Fmcgsalesforcemanagement 101008034339 Phpapp02

FMCG SALES FORCE
MANAGEMENT
FMCG Sales Force Management by

Abdul Gafoor for www.pureoranges.com 1
Sales Force - Design .
Recruitment.
Selection.
Training.
Supervision.
Motivation &
Evaluation.

Sales Force - Design
Sales Force - Size

Sales Force Size
Steps to estimate Sales Force size.
1. Plan the number of towns to be covered.

2. Plan the number of beats to be covered.
3. Plan the number of outlets to be covered.
4. Plan the frequency of coverage.
5. No of outlets per day covered by a sales force
Sales Force Size
Example.
1. Towns planned : 8
2. Beats / Localities per town : 5
3. Outlets planned per beat : 40
4. Frequency of outlets coverage : weekly.
4. No Of outlets per day by a Sales Force :40
5. No Of Days working in a month : 24
Sales Force Size
1.Total number of beats : 40
2. Total Outlets Coverage : 1600
3. Total Callage : 6400

Sales Force Size
Calculate the Sales Force requirement.
1. Total Callage : 6400

2. Per day callage : 6400 / 24 = 267
3. Total Sales Force required : 267 / 40
7
Exercise Sales Force Size

4. Frequency of outlets coverage : weekly.
4. No Of covered by a Sales Force per day : 36
8
Abdul Gafoor for www.pureoranges.com
Solution Sales Force Size
Total number of beats : 144 12 x 12

Total Outlets Coverage : 6336 144 x 44
Total Callage : 25344 6336 x4
Per day Callage : 1102 25344 / 23

Sales Force required : 31 1102 x 31
Exercise -2 Sales Force Size

4. Frequency coverage : 50 % weekly & 50% monthly.
4. No Of covered by a Sales Force per day : 30
10
Abdul Gafoor for www.pureoranges.com
Solution Sales Force Size
Total number of beats : 572 26 x 22

Total Outlets Coverage : 14872 572 x 26
Total Callage : 37180 14872/2 x 4 + 14872/2 x1
Per day Callage : 1430 37180/26
Sales Force required : 48 1430 /30
From Part -1 We know how to calculate
number of Sales Force required.
The Part -2 Is about recruitment

of experienced sales force.
How to select right Sales Force.

Recruitment
Selection Criteria
Written test
Group Discussion
Personal Interview

Written test Recruitment
Job knowledge
Written test is to know the candidates job knowledge.
To what extent the candidate can think and fulfill the job requirement
To decide the candidates training requirements.
To know the candidates numerical abilities.

Recruitment
What job knowledge required to a FMCG Sales force.

Recruitment
1. MARKET MANAGEMENT.
2. DISTRIBUTOR MANAGEMENT.
3. PEOPLE MANAGEMENT.

Recruitment
MARKET MANAGEMENT.
SALES MERCHANDISING

Recruitment
DISTRIBUTOR MANAGEMENT.
INVESTMENT INFRASTRUCTURE INVOLVEMENT INFLUENCE

Recruitment
PEOPLE MANAGEMENT.
ITINERARIES CALLAGE TRAINING MOTIVATION

& CONTACTS & PRODUCTIVITY & DEVELOPMENT & INCENTIVES

WRITTEN TEST STARTS NOW

Question-1
Modern distributors is the distributor for a FMCG company.

In his town total beats available are 6 and 310 outlets.
A Class outlets Contributes to 20% , B Class contributes to 31.93 % ,
From the balance outlets C Class contributes to 29.72 % and
D Class contributes to 70.28
FIND OUT CLASSIFICATION OF OUTLETS

ANSWER
A Class outlets : 62
B Class outlets : 99
C Class outlets : 45
D Class outlets : 104

Question-2
Modern distributors has launched a new brand called VOGIR. The

Placement norms are A Class : 24 pieces, B Class : 6, C Class : 3 &
D Class : 3 pieces in every second outlet.
Find out launch quantities.

ANSWER
A Class : 1488
B Class : 594
C Class : 135
D Class : 156

Question-3
The launch and off take sale trend as follows. Launch week sale : 2000
Pieces. 2nd week : 2900 pieces. 3rd week : 3000 pieces and 4th
Week : 560 pieces. At the end of 4th week 63.38 % of the target achieved.
Find out what is the total launch target of VIGOR.

Answer
TOTAL LAUNCH TARGET: 13348

Question-4
During the launch the company has given two successive trade discounts
Of 8.33% and 8.33 % to all A Class outlets.
Find out what is two successive trade discounts of 8.33% and after 8.33 %
are equivalent to a single discount .

