SALES & DISTRIBUTION CHANNELS

IN MAHINDRA & MAHINDRA LIMITED

 COMPANY PROFILE

The Automobile Sector is one of the fastest growing manufacturing sectors in
India. In the 1990’s the industry witnessed an average growth rate of above
20%. Indian Automobile Industry is characterized by a very high 21% (75%)
of two wheeler production, ranking second only to Taiwan. India is also the
largest Manufacturer of tractors. The world leaders in the sector are evincing
keen interest in establishing Manufacturing facilities for manufacturing and
assembling components. A politically stable and vibrant state Andhra Pradesh
is centrally located with the support of Seaports, International Airports,
assured and reliable power supply, abundant water, broad base of auto
component manufacturers, highly trained, skilled and disciplined manpower
and is therefore, the preferred location for Automobile industries.
M/s. Ford, Mercedes, Benz, Daewoo, Fiat, Honda, Hyundai, Suzuki,
Mitsubishi, Opal, Peugeot, Proton, Skoda, Toyota etc., have already set up
their units in India. In the last two years, several joint ventures and
collaborations have been set up with investments to the tune of US$ 500
Million. About 10 percent of the production in value of terms is exported all
over the world
ORGANIZATION CHART:
The Mahindra & Mahindra Limited is headed by General Manager (Operations)
who is assisted by Deputy General Manager from Production Department, Quality
Assurance, Finance Department, PHRD Department, Supply Module Department,
and Ancillary Administration Department. The General Manager (operation) is
also assisted by Senior Managers from Service Department, Administrative
Department, and Vehicle Engineering Department and also assisted by manager
from Product Control Department. The Senior Manager Production and Senior
Manager Maintenance assist the Deputy General Manager Quality Assurance is
assisted Senior Manager Quality assurance and Senior Manager Pre Delivery
Inspection. The Deputy General Manager Finance Department is assisted by the
senior Manager Accounts, Senior Manager Finance and Senior Manager of Excise
Cell. The concerned Senior Manager assists the Deputy Manager of Ancillary
Development Department.

Departmentalization:

In “Mahindra & Mahindra Limited” the departmentalization is divided into:

1. Direct Departments.

2. Indirect Departments

Direct Departments:

The Department, which directly involves in the production process, comes under
this Category. The Core Departments are as follows:

 Production Planning and Control Department

 Vehicle Engineering Department (VED)
 Paint Shop.

Production Planning and Control Department:

The Core Function of this Department is target setting. This Department seeks
information from Mumbai regarding the requirements of vehicles depending on
the targets for which the company has to strive to achieve. To achieve the targets
Mahindra & Mahindra at ZHB get engines from IGATHPURI Plant and spare parts
from other plants.

The Chief Functions are: -

 Realize plans for model of the Vehicle, based on marketing.

 Control on the moving models.
 Total control and coordination with other departments.
 Coming up with contingency plans, in case of any problems.

Vehicles Engineering Department:

The Main objective of the Department is customer satisfaction Research and a

design activity of the organization depending on customer wants. Taking
consideration as privations and with of customer this Department designs
required vehicles with the help of Corporate R & D.

 Looks after the new products units it goes into production.

 Responsible for bringing out manual for different vehicles.
 Testing the vehicles for ascertaining its functioning.
 In charge / handles the technical library.

Paint Shop:
Paint shop is used to give high technology paint to the body of the vehicles.

Indirect Departments:
The Departments, which are not directly, involve in production process, and
give more
Assistance comes under this category. The Core Departments are as follows:

 Administrative Department.
 Finance Department.
 Personnel and HRD Department.
 Service Center.
 Material Control Department of Ancillary Development Department.
 Industrial Engineering Department.
 Maintenance Stores Department.
Administrative Department:
Administrative Department is one of the important, which looks after various
aspects like housekeeping, provision of transport facilities, maintenance of
security, safety aspects and maintenance exchanges.

Finance Department:
The Department looks after allocation of funds, costing and accounting of the
financial resources of the organization. A Part from these functions the
Finance Department looks after the Provident Fund Trust as the Treasurer,
Capital Purchase, Taxation and final Accounts.

Personnel and HRD Department:

The Department looks after HRD activities they are
  Training for apprentices
 Internal and external training and development
 Induction programs
 House magazines and Mahindra news
 Suggestions schemes
 Sports and Games
 Quality circles
 Increment Policy
 Staff performance appraisal
The above HRD activities are conducted by Personnel Department. The
quality circles program conducted with the assistance of Production
Department and Industrial Engineer. This organization greatly concentrates on
training aspects.

Service Center:
This center comes under the MARKETING Department it provides services to
customers to field officers and dealers. The various functions of this
Department are as under:
 Provides service training to dealers and field officers.
 Feed back to various departments about the products.
 Warranty processing.
 Makes service trails.
 Technical sale and collaboration with foreign companies.
 Sales of manuals and operators instructions.

