Professional Documents
Culture Documents
2 TABLE OF CONTENT:
1 OBJECTIVE OF THE PROJECT 3 2 WORK PLAN FOLLOWED..4 3 CURRENT DISTRIBUTION MODEL OF HEINZ IN PUNE..5 4 COMPETITORS DISTRIBUTION MODEL IN PUNE..6 5 COMPARISON OF CURRENT MODEL WITH OTHER PLAYERS 79 6 EVALUATION OF PERFORMANCE OF DSR.1011 7 EVALUATION OF THE PERFORMANCE OF DISTRIBUTOR...............12 9 SWOT ANALYSES.13 10 RECOMANDATIONS AND SUGGESTIONS.14-17 11 SUMMARY................................................................................................ ...........................18
1. Evaluate Current Distribution Model of Heinz across channels and across town class.
2. Compare Heinz Model with other players in the category/ Competition/ other industries.
3. Understand various Channel Partners and their role and evaluate their current performance.
4. Understand the role of the sales team position (DSR/TSP/KASP/TSO/SO/ASM) in driving the sales/distribution and evaluate their current productivity.
6. Arrive at a business plan for the area which will give Heinz a competitive advantage.
A.
In terms of distribution, rapid business growth and productivity enhance the sales
Dates 16th May-14th June 14th June 14th June- 24th June
Work Done Market visits and assisted in launching of Complan C.N.G Got Project Setting of New Distributor and Training and market visit with the Distributor Dsrs
Distribution
Network
,And
Report Making
NUMBER OF DISTRIBUTOR
3+1
NUMBER OF DSR NUMBER OF OUTLETS NUMBER OF BEATS AVERAGE OUTLET /BEAT DURATION BETWEEN TWO VISITS DELIVERY TIME
IN PUNE
NESTLE
DABUR
CADBURY
GSK
R&B
KALLOGS
8500
5,000
5,500
4,000
7+1
7+1
7+1
2+1
8+1
6+1
NUMBER OF DSR
50
48
40
22
31
18
25-40
35
30
30
30 30-35
15 DAYS
7 DAYS
7 DAYS
Rs 10,000
Rs 7,000
Rs 5500
DELIVERY
2 GSK
THIS RATIO ANALYSIS SHOWS THAT, THE NUMBER OF OUTLETS OF CADBURY AND GSK ARE 3.5 TIMES AND 2 TIME RESPECTIELY MORE THAN HEINZ IN PUNE .
HEINZ
2,450
817
11
223
NESTLE
13,745
1,964
50
275
DABUR
11,000
1572
48
230
CADBURY
8,500
1214
40
213
GSK
5,000
2,500
22
227
R&B
5,500
688
31
177
KALLOGS
4,000
667
18
222
10
THIS SHOWS THAT THE NUMBER OF DSR OF HEINZ IS ADEQUATE WHEN COMPARED WITH THE SERICE OF THE COMPETITORS.
11
12
BEAT NAME CHAMP2 KOTHRUD WADGAON SHERI HADAPSAR-3 SALUNKI VIHAR KARVE NAGAR
TOTAL CALLS 32 24 30 31 29 30
EFFECTIVE CALLS 29 22 25 27 19 22
It is clear from the above table that, in a beat where the number of OUTLET is more than 35, the productivity is very low as compared to areas having outlets up to 30 .
13
DSR'S SALARY 6,000 - 14,000 10,000 7,000 5,500-7,500 5,500 5,500-6,500 5,000
Heinz is paying lowest salary to its DSR as compared to other players in the market.
14
1 DSR has to take the order from the market. 2 After taking order, he has to go to distributor point and has to generate the bills.
This is the whole work a DSR does in the whole day, where as other companies are having separate person for generating bills. This lead to decrease in the productivity of the DSR.
15
DSR are punctual in taking order from the market, but the same is not deliered on time in areas far away from the distribution point. This is the main reason behind lower sales in areas like Kalyani Nagar, Koregaon Park , Chandan Nagar ,Katraj.
