Sales and Distribution Project

IIPM SALES & DISTRIBUTION MANAGEMENT PROJECT
SALES AND DISTRIBUTION PROJECT

Sales (Pre & Post) & Distribution’ effectiveness:
A comparative study of
Snowcem India Ltd.
&
Asian Paints Ltd.
1
EXECUTIVE SUMMARY
This project aims to study the distribution channels, sales network and service patterns of the paint
sector through an analytical and comparative study of two leading companies- Snowcem India Ltd.
(SIL) and Asian Paints Ltd. (APIL). The project also tries to bring out the shortcomings, if any, in
the present system and thus recommends suggestions to improve the same. The project also gives
insights into the various financial terms, norms of the sales and service departments as per the
guidelines of the paint industry.
The project was designed after detailed discussion with the company officials on three parameters
i.e. distribution network, service network and sales functioning. The project also includes the
insights given by the dealers and officials of the company. “The sample size of 15 for channel
members and that for the sales people was 2, for each company”.
Firstly, the project discusses the distribution network of the two companies and the functions
carried out by the channel members. Asian Paints being the largest paint manufacturer in India
definitely has a wider reach and more number of dealers than Snowcem.
The project also covers the financial terms of the company with the dealers and that of the dealers
with the customers.
Secondly, the project discusses the sales functioning of the two companies, which includes aspects
such as the hierarchy of the sales department prevalent in the company; the responsibilities and
functions of the sales force, their performance appraisal structure etc.
Finally the project covers the service network of the two companies which deals with the after sale
services and their effectiveness provided by both the companies and various complaints and
queries are handled by them.
2
ACKNOWLEDGEMENTS
We are very thankful to the entire dealer, service, and sales network of Snowcem India Limited
and Asian Paints Limited for their cooperation, without which completion of this project would not
have been possible.
We are extremely grateful to Mr. R.S. Jhala (Branch Manager, Snowcem India Ltd Jaipur), Mr.
Dinesh Mathur (Sales Executive, Snowcem India Ltd., Jaipur) and Mr. Mohan Lal Sharma
(Sales Executive, Asian Paints, Jaipur) for sharing with us all the details of the project and
providing us with valuable insights about sales, distribution & servicing function. We would like
to thank them for the patience shown by them and being of such a great help to all our queries.
We would also like to express our gratitude towards our professors, --------------------------, for
giving us an opportunity to do this project on sales and distribution and for being the guiding light
through the completion of this project.
3
CONTENTS
1. Executive Summary 2
2. Acknowledgement 3
3. Methodology 5
4. Indian Paint Market 7
5. Sector Outlook 8
6. Company Background(ASIAN PAINTS) 9
7. Distribution Network 11
8. Selection of Dealers 12
9. Service Network 19
10. Company Background(SNOWCEM PAINTS) 20
11. Distribution Network 22
12. Selection Of Dealers 23
13. Service Network 30
14. Analysis 31
15. Recommendations 37
16. Annexure 39
4
METHODOLOGY
The objective of this project on sales and distribution is to do an analytical and comparative study
of the sales, service and distribution function of two players from the chosen business sector.
The business sector chosen for this purpose is the fast growing paint sector, and the players chosen
for study from this sector are:
SNOWCEN INDIA LIMITED

ASIAN PAINTS LIMITED
INFORMATION SOURCES
PRIMARY DATA SOURCES-

 SNOWCEM INDIA LIMITED- Head, Corporate Sales
 SNOWCEM AUTHORISED DEALERS
 ASIAN PAINTS LIMITED – Area Sales Manager
 ASIAN PAINTS AUTHORISED DEALERS
SECONDARY DATA SOURCES-

