the Monthly JC Meeting. Table.3.2.A Lucknow HQ. SO S.No 3 Gonda 4 Khargupur 5 Maskanwa 6 KureBhar 7 Kadi pur 8 Sultan pur 9 Sidhauli 10 Lucknow 11 Lakhim pur 12 Barabanki 13 Moti Ganj 14 Faizabad 15 Baba Ganj 16 Surepur 17 Koiri pur 18 musafirkhana 19 Biswa 20 Amethi/Gauri G 21 Colonel ganj 22 23 Flexible Days 24 25 26 27 28 29 30 31 JC-MEETING SUNDAY'S Total Days 1 4 30 4 CITY 1 Mehmoodabad 2 Sitapur DAYS OF WORK 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0.5 0.5 S.No 1 Pilibhit 2 Moradabad 3 Budaun 4 Farrukhabad 5 Majna 6 Kaimganj 7 Tilhar 8 Shahjahanpur 9 Kunwar Gaon 10 Thakur dwara 11 Alapur 12 Usaid 13 Usava 14 Bareilly 15 Budaun 16 Kakarala 17 Moradabad 18 Tilhar 19 20 Flexible Days 21 22 23 24 25 26 27 28 29 30 31 JC-MEETING SUNDAY'S Total Days 1 4 30 Based on the PJP, A Monthly Journey Plan or Travel itinerary is made at the beginning of every month. This cannot be changed without the consent of the ASM. This ensures that the markets are visited in an orderly fashion instead of a haphazard way. Bareilly HQ. SO CITY DAYS OF WORK 1 1 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 4 17
[ A HANDBOOK ON FMCG SALES ] Table.3.2.B BAREILY HQ. Date 2 3 4 5 7 9 Day 1 Wednesday Thursday Friday Saturday Sunday 6 Monday Tuesday 8 Wednesday Thursday Friday Saturday Sunday W.Off 10 11 12 13 Monday Tuesday 14 15 Wednesday Thursday Friday 16 17 18 19 21 23 24 25 26 28 30 31 Saturday Sunday 20 Monday Tuesday 22 Wednesday Thursday Friday Saturday Sunday 27 Monday Tuesday 29 Wednesday Thursday Friday W.Off W.Off Working Town EXAMPLE- BAREILY JC-MEETING EXAMPLE- MORADABAD EXAMPLE- BADAUN W.Off Date 2 LUCKNOW HQ. SO Day 1 Monday Tuesday 3 Wednesday Thursday Friday Saturday Sunday 4 5 6 7 8 Monday Tuesday 9 10 Wednesday Thursday Friday 11 12 13 14 16 Saturday Sunday 15 Monday Tuesday 17 Wednesday Thursday Friday 18 19 20 21 23 Saturday Sunday 22 Monday Tuesday 24 Wednesday Thursday Friday 25 26 27 28 30 Saturday Sunday 29 Monday Tuesday 31 Wednesday W.Off W.Off W.Off Working Town EXAMPLE- LUCKNOW JC-MEETING EXAMPLE- Barabanki EXAMPLE- Moti Ganj W.Off 18
[ A HANDBOOK ON FMCG SALES ] 4. Field Systems 4.1 In the Market 4.1.1 Daily Sales Report(DSR) A typical DSR is illustrated in the figure below: Table. 4.1.1. A Name HQ State Distributor Town Worked Beat Worked Starting Time Finishing Time SKUs SKU 1 Today's opening Stock at DB point Today's Target S.No. Name of Outlet Type 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Today's orders booked Planned Calls Actual Calls Productive Calls % Productivity New Outlets Note: Category A B C D Type Sales Greater than Rs. 1000 Sales Between Rs. 500 to Rs. 999 Sales Between Rs. 100 to Rs. 499 Sales Below Rs. 100 Grocer/Kirana General store Ice Cream/Cold Drink shop Self Service Store Bakers & Confectioners Others GR GS ICS/CDS SSS B & C O A DSR is the primary tool used by a frontline Sales Person in the Market to book Orders. This also is the primary source of Market information for the company. On the one hand, it gives the sales person focus for the day on areas like Total Calls, Productive Calls, Sales Value, Range Selling and the Day Target. 19 Cat. SKU 2 SKU 3 SKU 4 Units Value Date Month/ J.C. Worked with
[ A HANDBOOK ON FMCG SALES ] At the same time various parameters mentioned above, can be monitored on a day to day basis by the company management. The DSR data can be summarized into actionable points. 4.1.2 Retailer card A typical Retailer Card is illustrated in the figure below: Table. 4.1.2. A RETAILER CARD MONTH PROPRIETOR NAME: PHONE: A+ A B OUTLET NAME & ADDRESS: GR WEEK 1 S.No. SKU SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 WEEK 2 WEEK 3 CH SM GM B&C SWS WS TOTAL VALUE WEEK 4 OP. STOCK TGT ACH CL.STOCK OP. STOCK TGT ACH CL.STOCK OP. STOCK TGT ACH CL.STOCK OP. STOCK TGT ACH CL.STOCK TGT ACH MARKET: HOLIDAY: C D GR : Grocer SO/SR/ASM SIGNATURE CH : Chemists SM : Super Market GM : General Merchant B&C : Bakery & Confectionery SWS : Semi Whole Seller WS : Whole Seller A retailer card gives us the history of visitation and sales at a particular outlet. This is a very effective tool to monitor our relationship with the Outlet, in terms of visitation frequency and productivity. This is also a good tool to monitor offtake from that particular Outlet and accordingly place the new order. 20
