ABN THE TEA MAKER

Group -12

INTRODUCTION
As it is an FMCG company and operating in homogenous market the profit margins mainly depends up on economies of scales. Intensive distribution. Analysis of activities performed by each channel . Matching activities with customer needs and values.

Relaunching the RR brand

Value flavor. changes Packaging and its disposability. Consider price level. Best distribution channel. Cost benefit analysis.

ABN private limited

MKN-ADVISOR

AKN-VP

SM-GROUP PROJECT MANAGER

RETAIL OFFICERS

BM

SKC

MSSK

SALES PERSONNEL -5
WHOLE SELLERRS-3

RETAILERS 1718

ACTIVITES INVOLVED IN SALES AND DISTRIBUTION

Identification Order booking Finance Logistics After sales support

Roles of individuals
Direct sales
identification Distribution Finance Logistics After sales support

wholesaler
S,D D D D D

RETAILER R R B R R

S S 0 o o

S-SALES PERSONNEL D-DEALER O-OFFICER R-RETAILER

Direct Sales
sales force with the training inefficient identifying new potential customers after-sales process greatest working capital investment

Whole sellers shift the working capital attention After sale potential decreases

Selling and distribution expenses for direct sales/UNIT

s.no channels

Selling expenses/unit RS

Distribution EXPENSES

inventory

others

Total expenses

DIRECT SALES

10

AFTER SALES SUPPORT 3 FINANCE AND LOGISTICS 5

26

DISTRIBUTOR S

Gross margin 25 After sales support 2 Gross margin 28 Credit 5

38

Retailers

42

Assumptions: market price 100rs/500g Market : homogenous

CHANNEL M M M W R C

COMFORT LEVEL HIGH MODERATE LOW

TIME LOW MODERATE LOW

M-MANUFACTURER W-WHOLESELLER R-RETAILER