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Sales & Distribution Management

Final Project Report


Marico and Honda

Group 6
Submitted to
Dhruv Dehinwal (PGP10015)
Prof. Prantosh Banerjee
Manvendra Singh (PGP10030)
Cherry Singh (PGP10078)
Gaurav Kumar (PGP10082)
Kushagra Verma (PGP10109)
Supriya Soni (PGP10119)
Individual Contents

FMCG INDUSTRY AUTOMOBILE INDUSTRY


Company Overview- Manvendra Singh
Company Overview- Cherry Singh
Choosing relevant Company’s SKUs -
Channel Design - Gaurav Kumar Kushagra Verma

Researched on Channel Member Researched on Distribution Network and


Management - Gaurav Kumar Processes -Dhruv Dehinwal
Researching on latest changes to Hondas
Collected Secondary Data on Field Force distribution network- Dhruv Dehinwal
Management- Cherry Singh
Collected Secondary Data on Sales
Transportation & Logistics Research – Promotion on Honda – Kushagra Verma
Supriya Soni Researched on Salesforce Management-
Manvendra Singh
Performed the Analytical Framework-
Supriya Soni DHRUV PGP10015

MANVENDRA PGP10030

CHERRY PGP10078 KUSHAGRA PGP10109


Contents

1. Marico 4

2. Company Overview 4

3. Channel Design 5

4. Channel Member Management 8

5. Field Force Management 11

6. Transportation & Logistics 14

7. The Analytical Framework 15

8. Honda 17

9. Honda Cars India Limited 17

10.SKUs of Honda 18

11.Distribution Network and Process 20


12.Redesign Dealership 21

13.Sales Promotions 22

14.Sales force Management 23

15.Bibliography 24
Marico
Company Overview
With its headquarters in Mumbai, Marico is a
consumer goods company which provides products
and services majorly in Health, wellness and
Beauty care segments. The company holds a
number of brands under its banner which includes
Kaya, Sundari, Parachute, Nihar, Oil of Malabar,
Saffola, Hair&Care, Mediker, Revive, Manjal,
Livon, Sweekar, Set Wet, Zatak, Shanti, Fiancee,
HairCode, Eclipse, X-Men, Hercules, Caivil,
Thuan Phat, Code 10, Ingwe, Grace and Black
Chic.

Its distribution is present in over 25 countries in Asia and Africa including India, Bangladesh,
Egypt, Malaysia, Middle East, South Africa and Vietnam. As of 2018-19, the company turnover
is ₹7,334 crores. Marico has 8 factories in India located at Pondicherry, Perundurai, Kanjikode,
Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib.

Marico Industries Ltd. was founded in the year 1990, when the consumer products division of
Bombay Oil Industries Ltd. (BOIL) was spun off into a separate company. Harsh Mariwala is the
Chairman and Saugata Gupta assumed the role of the Managing Director in March 2014 and is
currently the MD and CEO of this organization
Marico’s Consolidated revenue from operations fell marginally to Rs1,824 crore in Q3 FY20 as
against Rs1,861 crore in Q3 FY19, with an underlying overall volume growth of 2% and
International constant currency growth of 10% in the international business.

Channel Design
Marico has three broad distribution channels:

Modern Retail In Urban Market Rural Market

The flow of goods is usually The flow of goods in urban The flow of goods in the
as follows. Factory – Depot – market is as follows. Factory – rural market is as follows.
Modern Trade Retails like Depot – Distributor – Urban Factory – Depot – Super
Supermarkets, Convenience retailers like Kiranas, etc. – Stockists – Wholesalers –
Chain, etc. – Customers Customers. To cater to retailers Rural retailers –
which are not catered by Customers. In areas where
wholesalers. it is feasible, there is
existence of sub-stockists
to cater to the retailers.

Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverageable strength.
Every month, 46 million consumer packs are sold to about 1.8 million households through 1.7 million retail outlets spread across
the country. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below
depicts Marico's distribution network in the urban & rural markets.