[ A HANDBOOK ON FMCG SALES ] 4.1.3 Merchandising Kit/Use of POSM/Visibility A typical Merchandising Kit is illustrated in the figure below: Fig.4.1.3.A Merchandising Kit consists of tools for creating better visibility in the Market. There are tools like scissors, sketch pens, scotch tape, marker, nails, drawing pens, thread ball, pasting gum, etc. The POSM (Point of Sales Material) normally used consists of posters, danglers, shelf tape, stickers, banners, dispensers etc. The Sales person is expected to carry these to the market and extensively use them for market visibility. Market Visibility is an important way of driving purchase from the outlet. The frontline sales person is responsible for making sure that his products are placed at eye level in the most visible areas of the shop. He is also responsible for implementing schemes like “Shelf Visibility” paid and unpaid. 21
[ A HANDBOOK ON FMCG SALES ] 4.1.4 Planogram A typical Planogram is illustrated in the figure below: Fig.4.1.4.A A planogram is a visual depiction of the way stocks are to be organized in a shop. Normally a planogram is different for Modern and General Trade. The planogram also needs to be in tune with the category. A planogram helps to maintain the range and induce offtake. 4.1.5 Order Book A typical Order Book is illustrated below. Table.4.1.5.A Date: Name of Retailer Name of SO/SR S.no. SKU Avilable Stock Stock Ordered Signature & Stamp 22
[ A HANDBOOK ON FMCG SALES ] The Order Book is needed to record all orders collected in the Market. The order forms are filed in duplicate. The top sheet is signed and stamped by the retailer as a mark of approval. This sheet is then submitted to the distributor for deliveries. The second copy is retained in the Order Book for the Record of the sales person. 4.1.6 ASM Market Visit Report Table.4.1.6.A ASM Name: HQ: Kaju 15/Beat Worked : Worked with SO / DSM Name: NOTE 1- PLEASE TICK THE APPROPIRATE/PLEASE TICK ALL OUTLETS VISITED S.No Name of Retail Oulet Pista 5/1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 TOTAL Observations on distributors working :Observations on SO's working :Competition Activities :23 Noodles 30/Distributor Name Start Time/End Digestives 25/Available Visible Available Visible Available Visible Available Visible
[ A HANDBOOK ON FMCG SALES ] 4.2. At the Distributor 4.2.1. Distributor Monthly Stock & Sales Report (DMSSR) and Inventory Management The DMSSR or monthly stock and sales report is a tool to regulate and monitor inventory and observe SKU wise movement of Sales. A typical DMSSR is depicted below. Table.4.2.1.A Distributor Town S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total Units Total Value in INR 100 50 82 68 25 2 1 The DMSSR gives us closing stock in units and in number of days. This in turn gives us an idea of which SKUs are over stocked and which SKUs need to be ordered. The DMSSR is used as an input for order generation as well as for clearing old and slow-moving items. This is probably the most important tool to ensure Hygiene at the Distributor point. The DMSSR also gives us details about stock which have returned from the market as damaged/expired or returned by the retailers. SKU Opening Stocks Primary Secondary Sales * Closing Stocks Closing Stock in No. of Days 25 100 50 82 68 Market Return Kaju Saleable Non-Saleable 2 1 24
