Territory ManagementTerritory Management

By Syed ShabaanBy Syed Shabaan 1414thth July 2014 July 2014

ObjectivesObjectives To best understand what is Territory To best understand what is Territory

management.management. Planning part.Planning part. Identification of Gaps.Identification of Gaps.

Discipline of the dayDiscipline of the day Silent mobiles.Silent mobiles. Open discussion.Open discussion. Suggestions vs blaming.Suggestions vs blaming. Pay respect to time.Pay respect to time. Will discourage the non productive Will discourage the non productive

conversations.conversations. Are here to learn new things from Are here to learn new things from

each othereach other

Who, what, IfWho, what, If Who I am ? ( Name, qualification, Who I am ? ( Name, qualification,

experience )experience ) What was my dream ? ( what I want to What was my dream ? ( what I want to

become and why )become and why ) What I am ? (How this happens).What I am ? (How this happens). If I have been provided a chance to If I have been provided a chance to

choose my own career now what it will choose my own career now what it will be.be.

DefinitionDefinition Salespeople are not only responsible for individual Salespeople are not only responsible for individual

customers (account management) but also responsible for customers (account management) but also responsible for a group of accounts (territory management).a group of accounts (territory management).

It is defined as planning, implementation, and control, of It is defined as planning, implementation, and control, of sales persons activities with the goal of realizing the sales sales persons activities with the goal of realizing the sales and profits potentials of their assigned territories.and profits potentials of their assigned territories.

Although geographic considerations play a role in setting Although geographic considerations play a role in setting boundaries, sales territories are primarily based on boundaries, sales territories are primarily based on customer grouping.customer grouping.

Should the sales executive assigned a territory on the basis Should the sales executive assigned a territory on the basis of the geographically area or customer base? of the geographically area or customer base? What if a customer has multiple plant location? What if a customer has multiple plant location? Or the client shifts its business area?Or the client shifts its business area?

Territory Management Territory Management BasicsBasics

Optimization of time and effort by focusing Optimization of time and effort by focusing on tasks that drive job objectives.on tasks that drive job objectives.

Identify and prioritize most productive Identify and prioritize most productive accounts.accounts.

Qualify opportunities so that only those have Qualify opportunities so that only those have pursued which have good chance of winning.pursued which have good chance of winning.

Focus effectively on the customer’s buying Focus effectively on the customer’s buying process.process.

Build long-term relationships in high-priority Build long-term relationships in high-priority accounts.accounts.

Respond appropriately to customers’ Respond appropriately to customers’ motivational needs. motivational needs.

Components of Territory Components of Territory Management Management

Planning:Planning:- PJP understanding and formation.PJP understanding and formation.- Distributor Stock management.Distributor Stock management.- DBR agreement with Distributor.DBR agreement with Distributor.- Morning Meeting with DSR / Distributor.Morning Meeting with DSR / Distributor.- Credit limit finalization with Distributor.Credit limit finalization with Distributor.- Planning to fill in the gaps found in Planning to fill in the gaps found in

reports.reports.

PlanningPlanning PJP understanding:PJP understanding:- - Designing PJP involves breaking down a Designing PJP involves breaking down a

firm’s customer base so that accounts can firm’s customer base so that accounts can be well served by individual sales persons.be well served by individual sales persons.

- Poor PJP design can lead to inadequate - Poor PJP design can lead to inadequate market coverage, unequal workload, lack of market coverage, unequal workload, lack of control over the workforce and depressed control over the workforce and depressed morale.morale.

- A PJP represents basic accountability units to - A PJP represents basic accountability units to the lowest level of aggregation.the lowest level of aggregation.

Categorization of Categorization of ShopsShops

Whole sale.Whole sale. GT whole sale.GT whole sale. MT whole sale. ( Cash and Carry )MT whole sale. ( Cash and Carry ) Retail Outlets.Retail Outlets. Classes of Retail.Classes of Retail. A, B, C, D.A, B, C, D. Channels of Retail Outlets.Channels of Retail Outlets. General Store, Kiryana Store, Super Store, General Store, Kiryana Store, Super Store,

Bakery, Khokha, Medical store, Pan shops, Bakery, Khokha, Medical store, Pan shops, Petro marts.Petro marts.

Designing of PJPDesigning of PJP PJPs are designed in different PJPs are designed in different

patterns.patterns.

