Sales Process (Food & Beverage Industry) : Major Focus On The Beverage Department

SALES PROCESS
(FOOD & BEVERAGE

INDUSTRY)
Major Focus on the Beverage Department.
Pawan Kalyani (PGDM)

2010M06 - SCMHRD
SALES PROCESS / STAGES
 1 Planning
 2 Introduction
 3 Probing
 4 Presentation
 5 Overcoming Obstructions
 6 Close
 7 Follow-up / Fulfillment.
Pre-Planning and Research
 Identify key players or stakeholders
 Identify potential areas for critical business issues (needs/goals )

Present
 Match up key players with critical business issues (needs/goals) level
 Align your capabilities to each key player and goal
 Create a “Projected Skeleton Sphere of Influence / Org Chart with

Key Player job titles and Goals” for the potential opportunity
Opportunity
level
 Target most likely Champion
 Develop Reference Story / Initial Value Proposition
 Construct a business development strategy (letter, e-mail,

phone, seminars, etc.) utilizing specific information gathered
 Proceed with confidence

HOTEL & RESTAURANT FOODSERVICES
Planning issues Financial concerns
Plan by focus on menu All foodservice operations

Menu focus on guests’ wants, must assess financial status
needs & preferences - Operating budget
Menu impacts operational - income statement / balance
- layout / equipment sheet / cash flow statement
- labor for production, service &
clean-up
- F&B products for purchase
factors Cost control procedures
Emphasis on consumers
Marketing concerns Necessity for standard

Repeat business important to operating procedures
financial success - Purchasing / receiving /
storing
/ issuing //pre-
preparation
preparation / serving /
service
PLANNING / PREPARATION
OPERATIONS PLANNING
 Visibility of demand and supply across the
company
 Improvement of promotional planning
 Improvement of inventory management
 Revenue predictability
 Budget forecasting
PLANNING STAGE
INFORMATION EXAMINED
 Forecasted demand and corresponding
revenue
 Production Plan and cost of sale projections
 Inventory positions/levels
 Financial budget versus actual comparison
(P&L, balance sheet and cash flow)
 Raw material purchase projections
 Forecasted capacity utilization compared to
past performance
 Forecasted labour utilization compared to
past performance
PUNE
LOCATION
 Oxford of the East
 Growing IT Hub
 Melting Pot of Cultures
 Growing Cosmopolitan Metro
 The Beverage unit of a Hotel
O
D
T
C
R
P
VALUE CHAIN: BEVERAGE INDUSTRY
Government Hotel,
Regulations Restaurant,
Canteen
Beverage
Supplier Products Retail
Distributor Stores Consumer
Company
Food Service
Companies
and
Caterers
Analyze,
Market Deliver
Plan, and Procure Manufacture
and Sell and Service
Develop
THE PRODUCT KNOWLEDGE
(BEVERAGE)
CONSUMPTION TODAY
Wine
2007
Fruit Beverages
2006
Beer
2005
Carbonated Soft Drinks
Years
2004 Distilled Spirits
2003 Coffee
Bottled Water
2002
Tea
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%
Share% Milk
POTENTIAL
KEY FACTS ON INDIAN
BEVERAGE INDUSTRY
 Indian Beverage Market CAGR[2007-2010]:21%
 India ranked 3rd in largest beverage consumption after the USA
and China
 Total Indian Beverage Consumption every year:120 billion liters
 Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180
million)
 Fruit Beverage market growth rate: 30%
 Majority of Indian consumers:75% consume Non-alcoholic
beverages and 25% Alcoholic Beverages
 Carbonated Drinks Market size: $1.5 Billion
 Juice or juice-based Drinks Market size: $.25 billion
 Health beverage industry is valued at $230 million
 Indian Beer Market Growth Rate: 7 - 8 %
 Indian Beverage Industry is 10% of Global beverage consumption
today.
KEY FACTS ON INDIAN
BEVERAGE INDUSTRY
 Milk-based beverages consumption has increased by an
annual average of 2.7 per cent in the last four years
 Total packaged coffee market size: 19,600 tonnes or $87
million.
 The Indian soft drink market is worth Rs. 21,600 million a
year with a growth of around 7%.
 The total soft drink (carbonated beverages and juices)
market is estimated at 284 million crates a year or $1 billion.
 Peak season soft drink consumption : 25 million
 Off-season soft drink consumption: 15 million
 The market is predominantly urban with 25 per cent
contribution from rural areas.
 Coca cola and Pepsi dominate the Indian soft drinks market.
 Indian Mineral water market size : 50 million industry.
INDIAN BEVERAGE DISTRIBUTION
& MARKETING NETWORK
MAJOR MARKETS IN INDIAN
BEVERAGE INDUSTRY
 Indian Soft Drink Market
 Indian Tea Market
 Indian Spirit Market
 Indian Beer Market
 Indian Wine Market
FUTURE PROJECTIONS OF
INDIAN BEVERAGE INDUSTRY
 Beverage Industry is projected to have overall growth between 8% -8.5 %
 Indian non-alcoholic drinks market is expected to at a CAGR of around
15% during 2009-2012.
 India Alcoholic Drinks Market to Grow Over 9% CAGR during 2009-2013
 The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion
Liter Mark By 2012
 The sectors which are projected to achieve excellent growth of 20% from
wine
 Fruit/vegetable juice market will grow at a CAGR of around 30 per cent
in value terms during 2009-2012
 The energy drinks segment which will grow at a CAGR of around 29 per
cent during the same period.
 All in all, annual per capita consumption of packaged beverages is
supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2012. Demand
for milk and milk-based beverages are also rising.
 The estimated INR 340 bn Indian liquor industry is expected to maintain
its CAGR of 15%
PLANNING LABOUR
LEGAL REQUIREMENTS
 Bar laws, passed in many states, shift the liability for