[ A HANDBOOK ON FMCG SALES ] 4.2.2. Distributor Appointment Process The Distributor appointment is perhaps the most critical area of any FMCG business. The steps to be followed while appointing a distributor are: The Local TSI or SO to shortlist a few relevant profiles and send them to the ASM for further pruning the list to 2-3. The ASM to visit all distributors and finally select one, and keep one as backup (provided all parameters are met). The selected profile to be sent to RSM/NSM/CEO for final approval. Based on approval, agreement to be signed, a Distributor Code to be created at Head Office and the first payment collected. Please Note that new distributor can be appointed in place of an existing distributor only after the process of termination is complete and NDC has been collected. A typical distributor profile form is depictedhere: 25
[ A HANDBOOK ON FMCG SALES ] Table.4.2.2.A 1. NAME OF THE FIRM 2. TYPE OF FIRM (PLEASE CIRCLE) 3. ADDRESS 4. NAME OF CONTACT PERSON 5. LANDLINE NUMBER 6. MOBILE NUMBER 7. TIN NUMBER 8. BANK DETAILS SECTION A 1. A. B. 2. A. TYPE OF BUSINESS REDISTRIBUTION OTHERS (ASSIGN SCORE) CURRENT PRODUCT LINE TOP 10 FMCG/FOOD PRODUCT LINES B. OTHER FMCG/Food LINES Please Specify C. OTHERS (ASSIGN SCORE) 3. CURRENT GROUP BUSINESS TURNOVER LESS THAN 5 LAKHS A. B. 5-10 LAKHS C. 10-15 LAKHS D. 15 -20 LAKHS E. > 20 LAKHS 4. FINANCIAL STANDING A. OWN FUNDS - 100% B. OWN FUNDS - >70% C. OWN FUNDS - >50<70% D. OWN FUNDS - >30%<50% E. OWN FUNDS - >30% 5. CURRENT PREMISES OF OPERATION A. OWNED B. RENTED 6. DISTRIBUTION EXPERIENCE A. 01–05 YEARS B. 05 –10 YEARS C. 10 YEARS + 7. MARKETS COVERED A. SAME AS OUR TERRITORY PLAN B. SOME AREAS ARE DIFFERENT C. TOATALLY DIFFERENT AREA SECTION A SCORE OUT OF 35 SECTION B SECTION 1. PROFILE OF THE OPERATING PERSON ( OWNER / PARTNER / MANAGER ) 1. PROFILE OF PROPRIETOR (Rate from 0 - Max Score) A. AGE ( < 35yrs = 3, 35 to 50 yrs. = 2 > 50 yrs. = 0 ) B. TECHNOLOGY SAVVY C. PASSION FOR CURRENT BUSINESS D. CUSTOMER ORIENTED E. RELATIONSHIP WITH OTHER COMPANIES F. BUSINESS ACCUMEN 2. EDUCATION A. PROFESSIONAL/POST GRADUATE B. GRADUATE C. UG 3. COMMUNICATION A. VERY EFFECTIVE B. EFFECTIVE C. NOT EFFECTIVE 4. MANAGING PARTNER'S INVOLVEMENT IN BUSINESS A. 100% OF TIME B. 2-4 HOURS EVERYDAY C. OCCASIONAL REVIEW 5. LOCATION OF OFFICE A. MAIN MARKET B. SECONDARY MARKET C. OUTSIDE TOWN AREA 6. DISTRIBUTION INFRASTRUCTURE A. GODOWN SPACE IN SqFt 1. GREATER THAN 1500 SqFt 2. BETWEEN 500 TO 1500 SqFt 3. LESS THAN 500 SqFt B. NUMBER OF SALESMAN 1. 5 OR MORE 2. 2 TO 4 3. 1 OR BELOW C. NUMBER OF VEHICLES WITH TYPES 1. MECHANISED GREATER THAN 5 2. MECHANISED BETWEEN 2 -4 3. MECHANISED LESS THAN 2 4. NON MECHANISED D. COMPUTERISED ACCOUNTING 1. YES 2. NO SCORE OUT OF 65 FOR SECTION B TOTAL SCORE OUT OF 100 * MECHANISED - THREE WHEELER AND FOUR WHEELER VEHICLES RUNNING ON FUEL * Top 10 FMCG/Food product Line: HUL, NESTLE, DABUR, BRITANNIA, PARLE, ITC, CADBURY, MARICO, GODREJ, PEPSI FOODS COMMENTS : 1. STRENGTHS 2. WEAKNESS 3. SPECIFIC TERMS DISCUSSED Compiled By (SO) MAX. SCORE EVALUATED SCORE 3 3 5 3 3 5 1 2 1 3 2 1 MAX. SCORE EVALUATED SCORE 5 3 1 3 MAX. SCORE EVALUATED SCORE 5 3 0 1 MAX. SCORE EVALUATED SCORE 10 5 8 0 MAX. SCORE EVALUATED SCORE 5 3 1 4 MAX. SCORE EVALUATED SCORE 5 3 2 5 3 1 5 3 1 0 3 1 65.00 100.00 2 MAX. SCORE EVALUATED SCORE 5 1 2 MAX. SCORE EVALUATED SCORE 5 3 1 3 MAX. SCORE EVALUATED SCORE 1 2 3 4 5 3 MAX. SCORE EVALUATED SCORE 5 4 3 2 1 1 MAX. SCORE EVALUATED SCORE 5 2 2 MAX. SCORE EVALUATED SCORE 3 4 5 3 MAX. SCORE EVALUATED SCORE 5 3 0 0 35.00 14 Company Name Turn Over ***ref check mandate Company 1 Company 2 Company 3 SOLE PROPRIETORSHIP PARTNERSHIP PVT. LTD. OTHERS 1 0 1 30 44 Evaluated by (ASM) Approved By (RSM) 26
