bombay pickles ltd

7/31/2019 Bombay Pickles Ltd

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Bombay Pickles Ltd.

By Group C6

Vikram Agrawal 11P237; Henna 11P194; Avishek Nayak 11P188 ;

Prateek Maheshwari 11P211; Vaibhav Sharma 11P235 ;


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Sales &Distribution background

Limited SKUs decreasing the complexity High Penetration in urban areas of Maharashtra

Retailers served by distributors and wholesalers

Shared distributors with FMCG companies

Investment in stock made by the distributor

Margins at par with those offered by FMCG

companies


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Issues

Adversarial relationship between the company anddistributor

Advance blank cheques taken from the distributors

Limit of Rs 50000 on replacements for spoilage and

damage Lack of distributor focus on selling BPL SKUs

No exclusive sales force

Considered pickles as additional earnings


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Issues (contd..)

Limited communication between the distributors andthe company

Salvi did not take the earlier concerns of distributors

seriously and his judgment was biased based on his

previous experiences Distributors were not ready to understand the current

situation of the company

Minimal investment and incentive for the distributors

for selling BPL products put them in a betterbargaining position


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Effects

Volumes not enough to make selling BPL SKUs alucrative business for the distributors in the times of

slowdown

The Distributors submit a charter of demand to the

company and threaten to go on a strike if thedemands are unfulfilled

Increase in unsold inventory at companys

warehouse

A possible loss of sales during the high demand

festive season


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Possible Solutions

Negotiating following terms with the distributors Distributors of Bombay Pickles Ltd. to have dedicated

company owned sales force

The spoilage damages to be shared by the distributor andthe company(in percentage of total damage value)

Margin or price not increased because it is at par with theindustry standards

Optimize the number of distributors per district basedon the demand and past performance of the

distributor to increase their market size Set sales target for each distributor and incentivize

them accordingly


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Solutions (cont..)

Collaborate with distributors to determine the rightproduct mix for a specific market

Will also help the company in better forecasting the

demand of its SKUs

Develop relationship based on mutual trust Defer the collection of cheques to the last day of end of

credit period

Increase the credit period given to the distributors to the

industry standard value


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bombay pickles ltd

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