THE INTERNET
www.snowcem.com
www.asianpaints.com
www.google.com
www.askjeeves.com
www.indiainfoline.com
5
DATA COLLECTION TOOLS
Interviews & Discussions with the company officials, dealers and Sales people. Questionnaires
were used to record data.
SAMPLE SIZE USED
The sample size for the dealers was 30 in number while the sample size for sales people was 4.
Asian paints (dealers) - 15
Asian paints (sales people) – 2
Snowcem India (dealers) – 15
Snowcem India (sales people) – 2
LIMITATIONS:
It was difficult to ask for time required for a detailed discussion on the questionnaire & therefore
several aspects of the questionnaire were answered briefly.
The company officials did not divulge details about competitive sales policies, strategies & certain
financial terms with dealers as they find it to be a confidential piece of information of the
company.
6
Indian Paint Market
The Indian Paints sector is valued at Rs 66 billion in value terms and is very fragmented. The
current demand is estimated to be around 650,000 tonnes per annum and is seasonal in nature. The
per capita consumption of paints in India stands at 0.5-kg p.a. as compared to 1.6 kg in China and
22 kg in the developed economies. India's share in the world paint market is just 0.6%.
The organized sector accounts for about 70% of the business while the unorganized players
accounts for the remaining. In unorganized segment there are about 2,000 units having small and
medium sized paints manufacturing plants. Top organized players include Asian Paints (44%
market share), Snowcem ( …………..), Goodlass Nerolac (20% market share), Berger paints
(17% market share) and ICI (12% market share).
Demand for paints comes from two broad categories:
 Decoratives: Major segments in the decorative include exterior wall paints, interior wall
paints, wood finishes and enamel. Decorative paint's market size stands at around Rs 32.5
bn. Asian paints is the market leader in this segment. Demand for decorative paints arises
from household painting, architectural and other display purposes. Demand in the festive
season (September-December) is significant, as compared to other periods. This segment is
price sensitive and is a higher margin business as compared to industrial segment.
 Industrial: Three main segment of the industrial sector include automotive coatings,
powder coatings and protective coatings. Industrial paint's market size stands at around Rs
9.5 billion. Goodlass Nerolac is the market leader in this segment. User industries for
industrial paints include automobiles engineering and consumer durables. The industrial
paints segment is far more technology intensive than the decorative segment.
The paints sector is raw material intensive, with over 300 raw materials (30% petrol-based
derivatives) involved in the manufacturing process. Since most of the raw materials are petroleum
based (ex: Titanium Dioxide), the industry benefits from softening crude prices.
7
SECTOR OUTLOOK
The Indian paint sector, in the last six years, has grown at 1.5 times to 2 times GDP on the back of
robust housing sector growth, shift in market share from unorganised to organised players and new
product launches. The fastest growing segment in the paint sector in the last four years has been
exterior paints (CAGR of 15% to 20%). With the fall in customs and excise duty, we expect
organised players to further consolidate their presence in the paint sector in the future. With the
housing sector cushion and increased demand for industrial paints, we expect the paint sector to
grow at 1.5 times to 2 times GDP growth rate in the next three years. Asian Paints is likely to
outperform the industry.
Key Positives Key Negatives
Of the estimated Rs 66 billion paint  Raw material cost account for around 50%
industry, the share of organised players has of sales of the organised players. Though
grown to 70% as compared to 30% before there are more than 300 raw materials used
five years. Going forward, the organised in manufacturing of paints, titanium
sector is likely to increase its share in the dioxide, being the key raw material,
industry. accounts for around 30% of sales. Being a
 Due to cheaper interest rates, housing crude derivative, the higher crude oil
demand is expected to be strong going prices affect the profitability adversely.
forward. This will benefit the decorative  The fiscal state of the economy is a cause
segment of the paint industry. of concern. Slower progress of reforms
 The Government's focus on infrastructure (especially land reforms that are vital for
projects viz. roads and ports and capacity the sector) is also limiting growth
expansion plans of the manufacturing prospects of the economy.
sector are likely to benefit the industrial
paint segment of the industry.
 Continuous fall in excise duty in the past
has benefited organised players and the
impending consolidation will add to the
pricing power.
COMPANY BACKGROUND
Asian Paints
8
Asian Paints (India) Ltd (APIL), promoted in 1942, was converted into a Pvt. Ltd. company in
1945, and then into a public Ltd. company in 1973. It is India's largest paints company and the
market leader in decorative paints. APIL's brands, Royal in the premium segment, Apcolite in the
middle segment, Gattu, Tractor, Utsav, 3-Mango, etc, in the lower segment, are all well-
established brands in their respective segments. Its one-stop colour shop has software to choose
and select 1,511 combinations of various colours. The company enjoys the market share of 27% in
the overall market. Its product range includes Wall paints, Metal paints, Wood Finishes, Primers
and others. Vertical integration has seen it diversify into specialty products such as Pentaerythritol
and Phthalic Anhydride. Apart from offering the customers a wide range of decorative and
industrial paints, it even custom-creates products to meet specific needs.
The company boasts of state-of-the-art manufacturing plants at Bhandup in the State of