[ A HANDBOOK ON FMCG SALES ] 4.2.3. Distributor Termination Process Distributors are extremely important for a company and therefore termination of a distributor should be the last resort after giving enough chances to the distributor to improve. The following could be the reasons for terminating a distributor: Unethical & Fraudulent practices Lack of interest in business Poor Finances Un-hygienic conditions in Godown No following company policies Physical assault or abusive language with sales team The process to be followed for terminating a distributor is as follows: Collect evidence of any of the above and speak to the distributor If the problem persists collect more evidence and issue a warning letter to the distributor. If the problem continues, the ASM to meet the distributor and ask him to resign. Along with the resignation letter get a No Dues Certificate/ Condition No Dues Certificate from the distributor. In case the distributor does not resign, a suitable termination letter to be issued by the HO invoking the distributor agreement. The Distributor has to be given enough time to wind up his operations and collect credit from the market. A new distributor to be appointed only after the expiry of the above period. 4.2.4. Claim Settlement process Schemes are passed in the market in two ways: a) Primary Scheme b) Secondary Scheme The primary schemes are allowed in the invoice itself and hence there is no need to prepare a claim. However, secondary schemes are run by the distributor and later on claimed from the company. The Secondary claims can be of the following nature: Normal Trade Schemes Quantity Purchase Schemes Visibility Schemes 27
[ A HANDBOOK ON FMCG SALES ] Table.4.2.4.A Trade Scheme/QPS BRAND SKU Ketchup TOTAL Table.4.2.4.B Visibility Scheme BRAND Name of Outlet Morvin Stores Butter TOTAL * Please attach photographs which capture sign board Prepared By (SO): Sampling Table.4.2.4.C Sampling Scheme BRAND Name of Distributor Shyam Traders Butter TOTAL * Please attach photographs which capture sign board Prepared By (SO): Name of Outlet Morvin Stores Quantity Sampled Total Amout Verified By (ASM): Approved By (RSM/NSM/CEO): Discription of Scheme Period Rs. 500 PM for window 14 July-14 Sep Total Amout 1 2 3 4 DISTRIBUTOR LANDING PRICE RETAILER LANDING PRICE M.R.P. Purchase Qty.in Cases Purchase Value Scheme 1 case 1 pack Free 1 case 5 pack Free 1 case 10 pack Free 2 cases 25 pack Free Scheme Scheme Rate/Unit Value in Rs. - - - - Scheme % Verified By (ASM): Approved By (RSM/NSM/CEO): 28
[ A HANDBOOK ON FMCG SALES ] Other Market Activation(Similar Formats as above) The claims are to be prepared by the SO on the final day of his journey cycle and along with supporting to be submitted to the ASM for verification. The ASM carries all the claims to HO on the monthly meeting date and hands over to accounts for processing. 4.2.5. Damage and Expiry Policy Different companies have different policies for damaged and expired products. However, in the light of a highly competitive market, most companies are forced to be market friendly with respect to it. Food Products in particular are dealt with cautiously by manufacturers. Normally most companies take back any products which have a clear manufacturing defect. The retailers and distributors are compensated fully for such goods. However, in case of transit damage or any other minor damage, the company personnel provide credit notes to the distributors who in turn provide the same to retailer. This is normally subject to a limit and power of authority (POA). For new products which do not sell and expire on the shelves normally reputed companies take back all the unsold stocks and compensate the trade. Some companies give an in-built commission to the distributors to take care of damaged and expired products. Proper processes at distributor point and the market place ensure that there are no damaged or expired stocks in the market. 