SELECTION OF THE BEST POSSIBLE STRATEGY FOR

SWOSTI FOODS: DECODING DISTRIBUTOR FINANCIAL

METRICS

Case Analysis

In partial fulfilment of the course

SALES & DISTRIBUTION MANAGEMENT

(VIL14EDIP21-3)

By

Bikramdev Padhi/UV21001
Chandan Sinha/UV21002,
Debashreeta Swain/UV21003,
Debasmita Mishra/UV21004,
Ekankeeka Khatooa/UV21005 
EPGDM – 2022

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Table of Contents

Situation Analysis ----------------------------------------------------------------------------------------3

The Problem-----------------------------------------------------------------------------------------------4

The Options-----------------------------------------------------------------------------------------------4

Criteria for Evaluation-----------------------------------------------------------------------------------5

Evaluation-------------------------------------------------------------------------------------------------5

Recommendation & Action Plan ----------------------------------------------------------------------6

Contingency Plan-----------------------------------------------------------------------------------------7

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Situation Analysis

Sachin Khandelwal, a seasoned sales professional was hired as General Manager – Sales, in
June 2015 by Swosti Foods India Private Ltd (a well-established FMCG company which had
established sales process, norms & procedures) who had over 15 years of sales & distribution
experience in FMCG sector in India. Top management of Swosti Foods wanted to improve
the implementation of monitoring and control systems for the distribution network, so
that the consumers could reliably get the entire range of Swosti products at their
nearest retail outlets, at standard prices, as per their demand.

Business Scenario

Swosti Foods had very well-established sales processes, norms and procedures, set up by
involving a very reputed consultancy firm after a lot of research and analysis. However, the
implementation of those policies and norms had not been effectively carried out across the
company’s periphery.

Work Culture

Being personally involved in assessing the teams down the line, Sachin observed that sales

team of Swosti was good intentioned, worked reasonably hard in the market, professionally

networked. People are very much limited to their individual roles & the adherence to

completely track the end results was missing.

Leadership Style

Mr. Sachin exhibits pretty good level of Emotional Intelligence. The components of EI at

work like Self–Awareness, Self–Regulation, Motivation, Empathy & Social Skills seems

present within the working style of Mr. Sachin.

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The Problem

How should Sachin review the current business model to reach the desired stage?

Desired State – focus on Swosti products, retail servicing to be increased

Inefficient channel development,
communication vs distributor
perceiving, Volume lifting through
Gap – wholesalers (leads to QD, with wafer
thin oper. margins), channels are
being used for more business other
than Swosti products, SE visits not
frequently

Current State – Distributor handling multiple co. products, generating business 60%
from wholesalers leading to high QD based on volume lifting

The Options

Options into consideration:

i. Appointment of New Distributors (non-manufacturers).

ii. Relaxation of distributor payment terms.

iii. New Facility.

iv. Stringent monitoring policies.

v. Restructuring of distribution model

vi. KAM vertical inclusion.

vii. Sales quality (balance between wholesalers & retailers)

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Criteria for Evaluation

Criteria in descending order of importance

i. Revenue Growth

ii. Loss of Existing Retailers (when new distributors formed)

iii. Market Penetration

iv. Effectiveness of Co. monitoring policies

v. Funds for expansion

vi. Hiring experienced KAM professional

vii. ASM skills & Networking

Evaluation

Sales quality
OPTIONS App. Of Stringent Restructuring of
Relaxation of New KAM vertical (bal. betw
New Monitoring distribution
payment terms Facility inclusion Wholesaler &
CRITERIA Distributors policies model
Retailers)
Revenue growth Medium High High Medium Medium Very high Medium
Loss of Existing
Medium Very high Low High Very high 0 Very low
Retailers
Market Penetration Very high High Very high High High Low Medium

Effectiveness of Co.
High 0 0 Very high High Medium Very high
monitoring policies

Funds for expansion Medium High Very high Medium High Very high Low
Hiring experienced
Very high High Medium High 0 Very high 0
KAM professional
ASM Skills &
Very high Medium High High Medium Very low High
Networking

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Recommendation

Mr. Sachin should go for appointment of new distributors who can be focus more on retail

sales rather than wholesaling. Apart from that, at few locations, Project or institutional based

Distributor can be created which can be at present looked upon by ASM which in future can

be focussed by a dedicated KAM professional.

Action Plan

Following series of actions are proposed to follow up on my recommendation.

1. As per the understanding from the financials of HSC & KSS distributors, ROC is very

less compared to Ratio of own capital / total capital, hence a proper restructuring

process need to be formally discussed with respective distributors.

2. Appointment of New distributors to be initiated in a region other than upcoming

planned new facility in India. The idea is not to have a distributor where new facility

is upcoming as customers in the new upcoming factory region can be serviced directly

from the plant.

3. Revisiting the internal process by ASM as well as Distributors simultaneously so that

lacunae can be jointly pin pointed & worked upon in near future. Proper monitoring &

SE’s visit report to be jointly evaluated on fortnight basis by ASMs.

4. Hiring of KAM professional in the industry will augment business growth.

5. Internal separate system Audit process to be implemented for all the set ups to ensure

homogeneity.

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Contingency Plan

Retailers of the existing distributors might feel that the new distribution mgmt. process might

not support them in long run

Following action is proposed in such situation:

 Conducting retailers Workshops with the existing as well as new shortlisted

distributors to have a clear & focus transparent approach by the company.

 The new policies should also be discussed (also including the recent discussed like

relaxing of payment terms) provided distributors, wholesalers & retailers shows a

quality sales number to the company.