The diagram below shows the distribution network of Marico:


Each of these channels has differences in the buying behavior of customers, degree of control and competitive strategies.

Channel 1

In this channel, the merchandise stream legitimately from the company depots to the retailers.
The volume bought by the trade retails like Big Bazaar, Spencer’s, and so on are tremendous.
This is the motivation behind why there is no distributor present. Rather, every one of these
retailers are considered as Key Accounts for the organization and are taken care of by Key
Account Managers. While considering both general and current trade for Marico, it has been
discovered that both are similarly significant and can't be undermined at cost of each other. The
image below show the current and future commitment of every one of them in Marico's income.

While Kirana has a CAGR of 23.7%, Modern Retail is growing at a CAGR of 36.7%.

Channel 2

This is the traditional FMCG distribution channel. It begins with the products being moved from
the organization manufacturing plants to the Depots(C&F Agents) in different states. The Depots
in a state aren’t fixed and are controlled by the size of the State. After that the goods flow to the
distributors taking into account the various areas under each ASM. Generally the distributors are
spread across different districts in a state. For huge markets like the metropolitan urban areas, the
quantity of distributors might be multiple in number. For small markets in Tier 2 and Tier 3
cities, there are shared distributors. The distributor sales force guarantees the progression of
products to the retailers. The beat plan followed by Marico is either week after week or
fortnightly, contingent upon request. The clients purchase products from the retailers.

The distributor sales force as to cover the enormous shops on the primary streets of a locales.
The small shops in the by lanes are outside the merchants reach, purchase from the wholesalers.

Channel 3

In rural India, the market is widely dispersed. And the order quantity for the retailers is also
much less. In such scenario, the company didn’t find it economically feasible to employ
distributor sales force. Instead it applied indirect distribution. It employs super-stockist or super
distributor. It ensures cost sharing as the super-stockist does truck space sharing with 5-6 other
companies. The goods then flow to the wholesalers who further sells to rural retailers. The
customers buy from the retailers. In areas where it is more feasible, the company employs sub-
stockists who sell directly to retailers.

The flow of information in each of these channels is only limited to direct distribution. In places
where there are majorly indirect distribution market trends, and company’s performance data
may not be readily available. The company has widely implemented IT infrastructure to store
and retrieve real time data for planning and decision making. Mi-Net a platform for B2B sales
force helps the company with the information and data from Modern retail. For the distributors,
the company has implemented MIDAS, a transaction processing software.

E-commerce Platforms

Marico has been using E-Commerce as a prototype testing platform for quite some time now.
They launched the Set Wet brand through ecommerce much before launching it through general
and modern trade channels believe e-commerce sites are great ways to test if the product is going
to work in the market or not.

Other than product testing, the company is also considering the e-commerce sites for its niche
products. Unlike India, Parachute is considered as a niche brands in the US market. The
company is trying to sell its products through Amazon. Similarly, the company is also using this
channel to sell its niche products like Livon hair gain, Set Wet hair wax and Bio Oil in various
markets in India. After the recent acquisition of Beardo, the company has started boosting its
online sales. It expects to draw 10% of its revenue from this channel.

Channel Member Management


As given above. Marico has the following channel members in its 3 channels combined.

● Distributors in urban market


● Super-Stockists / Super-Distributors and sub-stockists for its rural market
● Wholesalers
● Retailers (both urban & rural)
● Modern Trade Accounts

Distributors Urban Market Rural Market

 Marico gives 5% margin


to its distributors.  The Company gives a
 The margins are in line margin of 7% and a
Monetary Methods to credit period of 30-45
with the industry
Reward days to all super
standard.
 The company also gives distributors.
a credit period of 30-45  The sub-stockists who
days to its distributors. directly supplies to the
retailers gets margin of
5%.
 Distributors schemes  The Company has
Non-Monetary Methods to
based on trade similar distributor
reward promotion. schemes and awards for
 Contests and awards for the super-stockists and
Distributors such as sub-stockists as in the
Retail Product push case of urban
winner award. distributors.

