B2B Marketing

Indian Institute of Management Rohtak

Submitted by
Swadheen Jain PGP09241
Monica Syal PGP09203
Kavita Patil PGP09193
Aleeva Goyari PGP09184
Shrish Shekhar PGP09176
Siddhartha Bhatia PGP09178
Shubham Kumar PGP09177

Submitted to Prof. Prantosh J. Bannerjee

Abstract
The project aims at understanding the distribution and sales management employed by
different companies for their different products. We have tried to understand that how it
differs from one kind of products to other. How distribution system is managed through
distribution margin and other benefits. We have also discussed about how companies
incentives their sales force and what sale strategies do they use to increase their sales.
Table of Contents
Abstract ................................................................................................................................................... 2
Introduction : B natural........................................................................................................................... 4
Products: ............................................................................................................................................. 4
Distribution Channel: .............................................................................................................................. 5
Distributors: ........................................................................................................................................ 6
Wholesaler: ......................................................................................................................................... 7
Sales ........................................................................................................................................................ 7
Sales Trainee / Officer of ITC: ............................................................................................................. 7
Area Executives ................................................................................................................................... 8
Promotions.......................................................................................................................................... 8
Segmentation of product: ................................................................................................................... 8
Promotions through the Channel: ...................................................................................................... 9
Promotions to the end-Consumers:.................................................................................................... 9
Introduction :NOKIA ............................................................................................................................. 11
Distribution Network ........................................................................................................................ 12
Distributor ......................................................................................................................................... 13
Salesperson ....................................................................................................................................... 13
Credit system .................................................................................................................................... 13
Ordering and Procurement ............................................................................................................... 14
Schemes from companies : ............................................................................................................... 14
Awards: ............................................................................................................................................. 14
Nokia Sales ............................................................................................................................................ 14
Promotion: ........................................................................................................................................ 14
Dealers: ............................................................................................................................................. 15
Margins at each level: ....................................................................................................................... 15
Point of Sales(POS) system : ............................................................................................................. 15
Schemes: ........................................................................................................................................... 15
Retail element: .................................................................................................................................. 16
Sales Collaterals: ............................................................................................................................... 16
Training the dealers: ......................................................................................................................... 16
Dealer encouragement schemes: ..................................................................................................... 16
Credit/ Payment terms: .................................................................................................................... 16
 B Natural (ITC)

Introduction: B natural

The classification above show all the brands that ITC holds. B Natural Fruit beverages are
made with 100% Indian Fruit and 0% Concentrate. The entire range is crafted from Indian
fruits sourced through local Indian farmers, from all across the country. They ensure that their
consumers can taste the fruit of hard work and dedication put in by these farmers through our
B Natural packs. This is why the process of developing B Natural fruit beverages does not
involve the additional step of concentration, which involves heating of juice/pulp to remove
water content, which may lead to loss of nutrients, in the form of antioxidants, like Vitamin C.
ITC support to local Indian farmers and help in preventing wastage of fruit, by sourcing 100%
of their produce from them.

Products:

Variants from following fruits are available in packaging of 1 Litre, 750 ml, 300 ml and 200ml.
1 Litre and 200 ml are available in carton packaging and 750ml and 300 ml in bottle packaging.

 Mango Magic and Ratnagiri Alphonso

  Litchi Luscious
 Masala Jamun
 Himalayan Mix Fruit and Mixed fruit Merry
 Orange Oomph
 Dakshin Pink Guava and Guava Gush
 Pineapple Poise
 Cloudy Apple and Apple Awe
 Watermelon
 Pomegranate

Highest selling SKUs are Mango, Guava and Orange in Tetra packs of 200ml and 1Ltr. The
price range of 200ml tetra pack is 20-30Rs, and that of 1Ltr tetra pack is 99-149Rs.

Distribution Channel:

ITC has different distribution channels for B Naturals like Institutional Channel, Modern Trade
and General Trade. We have elaborated below the General trade channel. Manufacturing Food
Products is done by ITC itself. They have done backward Integration and Contract
Manufacturing separately for each product line. For BNaturals, they take raw fruit pulp directly
from the farmers across India. Distributor stock all FMCG products of ITC from other brands
like Bingo, Yipee! , Sunfeast etc. They also have products from other brands. There are
following units in BNaturals distribution channel.
 Manufacturer /
Company

Warehouse
/Storage hubs

Distributors

Retailers Wholesalers Wholesalers

Customers Agent Retailer

Small Retail
shops / Customers
Paanwalas

Customers

Figure 1: Distribution Channel of B Naturals

Distributors:

The distributors are being observed by the Sales Trainee / Officer appointed by ITC. These
trainees/officers are responsible for the placement of a product in the Retail shops.