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InstructionsInstructions Determine appropriate team type. Determine appropriate team type. Demarcate the entire territory into PJPs as per outlets volume & Demarcate the entire territory into PJPs as per outlets volume &

beats.beats. PJPs should have at least 40 outlets per day. No Criss- PJPs should have at least 40 outlets per day. No Criss-

Crossing.Crossing. TSO/ASM Route riding to evaluate productive and balance PJPs.TSO/ASM Route riding to evaluate productive and balance PJPs. Sales team to draw location of the stores/outlets as per their Sales team to draw location of the stores/outlets as per their

volume and geography.volume and geography. Individually draw the best route to call on all the outlets in the Individually draw the best route to call on all the outlets in the

city map using their pen.city map using their pen. Calculate your total travel during the day including the breaks Calculate your total travel during the day including the breaks

and selling time.and selling time. Calculate the time spent per outlets, time available for travel Calculate the time spent per outlets, time available for travel

and preparation during the day and record submission time at and preparation during the day and record submission time at the end of the day.the end of the day.

IllustrationIllustration

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ROUTE 101MONDAY

Steps in journey Steps in journey planningplanning

Identified each existing and potential account the sale Identified each existing and potential account the sale person needs to call on.person needs to call on.

Assign to each account a call frequency. ( it can be Assign to each account a call frequency. ( it can be daily, weekly, by weekly, or once in the Month )daily, weekly, by weekly, or once in the Month )

Check the physical workload against capacity and Check the physical workload against capacity and adjust.adjust.

Locate every account on a large scale map, identify Locate every account on a large scale map, identify different type of accounts with different color pins.different type of accounts with different color pins.

Divide the territory into an equal numbers of calls (not Divide the territory into an equal numbers of calls (not accounts)-balance the van loads.accounts)-balance the van loads.

Divide territory into segments if it is a weekly call Divide territory into segments if it is a weekly call cycle.cycle.

ContinuedContinued Within each of the sectors, group the calls into Within each of the sectors, group the calls into

workloads i.e. the number and type of calls workloads i.e. the number and type of calls capable of being called on in one working day.capable of being called on in one working day.

Ensuring that sufficient time is left for Ensuring that sufficient time is left for prospecting for new business opportunities as prospecting for new business opportunities as this is a key element of the job.this is a key element of the job.

Run the proposed plan for one or two months to Run the proposed plan for one or two months to discover what adjustments need to be made.discover what adjustments need to be made.

Review the call plan at least annually, ideally Review the call plan at least annually, ideally every half year every half year

Recommended Volume / Recommended Volume / Van / DSR / MonthVan / DSR / Month

Van TypeVan Type Vol/Van/MonVol/Van/Mon Suzuki Pick-up 25-30 Tons Suzuki Pick-up 25-30 Tons Shehzore/Toyota Pick-up 45-50 TonsShehzore/Toyota Pick-up 45-50 Tons Mazda 70-75 TonsMazda 70-75 Tons DSR DSR Shops/VolShops/Vol1 DSR minimum 240 Shops1 DSR minimum 240 Shops1 DSR 15 to 20 tons (average) 1 DSR 15 to 20 tons (average)

Components of territory Components of territory management ( Planning )management ( Planning )

Distributor Stock management:Distributor Stock management:- The SKU wise stock standard should be agreed between - The SKU wise stock standard should be agreed between

Distributor and Company staff for smooth execution.Distributor and Company staff for smooth execution. DBR agreement with DistributorDBR agreement with Distributor- The DBR should be agreed by the distributor so that - The DBR should be agreed by the distributor so that

there should be a continues refill of stocks at there should be a continues refill of stocks at distribution level.distribution level.

Morning Meeting with DSR / Distributor:Morning Meeting with DSR / Distributor:- All reports of morning meeting should be analyzed for - All reports of morning meeting should be analyzed for

better planning of the day.better planning of the day. Credit limit finalization with Distributor:Credit limit finalization with Distributor:- Shop wise credit limits should be agreed.- Shop wise credit limits should be agreed.

Components of territory Components of territory managementmanagement

Identification of Gaps:Identification of Gaps:- Unproductive calls and their plan.Unproductive calls and their plan.- SKU wise gaps of Target vs ach in SKU wise gaps of Target vs ach in

volume and coverage.volume and coverage.- Gaps in Productivity vs standards.Gaps in Productivity vs standards.- Gaps in Drop size vs standards.Gaps in Drop size vs standards.

