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Copy of Sales & Distribution @ Cadburys

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Stalin Ramesh

on 5 September 2012

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Transcript of Copy of Sales & Distribution @ Cadburys

Group 3 SDM Field Report Presentation In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later formed 'Cadbury Brothers of Birmingham.

In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars.

Today, Cadbury is a confectionery company owned by Kraft Foods in 2010 and is the industry's second-largest globally after Mars, Incorporated

Kraft is spinning off its snack food division into a separate company called Mondelez International including Cadbury chocolate spinoff of the snacks business takes effect 1st Oct, 2012.

Cadbury India operates in five categories –
Chocolate confectionery, Beverages, Biscuits, Gum and Candy.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. CADBURY's BACKGROUND CADBURY's BRAND PORTFOLIO Distribution Structure Third Party Use of IT & Documentation The invoice is generated by the company and the stock is sent along with the invoice and a copy of it for the distributor,

WINOMKAR is a software where all the data and reports are maintained and is made available for the ASMs, the BMs and SE's(Limited Access) online for making further decisions.

Provides all the data, Performance reports Beat Wise, Outleat wise Sales Trends over the years and months and Inventory Report
(MIS of company developed by Pune based ‘Heerasoft’)

Documentation is required once a retailer enrolls for a display scheme or receives a visicooler or SMD or Fridge by the company

Meranet is a software through which the SO reports everything on a daily basis to the ASM.
Daily sales figures get synced here and the SO can view the summary at a glance.

SO also mandatorily has to mail it to the ASM on a daily basis. Cash Flow Distributor makes payment to the company on a weekly basis.

There is payment done through RTGS & Prepaid cheques to the company.

The distributor–retailer cash cycle varies from 1-7 days. In Modern Trade the cash cycle is of 16days to 1 month.

The distributor is liable to pay salary to the PCs but the monthly incentives are given by the Company. Company Incentives For the Purple Champ Target Setting & Monitoring
Monthly targets set separately for General & Modern Trade Distributor.

Incentives only after surpassing targets.

In Bhubaneswar, targets set as on data are:
General trade : 80-90 lakhs
Modern trade : 10 lakhs

Monitoring done by "Analysing Invoices" generated by the distributor & through company's sales force. Purple Champ Distributor's Sales force is called as Purple Champ.

They report directly to Territory Sales Incharge (TSI).

Usually 10-12 PCs are appointed by a distributor.

Every Purple Champ is allotted a specific route to be covered in every beat and his beat plan is made for the entire week by the TSI under the supervision of his TSE. A Day In the Life Of a Purple Champ Sales Cycle
Report to office at 9.30am & go through the Beat Plan & Target sheet once

Visit Outlet & Identify if it’s a shop/ Pan tapri /chemist store

Take a look at the store, go through the stock in the store (Need recognition). Use their Palm tops go to that outlet in the palm and feed the order for each brand

the retailer of any SKU if he misses out on any and push for comparatively new brands to increase their visibility and availability in the market &Educate the retailer about new schemes and offers .(Formulate the solution)

Take the final order (Close the sale)

Check the display and the visibility of Cadbury in the store ( Visicoolers, fridges, SMDs, Counter Tops, various shelf displays ) & Take a picture of the visicoolers and SMDS in their palm for each outlet

Confirm the bill with the retailer/Wholesaler


Go to the distributor office and enter the order and make the bills for all the outlets in the beat plan for that day in the system At the end of the day, loading sheet for all the vans is prepared at the office.

Following day the vans are loaded and delivery is done.(Delivery of Goods)
Cash is collected by the delivery boy for the stock provided according to the bill.
Also credit can be given by the distributor for maximum of 7 days in that case the PC collects the cheque or cash in his next visit to the same retailer (Establish relationship) Modes of Transport Mainly Roadways Production Site
Insulated Vans

TATA Ace/Magic

Retailer Monetary Benefits General Trade Distributor Margin is around 4.75% and 1% is activity based(completion of Monthly Sales Target)
Modern Trade Distributor Margin is around 4.5% and 0.5%
Super Stockist Margin is around 2% and 1% of market value
Retailers Margins
Product Margins
Bournvita 9%
Oreo 13%
Tang 10%
Halls & Eclairs Pouch 15%
Halls & eclairs Jar 12%
Health Drinks 9%
Drinking Choclate 7.5%
Choclates worth Rs. 5-20 10%
Choclates worth morethan Rs. 20 14% Criteria for selection of
channel members Business Capacity and Salesmanship
Experience and Previous Expertise in the line
Credit Worthiness
Financial Status
Social Status
Relation with customers
Market segment
Changes during PLC
Producer Channel fit
Training and Support Required Modern Trade Margins
Big Bazaar has a direct account with Cadbury and there are separate margins fixed for these chains overall India by both of them mutually
Bournvita 9.45%
Choclates 11.03%
Tang 10.23%
Oreo 10.23% Our Group in field Display and Visibility in Modern Trade Key Learning IT deployment enhances the efficiency.
Company has divided its distribution into General trade and Modern trade.
X-Cafe was initially under General trade but later on came under Modern trade.
Plans to create on big distribution as a measure of consolidation.
Differences in the credit period offered to the retailers under General and Modern trades.
Target set for distributors and sales force are very high.
Monitors sales performance by invoice analysis.
Involvement of third party for hiring, payment,transportation and promotions. UDAAN: Foreign Trips to super stockists based on performance

Visicoolers can be given only in food stores and Chemists where sales is more than 3000 per week
SMDs can be given in Top shops where Sales is more than 2000 per week
Mass market dispensers(Halls,Eclairs and Bubaloo gum) are given to chemists,Paan tapris
Barrow Dispensers given to small shops and Paan Tapris Distribution Structure The logo for Mondelez International, a combination of the words for “world” and “delicious” in romance languages Sales Force Structure Training program named Lakshya

Once in a year

Trains new sales men or polish under performing men inn existing sales force

Sales force both from company and distributors

Arranged and paid by company Training & Capacity Building Non Monetary Benefits Annual Meetings for distributors

Gift Hampers

"UDAAN" Foreign trip to high performing super stockiest

Last year trip to Bangkok & Malaysia for 2 super stockists from this region

Previously trips were to Thailand & Dubai Sales Force Motivation Stock at Distributor's Office Rewards: Monetary & Non Monetary
Target Setting & Monitoring
Training & Capacity building
Cash Flow Channel Member Management Company's sales force Structure
Sales force Motivation
Purple Champ Company & Distributor
Sales Force Modes of transport
Use of IT
Role of Third Party Transportation & Logistics Distribution Structure: No. of levels
Selection criteria for channel partner Channel Design Financial Analysis
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