Target-Setting Mechanism  ASM does the target  The ASM does the
setting for the target setting for the
distributors depending super-distributors
on the expectations of depending on the
the management. expectations of the
 The factors considered management.
are gross profit margin,  The factors considered
break-even point, sales are similar to that of
strategies like customer urban distributors. Often
loyalty, new customer category penetration and
acquisition, and upsell. category growth for the
rural markets are also
considered.

Monitoring Mechanism  The quarterly statements  The monitoring


from the stockists help mechanism for the rural
the ASM monitor if the market is quite similar
stockist is over-trading to that of the urban
or under-trading. market.
 The ASM can
effectively analyse
underutilization of
resources, inefficiency
in operations, low sales
level, lack of interest,
poaching, etc.
 The Company has
Training & HR Inputs training programs and  It is same as that of
conferences with the urban distributors.
distributors usually
involving the ASMs and
top management coming
together with the
distributors, sharing the
company’s goals,
addressing the ROI of
the distributors, aligning
the distributor interests
with the company’s
motives, etc.
Wholesalers

● Monetary Methods to reward: The Company gives a margin of 3% to wholesalers. The


wholesalers get bulk discounts for buying above certain quantities.
● Non-Monetary Methods to reward: The wholesalers also get vouchers and free goods
for buying above certain quantities.
● Target-Setting Mechanism: There are no targets as the wholesalers are not appointed or
employed by the company.
● Monitoring Mechanism: The PSRs stationed in the wholesale markets look into the
sales converted by the wholesalers. Primary and secondary trade promotion schemes are
applied on how the wholesalers are performing.
● Training & HR Inputs: There are no training or HR inputs for the wholesalers.

Retailers (Urban & Rural)

● Monetary Methods to reward: The Company gives a margin of 5% to the retailers in


rural settings and a margin of 10% to the retailers in urban settings. Most retailers get
credit only for 1-2 days. Allowances for carrying special product displays.
● Non-Monetary Methods to reward: Retailers serviced by the company’s salesforce
benefits under trade promotion scheme called Secondary Scheme. There are also loyalty
programs like MERA, Super MERA and UNNATI for the retailers. Marico also has
contests and awards for Retailers such as Retailers meeting the celebrity contest.
● Target-Setting Mechanism: The company/distributor salesforce tries to push products
on to the retailers through schemes and advocacy. The targets are usually set by the
numbers that can be pushed on to the retailers, and the shelf space the retailer is willing to
give to the company’s product.
● Monitoring Mechanism: Because of salesforce automation, the field person updates
entries on the internet linked company apps and the item is immediately updated on the
company’s information system. This helps the company to actively track secondary sales
data.
● Training & HR Inputs: There is hardly any training or HR inputs for the retailers.

Modern Trade Accounts

● Monetary Methods to reward: The prices and margins are very different from those in
the classical distribution setting. These sales come under B2B sales for the company and
are handled by the Key Account Manager.
● Non-Monetary Methods to reward: Non-monetary rewards can be of type club dinners,
loyalty programs and other benefits.
● Target-Setting Mechanism: Targets can be based on Quantity and value. The targets for
Modern retail can be SKU wise or Brand wise. The targets are defined for specific date
range and specific brands.
● Monitoring Mechanism: The Key Account Manager monitors the performance at
various zones. A thorough analysis is done at the end of each month and based on that
weak products or those for which the demand has declined, are identified.
● Training & HR Inputs: Sometimes the company engages in training the retail sales
personnel to promote in-store sales.