acts committed by intoxicated individuals from the
individual to the server or operation that supplied
the alcohol
 In all states, the sale of alcoholic beverages is
regulated either by the licensing of establishments
that are allowed to sell alcoholic beverages (license
states) or by direct control and sale of the products
by the state (control states)
CYCLE OF FOOD & BEVERAGE
Develop purchase specification
Step 1: Supplier selection
Purchasing
Purchasing correct quantities
No collusion between property and supplier
Evaluation of purchasing process
Step 2: Development of receiving procedures

Completion of necessary receiving reports
Receiving (e.g., addressing financial and security
concerns)
Effective use of perpetual & physical inventory
Step 3: systems
Control of product quality
Storing Securing products from theft
Location of products within storage areas
Product rotation concerns
Step 4:
Matching issues (issue & usage)
Issuing Purchasing as inventory is depleted
CYCLE OF FOOD & BEVERAGE
Step 5: Mise-en-place
Pre-Preparation Minimizing food waste / maximizing nutrient
retention
Use of standardized recipes
Step 6:
Use of portion control
Preparation
Requirements for food and employee safety
Timing of incoming F&B orders

Step 7:
Portion control
Serving
Revenue management concerns
Revenue control concerns

Step 8: Serving alcoholic beverage responsibly
Service Sanitation and cleanliness
F&B server productivity
INCREASE SALES OPPORTUNITY
 Consumer Marketing
-Beverage Promotion
-Sampling
-Event Marketing
-Co-marketing
-Awareness & Trial campaigns
-Loyalty campaigns

 Customer Marketing
-Outlet Development
-Location specific programs
-Merchandising
STAGES OF SERVICE
 Take restaurant reservations
 Greet and seat guests and approach the guest
 Take beverage orders
 Process beverage orders
 Prepare and serve beverages
 Check back to the table
 Respond to the dissatisfied guest
 Sell after-dinner items
 Present the Guest bill
 Settle guest bill and Thank guests
INTRODUCTION
Hotel
F&B Outlet
Time/Event
Menu
PROBING
 We can do the suggestive selling
 We can meet the expectation of the guest.
 We can improve the image of the property.
 We can take proper feedback at the end.
 We can make the guest, a repeat clientele
for the property.
 We can make ourselves more precious and
important asset for the property.
PRESENTATION
 Attractive Transparencies in lobbies with
excellent lighting for visual impact
 Posters displayed at foyers to elevators and
elevator walls
 Dish Presentations displayed on counters
 Floor Stands displayed in strategic places to
announce forthcoming events
 Through the Restaurant's Menu & Beverage
List
MENU PRESENTATION
BEVERAGE PRESENTATION
US RESTAURANT INDUSTRY
INDIAN BEER INDUSTRY

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SALES PROCESS

(FOOD & BEVERAGE

Pawan Kalyani (PGDM)

 Identify potential areas for critical business issues (needs/goals )

 Align your capabilities to each key player and goal

 Create a “Projected Skeleton Sphere of Influence / Org Chart with

 Develop Reference Story / Initial Value Proposition

 Construct a business development strategy (letter, e-mail,

 Proceed with confidence

Planning issues Financial concerns

Plan by focus on menu All foodservice operations

Marketing concerns Necessity for standard

 Bar laws, passed in many states, shift the liability for

Step 2: Development of receiving procedures

Timing of incoming F&B orders

Revenue control concerns

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