Components of territory Components of territory managementmanagement

Execution Part:Execution Part:- Secondary sales.Secondary sales.- Execution of 8 steps of the call.Execution of 8 steps of the call.- Proper market visit.Proper market visit.- Claims handling.Claims handling.- Daily closing on biz trax.Daily closing on biz trax.- Implementation of DRC book / Andriod Implementation of DRC book / Andriod

phones with proper billing.phones with proper billing.

Sales BasicsSales Basics Productivity.Productivity. Drop size.Drop size. ECO.ECO. SKU wise coverage.SKU wise coverage. SKU wise Volume.SKU wise Volume. Total target ach.Total target ach.

Selling TechniquesSelling Techniques1- Objection handling.1- Objection handling.2- Sales Presentation.2- Sales Presentation.3- Less talking more listening.3- Less talking more listening.4- Believe of selling any thing to any body. 4- Believe of selling any thing to any body. 5- Educating the customer.5- Educating the customer.6- Quick decisions. 6- Quick decisions. 7- Reading the situation / Mind.7- Reading the situation / Mind.8- Work as consultant.8- Work as consultant.9- Accept the change.9- Accept the change.10- Be open and transparent.10- Be open and transparent.

ROIROIROI is important since allows a comparison of the ROI is important since allows a comparison of the

money a distributor can make by investing in money a distributor can make by investing in business with DFL with the interest from simply business with DFL with the interest from simply leaving the cash in a bank or other savings scheme. leaving the cash in a bank or other savings scheme.

Benchmark of ROI: at least twice the Treasury Bill or Benchmark of ROI: at least twice the Treasury Bill or Banks ratesBanks rates

Rationale: DFL needs to make the investment a Rationale: DFL needs to make the investment a worthwhile effort instead of just investing in a bank.worthwhile effort instead of just investing in a bank.

Also consider the net income (absolute profits) of Also consider the net income (absolute profits) of the top businesses in the territory for bench-marking the top businesses in the territory for bench-marking vs. other business options.vs. other business options.

However Profile of distributor has an impact on the However Profile of distributor has an impact on the “level of happiness”“level of happiness”

Distribution HandlingDistribution Handling Emotional intelligence. ( EQ )Emotional intelligence. ( EQ ) Values and their implementation.Values and their implementation. Basic sales knowledge.Basic sales knowledge. Handling DSRs.Handling DSRs. Resource Management.Resource Management. Red Cost evaluation.Red Cost evaluation. Coverage Tools.Coverage Tools. Strata 1 Towns vs strata 2 Towns.Strata 1 Towns vs strata 2 Towns. Control of the business.Control of the business.

Why to choose a Why to choose a Professional Distributor Vs Professional Distributor Vs

InvestorInvestor More in depth Knowledge.More in depth Knowledge. More jell in with the business.More jell in with the business. Effective for future expansions.Effective for future expansions. Reacts quickly.Reacts quickly. Can attain common goals.Can attain common goals. Clear in communication.Clear in communication.

Efficiency vs Efficiency vs EffectivenessEffectiveness

Efficiency of the process.Efficiency of the process. Effectiveness in results.Effectiveness in results. Use of Reports in meetings.Use of Reports in meetings. Getting control of the results.Getting control of the results. Setting Smart objectives.Setting Smart objectives.

Setting Smart Setting Smart ObjectivesObjectives

Define the expectedresult in a clear andunambiguous way

Standard isbenchmark

No misunderstanding

Salesman andcustomer are clear

Common standardhelps measurement

Stretching the person

Stretching the business

Has clear numeric success criteria

Performance emphasis

Helps appraisals

When

Follow Up

Review

Action

Maintain motivation

Not easy

Relevant to: Company Category Customer

SPECIFIC MEASURABLE AMBITIOUS REALISTIC TIMED

Handling ObjectionsProbingConfirm

Paraphrase &EmpathizeShare Concern

False? True?

QuestionClassify

Reply Justify

Confirm

Reinforce Key benefits Close

Verify

Thank YouThank You Please give your feedback @Please give your feedback @ syedshabaan@gmail.comsyedshabaan@gmail.com Syed.shabaan@daldafoods.comSyed.shabaan@daldafoods.com

Cell: 0333-5633185Cell: 0333-5633185