Field Force Management

Distribution- Go to Market(GTM) Strategy


Rural development outpaced urban development during the year. Marico’s Rural Sales Grew
By12%,while urban sales developed by 5%. The commitment of provincial to the India turnover
has expanded from 26% in FY2012 to 32% in FY2018. Present day exchange (11% of the India
turnover in FY2018) developed by 15% in FY2018, filled by elements, for example, an
agreeable and current shopping experience, access to assorted classes just as a wide assortment
of brands under a solitary rooftop and appealing costs. CSD (7% of the India turnover in
FY2018) was flattish for the year

GTM change is one of the key mainstays of long haul development for Marico. With its attention
on building forms, driving new age activities, cutting a best in class IT framework and a
propelled ability building cell, GTM change has seen an energizing excursion in 2017-18:

● Project ONE (Outlet Network Expansion) has been the marquee task to grow the
immediate dispersion of Marico in the course of recent years. We included 86,000 urban
outlets in 2014-2017 across 34 urban areas, yielding a turnover of ₹88 crore consistently.
In 2017-18, we included another 12,000 urban outlets, which gradually contributed ₹10
crore of steady yearly turnover to the kitty.
● In request to improve travel time for the feet on ground and deductively show up at
obviously delineated deals courses, Integrated Sales Route Optimization (ISRO) was
executed across six urban areas in the nation. ISRO, a geo-label based and investigation
drove course advancement model, has helped Marico spread more outlets with lesser
labor. The discharged labor was thus redeployed to additionally help direct arrive at
extension.
● Further, in order to leverage technology as an enabler for sales, Retailer Intelligence &
Analytics (RETINA) was rolled out across 13 cities. By suggesting the next best Stock
Keeping Unit (SKU) to sell in every store, RETINA has enabled Marico to increase its
range in the stores.
● Marico embarked on customized assessment and certification modules to analyse the
quality of its field force and channel partners. This, coupled with predictive analytics, led
to a reduction in attrition and enabled Marico to have the best-in-class infrastructure.
● The Capability Building cell leveraged IT to bring a structural shift in the way the field
force is trained. While virtual e-learning modules and e-classroom trainings became a
regular medium to train the field force, Marico has also developed an in-house content
factory for its field force.

The region secured by a single depot or C&F Agent of each state goes under the domain of an
Area Sales Manager (ASM). For every one of the domains under ASM, there is a Territory Sales
Officer (TSO). What's more, each TSO controls Distributor Sales Representatives or DSRs. The
accompanying chart shows the progressive structure of Marico Sales power.

Area Sales
Manager (ASM)

Territory Sales Territory Sales Territory Sales


Officer (TSO) Officer (TSO) Officer (TSO)

Distributor Sales Distributor Sales Distributor Sales Distributor Sales Distributor Sales Distributor Sales
Representative Representative Representative Representative Representative Representative
(DSR) (DSR) (DSR) (DSR) (DSR) (DSR)

For the rural market, the sales force network is different. The sales rep for this situation are
called Pilot Sales Representatives or PSRs. The PSRs are utilized by the organization at the
distributer area. Each PSR reports to an Independent Sales Representative (ISR), who is
administering a whole distributer organize. These ISRs further reports to TSRs or Territory Sales
Representatives at the Super-stockist or Super-Distributor area. TSRs goes under the oversight of
Area Sales Manager or ASM. The following is the manner by which the structure searches for
the rural market.

Area Sales
Manager
● Monetary Methods to reward: The (ASM)
salesforce is on company’s payrolls
and not on distributor payrolls. The Territory Territory
Sales Sales
sales force people also get commission Executive Executive
(TSE) (TSE)
on their achieving or exceeding their
targets. In the year 2017, Marico gave Independe Independe
nt Sales nt Sales
Represent Represent
ative ative
(ISR) (ISR)

Pilot Sales Pilot Sales


Represent Represent
ative ative
(PSR) (PSR)
Rs.6.06 crore as commission to its selling agents. The salesforce incentives are same in
both rural and urban setting.

