Retail & Distribution Management

1. Retail & Distribution Management Controlling the Sales Effort

2. Quality Of Field Force “If you want to improve results, improve your sales force” Sounds simple ! But organisations seldom achieve this role • There are not enough naturally talented sales people. • Need for good Sales Managers far outstrips the supply.

3. There are no jobs with a futureonly people with a future Need for Good Sales Managers far outstrip the supply by about four to one ratio. GALLUP

4. Managing Sales Force Why is it so critical ? Trade Marketing performance is reflected in the balance sheets Quality of Sales People shall determine success of new and established brands in the future Maximizing performance of human capital improves business results

5. Managing Sales Force What does it mean ? Role – Prescribed Behaviour Profile – Traits and Abilities Goal Setting Measurables

6. Role of Trade Marketing & Distribution a) Core Services Accurate Order Service Efficient Delivery Service Collection of Payment b)Value Added Services Category Management Space Management Channel-specific support Multi-level Contact Business Building Promotions

7. Role of Field Force • Planning • Distribution • Merchandising • Communication & Trade Relations • Administration All of Planning – Organizing – Directing – Controlling……

8. What do you need to have ?

9. What Else ? What drives good performance - Passion ? • Employees who are engaged are more productive, increase profitability and stay longer. • Issues of “Real Work versus Routine Work” • Thinking Hats…..outside the office gate.

10. Research Findings of Contributions by employees:

11. TYPICAL ENGAGEMENT LEVELS Engaged Not Engaged Actively Disengaged Average World Class

12. Challenges for Sales Managers: In this background resource allocation is the key…. • Need to break the equity myth i.e. equal resources versus resources for maximum results. • Competition is at the heart of Trade Marketing. Therefore what resources is competition deploying and how fast is competition improving people / inputs.

13. Spend time where it matters most

14. Controlling for Performance - Motivation • Can we motivate ? - The moment you talk of motivation, you are making the person worthless. • “Lead by example” • Define “How To” • Join them in the execution process – Senior Manager’s presence • Effort more than money – Examples of “disorganised” but effective employees • 24 x 7 Leadership – Example of waking-up a late riser everyday at 7 am

15. Sales Force Motivation • Monetary compensation based on measurables – “Sales Achievement”. • Is “Sales Achievement” the best measurable to reward ? • Can we have other measurables ? - Coverage Norms - Ratings on quality of merchandising - Business Investments and the list can go on…….

16. Sales Force Motivation • What drives people is “Money” – Economics encompasses every walk of life. • Poverty is no sales man’s ambition. Money is important but no one reward is equally important to everyone. • Opportunity to get motivated – Organisational role. • Design of Incentives: “Come Fly with Me Contest” – Johnsons’ Baby Soap. • Who drives: Leadership.

17. What is leadership In the context of Sales Management….. Demonstration is critical. Taking Responsibility is another – If you are in another person’s territory….what will you do if you go around the market and find your product short…..

18. Leadership is Responsibility Leadership is Making it Happen Leadership is possessing the skills, abilities & attitude's that will enable us to successfully carryout responsibilities incumbent to our office/role.

19. GREAT LEADERS MOVE US They ignite our passion and inspire the best in us

20. What does it mean to us in Sales Leadership • Capacity to challenge i.e. confronting sensitive / uncomfortable issues relating to processes, systems or people. • Mindset of “Buck stops at me” No critical evaluation of others. Examine what I need to do more. • Enabling

21. Trust / Openness • Build Openness Encourage feedback • Trust not to be used as an abdication of responsibility. • Follow-up / Monitoring is part of the job – not be considered mistrust.

22. Ownership • Stated / Expressed expectations is part of the job. Not a part of the definition of ownership. It is a performance issue. • Ownership is over and above written / stated role – into areas which are of business interest in any domain – your own or any other.

23. Goal Setting What needs to be done ? • What is right for the company ? • Draw Action plans • Fix responsibilities for communication • Fix responsibilities for action

24. Goal Setting • Big, Hairy Audacious Goals are in vogue, but sometimes small, meaningful goals are only possible. • If at first, and second and third, you don’t succeed, try something else. • Raise the bar everytime to make it easy – break the problem in small bits and it looks easy.

25. Goal Setting

26. Measurables • What cannot be measured will not be achieved. • Operational Effectiveness through disciplined and structured approach. • Simplified process to become systemic but without forsaking detail.

27. Measurables • What are the actionable steps for in-depth operational effectiveness ? • Distribution Guidelines • Retail Census • Design & Substrate Manual • PJP & Monthly Planners • Fact File • Dealer Dash Board • Dealer Folders

28. PJP & Monthly Planners • Permanent Journey Plan is an index based on statistical facts and priorities • Direction for Monthly Planners • Days of travel – night halts • Planned versus actual touring • Travel route plans in a continuum • Outlet route plans for day-wise working

29. Permanent Journey Plan

30. Monthly Planner

31. Plan Versus Actual (Days)

32. Fact File • Information docket to be carried by all field staff – “Diary” Check. • Statistical information to be used to design travel and action plans. • Geographic segmentation and volume analysis by routes and villages. • Route-wise & channel-wise analysis – Know where you are heading. • “Application is the key”

33. Dealer Dashboard • Operational tool to involve trade partner • Business by salesmen, wholesalers, by vans • A way of smelling opportunity and therefore striking for advantage. • Not a hanging on a wall but an execution tool for daily achievement

34. Dealer Folder • Empower customer to perform for his business and mutual benefit. • Dealer’s involvement in the decision making process – ‘ownership’ • Dealer quality a competitive advantage in the new competitive world • Not a necessary evil but a cash register

35. Sales Officer Performance Monitor • Link Monthly Objectives to KRAs • List 3-4 critical success areas e.g. Volume Achievement, Dealer Investment, Infrastructure Use • Allocate equal points and measuring mechanism with weightage percentage. • Each Sales Officer would know at the end of the month how he has performed. • Self Monitoring Mechanism helps superiors to evaluate on a monthly / quarterly and yearly basis.

37. Self Monitoring Mechanism

38. Combine Actions Success will be a result of all these actions put together. The ability of a Sales Manager lies in capturing key dimensions in his mind and find his way. It makes this enormous task easy.