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Mattel Toys India Ltd.

Submitted by: Group B-05 M Gireesh Babu 12P084 Manish Gupta 12P085 Mohit Batra 12P086 Nikhil Gupta 12P087 Nitish Gupta 12P088

They covered about 100 retail outlets. while unorganised players gave 30-35% . and were expected to carry stock of 4 week’s sales Retailers – Got 20% markup. 50% toy shops(high penetration of 60%) .Distribution Network : 1987 to 1996 Sales organization  Sales Officer  First level of company’s sales organization  ASM  Looked after a territory like Delhi  Zonal Manager  Looked after a zone like North Zone  VP Sales  Located in Bombay and looked after whole of India Distribution Structure C&F Agents – They handled stock in all major states and dispatched goods to the distributer Distributers.Covered around 5000 retail outlets.

more than Rs.Distribution Network : 1997 to 1998 Mattel Toys Sales officers/ C&F agents Distributers Large Retailers Large Retailers Small retailer Small Retailers  Dual Distribution Policy adopted  Large retailers served by company’s own sales force/C&F agents  Small retailers served by Distributers  New plan first tested in Delhi and then Implemented across India  Net saving exxpected to be Rs. 1 crore per year from all India . 18 lakh from Delhi.

Changes Made by Mattel:1999 to 2000 • • • • • • • • Discontinuation of Direct Dealer Policy except for servicing chains like Nanz and Shoppers Stop Sos redesignated as Territory Sales Executives(TSE) and focus changed to developing their territories. channel relationship management etc ISOs responsible for generating sales Change in distributor’s margin to 8.5% further reduced to 8% Sharing of ISOs salary on 50:50 basis Increase in credit period for distributors to 10 days Retailer Margin increased to 25% Higher sales levels and effective advertising support .

Understanding the problems in the channel looking at the signs of latent opportunity Opportunity Existing Recommendation/ Solution Unhappy end users Unexplored new channels Gaps in market coverage Deteriorating economics No No No No N/A N/A N/A N/A Complacent Intermediaries Yes • ISOs and TSEs should be incentivized to develop their territory • Generation of secondary sales data at distributor’s counter • Adoption of ERP (like inventory replenishment system as the toy market thrives on new product) Dated system for interfacing with channels Yes .

Thank You .