● Non-Monetary Methods to reward: Other than commissions and fiscal motivating


forces, the salesforce likewise search for thankfulness, advancement and endowments.
Regularly organization perceives star entertainers through honors, and send them on
outings or gives them costly endowments at yearly social affairs.
● Target-Setting Mechanism: The objectives and the everyday beats of the DSRs are set
by the TSO in the urban market and in the provincial market, the equivalent for PSRs are
set by ISR. The objectives are chosen by the ASMs based on the board's desires and
market circumstances.
● Monitoring Mechanism: The Company has implemented salesforce automation to track
sales. Further supervisors track developments of the sales reps by soliciting them to send
pictures from shop visits through WhatsApp or by asking them the business people
themselves.
● Training & HR Inputs: Marico constantly puts resources into preparing and
improvement of its field power. It accepts that preparation is important for redesigning
ranges of abilities and adjusting to the changing economic situations. As the FMCG
showcase moves towards present day retail and E-Commerce, the salesforce should be
updated. Further they need computerized change as methods for deals the executives.

Transportation & Logistics

Marico connects with outsider warehousing and logistics organizations to guarantee the effective
and convenient conveyance of its items to the retail outlets. Both full truckload and part
truckload transfers are moved from the organization to the warehousing units through trucks. The
conveyance from warehousing to the retail outlets is done utilizing light business vehicles in
transportation.
Marico has made critical interests in IT to scale up flexibly affix efficiencies and improve the
unwavering quality of deals and dispersion by guaranteeing that the required SKUs are made
accessible to the wholesalers and retailers at the perfect time and in the necessary amount.
Marico's MIS framework has upgraded its ability to settle on choices dependent on constant
information.
To guarantee that the deals and dissemination channels of Marico receive the most ultimate
rewards for the organization, they presented an Internet-based application named MI-Net in
2002. Through a web interface, the app associates the organization and its merchants in this
manner, giving continuous data to the organization about the conveyance of items to the
wholesalers and retailers. The application has cut down the correspondence costs, improved the
entrance of deals power, diminished the working capital prerequisites of the channel individuals,
and so on.

The Analytical Framework

Impact of variables on Marico's distribution network:


1. Number of customers and their geographic dissemination:
Marico, being an FMCG organization, serves an enormous lump of the Indian populace. Since a
noteworthy number of these individuals dwell in rustic territories where the retail locations are
divided in nature, the organization has drawn numerous layers in the appropriation framework,
as referenced in the anterior segments. To arrive at such an enormous divided populace all the
time, the organization needs to guarantee proficient coordination and transportation arranged.
The organization frequently connects outsiders for warehousing and transportation exercises to
ensure convenient and straightforward accessibility of items.

2. Higher recurrence of procurement:


FMCG items have a high pivot rate round the year. Along these lines, the organization needs to
guarantee that the items are made accessible to the retailers either on a week by week or once in
about fourteen days premise. This again requires productive coordination and transportation.

3. Inclination to delay buy:


Since clients once in a while display a propensity to defer buy for FMCG items, in this manner,
the organization can't do much on this front.

4. Level of recognition:
For the item portfolio offered by Marico, the recognition level with the current item
classifications is very high. Furthermore, since the more significant part of these is low
association item classifications, in this manner, the significance of having a reliable field power
is diminished. The organization concentrates more on the channel system and individuals to
guarantee the convenient accessibility of items.

5. Brand Loyalty:
Marico's item arrangement includes brands, for example, Saffola, Parachute, and so on for which
the client unwaveringly is genuinely high. This gives the chance of connecting with wholesalers
in their circulation channel. Top brand faithfulness likewise legitimizes the low edges given to
the merchants (5-6%) and wholesalers (3-4%) since brands have massive draws from the market.

6. Level of Involvement:
The items offered by Marico don't request an elevated level of contribution for procurement;
henceforth, what gets significant for the organization is to guarantee that things are generally
accessible in the market. This builds the significance of having a vigorous dissemination
channel, on which the organization has enough core interests.

7. Bought as a 'Container of Goods':


Item classifications offered by Marico includes those which are bought by family units during
their month to month staple buy. This makes it significant for the organization to guarantee that
brands, for example, Parachute, Saffola, and so forth are accessible at little retail locations just as
stores, the two of which encourage month to month shopping for food for clients.

8. The job of influencer:


Other than consumable oil, the remaining item contributions of Marico don't include a lot of job
of an influencer in buy. For palatable oil classification, field power guarantees that retailers are
giving a clear message to the clients through media promotion. Additionally, the field power
guarantees retailer support, somewhat, especially to tap in clients searching for a solid oil choice.