 Selection Criterion: - Infrastructures, availability of Computer system and

Delivery Vans, Warehouse for stocking, proximity from the shops and SalesForce
for distribution. For example - 1 Distributor per 20-25 thousand people, is how a
distributor is appointed based on population.
 Type of Control: - ITC uses Coercive power for distributors to deal with cigarettes;
it must deal with other products also.
 Manpower: - They have their own sales force. Every sales person’s beat contains
30 Retailers and has six such beats per week. There are being given a target to
increase their billing every week. There are given a Line-cut; the order from the
Retailers should be more than that Line-cut. Time slots in which they work are: -

10 am – 2:30 pm: - Takes the weekly orders from the retailers. The retailer is
comparatively free at this time of the day.
 At 3 pm: - Reach office and transfer the bills from the WAJRA app to the
computer system. It generates the automatic report of weekly sales a Line-cut
of that beat. Takes the weekly payment from the retailers
After 5 pm: - Takes the weekly payment from the retailers (for the last order)
The daily task of this Sales person includes making a Market Planner Report. This
Market-Planner report contains the following fields: -
1. Outlet name, Owner name and contact number, address and the GSTIN number.
2. Route or Beat name
3. Average bill value of the retailer for the last three weeks
4. Line-cut assigned for the retailer ( These line-cuts differ according to the season
as demand for juices is more I summers and thus the target is more)
5. Increase in the bill value

They are also asked to use WAJRA App. This includes the order details from the
particular store. The number of tetra packs ordered in each SKU is being entered here.

 Promotion: -There are various types of contest. Also, abroad trips are awarded for
loyal distributors.
 Payment system: - The orders from the retailer are being taken on a credit basis. It
starts from 7-day credit to 15/20 days credit system. Also, the producer/ITC takes
the money from the distributor at the time of delivering the order.
 Infrastructure: - Need enough of stocking space and ambient temperature
 Stocking process: -Stock is being ordered every week, according to the order
received by the salesperson.
 Order- The salesperson of the Distributors take weekly orders from every beat
assigned, and it gets delivered the other day itself. The order is being delivered to
shops using delivery Vans and Autorickshaws.

Wholesaler: They have comparatively more margin than the retailers as they are required to
promote and sell the juices to the small retail shops.

Sales

Sales Trainee / Officer of ITC: -They are given the Laptops and other incentives (based on
sales) by the company. The Sales Trainee/Officers are being hired from the local colleges. They
are responsible for product placement in the retailer shops. Their everyday work includes
pitching the product to new shops and increasing the sales by achieving the given targets by
Territory Sales Manager. They further make every day closing reports, Weekly sales report
and Market report.
District
Manager
Regional
Branch

Sales Hierarchy of
Manager
Branch
Manager
Assistant

ITC
Manager
Area Manager

Area Executive

Sales Trainee

Area Executives are above hem who look after the different sections and different
warehouses/distributors. Area Managers are above them, and they look after the entire
circle. There are Assistant Managers for each Category above them. The Branch
Manager is the top head of the entire branch. Only the District Manager is above him
who is responsible for the sales of the entire district. E.g.: The North DM resides in Delhi

Types of sales: -

 Primary Sales: - This type of sales include sales from Warehouse to the
Wholesaler/Distributor. This is done weekly based on the demand given by the
salesperson.
 Secondary Sales: - This includes sales between Warehouse/Distributor to the
Retailer.
 Tertiary Sales: - This means the offtake of juices through the consumer directly.

Promotions

Segmentation of product:
  Economy: - Tetra pack of 20Rs were Economy product sold in almost every
retail store in all segments of the consumer
 Premium: - These are the big tetra packs and bottles of 750ml and 1Ltr. These
were distributed only in the high budget segment of consumers (Section A1,
A2 and B1 according to Urban socio-economic classification of consumers)

Promotions through the Channel:

 Short term schemes (both in premium and economy): - Cash discount or Free
products on bulk ordering.
E.g., - 2 tetra pack free on purchase of every 20 tetra packs (free packs are less selling
SKUs or newly introduced litchi juice)
E.g.: - 2% discount on order of 20 tetra packs
Similar discounts are also provided to distributors
 Long term schemes (generally in premium): - Quantity / Value purchase schemes for
retailers: - It generally gives a target of quantity for each quarter or a whole year to the
retailer. On successful completion of targets, they reward them with a trip/gold coin or
home appliances like a mixer. These schemes are provided with other ITC brands.
 Free display for retailers on purchase of some minimum amount. Example of display
or POSM is shown in below picture so that they can promote the brand as well as help
the retailer to display the product and sell. ITC also offers shop-signages for the retailers
so that they can change their old shop signage and promote its brand.

