SMBD Project

SMBD PROJECT REPORT
TERRIOARY PLANNING IN FMCG INDUSTRY

SECTION - B
NAME OF FACULTY - Dr. SHUBHENDRA SINGH PARIHAR
SAURABH SINGH - JL19RM042
MOHAMMAD FAIZ RIZVI - JL19RM024
MAYANK SHEKHAR - JL19RM023
SHIVANAND CHAUDHARY - JL19RM050
SHIVAM SINGH - JL19RM049
INTRODUCTION
We are doing territory planning by analysing three FMCG companies that are ITC, Parle,
and Emami. We studied the structure of the firm and the data was collected via contacting
company officials and the internet. The purpose of this study was to understand the basic
structure of FMCG firms and how do they do plan to distribute their offerings in a territory.
Our planning is ideal. We are planning for a firm which deals in FMCG products. Our group
is not talking about any product of the FMCG industry, for us, it can be any product. Our plan
comprises the Hierarchy of the company and the structure of the distribution network.
Territory planning
Sales territory is the geographical area of a group of customers. This area is allocated to the
individual Salesperson. Territory planning is a tool or the byproduct of any companies’
growth. Every territory planning must be properly planned and managed to make your sales
effort. It must have a structure that has to be defined accordingly to keep the salesperson and
the number of distributors. This altogether helps to meet the expected sales. This sales
territory is the assets for the success of the sales team and also for the organization.
This planning of the territory would lead to prioritizing the demands of the market. This
effort helps to lower the cost, increasing sales, and the foundation of the company’s growth
must be with effective sales territory planning.
Defining the territory, we have certain criteria:
1. We need to define the market
Every business would highly depend on the study of the environment. The needs of the
customer their perception towards the brand. The market can be defined by the
geography, size, and the demographic of the customer.
2. The quality of the territory

The quality of your territory defines the rank that the class of territory has. The sales
funnel will help in determining the territory into low, medium, and high values. The
potential of the territory is the quality that could help the productivity of the sales team.
3. Strength of the territory

The quality of any territory will determine the strength of the sales in a territory. This
strength helps the company to close the big deals and the client should have the best
possible service.
4. Customer mapping
When the salesperson has been working in the defined territory they build a relationship
with the distributor and the customer which helps in the proper calculation of the territory
planning. Understanding the customer who is the prospect who can be the customer in the
territory who is going to help the company grow.
5. Knowing about the product and the customer

To have the overall coverage of the territory and generate good sales you need to have a
good knowledge of the targeted products and the customer to whom we target.
As every customer cannot be targeted with the same product.
Importance of Territory Planning
1. Enhance the new market

The planning of the territory will help to develop the market into the growth of the
organization. By this, we can define the prospect. When the coverage is in the new market
the division of the market in the specific territory helps in positioning the product
according to the demographic and the customer's needs and wants. This mainly promotes
the reach of the company and develops the market.
2. Increasing sales productivity

When the territory planning is done the sales target is also decided that is with proper
division of the defined territory the productivity also increases due to the distribution of
the products depends on the territory. The benefit that the sales team has through a larger
customer base and improved morale.
3. The efficiency is increased of the territory

The territory planning helps in having efficiency with better sales planning of the
products and customer engagement. As when the territory is formulated the efficiency
would have the full swing effect of work and the level of accuracy is maintained for
coming planning and meeting the sales target.
4. The sales objective attainment

The objective is decided before only to fulfill the desired objective we bifurcate the task
into territory division to attain the objective. This gives a specific vision to any territory
that is why the proper planning of the territory is of utmost importance.
The sales team works according to the objective of the company.
5. Helps in increasing revenue

When the territory would follow according to the set objective the growth of the company
is set. When the territory had planned the way and the sales team would be performing
accordingly this would help in the generation of the sales and the overall revenue of the
company be increased.
6. Proper coordination and relation with the distributers

The planning of the territory would accompany the distributors who are the key to the
sales objective. The relationship is built with the distributor and this goes hand in hand
with mutual coordination of the sales team. Listening to the problem can only be known
through the distributor of the product or the company. That is why territory planning is
important.
System Hierarchy
Branch manager - Will be taking care of the whole Lucknow branch.

