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Session 1

Introduction to Sales Management

 Topics to be covered in this session:

 Retail Audit:
 Name of Retailer
 Type of Retail Outlet
 Name the main Product Categories that he stocks
 Name the main Brands he stocks
 Name the Companies that visit the outlet

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Session Learning Objectives…

At the end of this session you should be able to :

 Company
 Brand
 Category Product Variant SKU
 Trade
 Distributor Warehouse
 Retail
 Outlet types Channel

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Then…

Retail Multi level

General Trade
Marketing
Wholesale Modern Trade
Avon/
Amway

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Now..

2015 2017

Retail

Wholesale Consumer Paradigm Shifts

Shopping in Delivery
Rural Experiences Systems

Modern Trade

E-commerce
2016 2018

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Changing Context

Categories SKUs
Products

Manufacturer Consumer
Distributor Retail

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Session Structure
 Part 1 :
 Understanding Trade Channel – Types, Structure,
Elements
 How Channel Decisions impact Organizational
Sales Structures
 Part 2
 Case study : Product Launch Plan : Selecting the
Right Channel
 Omni Channel : Challenges & Conflicts

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What is a Channel?
 A method of bringing products to the market so
that they can be purchased by consumers.
 Direct & Indirect Channels
 A method of distribution used by a business to
sell its products,
 Usually by dividing its sales force into groups
that focus on different selling conduits

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Setting up
 #1 Understand Consumers
 Who are the consumers
 Where are the consumers/ where do they buy from
 How can we reach them/ the place of purchase
 #2 What is the Distribution objective/ task; constraints
 #3 What are the Alternate Channels : Intermediaries
 Evaluation of Alternate Channels : Economic; Control;
Adaptability
 Choosing the best Channel/s; Selection of Channel
partner
 #4 Allocating Resources/ tasks

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Channel Partner
• Expectations • Role
• Selling & Distributing • Investment

• Delivery of Goods • Warehouse Space

Management
• Collection of Cash, Credit
policy • Manpower Management

• Stock norms/ Inventory • Financial Acumen

Holding
• Business/ Industry
• Returns Policy Acumen

• Trade Promotions & • Regional knowledge

Visibility

Relationship Building : Alignment :Feedback & Collaboration

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Channel Levels & Conflicts

0 level

Warehouse/ Wholesaler/ Consumer

Factory Retailer
3 level Agent Distributor
1 level
2 level
Multi- Channel
Horizontal

Between 2
Same level channels

Eg: Differential
Eg : Territory margins,
Encroachment, MT vs GT; Wholesale
price undercutting vs Retail

Consolidation; Delayering : Reduce Cost, Enhance effectiveness

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Types & Intensity of Distribution

0 level

Warehouse/ Wholesaler/ Consumer

Factory Retailer
3 level Agent Distributor

2 level 1 level

Selective Exclusive InDirect

Direct Intensive

Single
Select Selling/
Maximise Channel/ Channel Interme
Direct to
Outlets/ Partner diaries
Consumer Coverage,
Reach Geographies/
Brand E.g.:
Synergies Premium
E.g. : Mass Products,
distribution, E.g.: Premium Fabelle,
FMCG soaps Outlets, Titan Apple

Cost- Traction - Brand- Competitive Advantage

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Forces of Change
 Proliferation of Consumer Needs and Products
 Shifts in the balance of Channel Power
 Changing strategic priorities of the organization

 Dynamics are country/ market specific,

organization specific, category specific and time
specific

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Designing Channel : Stepwise Activities

 Consumer Understanding : Consumption/Usage
pattern and Buying Behaviour
 Outlet Classification & Competitive Benchmarking :
Retail Census- Distribution/Availability
 Clustering Retail Behaviour based on servicing needs:
servicing frequency/delivery model/credit terms
 Designing Terms of Trade and Delivery models for
the Channel Partner
 Grouping Products /Categories- determining the
carrying basket
 Allocating resources and defining tasks

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Retail Audit
 Do a stock check of any one category/product of a
company
 What is the servicing frequency of the company for
that product
 What is the average monthly offtake of the product
 Which are the competitors of that product
 When is the product delivered by the company ( time
taken to deliver post taking order)

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Types of Market
 Consumer Market: Products bought by ultimate
consumers for personal use
 Business Market: Products purchased for use either
directly or indirectly in the production of other goods
and services for resale
 A product can be either, depending on its use.

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Before We End…
Summing up what we have learned and are now able to:

 Understand different types, structure and elements of

trade channel.
 Different challenges and conflicts of omni channel
 Different types of markets.

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 THANK YOU…

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