9. Worth/Volume Ratio:
FMCG items, for the most part, have low with/volume proportions. Consequently, the
organization guarantees that item appropriation at the retail outlets happens either on a week by
week or once in about fourteen days premise. This, like this, ensures the retailers are not dumped
with stock and can keep up higher ROI/sq. Ft.

Honda
Honda Cars India Limited
Honda Cars India Ltd., (HCIL) is a leading manufacturer of premium cars in India. The company
was established in 1995 with a commitment to provide Honda’s latest passenger car models and
technologies, to the Indian customers. The company is a subsidiary of Honda Motor Co. Ltd.,
Japan.

HCIL's first manufacturing unit was set up at Greater Noida, U.P in 1997. The green field project
is spread across 150 acres and has an annual production capacity of 120,000 units. HCIL's
second plant in Tapukara is the first car manufacturing plant in the state of Rajasthan. The state-
of-the art Powertrain and Press shop in Tapukara plant has been operational since September
2008. This facility is spread over 450 acres and has an annual production capacity of 120,000
units. HCIL started the production of cars from its Tapukara Plant from February 2014. This
plant is the culmination of the best manufacturing know-how and practices gathered from
Honda's global operations.

Honda Values

Quality Environment Safety

"We have to aim for 120% Honda's philosophy All lives are precious.
product quality. behind its environmental That's why Honda sees
It is unacceptable that commitment is to ensure safety as one of the most
even one customer in a Blue Skies For Our vital aspects in car making.
Children. This philosophy Honda strives to make
should receive a defective Honda's many efforts to of safety, so that everyone
product. That's why we reduce the environmental can have a safe and
have to aim for 120%." impact of its pleasant journey wherever
manufacturing operations, they go.
as well as throughout the
lifecycle of its products.
SKUs of Honda

Economy
Honda Amaze
Honda Brio

Value for Money


Honda City
Honda Jazz

Luxury
Honda CR-V
Honda Civic

ECONOMY 
To represent the economic SKU provided by Honda we have taken Honda Amaze and following
are its details:

PRICE 6.12 lakhs Rs. onwards

Mileage 18.3 to 24.7 kmpl

Engine 1199 to 1498 cc

transmission Fuel

Fuel type Petrol and Diesel

Seating capacity 5

VALUE FOR MONEY


To represent the Value for Money SKU provided by Honda we have selected Honda City and
following are its details:

Price 10.13 lakhs Rs onwards

Mileage 17.4 to 18 kmpl

Engine 1497 cc

Transmission Manual and automatic

Fuel type Petrol

Seating capacity 5

LUXURY
To represent the luxury SKU of Honda we have selected  Honda CR-V and following are its
details:
 

Price 28.27 lakhs Rs onwards

Mileage 14.4 kmpl

Engine 1997 cc

Transmission Automatic

Fuel type petrol

Seating capacity 5

Distribution Network and Process  


HCIL has a strong sales and distribution network spread across the country. It includes 371
dealership outlets across 121 cities in 20 states and 3 Union Territories of India. HCIL
dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering a complete
range of services to its customers.
Honda distribution starts with manufacturer spread around various geography and providing
finished goods to distributors who stuff products in bulk and dispatch in small quantities to
retailers who ultimately  consumer. 

HCIL

2 Level
Distributos Distribution

Retailers

Customer

Distribution process starts when the distributors estimate a demand for the monthly with their
interaction with others players in the distribution channel and sometimes even customers and this
information is sent to the nearest area office of Honda which then provides those estimates to the
concerned manufacturing plants so they can start with the ultimate production of the estimated
units.