Area Sales Manager - Will be looking after 4 sales officers in the Lucknow area.
Sales Officer - One sales officer will be handling 5 distributors.
BM
ASM
SO1 SO2 SO3 SO4
5 WD 5 WD 5 WD 5 WD
TL TL TL TL
SP SP SP SP
DISTRIBUTION NETWORK
Lucknow branch will be having two depots, which will be divided from the Gomti river.
Each depot will be having 12-13 distributors.
The business of General Trade will be handled through distributors.
The business of Modern Trade will be handled through another team and they will be
served directly through depots.
Distributors Appointment Norms -
 A distributor should be in every market with a 50,000 population.
 Each Distributor will be servicing 6 routes or 1260 outlets and on a single route, there
will be a single salesperson.
 No route should be serviced by more than one distributor.
 One day off will be allowed, based on the market.
 Reimbursement for Salesperson and Team Leader will be given by the company.
 Non-performing distributors should be replaced after a review of the Branch Manager.
 Separate distributors should be appointed for institutional sales. For example - Railways,
Corporate, School & Colleges, etc.
Distributor’s Salesperson
 The salesperson will be on the distributor’s payroll.
 A salesperson will be looking for not more than 35 outlets per day.
 A Salesperson should visit only 210 outlets every week.
 Servicing the distributor’s outlet and enrolling newly opened outlets on the route
provided.
 Removing closed outlet from the list followed by a review of Team Leader and
approval from Sales Officer
Team Leader
 The Team Leader will be on the distributor’s payroll.
 A TL will not be making more than 450 calls in a month.
 On basis of classes assigned to outlets, the frequency of making a call on an outlet will
vary for a team leader.
 Apart from a group of classes defined for outlets, a TL will be visiting outlets once in
every month and responsible for outlet’s complaint handling and removing expired
products.
 TL will ensure Availability, Visibility, and Freshness at the service outlet.
 TL will ensure “on-time delivery” as agreed, within 48 hours after taking an order.
 TL will ensure delivery is done on time and in full quantity.
 Minimize delivery time by efficient mapping.
 Not using fuel-based (vans, bikes, etc) delivery units as per market.
 Delivery through public transport where possible.
Activities of a Team Leader
Visibility Score Calculator -

This calculation is only done for General Trade.
Measures Wts. %
Locality 35
Location 40
Outlet Type 12.5
Full-Shop Merchandising 12.5
Max. Score 100
LOCATION TYPE CLASSIFICATION

Location Type Outlet Location & Layout
Excellent  Located at the Junction of Road & Street.
 More than one side open to customers or Touch n feels concept.
Good  Located at the junction of street & lane.
 More than one side open to customers or “Touch and feel”
concept.
Average  Balanced outlet
The Team Leader will be collecting sales data and compile it in an excel sheet and share
every month with the sales officer.
Sales officer can calculate a visibility score of an outlet and calculate per day sale of that
outlet and can assign a class to an outlet.
Class - A (TL will visit every week)
Class - B (TL will visit every week)
Class - C (TL will visit once in two weeks or 15 days)
Other outlets - Once in a month.
Mobile Application
Salesperson - We will be providing a mobile application to the salesperson in which he will

enter the order taken from the outlet. The application will also track their location.
Team Leader - We will be providing a mobile application to the team leader in which he
will be entering the competition and our stock at the outlet as it will help in knowing the
potential of that outlet. He will be clicking pictures of that outlet at every visit. On the
visibility part, he would be applying posters and other promotional tools at the outlet and
update it on the application with a picture.
Why mobile application?
 Helps in maintaining Data Hygiene.
 Tracking helps in keeping a regular visit of a salesperson and team leader.
 Easy to take orders from outlets.
 Easy to maintain availability, visibility, and freshness at every outlet.
Conclusion
 Based on this assignment we came to know about the system hierarchy of the distribution
network and the role of branch manager, area sales manager, and sales officer.
 We made a territory planning based on three companies in which we came to know about
the distribution appointment norms.
 We have also calculated the visibility score calculator based on different aspects like
locality, location, and outlet type.
 We have divided the location into three types like excellent, good, and average.
 The team leader will visit the Class A and B store every week and Class C store once in
15 days and other outlets once in a month.
 This assignment helped our team to understand various aspects related to Territory
planning and will further help our team for better analysis of future assignments.

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SMBD PROJECT REPORT

TERRIOARY PLANNING IN FMCG INDUSTRY

2. The quality of the territory

3. Strength of the territory

5. Knowing about the product and the customer

1. Enhance the new market

2. Increasing sales productivity

3. The efficiency is increased of the territory

4. The sales objective attainment

5. Helps in increasing revenue

6. Proper coordination and relation with the distributers

Branch manager - Will be taking care of the whole Lucknow branch.

SO1 SO2 SO3 SO4

Visibility Score Calculator -

LOCATION TYPE CLASSIFICATION

Salesperson - We will be providing a mobile application to the salesperson in which he will

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