SALES & DISTRIBUTION MANAGEMENT
1. Course Description
The Course on Sales & Distribution Management deals with all the activities undertaken to ensure that a product
or service is delivered optimally to the customer. For this course, much of the focus will be on products, rather
than services.
2. Student Learning Outcomes
Be able to use data, powers of observation & listening as well as common sense to:
o Understand the key decision making variables in managing a distribution channel
(channel design, channel member management, field force management,
outbound logistics & the deployment of Information Technology).
o Understand the key decision making variables in managing a Sales Funnel (B2C as
well as B2B – with much more emphasis on the former).
o Appreciate the issues involved in the different paths for a Go to Market strategy
(General Trade, Modern Trade, E-Commerce, Franchising and B2B sales).
o For a Sales & Distribution job profile, start delivering from Day 1.
3. Required Text
t Books and Reading Material
There is no prescribed text book. Reading material (and this includes Articles, Blogs and Videos) for EACH session
have been indicated in the detailed Tentative Session plan (Point 4 below).
It may be noted that the articles, blogs and Videos have been chosen with care after considering many options.
Hence, it may be a good idea for the course participant to go through the same in the SEQUENCE prescribed in the
Tentative Session Plan. This will enable all of us to cut to the chase quicker and hence cover more ground in class
by way of the quality of discussions.
Please note that class time will NOT be spent in viewing the videos or reading the articles/blogs. The course
participant is required to go through the same BEFORE the class. The distillation of the messages in the
videos/blogs/articles will be used as a basis of discussion in class. Going through these videos/blogs/articles
AFTER the class is also recommended as it will give a perspective to what was discussed in class. Please note that
more articles/blogs/videos may be added on in the duration of the course, if relevant, and when identified.
Some of the twenty sessions will be case discussions. These cases will be given in advance. No readings have been
prescribed for these sessions as the course participant is required to come well prepared with the cases – and that
should take plenty of time! Being well prepared for a Case in Sales & Distribution (as in any other course) implies
understanding what the numbers are telling you and using this understanding to craft an actionable
implementation plan. Hence, please spend enough time in working the numbers, decoding their implications – and
using the same to craft a coherent and sensible action plan. Discussing cases in Groups before the class will be a
huge help as it helps you in getting more perspectives – and hence multiple angles to view the situation.
4. Tentative Session Plan
No Topic Pedagogy Reading
1 Introduction to SDM and the Indian Landscape Lecture / Discussion Strategic Issues in Distribution
Designing channels of
2 Chai Tea bags -- the Distribution Footprint Case Distribution
3 Ingersol Rand (A) - Channel design Case Reorienting Distribution
4 Learning from FMCG Industry: Market Focus, Class Discussion
Trade Classification, Distribution Channels And
Flows
5 Learning from FMCG Industry : Direct & Indirect Class Discussion
Distribution, Trade terms, Channel ROI,
6 Learning from FMCG Industry : Trade Metrics, Class Discussion
Outlet Focus, Super Stockist networks,
Operational mechanics
7 Learning from FMCG Industry : Distributor Class Discussion
Management; Promotion Management; Territory
Management; Supply Chain issues
8 Uniglobe : Managing Multiple Channels Case Trade Metrics and Strategies
9 Coca Cola in India - BOP Case BOP strategies
10 Mary Kay : Direct Selling and the challenge of
Online Case Direct Selling
Session Topics/Activities Reading/case list etc.
11 Introduction to different Links to Articles:
Route To Market options and
Variables affecting Sales & https://www.franchiseindia.com/content/sectoral-outlook-new-
Distribution Decisions sectors-that-are-now-emerging-on-the-forefront-of-franchising.13839 -
This article traces the new sectors opening up for a new method of an
asset light market expansion method – Franchising.
https://www.nielsen.com/apac/en/insights/article/2020/covid-19-
forces-recalibration-of-priorities-as-world-embraces-new-habits/ -
This article traces the impact of what we have endured recently – the
COVID Pandemic – and its impact on the trajectory of consumers
moving to online shopping.
Class PPT
Will be shared after the class is over.
