8/6/2019 APEL Final

1/26

Presented by: Mercury

ABHINAV AGARWAL(043003)

ABHINAV MITTAL(043004)

DEEPALI AGARWAL(043019)

ABHINAV MAHAJAN(043032)

RAGINI PANT(043042)

ASIA PACIFIC ELECTRICALSTerritory Planning and Management

8/6/2019 APEL Final

2/26

ABOUT US

Germancollaboration 1992

to launch MCB.

Believe in joininghands with the

best players in theworld to provideIndian consumers

with higher valueof money throughsuperior quality of

products andservices.

Developing &Marketing

Switchgearproducts

Focus on good

QUALITY.

Largestmanufacture ofMCB in India.

MCBs supplied tovarious consumerdurable companies

and MNCs.

Successfulrelationship with 7

global names inswitchgearindustry.

8/6/2019 APEL Final

3/26

Products

MCB MCCB ELCBPush

ButtonsBallast

8/6/2019 APEL Final

4/26

Product certifications, approvals and recommendations.

Brand pull through presentations, seminars, customer and

electrician education combined with trade push.

Sales team concentrates on demand generation while distributionnetwork provides order servicing.

Largest sales and marketing team in LT switchgear industry inIndia.

OEM sales were met directly by APEL.

SALES AND MARKETING

8/6/2019 APEL Final

5/26

Preferred appointing dealers who had

good contact with institutional buyers

rather than a reputation in the retailmarket.

Conducted an 8 weeks induction program

for all inductees.

16 SalesEnginee

rs

10Resident

SalesEngineers

8 Salesofficers

4 SalesExecutives

7 AssistantManagers

45ersons

SALES OPERATION AND MANAGEMENT

8/6/2019 APEL Final

6/26

PROBLEMIDENTIFICATION

8/6/2019 APEL Final

7/26

Conflict of goals at the management level and the sales force level. Management aims at increasing theoverall profitability of the company while sales force is concentrating on sale volume.

Inadequate attention given to non-MCB products by the sales team.

Sales team content to sell MCB because of dominant position of APEL in the market.

Wide disparity in sales performance amongst regions.

Regional Managers not being able to motivate and control their sales team and their territory performance.

Increasing competition, especially in South.

Disparity in sales tax structure between Delhi and other states, resulting in territorial infringement by Delhidealers especially in Southern and Eastern states.

Use of unethical practices by competitors, especially in institutional business.

8/6/2019 APEL Final

8/26

Sales staff tended to concentrate most of their effort on the metros and class I towns, due tohigh potential in the areas and poor TA and DA rates offered by APEL.

Growing number of quality complains especially in ELCB and MCCB.

Persistent complains of dolly free and continuity of circuits in MCB.

Sales staff has to spend much more time looking into complains and hence lost out inproductive sales calls.

Prices of non-MCB products are not competitive and loss of a lot of sales to new competition.

Sense of neglect from Head Quarter in terms of communication and actual visits to the Easternregion.

Head Quarters reacted slowly on competitive rates for tenders for eastern region, resulting inloss of sales.

Marketing-Sales Disconnect, as Marketing emphasizes on MCB products as it is expected togrow at 40%- 0% in next 3 years. While sales team feels that the non-MCB products are notgetting adequate attention.

Improper territory alignment leading to conflict among sales teams.

8/6/2019 APEL Final

9/26

1 Recover existing credit

2 Maintain market leadership in MCB

3

Foc s on Non-Metro

4 Sell non-MCB prod cts

PRIORITIES

8/6/2019 APEL Final

10/26

ALTERNATIVES

8/6/2019 APEL Final

11/26

Hold Regional Managers responsible to

receive payments on time

RMs should be given incentive for recovering

existing credit within 60 days

For future, separate incentives should given

for sales and payment received

8/6/2019 APEL Final

12/26

More number of dealers (distributers)

should be added

46 dealers should continue for institutional buyers

Around 00 new distributers (for household and buildersegment) should be appointed, within one year by RM,considering their relationship with retailers.

Distributor to be appointed for the FMCG universeArea basis - 100 K.M. Radius (Geographical Contiguity)

o. of retailers under the distributor (Equal Demand

Potential)

8/6/2019 APEL Final

13/26

Add new Sales Engineer and Sales Agent

Sales Engineer 50 new engineers should be hired, 1 per 10 dealers, they

will act as order creators.

Inform users about products other than MCB

Independent Sales Agents (Resident)

500 new sales agents to be appointed, one per distributor.

They will act as order getters from retailers.

8/6/2019 APEL Final

14/26

Functional Specialization

Sales staff in Sothern region was busy in handlingcustomer complaints

Hence lost sales

Restructure the organization structure to include

functional specialization

8/6/2019 APEL Final

15/26

ANSWER TO QUESTIONS

8/6/2019 APEL Final

16/26

Q1. Examine the relative merits and

demerits of deploying sales engineeron a state wise territories versus

territories carved out of consideration

of:

Geographical contiguity of towns of

adjoining states Equal demand potential

8/6/2019 APEL Final

17/26

Deploying Sales Engineers on the basis of

Geographical Contiguity of towns of Adjoining States

Less travel time

Equitable use of resources

Optimum use of dealershipnetwork

erits

No clear demarcation ofsales territory

Loss of focus towardsinstitutional buyers

Demerits

8/6/2019 APEL Final

18/26

Deploying Sales Engineers on the basis of

Equal Demand Potential

E ita l s f r s rc sa ti s f

al rs i t rkrits

No cl ar arcationofsal s t rritory

Loss of foc s towar sinstit tional y rs

D rits

8/6/2019 APEL Final

19/26

Q2. What changes would you suggest interms of having a separate sales force

for dealer network and for

institutional/OEM business?

8/6/2019 APEL Final

20/26

CMD

Joint

ManagingDirector

ExecutiveDirector

Productmanagement

MarketDevelopment

Manager

Commercialand

InstitutionalManager

National Head

Marketing Manager

(Household/Builders)

Marketing Manager

(Institutional/OEM )

Marketingmanager

Sales Planningand

coordination

Dealers Distri uters

8/6/2019 APEL Final

21/26

Q3. What is your reaction to the

suggestion of reducing dealer marginsfor MCBs and diverting the funds

towards advertising and brand

building? How would youcommunicate this to the dealers and

what safeguards would you build into

the system to adverse dealer

reaction?

8/6/2019 APEL Final

22/26

Bulk

order0-2%

Paymentwithin 15 days3%

Fixedincentive10%

Average discount should be kept the same,

only the overall division should be revised

8/6/2019 APEL Final

23/26

Give Extra incentives toattract new distributors

All new distributors whogive on time payment for

6 billing cycle should begiven a 20% discount onthe 7th bill.

8/6/2019 APEL Final

24/26

Q4. Should MCBs be sold as FMCG

products? What expertise would you

inculcate in your sales force if this

change is implemented?

8/6/2019 APEL Final

25/26

YES, MCBs be sold as FMCG products

Resident Sales Agent

Training given to divide the distributors area

into beats.(Mandatory for FMCG)

8/6/2019 APEL Final

26/26