Maharashtra; at Ankleshwar in the State of Gujarat; at Patancheru in the State of Andhra Pradesh;
and at Kasna in the state of Uttar Pradesh. The company has been awarded the ISO 9001
certification for its Bhandup, Patancheru and Ankleshwar plants. Its Phthalic Anhydride plant and
Ankleshwar Plant have received the ISO 14001 for Environment Management Standards. It has a
50:50 joint venture with PPG Industries, the world leader in automotive coatings to meet the
increasing demand of the Indian automotive industry. It has also drawn on the world's latest
technology for its manufacturing capabilities in areas like coil coatings and high-tech resins - thus
ensuring that its product quality lives up to exacting international standards, even in the most
sophisticated product categories. During 2000-2001 the company established two units, one each
in Oman and Mauritius. It also acquired the controlling stake in Delmege Forsyth & Company
(Paints), one of the second largest paint company of Sri-Lanka. APIL aims to be amongst the top
five decorative paint manufacturers in the world, and the leading decorative paint company in the
emerging markets by the year 2007.During 2001-02 Asian Paints Industrial Coatings Limited a
wholly owned subsidiary of Asian Paints, was incorporated in October, 2001.
The company has also acquired the powder coatings business of Hawcoplast Chemicals Ltd. The
acquisition was funded from equity of Rs.80 million and a loan of Rs.60 million, financed by
Asian Paints ((India) Ltd.
9
The subsidiary commenced operations with effect from 1st November, 2001. The 100% equity
interest in Technical Instruments Manufacturers (India) Ltd was also made by APIL by investing
Rs.181.5 million as equity and Rs.117.7 million towards taking over of liabilities.
The company is in the process of setting up a manfacturing unit in Bangladesh and a JV agreement
is in the process. The above unit is expected to be operational in 2002-03.
Pentasia Investments Ltd, a wholly owned subsidiary of the company is amalgamated with Asian
paints w.e.f Nov 03, 2003. High Court of Mumbai has approved this Scheme of Amalgamation.
The company has proposed to go in for bonus issue in the ratio of 1:2, and the same is subject to
the consent of the shareholders.
In November, 2002 the company has acquired 50.1% stake in Berger International Ltd, a listed
company in Singapore stock exchange. It has also acquired 60% of shares of SCIB Chemical SAE,
Eqypt, the fifth largest paint company in that country. The total consideration for the combined
acquisitions was approximately Rs.819 million.
Distribution network
Channel structure, members and their selection
10
The reach of the channel structure of A.P.I.L is all over India. The channel structure is very simple
and effective. Complications are kept out in order to make the overall process very effective and
efficient.
Channel structure
Asian Paints India Ltd.
Company Warehouse
Dealer/ distributor Warehouse
Dealer shops
End customer
There exist a total of 16000+ dealers with multiple outlets, i.e. a total of dealers covering cities.
The percentage of dealers in each of the 4 zones is:
North 39%
West 24%
East 12%
South 25%
Selection of dealers
11
Asian Paints follows a strict policy in selection of the dealers, since dealers are the first impression
a customer has about the company and therefore it is necessary to fulfill the following pre-
requisites to be eligible to become a dealer:
1) The dealer should have a sound financial background. The financial capability of a dealer is
solely depended on the discretion of the company officials.
2) The dealers’ current business goodwill, measured in terms of dealer goodwill which covers
areas such as infrastructure, manpower etc. and individual goodwill i.e. the persons’ educational
qualification, social status etc.
3) The dealer should have his own infrastructure and logistics, since he is completely responsible
for the inventory and transportation of the goods to the shop from his warehouse.
The company communicates with the dealers on a regular basis. All the strategies and plans are
formulated at the corporate office of A.P.L., which are then communicated to the dealers online
through the extranet of the company. A.P.L has a DEALERSHIP MANAGEMENT SYSTEM
through which all the regional offices, dealers etc. all over the country are connected. Any
important notice, schemes or policies that needs to be implemented across all the offices and dealer
network of the country, are updated through this system and in a matter of few seconds, all the
dealers are informed about it.
Responsibilities and Functions of the dealers
A.P.L believes in “Customer Loyalty” and thus A.P.L expects that their dealers apart from selling
paint products should perform the following functions for better customer relations’ management:
12
1) Sales promotion through regular promotional schemes, road shows, campaigns etc. the
expenses incurred by the dealers is shared by the company only if these activities are for
promotion of the company and not of the dealer.
2) Recruitment- done under the guidance of certain A.P.L officials
3) Training and development of manpower with company assistance
4) Servicing according to the size of orders
5) Customer relation management
6) Promote other products of the company
The dealer should be in regular touch with the customer, keep taking his feedback and ensure
maximum customer satisfaction. The dealer should also try and convince the customer to try newer
product’s of the company.
The dealer has to thus cater to 3 major areas:

