Apple food products

Submitted By: Abhinav Kumar

 Case Facts
O Well established company with market leader in all respective brand
categories.

O 6 Product Groups :
- Soft Drinks : 250ml & 500/1ltr Pet Bottle
- Ice creams : Bulk & On premise Packs
- RTE Foods : Modern retail & Catering.

O Got distributors for 5 product groups and only sales person for Modern
retail.
 Case Facts
O The current distribution network and sales force are very well
established.

O The Distributors own the transports, i.e. van and the company
provide them with cold storages & deep freezers.

O The Current span of control managed by salesman is almost close

to 1

O The distributor's are just acting as financers and not working on

their re-distribution capabilities.
 Problem
O The Distributors are not leveraging their primary duty of re-
distribution, it’s the company salesman who takes care of that part
which isn't good for company.

O The role and responsibility of salesman as well as even though the

salespersons are from same company but the each category
salesman never vest any interest in case they find any abrupt in
their other product category products. Example:- Mis-use of cold
storage by the retailer was ignored by the soft drink salesperson
even though he knew its from same company and being mis-used.

O How should the sales and distribution re-organized and maintain

same efficiency level.
 Suggestions/Solution
O The Distributors should be clearly instructed and mentored about
what their primary responsibility is, the name distributor itself
means Distribute and here the distributors are shifted away from
this responsibility and thus they should take care of it henceforth.

O The Current span of control is very lenient and thus it should be

changed to at least 1 salesperson to 3 distributors, event though
this step will add up to 2/3rd of Salesperson without any job ,but
as a business prospective the company should inform the
salesperson around 6months prior itself that there will be a cut in
number of sales heads based on performance with respect to long
term prospect of business.
O The Salesperson for all the product category should be mentored
about working for the companies welfare and not with the habit of
treating only designated product category as their sole single
responsibility. For Example – Next time if they notice any retailer
mis using any of the company goods then they should voluntarily
instruct the retailer to re-correct their actions and as well inform
the respective product category head about the Conduct by the
retailer.
Thank you