4.2.6. Order Generation Process As discussed in the DMSSR para, the order of the distributor will depend on the SKU wise closing stock and the secondary sale for the previous period. It will also depend on seasonality, special inputs and competition scenario. Typically, the order should be such that the distributor always has the agreed number of days of stock. For example, in the CFA or SS town it can be 7 days and in an up country town it can be 15 days. It will also depend on the frequency of supplies to the distributor point. The below format illustrates the order process 29
[ A HANDBOOK ON FMCG SALES ] Table.4.2.6.A Distributor Town S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total Units Total Value in INR 190 80 187 83 29 30 10.5 40 SKU Kaju Pista Opening Stocks 100 90 Primary Secondary Sales 50 30 82 105 Closing Stocks 68 15 Closing Stock in No. of Days 25 4 Stock Norms (in days) 15 15 Calculated Order Quantity -27 38 Actual Order 0 40 4.2.7. Distributor ROI ROI or Return on Investment is a key parameter to check the health of a Distributor or channel partner. This is a simple ratio of net profit and Total Investment. The chart below illustrates a typical method of calculation of distributor ROI. 30
[ A HANDBOOK ON FMCG SALES ] Table.4.2.7.A ROI Working Assuming Volume of 12000 CBBs Annually servicing 4000 outlets. Average per month volume =12000/12= 1000 CBBs PM Total Revenue Gross Margin(7%) Costs Rent Electricity Unloading Charges One Sales Man One Warehouse Guy One Helper Transport Cost Total Net profit= Gross Margin - Total Cost Net Profit = 12,000 Average Net Profit Per Annum Investment Total Monthly Sales = 1000 CBBs Investment in Stocks(15 days)= 500 CBBs Investment in Credit (21 days)= 700 CBBS Investment in Claims(5% of Total Sales) Total ROI PM= Net Profit/Total Investment *100 = ROI PA= Net Profit/Total Investment *100 = 1,44,000 Monthly 2,000 500 500 0 0 2,000 7,500 12,500 3,50,000 * 1000 CBBs*350 per CBB price 24,500 Annual Cost 24,000 (***Rent - At 5/sqft for 400sqft) 6,000 6,000 (***@ 50 paisa per carton) 0 0 24,000 Shared resource 90,000 (1 Driver + Auto Running Charges) Shared 1,50,000 (Monthly) 350000 1,75,000 2,45,000 17,500 4,37,500 (per month) 2.74% ( Monthly) 32.91% (Annually) Normally ROI of 20% or above is considered satisfactory. However, it is a function of Net Earnings. For example, If the ROI is 50%, but Net Earnings is Rs. 10,000 then the distributor may not be interested, on the other hand if the ROI is 24% and earning is Rs. 2 Lakhs Per Month then the lower ROI is more acceptable. Hence Net Earnings and ROI have to be carefully balanced. 4.3. At the Super Stockist 4.3.1. Order Generation Process As discussed in the Distributor Order Generation Process, the order of the Super Stockist will depend on the SKU wise closing stock and the Sales to Distributors for the previous period. It will also depend on seasonality, special inputs and competition scenario. 31
[ A HANDBOOK ON FMCG SALES ] Typically, the order should be such that the distributor always has the agreed number of days of stock. For example, in the CFA or SS town it can be 7 days and in an up country town it can be 15 days. It will also depend on the frequency of supplies to the SS point. The below format illustrates the order process. Table.4.3.1.A Super Stockist Town S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total Units Total Value in INR 190 80 187 83 29 30 10.5 40 SKU Kaju Pista Opening Stocks 100 90 Month Primary Secondary Sales 50 30 82 105 Closing Stocks 68 15 Closing Stock in No. of Days 25 4 Stock Norms (in days) 15 15 Calculated Order Quantity -27 38 Actual Order 0 40 32