Answer
15.96

Question-5
Modern distributors have got 6 salesmen. The total callage & productivity
Of 6 as follows. Total calls available pa : 14880. Total calls made pa :14865.
Total Productive calls pa :10405 .Total secondary sales pa : $ 2438
thousands. Total Brands sold pa :11873 and range sold pa :35620.
1.Average calls made by per salesman.
2.Average productive calls made by per salesman.
3.Average secondary sales by per salesman.
4.Average secondary sales per week.
5.Average secondary sales per week per salesman.
6.Average brands sold by per salesman.
7.Average range sold per salesman.
Answer
Average calls made by per salesman : 2477.5

Average prod calls made by per salesman : 1734.16
Average secondary sales by per salesman : 406333.33

Average secondary sales per week per salesman : 7524.69
Average brands sold by per salesman : 1978.8

Average range sold by per salesman : 5936.66
Question-6
Total invoices value from company to Modern distributor was $ 1976000
For the total year. The closing stock value at the end of the year$ 20000.
M/s Modern distributors investment for the year as follows.

Average stock: 2 weeks. Average credit: 8 days. Unpaid stocks : $ 11,000.
Due to company : $ 13,000 and due to company : one day secondary sales.
Expenses: 2.1 % of gross profit.
Calculate : Gross profit. Gross margin. Number of rotations.
Investment in stocks in $.Investment in market credit in $. Net investment.
Expenses in $. Net margin. Net profit. Return on investment.
Answer
Gross profit : 2477.5

Gross margin : 1734.16
Number of rotations : 406333.33
Investment in stocks in $ : 7524.69
Market credit in $ : 1978.8
Net investment in $ : 5936.66
Expenses in $ 5936.66
Net margin : 5936.66
Net profit : 5936.66
ROI : FMCG Sales Force Management by 5936.66
Question-7
M/s Modern distributor operated different trade promotions on one brand.
To achieve the target. First 2 months:24 + 1, next 2 months:6 + 1, next 2
Months: 10 + 1 , next 3 months :16.66% and the last 3 months:3 + 1. After all
The promotions, the cumulative target achievement was: February end: 18%
April end :26% ,august end:78%, November end:83% and December end :91%
Calculate : % of different promotions operated.

Achievement % V/s time lapse comparison.

Answer 24 + 1 4.17 %
6+1 16.67 %
10 + 1 10 %
3+1 33.34 %
February : 18% 16.67 %
April :26% 33.34 %
August : 78% 66.67 %
November :83 % 91.67 %
December :91 % 100 %
Question-7
Mr. Rambo, sales officer has been handling M/s Modern distributors since
One year. He always feels that the capital is the only requirement to
Appoint a new distributor.
What are the key factors to be looked to appoint a new distributor..

Answer
Please remember the 4 l formula.
INVESTMENT
INFRASTRUCTURE
INVOLEVEMENT
INFLUENCE
Question-8
Management decided to add one more new town to Mr. Rambo. The town has
Got 1000 outlets. 20% outlets weekly coverage,25% fortnightly and the
Balance monthly.
Mr.Rambo to prepare manpower required to 1000 outlets as the sales

Force covers 40 outlets per day and works 24 days in a month.

Answer
1.05 1000 / 40 /24

Question-9
Mr. Rambo is handling a company depot and always facing the problem of
Depot stock management. As per the policy, all the depots should have
One week floor stock plus transit days. Mr. Rambo's depots transit time
Is one week. Product Opening Target
stock for
Average
sales
This is the data of depot stock. NEXT
month
A 10 27 23
B 15 39 16
Prepare depot indent.
C 25 28 31
D 120 169 155
E 16 37 49

Answer
Product Opening Target for Balance Minimum Transit indent

stock NEXT month stock floor days
stock
A 10 27 -17 4 4 8
B 15 39 -24 4 4 8
C 25 28 -3 8 8 16
D 120 169 -49 39 39 78
E 16 37 -21 13 13 26
Answer
What is the formula?
Target + floor stock opening stock = indent

Training
Training
&
Development
Training
On the job training

&
Off the job training

Training
On the job training

Training
On the job training
Market work Merchandising Competition

Training
Market work
Callage & Productivity Credit Management
New product launches Coverage

Range selling
Brands per call Lines per call Width & Depth of distribution
Merchandising Trade promotions

Stock pressure

Training
Merchandising
Displays Brand image windows
Shelving Gondolas Backing paper
POP Usage
Hangers Shelf strips Danglers Posters

