A PRESENTATION ON THE SALES AND

DISTRIBUTION SYSTEM OF P&G

&

COOL HEADS
Presented By:Praneet Raj

CONTENTS
P&G Company Profile P&G Brands Old sales and distribution system of P&G Problems in the old distribution network Project Golden Eye How does FMCG S&D system differ from Industrial System. Cool Head intro Reasons for failure of Cool Head to achieve its sales target. Sales Promotion Plans For Cool Head.

P&G: COMPANY PROFILE

Started

in 1837 by William Procter and James Gamble First products were soaps and candles Markets 250+ brands to nearly 5 billion consumers in 140 countries Main Headquarter in Cincinnati, Ohio Employ 138,000 people Fast moving consumer goods company 162 years old

P&G BRANDS
baby

care: beauty care: fabric & home care: feminine protection: food & beverage: health care: tissues & towels:

Pampers Pantene,

Head & Shoulders Arial, Tide, Bold, Ace, Lenor Always, Alldays, Tampax Pringles, Folgers Blend-a-Med, Vicks Swiffer

 Personal

& Beauty - Cosmetics, Oral Care, Hair Care House & Home - Laundry care, Dish Soap, Snacks & Coffee Health & Wellness - Prescription drugs, Health Care Baby & Family Pet Care & Nutrition

MAIN COMPETITORS
Johnson

& Johnson Co. Co.

Kimberly-Clark

Unilever

Co.

OLD SALES AND DISTRIBUTION SYSTEM OF P&G

Imitating the HLL distribution system. Using many distributors in a limited area. Applying every possible method to match the lever. Tried to establish direct coverage of rural market. Spent extensively on distribution network.

PROBLEMS IN THE OLD DISTRIBUTION

NETWORK Increase in cost due to increase in distribution cover. The current volume did not justify the large distributor network. The distributors were getting low ROI. This resulted in distributors trying to push up volumes, but again the volume did not meet the demand.

ANALYSE THE NEW SALES AND DISTRIBUTION SYSTEM OF P&G PROJECT GOLDEN EYE

 Moving

to super- stockist set up its number of distributers better ROI to the distributers

Reducing Provided Better

ROI helped the distributers to improve

infrastructure
Cost

saving
invest in advertising

Large

 Target

to expend its distribution cover, appoint of redrawing distributors network

new distributors and plumb for volume growth

Process

Rationalising Invest Focus

in storage and warehousing on key urban market

DISTRIBUTION SYSTEM DIFFER FROM THE INDUSTRIAL SYSTEM

HOW DOES AN FMCG SALES AND

FMCG SALES
Specifically

developed for the company, which

has high volume of sales.

The

rotation of stocks is high. number of intermediaries involved.

Higher Wide

distributer network

DISTRIBUTION CHANNEL STRUCTURE FOR FMCG

Factories
Branches WSP Wholesaler Service Providers WD Wholesaler Dealers

Retailers

Secondary Wholesalers

INDUSTRIAL SALES
For

the companies which has low volume of intermediaries involved.

sales.
Less

CHANNELS FOR INDUSTRIAL PRODUCTS

Manufactu rer Manufact urer Industrial User Merchant Wholesaler User.

Manufact urer Industrial User

Agent Wholesaler

User
Merchant Wholesal er

Agent

User

COOL HEADS INTRO

A

leading pharmaceuticals co. Established in 1985. Purely Indian co. Made its image in the last decade. Works in the field of manufacturing, distribute & market pharmaceutical soft drinks. In 1995 Co. MD seek the need of diversification & addition of new product to its existing range.

CONTD.
Launched

new product- Choc-coffee(Coffee with milk, cocoa & sugar.) price of Rs74 for 400gm pack. Its target customers are middle class peoples. The product was heavily advertised in newspaper, magazines, radio & television. In order to promote its product Co. made 50 stockiest with 150 representatives. Initial discount of Rs5 was given to buyer on purchase of 400gm pack.

REASONS FOR FAILURE OF CO. TO ACHIEVE

TARGET
Product

is manufactured only on certain advisory notes & brief market research. was high for middle class people.

Price

Promotional

strategy of the Co. was not according to its target audience.(Rs 5 discount on each pack)

The
It

company spent too much in the initial stages.

tried to cover the entire country in one go.

 Prize 1. 2.

schemes Scheme designed for both public and the dealers. For Consumers:

SALES PROMOTION PLAN

3.

For Dealers:

Attractive offers should be made, like giving a Coffee cup free with the pack. Lucky draw coupons can also be given with the packs with attractive prizes. Sales competition should be arranged. Special offers should be made if they show a substantial progress in sales.

CONTD.
1. 2.

Trade fairs and exhibition The main objective behind this areMeeting potential customers. Making direct sales.

Providing

catalogues Advantages are1. To get orders. 2. To make the customers aware about the specifications. 3. To provide detailed information. 4. To solicit product sales. Sales contest should be done to motivate the sales force, increase sales and bring more profit to the Co.

CONTD.
Different 1. 2. 3.

kind of contest prizes

Cash awards, Merchandise prizes & Special honor e.g. winners could be requested to appear in a TV or game show.

CAN A CHANGE IN DISTRIBUTION CHANNEL

BRING IMPROVEMENT IN THE SALES OF THE COMPANY
According to us YES, a change in distribution channel can improve the sales of the Co. 1. The Co. can increase its sales with the help of trade fair & exhibition by doing direct sales to the customers. 2. The Co. can increase its sales performance by promotion its product to the target consumers preferred areas and location. 3. Also by organizing different prize schemes and sales contest among the customers, dealers & the sales force the co. can increase its sales volume.