Pre sale
Selling
Post sale services
SALES KIT:
A dealer should carry the following in his sales kit:
 All products leaflets (adequate quantities)
 List of prospects with their addresses
 Information about the competition in the market
 Price list of APL products and corresponding prices of competitor products
 Shade cards
Financial terms
The various modes of payment through which the dealer pays for the products, he has to receive
are:
1) Cash/ cheques/ DD
2) Credit cards
13
3) Letter of credit
Margins
The dealers collect their margins at the time of sale of the product. The margin varies according to
the type of the product.
Performance Appraisal
For the dealers-
APL appoints HR managers with various dealers, who are responsible to layout, the company’s
guidelines which the dealers are supposed to follow. Dealers have a company appointed business
development manager to advise them from time to time.
The company through calculation of the Sales Satisfaction Index conducts the performance
appraisal for dealers.
A.P.L. maintains a Balance Scorecard for each dealer, in which benchmarks are listed regarding
certain aspects such as shops, infrastructure, sales promotion, qualifications and eligibility criteria
of the staff recruited.
These appraisals are conducted yearly and on the basis of these results certain monetary incentives
are provided to the dealers. The dealership of any dealer can be cancelled for violation of company
norms.
The order processing system is as follows:
Walk in
Demand
14
Customer requirement
Quotation
Payment
Delivery
Asian paints has invested huge sums of money to implement and maintain state of the art
materials, inventory and stock to their correct levels in the whole process of production and right
up to the level of the point of sale. With the implementation in “i2 technologies” from the USA the
company’s capabilities to manage the supply chain has become very efficient and effective. The
overall work processes and the business units interact with each other to balance the processes and
integrate all the business units into one consolidated unit with the help of the use of a popular
enterprise resource planning software called S.A.P.
RESPONSIBILITIES OF A SALES PERSON

PRE-SALES
 Cold calling – prospect generation
 Creation of customer card
 Generation of prospect base
 Update knowledge of company’s products and it’s competitors
 Update knowledge of the company’s new business and products
 Update knowledge about the entire product line and accessories
 Update knowledge about warranty and service
SALES RELATED
 Visit the prospect
 Understand his needs and create interest
 Give an appropriate solution
 Give demo and offer test drive
 Handle objections
15
 Follow up with the prospect

 Secure order
DELIVERY
Help customers in:
 Knowledge about warranty (very specific in paint industry- only manufacturing defects)
 Knowledge about service requirement
 Complete demonstration if required in big/ bulk orders
 Suggest accessories
POST DELIVERY
Help customers in:
 On time service
 Proactive problem solving
RELATIONSHIP MANAGEMENT
 Keeping in touch with the customers
 Wishing channel members (B2B) on special days
 Proactive feedback
PERFORMANCE APPRAISAL OF SALES PERSON
The company according to the CUSTOMER SATISFACTION INDEX monitors the performance
of a sales person qualitatively and quantitatively. The incentives given to the salesperson varies
according to the price of the product he successfully sells. This report is then used by the company
16
to further decide the incentives to be given. The company also provides training and development
to the sales force, which is done either by the company or by a third party consulting firm.
FEEDBACK FROM CUSTOMERS

Customer feedback is obtained not only after servicing as mentioned earlier, but post sales too.
There are 2 types of feedback forms customers can fill:
1) Direct feedback to the sales people.
2) A feedback to company through questionnaires and cards
All these feedback cards are sent to the corporate office of the company where the required
action is taken.
17
Market Research:
The company undertakes Market Research activity to measure its performance in different fields,
like after sales service, customer satisfaction etc. It also follows the J.D.Power Asia Pacific Sales
Satisfaction Index (SSI) & Customer Satisfaction Index (CSI) study to measure its performance.
SSI (Sales Satisfaction Index)

The J.D. Power SSI Study is a consumer-driven measure of customer satisfaction with the product
sales and delivery process. According to the study, there are six major factors impacting
satisfaction with the dealership at the time of purchase. They are Sales Experience, Explanation at
Delivery, Price Evaluation, Delivery Timing, Salesperson Knowledge and Post-Delivery Contact.
CSI (Customer Satisfaction Index)

