Reasons for setting up of CSO:-
Marico wanted to introduce newer niche brands and brand extensions. 2.
Maintaining good relations with distributors and keeping with the sales objectives. 3.
Improving the market intelligence from the feedback of experience on field.
Objectives of CSO:-
Understanding the reasons for changing consumer attitude. 2.
Developing mass marketing & distribution skills.
Earning profits by performing third party sales.
Channel Members of CSO:-
Wholesalers, Retailers, Institutional buyers.
Distributors and Super distributors.
Carrying and Forwarding agents.
Training and motivating channel members:-
Expertise in the products on areas of health care and nature care was present in Marico. 2.
Marico had been the market leader and 3 of its brands and had top-five market share in almost all its products. This was a good enough reason of motivation for the channel members.
Evaluating channel members:-
Due to issues of month-end, quarter-end peaking of sales, the performance revision was to be done on the grounds of outcome and process adopted. 2.
Annual milestones were established for 5-year period.
Modifying Channel Design and Arrangements:-
There was a change in roles in all levels:
Market strategies were formulated by territory sales officer. b.
Distributor was responsible for reviewing and planning work of salespersons. c.
Salesmen were responsible for activities in various outlets, allotted to them, on a daily level. d.
Carrying and forwarding agents became depot managers.
The discussion in review meeting was changed to process driven approach from a volume driven approach. 3.
Information Technology was introduced into the distribution channels to improve ways of planning, cost efficiencies and saving precious time.
The Channel Structure:-
Carrying & Forwarding Agents
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