Durapro: Driving sales through

distribution channel
 Case Facts
Company Indian manufacturer of domestic kitchen appliances like hand blenders, mixer
grinders
Background

The company achieved annual turnover of INR 750 million in 2011, out of which, INR
250 million was sold in the Indian market

Ramdoss Was hired as Sales Manager in Durapro Limited to increase sales of Durapro
products from Indian Rupees (INR) 15 million in Dec 2011 to INR 25 million in 2012

He had no experience in handling subordinates.

Consumer Almost all consumers also consulted their friends and relatives before visiting any
segment in appliance shop
Appliance In case they had received adverse comments about the performance of any brand
purchased from them, they would almost certainly reject the brand as well as the
Market shop
Kerala Shops mostly stocked a limited set of brands and there was a stable status quo
which existed in the market
 Case Facts
Competitors All competitors of Durapro kept MRP pegged at 110% of DP

They sold their products at a discount of 10% on DP while the Indian competitors
offered 15% on DP.

Durapro billing was at 20% discount on DP while the payment and service terms
were comparable, thus Durapro offered higher margins to retailers.

To make the deal attractive to big MNC retailers, Ramdoss had selectively offered
upto 5% additional annual discounts on achievement of the annual 5 targets

Distributers The distributors were important for Durapro as they were exclusive to the state.

They sold Durapro products to the retailers directly and did not use any sub
distributors.
 Strengths & Weakness of DuraPro
Strengths Quality and value for money proposition

Attractive MRP for the price sensitive customers

Steady growth of 15% & Expected to grow further.

Relatively higher profit margins to its intermediaries (Distributors &
Dealers) in comparison to its Indian & Multinational competitors
Good service levels & fair dealing with the dealers

Weakness DuraPros weak brand image

DuraPro products remained confined in price-sensitive channels

Failed to get a footprint in other retail channels

 Durapro's Market Share

20.0%
18.0%
16.0% 17.9%
14.0%
14.4%
12.0% 13.4%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2010 2011 2012
 Decline of Sales
30.0%

25.0%
26.0% 26.0%
24.4%
20.0% 23.3%
20.9%
19.5% 18.6%
15.0%
15.6%
10.0% 12.8% 13.0%

5.0%

0.0%
Jan Feb Mar Apr May
Kitchen Appliance Market
Durapro

Month-wise Contribution of Sales (Kitchen Appliance Market vs. Durapro) 2012 (JanMay)
 What Went Wrong?
No prior study of market before joining the company

Over confidence : Ramdoss agreed to a 67% growth target which was unrealistic(15
million in 2011 to 25 million in 2012)

Just an additional 5 per cent discount on achievement of target is neither sufficient

not attractive

No additional sales force & extra sales pressure

Dependency of Durapro on Retailers for sales growth

Retailers Dissatisfaction : Low margin & price cut in market

Consumers query : Price difference in market

Reasons for the Decline in Sale

The weakness of Ramdoss as a first-line manager

Problem with Brand Advertising

Skills of an efficient sales manager
Sample text

01 Decisiveness & Persistency

02 Continuous focus on Market &

Rivals
03 Pay Attention to Negative Patterns

Shouldnt mix Personal &

04
Professional Relationship

05 Commitment & Responsibility

06 Contd.

0
8
The weakness of Ramdoss as a first-line manager

Lack of delegation of work

As a Manager should be
Lack of communication
clearer in
regarding sales expectations
communicating

Through contacts could

Improper usage of position manage to achieve the
sale in last three days

Lack on focus on the Market

Data Higher discounts to pull
the business up
Good at Tactical Decisions than
Strategic Less Analytical skill
forced Ramdoss
succumbed to the
Lack of proper Team Co- situation
ordination
 Failure to Promote as a Brand

Lack of Brand awareness among Customers

DuraPro

Market presence in Small Retail Shops

Poor Brand Recall

Lack of Follow up with the Customers

 Remedial Action Plan
Long Term Training & For Sales Executives
coaching plan
For Distributor proprietor Milind

Knowledge & skills to perform the selling tasks

Training Program
Dealer network management
Market information & Survey
Identification of growth opportunities
Immediate 37% of the yearly business during JuneAugust period
Action Plan
Ramdoss can develop a Quantity Purchase Scheme for the top 15 dealers

He should use the budget of the 5%

Loyalty Discounts, Bulk Purchase Discounts For Retailers

Advantage of lower retail price and profit margin

Bundle offers For Consumers
 Conclusion
Just by hiring a people from an MNC does not imply a great market
performance

Change in Market Strategy as per the market requirement

Performance measurement system is a must in any sales

organization

Efforts should be made to encourage and restore the confidence of

the old distributors

DuraPro should focus more on the efficiency of the whole-value

chain rather than strengthening its components into bits and pieces.
THANK YOU