Sales Force

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Group 2
Group 2

Contents
EXECUTIVE SUMMARY3
SALES AND DISTRIBUTION: ITC4
COMPANY OVERVIEW4
SALES FORCE STRUCTURE5
SALES FORCE COMPENSATION AND INCENTIVES6
TRAINING6
MEASURING SALES FORCE PRODUCTIVITY8
TARGET SETTING9
CHALLENGES IN MANAGING SALES TEAMS10
SALES BUDGETING11
TERRITORY ALLOCATION14
CHANNEL CONFLICTS15
SALES AND DISTRIBUTION: PEPSICO INDIA HOLDING PVT. LTD. - FRITOLAY DIVISION16
COMPANY OVERVIEW16
SALES FORCE STRUCTURE17
SALES FORCE COMPENSATION AND INCENTIVES18
TRAINING18
MEASURING SALES FORCE PRODUCTIVITY20
TARGET SETTING20
CHALLENGES IN MANAGING SALES TEAMS20
SALES BUDGETING20
TERRITORY ALLOCATION21
CHANNEL CONFLICTS21
COMPARISON ITC AND PEPSICO22
CONCLUSION23
APPENDIX24

EXECUTIVE SUMMARY
While ITC and PepsiCo are strong competitors of each other, it is seen that the way they reach their consumers is quite different from each other. Invariably, it is difficult to predict which of the two companies is better in Sales and Distribution parameters as each have a significant market to which they cater to. While the organisation structure of ITC is deeper, PepsiCo has a flatter and unique structure. Each strives to keep their sales force motivated with lucrative incentive schemes. For ITC, on meeting 95% of the sales target, the DSO gets the prescribed incentive. On achieving sales greater than 95% up to 120%, the incentive is scaled up on a pro-rata basis. On achieving sales greater than 120%, no further incentive is given. However, PepsiCo likes to incentivise their employees even when they achieve 50% target in 15 days. Both the companies invest in training and training is centrally managed by the organisation. PepsiCo goes all out in giving freedom to their employees to choose different training programs. They are given training cards which they can swipe for any such program after their manager’s approval. ITC uses different parameters to measure the productivity of the sales person. PepsiCo uses different tools to do that, information regarding the tools was deemed confidential and hence not divulged by the ASM. ITC set sales targets at ~20% over the previous month sales including seasonality factors and offers. This is fed into their forecasting software which is a part of the ‘SIFY Program’ which they use. That gives them the sales forecasts. PepsiCo has the annual forecast divided into CE (Customer Executive) targets depending on the territories. Each CE then divides the target into a per week target. Per week target is divided into per day targets and given to the salesman. While the territory allocation is more or less the same for both the organisation, the different channels used to reach the consumers give rise to different channel conflicts which the ASMs shared with the team.

SALES AND DISTRIBUTION: ITC
COMPANY OVERVIEW
ITC is one of India's foremost private sector companies with a market capitalisation of nearly Rs 97,883.64 cr and a sales turnover of over Rs. 23,247.84 cr. ITC had been known as a tobacco company for long. It had a strong presence in the cigarette market in India with brands like Wills, Gold Flake, Bristol and a deep penetration across India. Due to its excessive dependence on tobacco products, a diversified portfolio was always on the cards for the management. In 2002 ITC started diversifying into various businesses utilising the surplus cash flow generated from its core cigarette business. In May 2002, ITC entered into branded wheat flour market by introducing Aashirwad Atta. In December 2002, ITC launched John Players as a mass market apparel brand. In 2003, ITC entered the branded biscuits market with the Sunfeast brand. It also created presence in packaged ready to eat food segment "Kitchen of India". In July 2005 ITC stepped into exclusive range of body care products through Essenza Di Wills for both men and women in July 2005. It has launched Fiama Di Wills, Vivel and...
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