The CSI study examines customer satisfaction with quality delivery and dealer service at 12-18
months of ownership. CSI performance factors are problems experienced, service advisor, service
performance, service timing and facility appearance.
18
Service Network
Structure:
Group Head
Service Support Field Support
On the job Training

Backend T&D Dealer CRM Day to day activities
Development Warranty
Asian paints India Ltd. Closely monitors each and every aspect of the organisatisation and ensures
that each factor contributing to it’s organisations’ growth is monitored
19
Snowcem India Limited
SIL was incorporated in 1959 and the company commenced operation in Oct 1959 in collaboration
with Blue Circle group. The company came with a public issue in June '95 to fund expansion of
Sandtex Matt capacity at Gummidipundi near Chennai, besides relocating its facilities at Mamba to
Sinner near NASA and meeting its working capital requirements. George Lillington & Co., UK
currently has 28.62% stake in Snowcem while the Indian promoters have 28.78% stake. The
company has entered into a technical collaboration with George Lillington for specialty chemicals.
Snowcem Landmarks
October 1959, Snowcem commenced manufacturing cement paints and allied

products in collaboration with George Lillington & Co, Ltd., a member of the Blue
Circle Group, with 40% share holding in Snowcem India Ltd.
Manufacturing started at its plant in Mumbai with Snowcem, a premium cement paint. Impermo, a
waterproofing compound was introduced subsequently. Between 1963
and 1969, more speciality products, namely Hardcrete, Cemprover, Cemix,
Snowfilla and Snowsol were successfully introduced by the Company for the first
time in India.
In 1970's Sandtex Matt already a prime exterior finish product in Europe was introduced with full
support from collaborators.
Sandtex Matt meets unprecedented success, and we set up the third manufacturing
facility at Gummidipundi near Chennai. Sandtex Matt as well as the speciality
copolymer pure acrylic resin is manufactured here. Capacity soon doubled by setting
up another plant at the adjacent site in 1996.
In 1988, a modern manufacturing facility at Gotan, Rajasthan was setup right in the
heart of the white cement-manufacturing region, the core raw material for cement
paints.
20
More and more people realised the need for good exterior coatings and hence
anticipating increased demand we planned for capacity expansion. Sinnar in Nashik
was home to our fourth manufacturing facility. Subsequently we also relocated the
manufacturing facility from Mumbai to Sinnar. This facility went on stream in March
1997 and production capacity of powder products increased to 34,000+ TPA, and that
of liquid products to 3,400 KL per annum.
1997 sees the launch of two new products - Premium quality Snowcryl XT, a pure acrylic base
smooth exterior finish and also Impermo in liquid form.
1998 Snowcem receives ISO 9002 certification for its manufacturing facility at Mumbai and Gotan
in Rajasthan, Sinnar received ISO 9002 certification in September 1999.
Manufacturing facilities
• Gotan, Nagaur Rajasthan