12 Variables affecting Sales & Links to Articles:
Distribution Decisions –
Continued. https://www.nielsen.com/in/en/insights/report/2019/reformatting-
retail-in-india/ - This article traces, at some 30,000 feet level – the
transition from the Mom and Pop Stores to Modern Trade in India.
https://www.indianretailer.com/article/sector-watch/food-and-
grocery/Rise-of-E-Grocery-in-India-with-Biggies-like-Tata-Amazon-
Entering-Market.a5829/ - This article is a bit dated (Oct 2017) – but
captures the challenges faced by Marketers.
Class PPT
Will be shared after the class is over.
13 Decision Issues in a Links to Articles:
Distribution Channel – FMCG
channels – I https://brandequity.economictimes.indiatimes.com/news/business-
of-brands/distribution-4-0-re-imagining-fmcg-distribution-in-india-
2030/70166977 - Traces the evolution of FMCG Distribution over time
quite cogently. It also outlines the way forward in order to be
relevant.
https://www.indianretailer.com/article/whats-hot/trends/only-
distribution-disruptions-can-save-fmcg-enterprises-from-b2b-e-
commerce-threat.a6402/ - Tries to capture what needs to done by
FMCG companies to meet new challenges posed by the emergence of
new channels of distribution with greater bargaining power.
Class PPT
Will be shared after the class is over.
14 Decision Issues in a Link to Article:
Distribution Channel – FMCG
channels – II https://www.hul.co.in/Images/investor-presentation-02-08-
2019_tcm1255-538990_1_en.pdf - If you are wondering what an
Investor Presentation is doing here in a Sales & Distribution Course, do
not panic! Pages 24 to 52 give an in depth coverage of the HUL
Distribution Strategy, detailed with exemplary and excruciating
granularity.
Link to Video:
https://www.youtube.com/watch?v=37Onl6z86DU – How the Cash &
Carry format (or Wholesaling) has evolved over the years in India. The
Video is slightly dated (Sep 2018) – but is still relevant today.
Class PPT
Will be shared after the class is over.
15 Managing the Sales Effort – Caselets:
Distributor Management
Dynamics and ROI Kahani Kirana Ki – III & Kahani Kirana Ki - IV.
Please go though the Caselets, work through the numbers and answer
the questions asked in the end.
16 Managing Last Mile Caselets:
Distribution and
understanding Data Points Kahani Kirana Ki – I & Kahani Kirana Ki – II.
provided by Nielsen
Please go though the Caselets, work through the numbers and
answer the questions asked in the end.
17 Decision issues in using E- Link to Articles:
Commerce as a delivery
channel https://www.indianretailer.com/article/multi-channel/eretail/what-
are-the-best-ecommerce-development-platforms-in-2020.a6605/ - Self
explanatory.
https://sellics.com/blog-amazon-sales-rank/ - Explains how Sales
Rank (BSR) in Amazon is computed.
Link to Videos:
https://www.youtube.com/watch?v=m5pwleJmGS8 – Selling on
Amazon using FBA. This is from a Trader’s perspective – and has some
good insights.
https://www.youtube.com/watch?v=d8bPWU2xSoA – Cost of selling
using Amazon. The video breaks down the costs of distribution –
component wise. The video is in Hindi. While the video is from late
2018, the focus is on the methods – the margin numbers will vary from
month to month for different categories, anyway.
Class PPT
Will be shared after the class is over.
18 Understanding the factors Case:
shaping Retailer Buying
Behavior and aligning trade Lightwel Match Co.
remuneration and channel
strategy accordingly Please go though the Case, work through the numbers and answer the
questions asked in the end. This case enables us to use findings from
multiple data points – consumer market segmentation as well as
retailer buying behavior dynamics – to craft an action plan.
19 Understanding issues Case:
influencing the ROI for a
channel partner and the Evergreen Products.
implications of the ROI
metrics on the company Please go though the Case, work through the numbers and answer the
appointing the channel questions asked in the end. This case will help us brush up our
partner fundamentals of Working Capital Management and basic financial
ratios to understand its impact on ROI for Channel Partners as well as
Sales & Distribution planning.