Training
COMPETITON
Companies
Strategy to attack
Products
Pricing Price cut Displays credit Consumer offer
Media Trade promotion
Margin Launch Trade media

promotions Promotions
Training

Training
Reporting Distributor Communication

Management

Training
Reporting
Daily Reports Weekly Reports Monthly Reports Special reports
DSR -TGT V/s Ach Off take report

Sales log Sales log
Callage &Prod Callage & prod Monthly Business
Coverage
summary
Competition Callage & Prod Target V/s Ach
New product launch Target V/s Ach Primaries

Primaries V/s Secondary
POP Usage V/s Secondary Closing Stock
Stock Order
Rural Coverage
Coverage
Rural Coverage
Training
Distributor Management

Training
Distributor Management
Investment Infrastructure Involvement

Office & Godown Owner
Stocks
Mechanical and Communication
Market credit
non units
Signatory
Due from the company Furniture
Controls
Advance with company People
Training
STOCKS
Minimum floor stock management Damage stocks
Range Selling Free samples
Proper stocking in Godown Returned stock
Re ordering levels
More rotations
Avoid investment blocks

Training
MARKET CREDIT DUE FROM CO

With in limits Submit claims in time.
Spread to Maximum outlets Follow up for the pendings
Equal to frequency of visit Always have written approval
Follow bill to bill system Be within budget
Some cases Regular collection Keep claims copies

Training
INFRASTRUCTURE
Proper PJPs for vehicles
Vehicle cost management
Sufficient & Proper Godown
Facilities in Godown
Optimal utilization of people

Training
INVOLVEMENT
Owner participation Owner Market visits
Communication with owner Owner Stock management
Signatory owner
Owner Market knowledge
Owner Credit management

Training
COMMUNICATION
Proper communication to Market , Distributor & field force
Company plans
Product promotions
Budgets
Investment
New Launches
Company memos
Competition
Requirements

Training
Motivation

Training
WIIFM
Whats in it for me
Motivation
MOTIVATION
Financial Non financial

Motivation Motivation

Motivation
CONTINUED IN NEXT
PRESENTATION
THANK YOU VERY MUCH
shaikgafoor@hotmail.com

Motivation
Financial Motivation
Incentives Bonus Foreign Trip Gold & Silver ESO Commission


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FMCG SALES FORCE

FMCG Sales Force Management by

FMCG Sales Force Management by

Sales Force - Size

FMCG Sales Force Management by

Steps to estimate Sales Force size.

1. Plan the number of towns to be covered.

1.Total number of beats : 40

2. Total Outlets Coverage : 1600

3. Total Callage : 6400

FMCG Sales Force Management by

Calculate the Sales Force requirement.

1. Total Callage : 6400

Calculate the Sales Force requirement.

Total number of beats : 144 12 x 12

Per day Callage : 1102 25344 / 23

Calculate the Sales Force requirement.

Total number of beats : 572 26 x 22

The Part -2 Is about recruitment

How to select right Sales Force.

FMCG Sales Force Management by

FMCG Sales Force Management by

To decide the candidates training requirements.

To know the candidates numerical abilities.

FMCG Sales Force Management by

What job knowledge required to a FMCG Sales force.

FMCG Sales Force Management by

FMCG Sales Force Management by

FMCG Sales Force Management by

INVESTMENT INFRASTRUCTURE INVOLVEMENT INFLUENCE

FMCG Sales Force Management by

ITINERARIES CALLAGE TRAINING MOTIVATION

FMCG Sales Force Management by

WRITTEN TEST STARTS NOW

FMCG Sales Force Management by

Modern distributors is the distributor for a FMCG company.

FIND OUT CLASSIFICATION OF OUTLETS

FMCG Sales Force Management by

FMCG Sales Force Management by

Modern distributors has launched a new brand called VOGIR. The

Find out launch quantities.

FMCG Sales Force Management by

FMCG Sales Force Management by

Find out what is the total launch target of VIGOR.

FMCG Sales Force Management by

TOTAL LAUNCH TARGET: 13348

FMCG Sales Force Management by

FMCG Sales Force Management by

FMCG Sales Force Management by

Average calls made by per salesman : 2477.5

Average secondary sales by per salesman : 406333.33

Average brands sold by per salesman : 1978.8

M/s Modern distributors investment for the year as follows.

Gross profit : 2477.5

Calculate : % of different promotions operated.

FMCG Sales Force Management by

What are the key factors to be looked to appoint a new distributor..

FMCG Sales Force Management by

Please remember the 4 l formula.

Mr.Rambo to prepare manpower required to 1000 outlets as the sales

FMCG Sales Force Management by

1.05 1000 / 40 /24

FMCG Sales Force Management by