SALES AND DISTRIBUTION MANAGEMENT OF COLGATE PALMOLIVE

SALES AND DISTRIBUTION MANAGEMENT OF COLGATE PALMOLIVE

1. SALES AND DISTRIBUTION MANAGEMENT OF Research completed and ppt by : Mr. Kuruvilla Achankunju College- MSRIM, BLR Guided by: Prof. Anupama A Shah

2. ABOUT THE COMPANY Colgate Palmolive (India) limited is India's leading provider of scientifically proven oral care products. The range includes toothpastes, toothpowder, toothbrushes, and mouthwashes under the Colgate brand . The company also provides a range of personal care products under the Palmolive brand name. The Colgate Palmolive USA is the company's ultimate holding company.

3. PRODUCTS OF COLGATE PALMOLIVE (INDIA) ORAL CARE: TOOTH PASTE TOOTH BRUSH TOOTH POWDER MOUTH WASH PERSONAL CARE: BODY WASH HAND WASH

4. MARKET SHARE :

5. SALES MANAGEMENT OF COLGATE - PALMOLIVE

6. SALES HIERARCHY CUSTOMER DEVELOPMENT OFFICER CUSTOMER DEVELOPMENT AREA MANAGER CUSTOMER DEVELOPMENT REGIONAL MANAGER CUSTOMER DEVELOPMENT BRANCH MANAGER CUSTOMER DEVELOPMENT MANAGING DIRECTOR Four different persons Divided into north, west ,east and south Controls the sales functions of each branch Sets quotas for regional managers More than one districts could come under one area depending upon the market size Has the direct control over the sales executives(CD officer) Sets targets for CD officers One person HO: Mumbai Controls the entire sales Sets the targets for branch managers One person for each state Controls the sales function of each state Sets quotas for area managers Appoints stockists after consulting with the area manager Has direct control over the stockists Sets target for the stockists

7. Details Monthly Area Meetings Monthly Review Meetings with Stockist Weekly Review Meetings with Salesman Period 30 th /31 st of every month At the beginning of the month Immediately after cut off dates (1 st , 2 nd , 3 rd , & 4 th Week) Conducted by Area Manager CDO CDO Venue As informed by the area manager Stockist Point Stockist Point Participants All the CDOs of the area Stockist All stockist and salesman Objective of the Meeting To finalize Business Plan for the next month To set KPIs To plan week wise billing/retailing phasing To finalize KPIs To finalize salesman wise targets To plan channel wise business To firm up week wise billing/retailing phasing To motivation/train salesman achieving KPIs To review salesmen for achieving KPIs Channel wise business analysis Any other dealer related issues Maintenance of required reports GROUND LEVEL SALES MEETINGS - Monthly Area and Review meetings

8. STAFF TRAINING : The main training program called as the "Valuing Colgate People" training programs are designed to encourage Colgate people of all backgrounds, globally, to meet their personal goals while helping to achieve the company objectives. This is mandatory for all Colgate employees, this program helps participants to: Recognize, value and respect others for their unique contributions Understand the importance of having the highest ethical standards and how to address potential ethical issues in the workplace Explain Colgate's commitment to the core values and to leading all people with respect Practice skills that encourage, motivate and develop all Colgate people Valuing Colgate People: Leadership in Action- This training program, mandatory for all Colgate-Palmolive managers, encourages participants to: Become more effective leaders Teach others to value individual differences and use those differences to achieve positive business results Describe how Colgate-Palmolive can deliver and sustain superior business results by living by its core values and "Managing with Respect" principles GENERAL TRAINING - A ll employees who are newly recruited will be undergoing a training program for one month. All the stockists employees are also given mandatory basic training directly by the company.

9. QUOTAS AND INCENTIVES FOR EMPLOYEES AND DISTRIBUTORS : All sales persons belonging to all hierarchical levels have separate sales targets or quotas to be achieved. The CD Branch manager divides his targets to the CD Regional managers, which is then divided among the CD Area manager and then to the CD officers. The CD officers then sets quotas for the stockists. Special incentives are offered to those who achieves above the quotas been assigned. The CD officers oversees the activities of the stockists, communicates them regarding various schemes and incentives available and helps them to achieve those incentives and thus helping himself to achieve the targets. SALES FORCASTING : Sales Forecasting is done using historical data's and current market conditions Current market conditions include the economic conditions, calendar events etc.

10. MERCHENDISING : Merchandising activities are outsourced to an external agency. Merchandising is done in Hypermarkets and popular Super markets.

11. SALES PROMOTON TOOLS USED CONSUMER SALES PROMOTION: TRADE SALES PROMOTION: Bonus pack offer Combo offer Additional discount offer Special coupon offer Contests for customers Free samples to customers Volume discount offers Special scheme offers Special contests for retailers Additional incentives for distributors/stockists Free gifts on targets Medical schemes Hero No1, Dill Se

12. DISTRIBUTION MANAGEMENT OF COLGATE - PALMOLIVE

13. MANUFACTURER RETAILER CUSTOMERS MANUFACTURER STOCKIST/ DISTRIBUTOR RETAILER CUSTOMERS MANUFACTURER STOCKIST/DISTRIBUTOR RETAILER CUSTOMERS WHOLESALERS(C&C) DISTRIBUTION CHANNELS OF COLGATE-PALMOLIVE ONE LEVEL CHANNEL TWO LEVEL CHANNEL THREE LEVEL CHANNEL CASH & CARRY