The delivery boys are not good in their job, due to which there occur gap in taking repeat order. This cause problem for the DSR when he next time visit Retail Outlet .
Major of the time some there are stock out at distributors end .This cause problems in meeting targets.
D NO SUPERISOR:
There is no supervisor on the part of the distributor, who keeps an eye over the performance of their people and quality of work. This makes delivery boys to do what ever they wish, also DSR to leave shops with out taking order.
16
These are the major reasons behind lowering of the distributor performance.
17
RECOMMENDATIONS:
18
Eg: CATEGORY A- SALES OVER Rs5,000/WEEK CATEGORY B SALES OVER Rs 1,000/WEEK CATEGORY C SALES LESS THAN 1,000/ WEEK
Recommendation:
Try to provide each and every of schemes and displays in A category of outlets. In case, if there is some repeat order in between two visits, as per schedules, try to fulfill the order. So that a healthier relation ship can be built between distributor and retailers
19
a Due to stock out , Retailer suggest Competitors product to Customer, because He dont want to loose customer ,in that case HEINZ is in loss as Customer switch over towards competitors product.
b When the retailer demand for the product and its not available , He cancel out the whole order.
Recommendation:
By taking the average of 3 months SALES for each Sku, make norms, and this much quantity should always be present at distribution point so that retailers order can be fulfilled and delivered as demanded by him.
The current salary paid by Heinz is lowest among other FMCG companies, this is causing problem in adding new people to its work force.
20
RECOMMANADATION:
The DSR having more experience should be paid more .This will motivate them, increase their performance and reduce the level of switching to other companies.
The average time taken by DSR in each outlet is 5-7 minutes. To cover 40 outlets more than 4 hours is required. DSR generally start market at 10am and finished at 2:30 pm. After that they have to generate the bills. Due to additional work of billing, they usually finish market at 1:30 p.m, and after having lunch come to distribution point for billing. This is one of the reason behind the low productivity of the DSR.
RECOMMATIONS:
21
a. In a beat, if there are more than 10 Acategory outlets , In this case, the number of outlets in that particular beat restrict to 25. b. In a beat if the number of A category is less than 5.In this case, the number of outlets restrict to 35.
c. Appoint a separate person for billing purpose.
Number of retail outlets of Cadbury is 8,500 Number of retail outlets of GSK is 5,000 Number of outlets of Heinz is 2,450
There is need to Increase the existing market size, i.e, add more number of outlets in the current structure, in all the product categories .This will generate more Sales Volume for company and Increase the effectiveness of existing channel.
RECOMMENDATION:
There is large provision of adding new outlets in the system. For this
22
Sales officers should make regular visits to market and check out that no outlet will be left out. This will cover-up the gap between Heinz channel and competitors.
This problem is very serious and is hampering the sales as well as good will of the company. In almost every 3rd shop there is problem of expiry. Due to this, the retailer first asks for replacement and then place the order. The expired stock also blocks the retailers capital.
RECOMMENDATION:
Make a proper schedule , so that after every 2nd month all the expiry should be cleared from the market.
23
The DSR should be convinced to maintain service register every day, this would help in calculating productivity as well as LPBC. Also this let DSR to know his current performance.
Convince distributor to have crystal software , which will let them know, a. The demand in the market on the basis of previous data. b. Reorder Point. c. Minimum order quantity. d. slow movement products. e. not in demand products.
I.
WITH THE INCREASE IN MARKET SIZE, SIMULTANEOUSLY, INCREASE THE QUANTITY OF DSR AND DISTRIBUTOR SO, THAT QUALITY OF THE SERVICE REMAIN MAINTAINED.
24
Summary:
1 There is strong need to increase the market size. 2 Need to increase the salary structure for DSRs. 3 Try to reduce the level of stock out as far as possible by using the average of last 3 month sales as norms for future sales. 4 Need of appointing a operator for billing at all the distributor points. 5 Need to handle the issue of expiry of after every 2nd month. 6 Need for a software for handling all the issues of distributor. 7 Regular supervision for the on field performance of DSR and delivery boy .
25
26
THANK YOU