Promotions to the end-Consumers:

Generally, ITC gives offers on products. E.g.: - Cash discount if buy pack of two.
 5% off on purchase of 1Ltr of less selling SKUs in premium market

In second and third picture posters can be seen, these are used for promotions at store. The
Shop mentioned above signages and Point of display materials are also used as promotions for
end-consumers.
Introduction: NOKIA

Nokia, once the largest handset brand, re-entered India earlier in 2017 with its Android-based
smartphones and feature phones. Currently, Nokia has been marketed by Finnish start-up HMD
Global, which was established in December 2016. The company has also tied up with Foxconn
for manufacturing Nokia phones in India. The feature phone segment in the market is currently
led by Reliance-Jio phone with a market share of 30 per cent, followed by Samsung (15 per
cent) and Lava (13 per cent). Nokia occupies the fifth position with approx. 7% of market share.

Products

Android

 Nokia 8
 Nokia 8.1
 Nokia 7 Plus
 Nokia 7.1
 Nokia 6.1
 Nokia 5.1
 Nokia 4.2
 Nokia 3.2
 Nokia 3.1
 Nokia 2.2
 Nokia 2.1
 Nokia 2
 Nokia 1

Classic

 Nokia 8110 4G
 Nokia 3310 3G
 Nokia 3310
 Nokia 105
In the smartphone segment, its devices -- Nokia 3 and 6 priced at Rs 9,499 and Rs 14,499,
respectively -- have been received well in the market. The company is luring high-end
consumers as well through its flagship product Nokia 8, which is priced at Rs 36,999.

Distribution Network

 Its strong distribution network comprised of 80,000 retailers that have helped Nokia reach
out to tier-I and tier-II markets and rural areas.
 Nokia’s distribution footprint comprises of 450 exclusive distributors and an 80,000-plus
strong retailer network.
 Nokia has adopted a hybrid approach to product launch, i.e. both Online and Offline
 For example, Nokia 5’s unique selling point is its touch and pocketability. Buyers must
touch and feel the product as they make a purchase decision. Hence, Nokia launched
the device offline.
 On the other hand, the company launched Nokia 6, priced at Rs 14,999, exclusively
online. This is because high-speed devices priced above Rs 12,000 tend to fare better
online.

 The company has also invested heavily in developing a robust after-sales network, Nokia
Mobile Care.
 The network covers more than 300 cities with 35,000 stores.
 Also, consumers can access device pick-up/drop services for Nokia’s high-end models in
about 100 cities.
 Company

State Office

Distributors

E-Commerce
Retailers
Site

Customer

Figure 2: Distribution Channel of Nokia

Distributor

 The Distributor of Nokia Mobile phones consists of Dealership of only one brand.
 The frequency of ordering mobile phones is every alternate day.
 The distributor distributes the product only to Multi-brand outlets.
 The Company bill the various handsets to state office and from the state office they will
distribute it to various city distributors.

Salesperson

 There are 300 outlets in the region of one distributor.

 The distributor has six salespersons
 On every 35 outlets, he has one salesperson

Credit system

 Company - The distributor has to give advance payment to the company for various
orders.
 Retailers – The distributor gives a credit of 45 - 60 days to retailers.
 Also, the distributor has to maintain a stock of 30 days prior.
 The distributor has to maintain a stock of 30 days
Ordering and Procurement

 The order is placed with the company through an online portal

Schemes from companies: Various schemes are launched by the company such as the
distributor will receive 25 Rs per piece extra on the selling of
200 same models.

Awards: The company gives various kinds of the award to distributors to motivate them.

These awards are not cash-based.

Examples are - Performance-based:

 Best distributor
 Smartphone selling distributor
 Highest star distributor

These are only certificates and no cash-based rewards.

Additional Charges: All the additional charges such as transportation charges, warehouse cost
etc. all are incurred by the distributor itself.

Distributor margin: Not disclosed by the distributor

Nokia Sales
Nokia manufactures its mobile in Chennai manufacturing plant and then it transfers to Nokia’s
mother depot which is located in Gurgaon. They also assist in the selection of channel partners
like redistributors, Dealers, Franchisees, etc. Besides this, they provide monetary assistance in
Store development for Nokia Priority dealers, help in the promotion of products on a mass scale
as well as in-store and training of the sales force of partners at every level.