[ A HANDBOOK ON FMCG SALES ] 4.3.2. Inventory Management The Super StockistMSSR or monthly stock and sales report is a tool to regulate and monitor inventory and observe SKU wise movement of Sales. A typical SSMSSR is depicted below. Table.4.3.2.A Super Stockist Town S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total Units Total Value in INR 100 50 82 68 25 2 1 The SSMSSR gives us closing stock in units and in number of days. This in turn gives us an idea of which SKUs are over stocked and which SKUs need to be ordered. The SSMSSR is used as an input for order generation as well as for clearing old and slow-moving items. This is probably the most important tool to ensure Hygiene at the Distributor point. The SSMSSR also gives us details about stock which have returned from the market as damaged/expired or returned by Distributors. 4.3.3. Outstanding Management One of the key roles of a super stockist is providing credit.However, it is critical that the outstanding of the Super Stockist remains under control. Ideally each distributor should have a negotiated ‘Number of Days of Credit’ Say, from 15 days to 30 days. There should also be a credit risk limit based on previous purchases. While calculating the credit risk limit, cheques in pipeline should also be taken into consideration. 33 Marie SKU Opening Stocks Primary Secondary Sales * Closing Stocks Closing Stock in No. of Days 25 100 50 82 68 Market Return Saleable Non-Saleable 2 1
[ A HANDBOOK ON FMCG SALES ] The format below is a basic format used to monitor outstanding of Super Stockist. Table.4.3.3.A Date: Distributor 1 Distributor 1 Distributor 1 22-12-2013 Pending Invoice No. Pending Invoice Date Pending Invoice Amount Number of Days Credit T502 T503 T504 11-10-2013 02-11-2013 10-12-2013 Total Credit Risk Limit Distributor 2 Distributor 2 Distributor 2 04-10-2013 15-11-2013 20-12-2013 Total 5,000 8,000 20,000 33,000 50,000 7,500 72 50 12 Pending Invoice No. Pending Invoice Date Pending Invoice Amount Number of Days Credit R502 R503 R504 15,000 18,000 40,500 Credit Risk Limit Outstanding Grand Total 50,000 73,500 79 37 2 34
[ A HANDBOOK ON FMCG SALES ] 4.3.4. Super Stockist ROI Table.4.3.4.A ROI Working Assuming Volume of 60000 CBBs Annually servicing 4000 outlets. Average per month volume =60000/12= 5000 CBBs PM Total Revenue(Monthly) Gross Margin(4.5%) Costs Rent Electricity loading + unloading One Sales Man One Warehouse Guy One Helper Transport Cost Total Net profit= Gross Margin - Total Cost Net Profit = 53,250 Net Profit Per Annum Investment Total Monthly Sales = 5000 CBBs Investment in stocks(15 days) Investment in Credit (10 days) Investment in Claims(5% of Total Sales) Total ROI PM= Net Profit/Total Investment *100 = ROI PA= Net Profit/Total Investment *100 = 6,39,000 Monthly 4,000 500 5,000 5,500 4,500 2,000 4,000 25,500 17,50,000 * 5000 CBBs*350 per CBB price 78,750 Annual Cost 48,000 (***Rent - At 5/sqft for 800sqft) 6,000 60,000 (***@ 50 paisa per carton) 66,000 0 24,000 Shared resource 48,000 (***@ 80 paisa per carton) 2,52,000 (Monthly) 1750000 8,75,000 5,83,450 87,500 15,45,950 (per month) 3.44% ( Monthly) 41.33% (Annually) **For Ease of Calculation Average CBB Value has been taken at Rs 350 per CBB 5. Meetings and Conferences 5.1. Weekly Meetings Schedule The ASMs must meet their team once a week, to review the progress against plan. This meeting is also used to review market working and discipline. The key areas to be reviewed are: a. Adherence to MJP b. Total Calls, Productivity and Sales c. Line per Call and Lines per Productive Call d. Achievement Vs. Target 35