Material Control Department of Ancillary Development Department:

The ADD and MCD Departments are linked to one another the control focus
of these
Department is too. Indigenous localizes the components of various parts used
in the vehicles

Industrial Engineering Department:

The IED is an important Department, which totally coordinates with all the other
Departments it is responsible of the manpower planning of each section and also
arranges, the tools needed for production of the vehicles in this Department they
will self the production targets and inform to all the Departments. They also draw
the process sheets, charges from time to time. The implement of TACT and MOST
will be looked after through this Department.

Maintenance Stores Department:

In M & M Maintenance Department which take care of the maintenance of the

various machinery equipment assets and instruments the Department does the
following functions.

 Up keeping of the plant and machinery for high productivity.

 Spare part planning, stocking, inventory control of the maintenance stores.
 Break down maintenance.
 Periodical inspection of factory equipment’s and installations.
STRUCTURE OF MARKET
DEPARTMENT

STRUCTURE OF MARKETING Dept (SALES SUPPORT)

 DISTRIBUTION CHANNEL

Functions and Distribution [Marketing] Channels perform: -

This channel performs many key functions. Some help complete transactions by
gathering and distributing information needed for planning and aiding exchange
by developing and spreading persuasive communication about an offer by
performing contact work, finding and communicating with prospective buyers; by
matching, shaping and fitting the offer to the buyer’s needs and by entering in to
negotiation to reach an agreement on price and other terms of the offer so that
ownership can be transferred. Other functions help to fulfill the completed
transaction by offering “Physical Distribution” transporting and storing goods.
Financing acquiring and using funds to cover the costs of the channel work. Risk
taking assuming the risks of carrying out the channel work

Dealers Selection-
Marketing take great care in the selection and appointment of dealers granting
franchise to under serving dealers will be detrimental to the business interests or
the firm. The firm should take for a number of essential qualities and qualification
in their prospective dealer. Some of these qualifications are irrespective of
products lines and such financial strength, credit worthiness, salesmanship,
experience and reties, business capacity; etc. in practice, the firm may sometimes
find it difficult to locate dealers possessing all the desired qualifications and
attributes. Out of the available candidates dealers should be selected carefully. In
the case of specialty, Products, selections of dealers require elaborate efforts.

QUALITIES TO BE LOOKED FOR WHILE SELECTING DEALERS:

 Credit worthiness
 Financial soundness & willingness to invest in line
 Previous experience in the field
 Business reputation
 Business capacity & salesmanship
 Willingness to provide credit
 Required assortments of product
 Required service

Capacity to provide: -
Good relation with:
 Concerned government officials, sub – dealers if any, consumers,
 Banks and other financial institutions.
 Storage facilitates, Show rooms, Shops, Service Workshops, Sales and
 Serviceman, consummate with expected business.
 Social status.

Dealer motivation: -
To be effective the dealers have to the constantly motivated. The firm should
constantly strive the needs of the dealers. It is applied said that a wise firm
gets a good band of dealers settle down with firm. Dealer’s motivational
elements are as follows.
1. Harmonious dealer’s motivation is very important in dealer motivation.
2. Ensuring good store image and deriving promotion advantage though the
store
Image
3. An attractive trade margins is not doubt. The primes factor in dealer
motivation
4. Ensuring dealers support in merchandising is another important aspect of
dealer’s management and dealer’s motivation.
5. Prompt delivery, efficient service and incentives.

Managing the dealer network:

The designing of the channel and the creation of the channel are not everyday
tasks in channel management. It is the administration of the dealer’s network that
constitutes everyday tasks channel management. In the broadest sense,
managing the dealer network will include the dealer servicing, dealer
administrating, co – dealer compensation, dealer motivation and dealer
development.

Performance appraisal of individual dealers: -

Periodical evaluation of the performance of the dealers is yet another important

Aspect of channel management. The performance appraisal must be done with a
view to identifying the specific strengths and weakness of the dealers. If the
performance is below the desire level, remedial action must be taken promptly

Criteria for dealer appraisal: 

 Market awareness
 Sales point facilities
 Public relation
 Storage space provided
 Inventory handling support
  Market intelligence
 Efficient of service provided to customers
 Sales intensity
 Enrollment of new accounts
 Promotional support
 Submission of reports
 Timely payment of bills
 Maintaining of business record

The appraisal of dealer’s performance should lead an important in their

performance in addition to proper performance appraisal of individual dealers,
periodic review of the dealer network as a whole and removal of weakness in the
network must also be take – up. Hence, we can say that dealer’s job is a
continuous job.

Dealer – principal relation: -

The relations between a firm and a dealer revolve largely around the following

FACTORS

1. Services or functions to be performed by the dealer.

2. Territory of operation.

3. Services or functions to be performed by the principal.

4. Remuneration to the dealer.

The firm normally expects a dealer to establish the product in the market,
maintain fair trade practices, and provide serviced to consumers and help in
promoting the products. The dealer in turn expects the firm to deliver a quality
product, make adequate and reasonable profits for the Delaware in the price
structure and render good sales promotion support.

Dealer induction: 
Proper induction of the dealer in to the organization is another important part of
dealer management. Many firms view dealers as synonymous with dealer
training. While induction does include a training component, it needs to be
handled as a distinct function. It should lead to the smooth assimilation of the
dealers in to the organization.