Sales Management at Marico Limited

Sales Management

Name of Faculty

Wide variety of products like Saffola, Parachute, Set Wet, Livon, Hair & Care etc

Products are divided into normal products and edible oil

Depot at Mohan Nagar to cater UP west and Delhi

Two distributors to cater to Ghaziabad area

As per distributors the products are sold easily, not much issue in sales

One distributor has yearly turnover of Rs 7.5 crore

Marico

Distributors• Mahavir at Ramteram road

650 Retailers

• Tarachand at Patel Nagar

200 Retailers

Retailers• Balaji Retailers- Kavi Nagar

• Nanj Store-Raj Nagar

• Bansal provision- Kavi Nagar

• Naseem General Store- Vaishali

• Chandralaxmi Store

• Rashi Store

• Sheetal Store

• Shreeji Medicos

• Shree Dhanvantri

• Big Bazaar

Marico-Distributors & Retailers

Sales Force Structure at Marico

Distributor

• Marico products are produced at factory

• Products are sent to various depots to cater a region

• At Depot, products are stored to meet the order requirement of distributors

• Consumer buys product from retailers based on his need

• Distributors stores the products• Needs to maintain stock of 7-10

days• Renewal of stocks is electronically

handled by Marico and is centrally controlled

Local Route

• Retailers places order according to his requirement

• Distributor is responsible for sale force, visibility, shelf space, delivery

• One distributor caters to 650 retailers and another to 200 retailers (Based on Geography)• Delivery of products to various retailers• Distributor provides credit period of 14-21 days to retailers(based on relationship)• Distributor is billed 4 times a week & Margin of 4%• Marico has all data in terms of stocks at distributor level• Incentive program to wholesaler-annually, half yearly, quarterly (1.5% of total sales)• Nowadays, Company approved discounts to retailers (not mentioned on packaging)• Offer for consumers are mentioned on packaging• Generally stock is not left out, if product has expired Marico takes it back and pay the

amounts• Products should be available at retailers and wholesalers all the time• All strategies are applied for non-star products

Marico at Small retailers

One of the two distributor fulfill their demand

Replenishment is according to the demand

The stock is replenished on a weekly basis

Audits are conducted to determine minimum inventory

Stock in case left over or expired is taken back by company

Discount from distributors is as per the order

Marico at Small retailers

Discounts during occasions are given by the company directly to customers

For non star products the awareness is increased and offers are provided

For non star the shelf space is increased and cross selling is encouraged, company promotes more non star products

One or twice person from company comes for promotion

No minimum inventory is specified by company

Sometimes retailer suggest the product to consumers

Marico at Big Bazaar

Automatic Replenishment System

Minimum Inventory (100 Pieces)

Renewing of Stocks (Two or Three Deliveries in a Week)

Discounts/Category Sets (Bulk Orders)

Festive Promotions

Left Over Stock/Expired Products

Schemes for Non Star Products

Sales Management Issues

At Distribution Level Payment from retailers Shelf space for non star

products Small orders from retailers

At Retailer Level Demand of shelf space by

every company Keeping inventory of each SKU

Overall Pushing non star products Demand for discounts at all

levels (i.e. distributors, wholesalers, retailers, consumers)

Increased delivery time as distributors are far from depot

Sales forecasting