20 Sales & Distribution Links to Articles:
Challenges for Smaller
Companies https://economictimes.indiatimes.com/industry/cons-
products/fmcg/smaller-fmcg-brands-gain-share-during-corona-virus-
panic-buying-lock-down/articleshow/75251968.cms?from=mdr – This
article shows how last mile distribution agility can trump brand
strength when adversity opens up an opportunity.
https://www.livemint.com/Money/p4LFsheLGKmpL5E5eTW3FK/Small
er-FMCG-firms-racing-ahead-putting-bigger-rivals-on-no.html This
article is BC (Before Corona) and underlines how changed market
dynamics have helped smaller players play to their strengths (agility
and flexibility).
Link to Video:
https://www.youtube.com/watch?v=i5KmrcvWypw – No 2 by 2
Matrices. No fancy frameworks. No posh English accent. Just earthy
dialogues laced with common sense. A story of how Franchising was
used for network expansion by a first generation entrepreneur. Made
in India, too!
Class PPT
Will be shared after the class is over
5. Evaluation
Classroom Cases (Sessions 1 -10):
1. The class shall be divided into 10 groups.
2. For each case , 2 Groups (in turn, starting with Gr 1 &2) will present the case and solutions to the
Questions provided / Problems in the Case
3. Each Group will get 12 mins for your PPT + 3 Mins for Q & A.
4. These PPTs will be graded and carry a weightage of 10%
The Project Component (described below in Point 5 B will carry a weightage of 35%.
There will be one Quiz – and this will be typically after 10 sessions are over. It will carry a weightage of
20%.
The End Term examination will carry a weightage of 35%. Both the End Term Examination as well as the
Quiz will test capacity to think rather than quality of memory. These components of my evaluation have
traditionally been open book, open notes with free access to resources on the net – and the changed
format of online course delivery does not really make any difference.
My evaluation component usually includes something for the quality of Class Participation. The relative
anonymity of the student emerging from the online format will make this evaluation component difficult
to implement for the instructor and can also be unfair. Hence, it will not have any weightage.
5B. Project Component
Each group of 5 students is required to choose a Company and complete a “Distribution Dossier” for the Company.
The Dossier is to have the following elements:
CHANNEL DESIGN
This is to cover the following elements:
The Breakup of channel sales from the different channels (General Trade, Modern Trade, Captive E-
Commerce, 3rd party E-Commerce, Franchising and B2B sales).
The channel design used by the company for the physical flow of goods for each channel. This should also
include a brief description of the role and key deliverables of each channel member.
The documents recording the flow of information.
CHANNEL MEMBER MANAGEMENT
This is to cover the following elements:
The monetary methods used by the company to reward each of the channel members.
The non-monetary methods used by the company to reward each of the channel members.
Target setting mechanism.
The monitoring mechanisms used to keep track of channel members.
Training and HR inputs provided to Channel Members.
FIELD FORCE MANAGEMENT
This is to cover the same elements listed above for Channel Member Management.
TRANSPORTATION AND LOGISTICS
This is to cover the following elements:
The modes of transportation used from company factory till it reaches the dealer / distributor /
distribution Center.
The modes of transportation used from the last mile Distribution.
At each of the above stages, please outline the deployment of Information Technology.
THE ANALYTICAL FRAMEWORK
Session 1 of the course covered a Framework describing variables affecting distribution. Please revisit these
variables for the company chosen by you – and analyze the impact of each of these variables.
THE FINANCIAL ASPECT
Please refer to the Balance Sheet of the Company and carry out the following exercise:
Compute the Market Spend of the Company and break this up into two components – Advertising Spend
and Sales & Distribution Spend.
Pie chart the Sales & Distribution Spend into the different components.
Repeat this exercise for any competitor of the company chosen by you. Compare the Pie Charts of the Sales &
Distribution Spends – and give your analysis of the same. The analysis should explain differences (if any). If there
is no difference, what are the possible reasons?
6. Academic Integrity
For all Secondary Research, please make it a point to acknowledge the source from where the information
has been collected from.
Lastly, enjoy yourselves in the course!
And me at [email protected]
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