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SDM-MB19-S-3 & 4
MBA-BM 2019-21: Term-IV

Course Name : SALES & DISTRIBUTION MANAGEMENT
Credits 3 (Three)
Faculty Name Prof. Srinivas Govindrajan
Program PGDM
Academic Year and Term Term 4, AY 2020-21







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 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.

Eight of the twenty sessions will be case discussions and much of these are in the latter half of the course. 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



Session Topics/ActivitiesReading/case list etc.
1Introduction to different Go To Market options and Variables affecting Sales & Distribution DecisionsLinks to Articles:
    https://www.franchiseindia.com/content/sectoral-outlook-new-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.
          2Variables affecting Sales & Distribution Decisions – Continued.Links to Articles:

          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.
            3Decision Issues in a Distribution Channel – FMCG channels – ILinks to Articles:

            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.
              4 Decision Issues in a Distribution Channel – FMCG channels – II Link to Article:

              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.
                      5B2C and B2B Funnels – and implications on Sales & Distribution decisionsLink to Video:
                        https://www.youtube.com/watch?v=rwxAlthNmwQ – This video has Rand Fishkin himself. Though titled B2B, this video captures the essential differences between the B2B and B2C sales funnels – and the usage of sales collaterals at various stages.

                        Class PPT
                          Will be shared after the class is over.
                          6Decision issues in B2B Funnels for each Funnel layerLink to Video:
                            https://www.youtube.com/watch?v=7Y_uh2oVfao – A VERY long video, but traces the B2B funnel over time very well – and how to use it today.
                              Class PPT
                                Will be shared after the class is over.
                                7Performance metrics for monitoring the Sales Effort for different parts of the Sales FunnelLink to Video:
                                  https://www.youtube.com/watch?v=V1TbRbCUH2g – The key reasons why LinkedIn remains a powerful lead generation medium for B2B are listed here quite eloquently. Please ignore the sales hype at the start and end of the video.

                                  https://www.youtube.com/watch?v=RPHhdlpG0Ko – This video has considerable coverage of Advertising (and you may wonder what it’s doing in a Sales & Distribution Course). It’s also a lengthy video. The reason why this video has been chosen is because it gives a good demonstration of using data for targeted lead generation (which was described in the earlier video)
                                    Class PPT
                                      Will be shared after the class is over.
                                      8Issues in Franchising and understanding the issues and trade offs for both partiesLink to Videos:
                                        https://www.youtube.com/watch?v=bHoezHqvMjI : Outlines the ROI made by franchisees. Caveat – this video is almost entirely American in context and numbers. That said one can get a feel of ROI in a global context in general and Indian context in particular.
                                          https://www.youtube.com/watch?v=4VKKI59514Y: What are the Advantages of Franchising? While the examples used are American, the context is Geography agnostic and hence, applicable to India as well.

                                          Class PPT

                                            Will be shared after the class is over.
                                            9Managing the Sales Effort – Distributor Management Dynamics and ROICaselets:
                                              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.
                                              10 Managing Last Mile Distribution and understanding Data Points provided by NielsenCaselets:
                                                Kahani Kirana Ki – I & Kahani Kirana Ki – II.

                                                Please go though the Caselets, work through the numbers and
                                                answer the questions asked in the end.
                                                11Decision issues in using E-Commerce as a delivery channel Link to Articles:

                                                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.
                                                      12Understanding and managing Modern Trade channels across different formats (Food & Grocery as well as Specialty Retail)Link to Article:

                                                      https://www.nielsen.com/us/en/insights/article/2020/in-store-tech-may-boost-the-brick-and-mortar-retail-resurgence/ - This article covers technology deployment in Modern trade. While it’s American in context (given their depth of Modern Trade penetration), this could, or will, be here in India soon (if not there already).

                                                        Link to Video:
                                                          https://www.youtube.com/watch?v=sidzPWTZ-XA – Covers the economics of Modern Trade Franchising. Please try not to fall asleep in the first minute (where we have a thunderously boring history lesson) – but once you get past that, you will get the financials for a Modern Trade Franchising option.

                                                          Class PPT

                                                            Will be shared after the class is over.
                                                            13Managing Retail Sales tactics based on historical data and understanding when to use Omni channels Case:
                                                              UMBC.

                                                              Please go though the Case, work through the numbers and answer the questions asked in the end. Unlike the earlier caselets, this has more raw data – always the case for retail outlets. Your task is in observing trends in the raw data to design a coherent action plan.
                                                              14Understanding the factors shaping Retailer Buying Behavior and aligning trade remuneration and channel strategy accordinglyCase:
                                                                Lightwel Match Co.

                                                                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.
                                                                15Issues involved in expanding Distribution Footprint to new territories – where the cost of using traditional channels is highLinks to Articles:

                                                                https://www.thebetterindia.com/126690/connects-corporate-farmers-consumer-itc-e-choupal/ - E-Choupal and how it’s a win-win for farmers and ITC.

                                                                  https://csrbox.org/India_CSR_news_Hindustan-Unilever-is-empowering-women-of-Rural-India-through-its-Project-Shakti-_438 - Expanding last mile distribution with CSR benefits.

                                                                  Link to Video:

                                                                    https://www.youtube.com/watch?v=AT00bK9kQvs – A video on Banking Correspondents – or doorstep banking to unbanked sectors.
                                                                      Class PPT
                                                                        Will be shared after the class is over
                                                                        16Understanding issues influencing the ROI for a channel partner and the implications of the ROI metrics on the company appointing the channel partnerCase:
                                                                          Evergreen Products.

                                                                          Please go though the Case, work through the numbers and answer the questions asked in the end. This case will help us brush up our fundamentals of Working Capital Management and basic financial ratios to understand its impact on ROI for Channel Partners as well as Sales & Distribution planning.
                                                                          17Integrated Caselets – Designing a 360 Degree Channel Strategy for 3 different product typesCase:
                                                                            The Full Spectrum.

                                                                            Please go though the Case, work through the numbers and answer the questions asked in the end. This case pertains to new brands which do not have an existing repository of sales data. Hence, the case requires the participant to do some homework by using secondary research for market sizing as well as channel mapping using data points such as:

                                                                            https://www.statista.com/markets/423/retail-trade/
                                                                            18Master Case: Using Data to craft distribution plans - I Case:
                                                                              The Bakers Dozen.

                                                                              Please go though the Case, work through the numbers and answer the questions asked in the end. This case has multiple data points – and is the standard dashboard for any Category or National Sales Manager. Your assignment is to look at the signals being sent from these multiple data points and align the Distribution plan implementation to the Brand Strategy. Please bring your laptops to class for this session.
                                                                              19Master Case: Using Data to craft distribution plans – IICase:
                                                                                The Bakers Dozen (Continued).
                                                                                  Please go though the Case, work through the numbers and answer the questions asked in the end. This case has multiple data points – and is the standard dashboard for any Category or National Sales Manager. Your assignment is to look at the signals being sent from these multiple data points and align the Distribution plan implementation to the Brand Strategy. Please bring your laptops to class for this session.
                                                                                  20Sales & Distribution Challenges for Smaller CompaniesLinks to Articles:
                                                                                    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/Smaller-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

                                                                                            § 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 10-12 sessions are over. It will carry a weightage of 25%.
                                                                                            § The End Term examination will carry a weightage of 40%. 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!

                                                                                            You can reach out to me at govindrajan.srinivas@gmail.com


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                                                                                            Created By: Alora Kar on 06/16/2020 at 09:47 AM
                                                                                            Category: BM 19-21 T-IV Doctype: Document

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