• Sinnar, Nashik Maharashtra
• Gummidipundi, Chennai Tamil Nadu
21
Distribution network
Channel structure, members and their selection
The reach of the channel structure of S.I.L is all over India. The channel structure is very simple
and effective. Complications are kept out in order to make the overall process very effective and
efficient.
Channel structure
Snowcem India Ltd.
Dealer/ distributor Warehouse
Dealer shops
End customer
There exist a total of 4000+ dealers with multiple outlets, i.e. a total of dealers covering cities.
The percentage of dealers in each of the zones are as follows.
North- 35%
South- 26%
East- 10%
West- 29%
22
Selection of dealers
Snowcem India follows a strict policy in selection of the dealers, since dealers are the first
impression a customer has about the company and therefore it is necessary to fulfill the following
pre- requisites to be eligible to become a dealer:
1) The dealers’ shop should be centrally located. The proximity to another Snowcem dealer should
be taken into consideration. An already authorized dealer is taken into consideration when
providing a newer dealer registration.
2) The dealers’ goodwill, measured in terms of areas such as infrastructure, manpower etc. and
individual goodwill i.e. the persons’ investment capability etc.
3) The dealer should have his own infrastructure and logistics, since he is completely responsible
for the inventory and transportation of the goods to the shop from his warehouse.
The company communicates with the dealers on a regular basis. All the strategies and plans are
formulated at the corporate office of S.I.L., which are then communicated to the dealers online
through the extranet of the company. S.I.L has a DEALERSHIP MANAGEMENT SYSTEM
through which all the regional offices, dealers etc. all over the country are connected. Any
important notice, schemes or policies that needs to be implemented across all the offices and dealer
network of the country, are updated through this system and in a matter of few seconds, all the
dealers are informed about it.
4) The visibility of the shop and the shop area, shelf area, numbers of counter personnel are taken
into account. The warehouse and the warehouse space and location from the actual shop is taken
into account.
23
Responsibilities and Functions of the dealers
S.I.L. believes in “Customer Loyalty” and thus expects that their dealers apart from selling paint
products should perform the following functions for better customer relations’ management:
1) Sales promotion through regular promotional schemes, road shows, campaigns etc. the
expenses incurred by the dealers is shared by the company only if these activities are for
promotion of the company and not of the dealer.
2) Training and development of manpower with company assistance
3) Servicing according to the size of orders
4) Customer relation management
5) Promote other products of the company
6) Create goodwill for the company
The dealer should be in regular touch with the customers, painters and architects keep taking their
feedback and ensure maximum customer satisfaction. The dealer should also try and convince the
customer to try newer products of the company.
The dealer has to thus cater to 3 major areas:
Pre sale
Selling
Post sale services
24
SALES KIT:
A dealer should carry the following in his sales kit:
 All products leaflets (adequate quantities)
 List of prospects with their addresses
 Information about the competition in the market
 Price list of APL products and corresponding prices of competitor products
 Shade cards
Financial terms
The various modes of payment through which the dealer pays for the products, he has to receive
are:
1) Cash/ Cheques/ Demand drafts
2) Credit cards
3) Letter of credit
Margins
The dealers collect their margins at the time of sale of the product. The margin varies according to
the type of the product.
25
Performance Appraisal
For the dealers-

S.I.L appoints HR managers with various dealers, who are responsible to layout, the company’s
guidelines which the dealers are supposed to follow. Dealers have a company appointed business
development manager (BDM) to advise them from time to time.
The company through calculation of the Sales Index conducts the performance appraisal for
dealers. The company appoints a third party research firm who is actually responsible for the
market surveys, research, analysis and interpretation of the figures
S.I.L. maintains a Scorecard for each dealer, in which guidelines are listed regarding certain
aspects such as shops, infrastructure, sales promotion, qualifications and eligibility criteria of the
staff recruited.
These appraisals are conducted yearly and on the basis of these results certain monetary incentives
or trips to various destinations, gifts, vouchers etc. are provided to the dealers. The dealership of
any dealer can be cancelled for violation of company norms.
The order processing system is as follows:
Walk in
Demand
Customer requirement
Quotation
Payment
Delivery
26
Snowcem India uses various materials management software to improve the efficiency of the
overall process, right from the beginning of the inputs of the raw materials to the final product
which reaches the dealer. The process uses “push and pull technology to achieve excellence. This
technology actually uses the pull protocol to pull in the raw materials in the manufacturing process
and the order management process. The push protocol is used to push the finished products to the
warehouses. Similarly the pull protocol is used to pull the finished products to the shops and dealer
networks by the dealer.
RESPONSIBILITIES OF A SALES PERSON

PRE-SALES
 Cold calling – prospect generation
 Creation of customer card
 Generation of prospect base
 Update knowledge of company’s products and it’s competitors
 Update knowledge of the company’s new business and products
 Update knowledge about the entire product line and accessories
 Update knowledge about warranty and service
SALES RELATED
 Visit the prospect
 Understand his needs and create interest
 Give an appropriate solution
 Give demo and offer test drive
 Handle objections
 Follow up with the prospect
 Secure order
27
DELIVERY
Help customers in:
 Knowledge about warranty (very specific in paint industry- only manufacturing defects)
 Knowledge about service requirement
 Complete demonstration if required in big/ bulk orders
 Suggest accessories
POST DELIVERY
Help customers in:
 On time service
 Proactive problem solving
RELATIONSHIP MANAGEMENT
 Keeping in touch with the customers
 Wishing channel members (B2B) on special days
 Proactive feedback
PERFORMANCE APPRAISAL OF SALES PERSON
The company according to the Sales satisfaction index monitors the performance of a sales person
qualitatively and quantitatively. The incentives given to the salesperson varies according to the
price of the product he successfully sells. This report is then used by the company to further decide
the incentives to be given. The company also provides training and development to the sales force,
which is done either by the company or by a third party consulting firm.
28
FEEDBACK FROM CUSTOMERS