Distribution strategy of Nokia

Promotion:

Nokia does not sell directly to the end users. It involves various distribution channels for the
same. The first way is to sell through an alliance with the mobile phone operators like Airtel,
Vodafone etc. The second option that is gaining pace is the selling through retail chains like
Croma, Vijay Sales which purchase in large voulme and sell across their stores in pan India
locations. The other prominent method iiis to sell its products to the distributors/ master
distributors (dependent on the territory) who then sells the same to the retailer and then it
reaches the final customer.
There has been a major traction to online sales as well where the products can be bought
through the company’s website or the E-stores like Amazon, Flipkart.
The promotional and advertising strategy in the Nokia marketing strategy are as follows:

Nokia uses all media channels to ensure that its customers are communicated about the
products. It has promoted the brand by using influential marketing by Shahrukh Khan & Alia
Bhatt and now uses normal people and focus on the functions to attract new generation , Nokia
indeed upheld its purpose of connecting people by bringing them together through handsets
and a mobile phone penetration no one had previously imagined. Nokia promoted itself through
television advertisements, signboards, billboards, radio and newspapers, brochures, posters,
dummies and display stands. They also engaged in personal selling by providing significant
product training to the dealers and distributors who sold the product.

Dealers:
Nokia Priority dealers, Multi brand outlets and individual dealers in Delhi NCR are all
RDSS serves them. Dealers are explained the features of every new launch mobiles,
different schemes and offers by Nokia’s representatives. Re-supplies are always
Just a phone call away and the delivery is made within a few hours. Besides, Nokia assists most
dealers in the region in the store set-up and design. The price points sometimes dictate the type
of outlet.

Margins at each level: The margins for the Nokia distribution segment have not been
disclosed separately but are clubbed with the overall contribution of the office automation and
telecom segment. Tentative margins found based on discussions with dealers were:

 Dealers(7%)
 Priority Stores(8%)
 Concept stores(10%)

Point of Sales(POS) system: Nokia provides a point of sale systems and software to dealers
to help them manage their selling activity better

Schemes: The concept of mobile recycling was first introduced by Nokia, a campaign was
launched to encourage people to give their damaged Phones to Nokia care, & avail the discount
on buying a new one. Besides, Nokia offers multiple schemes to push sales of lagging mobile
models. These schemes come in a form such as added cash bonus of Rs.300-1500/ set for
selling a five specific lagging set in 4 days.
Retail element: Nokia assists priority dealers by helping in the payments for the retail element
part of their stores while the dealer is supposed to take care of the expenditure incurred on the
services other than the retail element. The service charge payments for the retail element could
be split into 'core' and 'additional' elements, with dealers paying pro-rata with for only those
services they all have use of, and an additional element for any extras it specifically requires.
Sales Collaterals: Nokia provides promotional collaterals and brochures to the dealers directly
to help in promoting sales. They regularly send in posters and pamphlets of latest releases,
updated brochures and handset fact-sheets to assist dealers in closing the sales.
Training the dealers: Nokia sends in its executives to dealers to train them on the features and
selling points of new launches and handset models not performing to their potential. Mostly
these tasks are taken up by the delivery executives who also inform the dealers about their
latest launches and the feature sets of these phones.
Dealer encouragement schemes: Nokia has cash rewards for promoting and motivating the
dealers. They offer cash rewards for making a predetermined level of sales fortnight, which
may range from Rs.500 to Rs.5000. For their high performing dealers they offer all expenses
paid
local/foreign holiday trips.
Credit/ Payment terms: Nokia operates of quick delivery and quick payment terms with
RDSS and mobile dealers. Deliveries are made super-quick, 4-5 hrs, and payments are
supposed to be made quickly too.

Nokia has a very strong brand and market presence exhorts tremendous power in the market.
It allows a very small credit period to the RDSS which in turn squeeze dealers, giving them
equally small credit period. RDSS is allowed a credit period of 7 days, which in turn give
dealers also seven days credit period only. Although dealers moan about the short credit period,
the power Nokia has in the market and demand for Nokia phones makes it imperative that
dealers carry Nokia mobile phones in their stores.
Again on this front, Nokia has tighter norms compared to its rivals. Samsung and LG offer
double the credit period offered by Nokia. Samsung and LG offer 15 days credit period,
compared to Nokia’s seven days.
Contribution:
Swadheen Jain: Arranging contacts of Salesperson and Area Sales Manager, Interview
of Distributor and ASM (Nokia) and contributed in report making
Kavita Patil : Arranging contacts of Salesperson and Area Sales Manager, Interview
of Distributor (B Naturals) and contributed in report making
Monica Syal: Arranging contacts of Salesperson and Area Sales Manager, Interview
of Distributor and ASM (Nokia ) and contributed in report making
Siddhartha Bhatia: Interviewed distributor of competitive brand