ASIA PACIFIC ELECTRICALS

Territory Planning and Management

Presented by: Mercury
ABHINAV AGARWAL(043003) ABHINAV MITTAL(043004) DEEPALI AGARWAL(043019) ABHINAV MAHAJAN(043032) RAGINI PANT(043042)

ABOUT US
Believe in joining hands with the best players in the world to provide Indian consumers with higher value of money through superior quality of products and services. Developing & Marketing Switchgear products

German collaboration 1992 to launch MCB.

Focus on good QUALITY.

Successful relationship with 7 global names in switchgear industry.

MCBs supplied to various consumer durable companies and MNCs.

Largest manufacture of MCB in India.

Products
MCB MCCB ELCB Push Ballast Buttons

SALES AND MARKETING

Product certifications, approvals and recommendations. Brand pull through presentations, seminars, customer and electrician education combined with trade push. Sales team concentrates on demand generation while distribution network provides order servicing. Largest sales and marketing team in LT switchgear industry in India. OEM sales were met directly by APEL.

SALES OPERATION AND MANAGEMENT

16 Sales Enginee rs 10 Resident Sales Engineers 8 Sales officers 4 Sales Executives 7 Assistant Managers

45 ersons

Preferred appointing dealers who had good contact with institutional buyers rather than a reputation in the retail market. Conducted an 8 weeks induction program for all inductees.

PROBLEM IDENTIFICATION

Conflict of goals at the management level and the sales force level. Management aims at increasing the overall profitability of the company while sales force is concentrating on sale volume.

Inadequate attention given to non-MCB products by the sales team.

Sales team content to sell MCB because of dominant position of APEL in the market.

Wide disparity in sales performance amongst regions.

Regional Managers not being able to motivate and control their sales team and their territory performance.

Increasing competition, especially in South.

Disparity in sales tax structure between Delhi and other states, resulting in territorial infringement by Delhi dealers especially in Southern and Eastern states.

Use of unethical practices by competitors, especially in institutional business.

Sales staff tended to concentrate most of their effort on the metros and class I towns, due to high potential in the areas and poor TA and DA rates offered by APEL. Growing number of quality complains especially in ELCB and MCCB. Persistent complains of dolly free and continuity of circuits in MCB. Sales staff has to spend much more time looking into complains and hence lost out in productive sales calls. Prices of non-MCB products are not competitive and loss of a lot of sales to new competition. Sense of neglect from Head Quarter in terms of communication and actual visits to the Eastern region. Head Quarters reacted slowly on competitive rates for tenders for eastern region, resulting in loss of sales. Marketing-Sales Disconnect, as Marketing emphasizes on MCB products as it is expected to grow at 40%- 0% in next 3 years. While sales team feels that the non-MCB products are not getting adequate attention. Improper territory alignment leading to conflict among sales teams.

PRIORITIES
1

Recover existing credit Maintain market leadership in MCB Foc s on Non-Metro Sell non-MCB prod cts

ALTERNATIVES

Hold Regional Managers responsible to receive payments on time

 RM s should be given incentive for recovering existing credit within 60 days

For future, separate incentives should given for sales and payment received

More number of dealers (distributers) should be added

 46 dealers should continue for institutional buyers Around 00 new distributers (for household and builder segment) should be appointed, within one year by RM, considering their relationship with retailers. Distributor to be appointed for the FMCG universe Area basis - 100 K.M. Radius (Geographical Contiguity) o. of retailers under the distributor (Equal Demand Potential)

Add new Sales Engineer and Sales Agent

 Sales Engineer
50 new engineers should be hired, 1 per 10 dealers, they will act as order creators. Inform users about products other than MCB

Independent Sales Agents (Resident)

500 new sales agents to be appointed, one per distributor. They will act as order getters from retailers.

Functional Specialization
 Sales staff in Sothern region was busy in handling customer complaints  Hence lost sales Restructure the organization structure to include functional specialization

ANSWER TO QUESTIONS

Q1. Examine the relative merits and demerits of deploying sales engineer on a state wise territories versus territories carved out of consideration of: Geographical contiguity of towns of adjoining states Equal demand potential

Deploying Sales Engineers on the basis of Geographical Contiguity of towns of Adjoining States
Less travel time Equitable use of resources Optimum use of dealership network

erits

Demerits

No clear demarcation of sales territory Loss of focus towards institutional buyers

Deploying Sales Engineers on the basis of Equal Demand Potential

E a ita l s f r s rc s ti s f al rs i t rk

rits

rits

No cl ar arcation of sal s t rritory Loss of foc s towar s instit tional y rs

Q2. What changes would you suggest in terms of having a separate sales force for dealer network and for institutional/OEM business?

CMD

Joint Managing Director

Executive Director

Product management

Market Development Manager

Commercial and Institutional Manager

National Head

Marketing manager

Sales Planning and coordination

Marketing Manager (Institutional/OEM )

Marketing Manager (Household/Builders)

Dealers

Distri uters

Q3. What is your reaction to the suggestion of reducing dealer margins for MCBs and diverting the funds towards advertising and brand building? How would you communicate this to the dealers and what safeguards would you build into the system to adverse dealer reaction?

Average discount should be kept the same, only the overall division should be revised

Bulk order 0-2%

Fixed incentive Payment within 15 days 10% 3%

Give Extra incentives to attract new distributors

All new distributors who give on time payment for 6 billing cycle should be given a 20% discount on the 7th bill.

Q4. Should MCBs be sold as FMCG products? What expertise would you inculcate in your sales force if this change is implemented?

YES, MCBs be sold as FMCG products

Resident Sales Agent Training given to divide the distributor s area into beats.(Mandatory for FMCG)