[ A HANDBOOK ON FMCG SALES ] 5.2. Monthly & Quarterly Meetings Schedule and agenda The Monthly Meeting is held between ASMs and field force at the end of every month. The objective is to review the previous month and set the agenda for the coming month. After this meeting all the ASMs meet at the HQ to discuss plans with the Senior Management. A JC meeting format contains the following Reports. 1. SKU wise Target Vs. Achievement 2. Primary Achievement Sheet SO Wise and Month Wise 3. Secondary Achievement Sheet SO Wise and Month Wise 4. Manpower Structure Update 5. Distribution Update 6. Outlet Coverage Update 7. Stock Statement and Inventory Tracking SKU Wise and SO Wise 8. Summary Sheet of Month Highlights and Next Month Plan 9. Action Plan for the Next Month 10. Sales Forecast for the next Month All the formats are provided below. However minor modifications can be done as per company’s requirement 5.2.1 SKU wise Target Vs. Achievement Table. 5.2.1.A NAME OF ASM: RAM MONTH : OCT-14. Sl.No SKU ITEMS 1 Kaju 2 Pista 3 Butter 4 Digestives 5 Noodles 6 Soup AREA :JHARKHAND STATE : JHARKHAND Target Achievement Achievement% 1010 566 1222 9895 551 515 13759 0 0% 0% 0% 0% 0% 0% 0% Achievement Same Month Last Year 1200 600 200 5151 545 500 8196 Growth% - - - - - - Achievement Last Month 980 120 11000 1930 0 5 -100% 14035 Growth% -100% -100% -100% -100% - -100% -100% 36
[ A HANDBOOK ON FMCG SALES ] 5.2.2. Primary Achievement Sheet SO Wise and Month Wise Table.5.2.2.A NAME OF ASM: Shyam Singh MONTH : OCT-14. Primary Achievement Sheet 1 Somdutt Sl.No SO/SR Name 2 Gopal 3 Rahul 4 Ram 5 Nitish 6 Self Total Primary. Target Month 1211 1500 1000 454 9000 8500 3000 2514 2500 5537 6500 7000 AREA :JHARKHAND STATE : JHARKHAND % Achieved Achieved Cumulative Target 124% 54545 45% 65650 0% 54555 84% 33665 221% 5454 0% 14000 5.2.3 Secondary Achievement Sheet SO Wise and Month Wise Table.5.2.3.A NAME OF ASM: Shyam Singh MONTH : OCT-14. Secondary Achievement Sheet 1 Somdutt Sl.No SO/SR Name 2 Gopal 3 Rahul 4 Ram 5 Nitish Total 655 554 P.Sced. Target Month 2222 45455 22666 1000 51718 42153 AREA :JHARKHAND STATE : JHARKHAND % Achieved Achieved 750 Cumulative Target 115% 51515 401% 15155 0% 78555 4154 15515 373% 9590 900 Note: Secondary target is 50% of primary target. 5.2.4 Manpower Structure Update Table.5.2.4.A 111% 30000 82% 184815 Cumulative Achieved 10695 12472 27083 24887 6341 81478 % Cumulative Achieved Total Calls 21% 396 82% 467 0% 797 260% 426 21% 480 44% 2566 Productive Calls 209 231 339 212 293 1284 Productive Calls %age 53% 49% 43% 50% 61% 50% Cumulative Achieved 50000 65000 15200 12222 11556 15555 23211 25505 110% 227869 169533 % Cumulative Achieved 92% 99% 0% 36% 212% 111% 74% 37
[ A HANDBOOK ON FMCG SALES ] NAME OF ASM: Shyam Singh MONTH : OCT-14. SL NO Area 1 RANCHI / GUMLA / RAMGARH / GOLA / PATRATU / SIMDANGA / GHAGRA / LARI 2 DALTONGUNJ / GARHWAR /KANDI /CHATTERPUR/ HYDERNAGAR/ JAPLA / PADMA / PANDU 3 DEOGHAR / DUMKA / EAST SINGBHUM / GODDA / JAMTARA 4 TATA /CHAIBASA /CKP /JAMSHEDPUR /SARAIKELA /BARHARWAR /JAMNAGAR /RAJMAHAL /PAKUR /BARHET Total 5.2.5. Distribution Update Table.5.2.5.A NAME OF ASM: Shyam Singh MONTH : OCT-14. S.No SD Area RANCHI 1 2 3 5 GUMLA DALTONGANJ 4 HAZARIBAGH KATRAS 6 RAMGARH TOTAL 5.2.6. Outlet Coverage Update Table.5.2.6.A NAME OF ASM: Shyam Singh MONTH : OCT-14. SL. No DISTRIBUTOR AREA 1 Ranchi 2 Ramgarh 3 Gola 4 Lari 5 Patratu 6 Lachargarh 7 Simdanga 8 Gumla 9 Sisai 10 Ghagara 11 Jaldanga 12 Daltongunj 13 Garhwa 14 Kandi 15 Panki 16 Chaterpur 17 Hydernagar 18 Japla 19 Medininagar 20 Padma 21 Pandu 22 Hazaribagh 23 Barkagaon 24 Ichak 25 Chauparan 26 Galobar 27 Tandwa 28 Chatra 29 Huntergunj 30 Pratappur T O T A L 38 As on 30th APR 2014 AREA :JHARKHAND STATE : JHARKHAND As on Current Month End GROWTH PLANNED DISTRIBUTOR 15 10 5 2 25 30 87 AREA :JHARKHAND STATE : JHARKHAND ACTUAL / ACTIVE DISTRIBUTOR 7 9 1 0 15 25 57 Sanctioned SO Actual SO 10 25 15 5 55 AREA :JHARKHAND STATE : JHARKHAND Gap 15 0 1 1 2 Plan and time line for achievement November '14 October'14