Customer feedback is obtained not only after servicing as mentioned earlier, but post sales too.
There are 2 types of feedback forms customers can fill:
1) Direct feedback to the sales people.
3) A feedback to company through questionnaires and cards
All these feedback cards are sent to the corporate office of the company where the required
action is taken.
Market Research:
The company undertakes Market Research activity to measure its performance in different fields,
like after sales service, customer satisfaction etc. The company employs third party agencies to
measure its performance.
SSI (Sales Satisfaction Index)

The sales satisfaction study is a consumer-driven measure of customer satisfaction with the
product sales and delivery process. According to the study, there are six major factors impacting
satisfaction with the dealership at the time of purchase. They are Sales Experience, Explanation at
Delivery, Price Evaluation, Delivery Timing, Salesperson Knowledge and Post-Delivery Contact.
CSI (Customer Satisfaction Index)

The customer satisfaction index with quality delivery performance is used to track the problems
experienced in the customer satisfaction process. This data helps in building future policies and
also helps in training the employees to perform better in future.
29
Service Network
Structure:
Group Head
Service Support Field Support
On the job Training

Backend T&D Dealer CRM Day to day activities
Development Warranty
Snowcem India closely monitors each and every aspect of the entire process in the business
organization. The service network is similar to that of Asian paints but the CRN and training and
development is not that developed. The technical support in the business units is different as we
have already discussed earlier that Asian paints uses SAP and i2 technologies while Snowcem uses
push and pull protocol.
ANALYSIS
30
The total size of the sample used was 15 each for Asian paints and that for Snowcem India. For the
sales people the total size of the sample was 2 for each company.
The parameters that were taken to check the effectiveness and the rating scale are as follows:
Scale 1
• Very satisfied- 4
• Satisfied- 3
• Not satisfied- 2
• Not at all satisfied- 1
Scale 2
• Excellent- 4
• Good- 3
• Average- 2
• Poor- 1
Scale 3
• Weekly- 4
• Bi- monthly- 3
• Quarterly- 2
• Others- 1
Scale 4
• Strongly agree- 4
• Agree- 3
• Neutral- 2
• Disagree- 1
Scale 5
31
• Always- 4
• Sometimes- 3
• Rarely- 2
• Never- 1
Effectiveness
For Channel Members

Asian Paints: While doing our analysis we found out that Asian paints scored excellently well
on the customer orientation, Delivery of products, Order processing, Service quality of sales
people and promotional activities. The lacking area was Commercial policies and the terms. They
need to boost their activities and show improvement in this area to be an overall winner.
Asian Paints Channel Members-Effectiveness
4
3.506 3.466 3.4888 3.4333
3.5 3.355
3
2.466
2.5
2
1.5
1
0.5
0
CUST. DEL ORD SER QTY PROM COMM
ORIEN PROD PROC SUPP TERMS
32
Snowcem India:
In the analysis of this company we found that they need to pull up their socks and start working in
order to grasp better market share and moreover retain the already held market share. The
company was good on commercial terms, Service quality. They are lagging behind in promotional
activities and customer orientation. The company was found average on the delivery of products in
time and order processing.
Snowcem Channel Members- Effectiveness
3.5 3.222 3.3