14. RETAIL Kirana and pan Store (Colgate products) Hyper markets (Colgate & Palmolive products) Medical Store (Colgate & Palmolive products) Cosmetic Shop (Colgate & Palmolive products) Super markets (Colgate & Palmolive products)

15. HOW IS THE DISTRIBUTION PROCESSED ? The distributors/stockist are given a software called DMS SAP (dealer management system)which is used by them to take orders when they go to retailers. First step- The distributor/stockist fills a predefined E-order sheet and sends that to company.(the company also keeps a track of the distributors stock(VMI)) Second step- The company warehouse generates the bill through sap based application and dispatch it to the stockists. Third step- The distributors/stockists sales man takes the orders from retail stores through company provided online platform(DMS) that is connected to servers. Fourth step- On the basis of order from sales man, the distributor generates the bill through sap application and dispatch the order to the retail shops. All these stock movements could be seen by the Colgate Palmolive officials through the sap application.

16. CREDIT POLICY, ORDER FREQUENCY AND MARGINS STOCKIST/ DISTRIBUTOR Credit policy- advance full payment Order frequency- Margins- 5-6% RETAILERS Credit policy- 7-15 days credit Order frequency- weekly once Margins- 10-15% WHOLESALER Credit policy- 7-15 days credit Order frequency- weekly once Margins- 10-15% COLGATE- PALMOLIVE HYPERMARKETS Credit policy- advance full payment Order frequency- weekly once Margins- 15-20% CASH & CARRY Credit policy- advance full payment Order frequency- weekly once Margins- 15-20%

17. DATA COLLECTION METHOD : INTERVIEWED TWO COMPANY SALES PERSONS INTERVIEWED A STOCKIST INTERVIEWED THREE RETAILERS SECONDARY DATA FROM INTERNET

18. INTERVIEW WITH COMPANY SALES PERSON

19. NAME: DESIGNATION: Customer Development Officer- E-MAIL: LINKEDIN: NAME: DESIGNATION: Customer Development Officer- LINKEDIN: PHOTO AND NAME OF THE INTERVIEWEE CANNOT BE DISCLOSED PHOTO AND NAME OF THE INTERVIEWEE CANNOT BE DISCLOSED

20. VIDEO RECORDING OF THE INTERVIEW SORRY, VIDEO RECORDING IS ALSO REMOVED DUE TO PRIVACY ISSUES

21. INTERVIEW WITH STOCKIST Name: Location: The stockist orders the products through the ERP system been provided by the company. The CD Officer also keeps a track of the stock kept by the stockist through the ERP system. The stockist then directly sells to the retailer through his sales staffs who gets direct training form Colgate- Palmolive. The stockists staff would have a direct visit to all retail shops once in a week to take orders. There are targets for the stockists which is been set by the CD Officer. The CD Officer gives all adequate support to boost the sales. Margins are almost same for both oral and skin care products. A particular territory is been assigned to each stockists. PHOTO AND NAME OF THE STOCKIST CANNOT BE DISCLOSED

22. INTERVIEW WITH RETAILERS Colgate- Palmolive products comes to retailers in cardboard boxes. Each product comes in different boxes when ordered in bulk Each box displays the type of product, its features, size of the product etc. There is no need to contact the stockist for the products, the stockists sales men would visit once in every week to take the orders. In hypermarkets and supermarkets products are placed in multiple shelves. In medical shops, cosmetic shops and Kirana shops these products are placed along with all other company products. Tooth paste comes in pack of 200, 150, 120, and 100 grams. In hypermarkets, supermarkets and certain cosmetic shops products belonging to all varieties and size is available while as in medical shops and Kirana shops only limited products are available(120 and 100gm), as per the needs of the local customers. Palmolive products are generally not available at Kirana shops.

23. SUMMARY In India the company is headquartered in Mumbai The company produces two different types of product for Indian market- oral care and skin care products. As of now the company has the highest market share with around 50% share. The company follows a five level sales hierarchy ranging from Customer Development MD to Customer Development Officer. The company provides greater importance for staff training Separate quotas and targets are set for all sales people belonging all hierarchical level Sales forecasting is done through historical data's and current market conditions There are three different types of distribution channel- one, two and three level channel The company uses DMS ERP system for making the distribution process hassle free Colgate Palmolive follow the traditional distribution channel not involving overlapping of intermediaries so there is very less amount of channel conflict. As the product is daily useable commodity so the company is using intensive distribution. Colgate Palmolive uses all the available intermediaries wholesalers, retailers, and stockiest. Colgate India has a strong marketing distribution network across India ranging from big metros to unreachable rural villages. It covers all geographical barriers to nurture it’s distribution channel.

24. SUGGESTIONS AND RECOMMENDATIONS : Dentists plays a big role in the distribution of oral care products. Colgate Palmolive should more focus on distribution of toothpaste in dentist’s offices. But the toothpaste brand Sensodyne does this and they been benefited. Colgate Palmolive should focus more strongly on other retail locations, even it adapted intensive distribution there is still scope of other retail location where small unknown brand capture the market share. For this Colgate could introduce separate set of products with different price(more lower) and pack design. The toothpaste could be distributed also through plastic surgeons because many people who visit a plastic surgeon are generally concerned about their appearance.