[ A HANDBOOK ON FMCG SALES ] 5.2.7 Stock Statement and Inventory Tracking SKU Wise and SO Wise Table.5.2.7.A NAME OF ASM: Shyam Singh MONTH : OCT-14. Sl.No Variety 1 2 3 4 5 6 7 8 9 Kaju Pista Digestives TOTAL 300 450 5 AREA :JHARKHAND STATE :JHARKHAND SKU Opening Stocks Primary Seconday Sales Closing Stocks No.of days 15/2/1/250 630 0 15/2/1/15/2/1/150 220 5 200 350 10 1690 110 320 40 160 450 0 1960 250 490 5 90 195 25 155 305 5 1520 5.2.8 Summary Sheet of Month Highlights and Next Month Plan Table. 5.2.8.A NAME OF ASM: Shyam Singh MONTH : OCT-14. AREA :JHARKHAND STATE :JHARKHAND HIGHLIGHTS of last month Key Objectives vs Achievements of last month 266 606 5 156 335 20 185 465 3 2041 32 37 30 52 52 24 36 46 18 40 Key objectives for Next Month Competitors Activities CONCERN AREAS Recommendations 39
[ A HANDBOOK ON FMCG SALES ] 5.2.9. Action Plan for the Next Month Table. 5.2.9.A Name : Desg. : Area : Month : SL No Action Points A State Plan 1 B Recruitment 1 C Distributor To be Reactivated/ to be replaced 1 D 1 E 1 F 1 G Merchandising 1 5.2.10. Sales Forecast for the next Month Table.5.2.10.A Month: SKU Last 3 Months Average Plan for the Month Kaju 8000 Data Analysis & Document Cross Checking Creation of POSM Focus on Secondaries Nos To be Done By 40
[ A HANDBOOK ON FMCG SALES ] 6. 6.1. Rewards & Recognition Incentives The sales force should always be incentivized in terms of cash rewards or gifts in order to motivate them to work harder for improving sales. The incentive schemes can be of 2 types a. A Regular Ongoing cash incentive (Monthly/Quarterly) for achieving desired sales results. Typically, there is a full incentive for 100% achievement of Target. For over achieving, the incentive gets multiplied. Normally some companies offer some incentive for achievement between 90% to 100% of the target, an illustration is shown in the table below Table. 6.1. A S.No. Name of SO Target In Volume Achievement Weightage Target In Value Achievement Weightage Final Achievement Final Amount 1 2 3 SO 1 SO 2 SO 3 500 1000 750 480 850 800 50% 50% 50% 10000 15000 20000 9500 14500 21000 50% 50% 50% 96% 91% 106% 5000 0 12000 b. A grand reward Annual/Half Yearly/Quarterly for exceptional performance based on predefined criteria like highest growth, consistent performance, highest sales in a new product, best launch, best visibility etc. An example is given below: Table. 6.1.B Incentive Structure Achievement >95%-99.99% 100% > 100% - 104.99% 105% or more Incentive Amount 50% 5000 6.2. Recognitions In addition to incentives, both at the Sales Force level and Distributor level recognition by senior management is viewed positively. The recognition can be based on pre-defined criteria. This can be in terms of best sales person of the year, distributor with the highest growth etc. 100% 10000 110% 11000 120% 12000 41
[ A HANDBOOK ON FMCG SALES ] FROM THE AUTHORS Dr. Raja Roy Choudhury, Director Academic Affairs, Universal Business School, India is highly qualified in the world of behavioral health and leadership sciences. He holds PhD degrees in Economics and Psychology. He has 33 years of experience in the areas of retail, education, behavioral health and management consulting. Dr. Chandan Thakur, Associate Professor of Marketing at Universal Business School, India, is a Doctorate in Marketing Management and has 22 years of experience in the field of management education, corporate training and marketing research. He has taught at several Business Schools in India as well as abroad. 42
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