These channels are also used to provide information to manufacturing plants about any
deficiency in the products and also customers' expectation of the products to the company so
they can improve on them.
Redesign dealerships to provide better customer experience:

Honda Cars India has announced that all its existing showrooms and service centers will adopt a
new corporate identity as part of its network modernization initiative. “The new identity
accentuates the aesthetics and overall appeal in the form of distinctive exteriors, warm and
welcoming interiors, and a new customer interface, offering an enriched buying experience,” the
company said in a statement. The entire sales and distribution network with 350 facilities in 239
cities will adopt the new identity progressively within the next three years

Honda Cars India is also implementing ‘iWorkshop’, an integrated digital workshop


management system that combines key workshop processes into a simple and intuitive solution
using the latest technologies.

The company added the iWorkshop would help provide real-time updates and a more holistic
after-sales experience to its customers. This system includes tablet-based check-in, estimates on
emails, efficient bay management, online payments, etc, and it is facilitated through Honda
Connect application, the company’s connected car technology.

The first dealership to embody the new corporate identity is North East Honda in Tezpur, Assam.

Sales Promotions
Good sales promotion and trade promotion strategies helps Honda increase its sales. Trade sales
promotion helps manufacture gain new distributors for their products and supports consumer
sales promotion.

 For the luxury/premium segment, Honda annually sponsors dozens of auto shows for
consumers. The show attracts millions of consumers, providing dealers with increased
store traffic as well as good ideas to sell the product. Honda portrays that it builds cars
which win such tournaments. Honda sponsors such sporting events, it was the official
sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". Honda also
sponsors other sports such as hockey and golf. Honda advertises in print media and
participates in road shows to showcase its products.

 For economy and value for money segment Honda offers many sales throughout the year.
Especially toward the end of the year while they promote specials on their products
because they want to sell out the models of that year's car to start bringing in the new
models for the following year. That is known as the End of the year clearance sale, that is
a way to get customers that aren't willing to pay full price for a brand new car.

 Honda's website provides us with its promotion sales. They offer cars with low APR
rates. If you're leasing a car, they offer you $0 for the first months. Leasing is an example
of personal selling.

 For all three segments Honda uses TV advertisements to a large extent. Honda has
released ads with different themes to attract customers. The adds focus on Honda’s
innovation and superior engineering such as the cog advertisement released in 2003.
Honda also released an advertisement showcasing the Honda founders dream of
producing high quality cars.

Sales force Management


Honda incentivizes the salesforce with salary along with additional bonuses time to time which 
depends on monthly sales ,this model of giving additional monetary benefit is dealt on a daily
basis as the team is involved in different segments of product i.e two wheeler and four wheeler.

 The team is divided on each length of products on the dealers end which are highly
trained by Honda executives.
 The company provides awards to the best performing sales personnel and dealers
according to which they get benefits from the company such as they will be the first one
to get a new product to which they will get first mover advantage in the market.

 This opportunity provides dealers with heavy discounts and ease of promotion through
their end to the consumer.so every dealers tries to give their best performance Honda to
get this benefits .

 Area are divided for different dealers so they do not have a competitive environment and
they can boost their sales in their respective areas

Margins:-

Distributers : 4% to 5%

Dealers and Sub Dealers : 1% to 3%

Bibliography
 (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Marico

 (2017). Annual Report 2016-17. Marico.

 Business Line. (2014, June 26). Retrieved from Marico to use E-commerce sites:

https://www.thehindubusinessline.com/companies/Marico-to-use-e-commerce-

sites/article20806389.ece
 Business Line. (2017, May 5). Retrieved from Marico eyes e-commerce route for 10% of sales:

https://www.thehindubusinessline.com/companies/marico-eyes-ecommerce-route-for-10-of-

sales/article9682995.ece

 Marico Brands. (n.d.). Retrieved from Company Website: https://marico.com/india/brands

 Rural Marketing : Indian Perspective. (n.d.). In A. K. Singh, Rural Distribution Channels (p. 151).

 About Honda : https://en.wikipedia.org/wiki/Honda_Cars_India

 Honda’s Promotions : http://hondacars92.blogspot.com/2011/10/ch-18-sales-promotion-and-

personal.html

 Honda’s SKUs : https://www.hondacarindia.com/

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