3 2.853 2.833
2.644 2.533
2.5
2
1.5
1
0.5
0
CUST. DEL ORD SER QTY PROM COMM
ORIEN PROD PROC SUPP TERMS
Effectiveness
33
For sales People
Asian Paints
The company scored well on customer orientation, delivery of products, order processing and
promotional activities. According to the views of the sales people they need to improve on the
service quality and the commercial policies of the company.
A s ia n P a in ts S a le s P e r s o n - E ffe c tiv e n e s s
3.5 3 .5
3 .5 3 .2 5 3.33
3
3
2 .5
2 .5
2
1 .5
1
0 .5
0
C U S T. D EL O R D S ER Q T YP R O M C O M M
O R IEN P R O D P ROC S U P P T ER M S
Snowcem India
34
The company was below average on customer orientation, delivery aspects, order processing. The
company scored better than other parameters on service quality and commercial terms.
S n o w c e m S a le s P e rs o n - E ffe c tiv e n e s s
4
4
3 .5
3 3
3 2 .6 6 6 2 .7 5
2 .5
2 .5
2
1 .5
1
0 .5
0
C U S T . D EL O R D S ER Q T YP R O M C O M M
O R IEN P R O D P R O C S U P P T ER M S
COMPARISON OF EFFECTIVENESS
35
Comparison of channel member effectiveness
Com parison of Channel Mem ber Effectiveness
17.38667,
47%
19.7177778,
53%
Asian Paints Snow cem
Comparison of Sales Person effectiveness
COmparison Of Salespersons Effectiveness
17.91667,
48%
19.08, 52%
Asian Paints Snow cem
36
RECOMMENDATIONS
Asian Paints
• The margins in the products of Asian paints are quite low as compared to the
other brands in the market. The margin is somewhat around 1% which is quite
low as compared to the other companies which usually provide a margin of
2%- 5%. The dealers actually gain from the bulk sales.
• The frequency of sales people visit should be increased. The total number of
dealers in the network go beyond 16000+ and the number of sales people as
compared to the dealership is less.
• The company tied up with i2 technologies, USA for the supply chain
management and for the enterprise resource planning chose S.A.P.
technologies. Recently it was found that since the company depends solely on
the above for almost all it’s activities, in case of technical problems the
operations come to a stand still.
• The company’s supply chain is probably the best, but it was found that
efficiency can be improved by removing the latent period of wait through
decentralizing the movement of stock.
Snowcem India Ltd.
37
• The entire distribution network needs to be redesigned. The network for sales
and distribution uses less technology and hence there is a drop in the
efficiency. Therefore the company should build a technology backbone
around the sales and distribution network. In fact it should learn from the
already market leaders i.e. Asian paints.
• The frequency of the sales people visit should be increased.
• The company lacks far behind in the quantity an quality of brand promotion.
The actual rise the sales come in to effect when there is proper brand
awareness. This was the main reason why the company’s sales dipped
drastically.
• The company should show flexibility in it’s quantity and delivery options.
• Sales people should be empowered to take decisions on their own as
compared to companies such as Asian paints.
• The company should take legal action against the copy cats who actually copy
the name “Snowcem” and the associated brand graphics and sell cheap quality
low price product.
ANNEXURE
38
Questionnaire for Channel Members
Name : Phone no :
Address: Organization:
1) What are the expectations of the channel members from the company?
2) What is the distribution network of the company?
3) What do you think about the distribution network of the company?
Excellent Good Average Poor
4) Whether the company is able to provide material in time or not?
Reasons-
5) What is the credit policy of company to its channel members?
6) What is the attitude of company sales representatives?
Very satisfied Satisfied Not satisfied Not at all satisfied
7) Whether company’s sales representatives are really help them in getting big orders?
8) What is the frequency of sales people visit to its channel members?
39
Weekly Bi monthly Quarterly Others (please specify)
9) What kind of promotion company is doing to increase their sales?
10) What percent of margin they are getting for selling the product?
2% - 5% 5%- 10% 10%- 15% Above15%
11) What kind of reward company is providing to you, if they achieved their target?
12) Which product lines from major companies are you distributing?
13) Who bears the cost of transportation/?
14) What is your storage Capacity?
15) Did the company meet the expectations of delivering the product on time?
Always Sometimes Rarely Never
16) Are you satisfied with the availability of product at warehouses of company?

40
17) What is the condition of product at the time of delivery?
18) How do you relate the behaviour of transporters?
19) Does the company show flexibility in its delivery and quantity operations?
20) Whether company’s sales people are able to explain product features clearly or not?
21) Whether company’s sales people able to explain company policies to you?
22) Whether salespeople able to handle the complaints efficiently?
23) What is the response time of salespeople?
24) How frequently does the company take the feedback from you?
Very Frequently Frequently Sometimes Never
41
Questionnaire for Company’s Sales People

Name : Phone :
Address: Organization:
1) What is the sales hierarchy of the Sales Department?
2) What are the expectations of company from its channel members?
3) What are the objectives of company sales’s people?
4) What is the distribution network of company?
5) How they are able to make co-ordination between channel members?
6) What criterion they used for the selection of channel members?
7) How they maintain performance appraisal system for Sales People?
8) Who does the performance appraisal for the sales people?
42
9) What is the frequency of the performance appraisal?
10) What format that is used for the performance appraisal?
11) What are the criterions of performance appraisal of salespeople?
12) What kind of rewards they generally give to their channel members for achieving the target?
13) What is the frequency of visits to channel members?
Very Frequently Frequently Sometimes Rarely
14) What kind of relation they maintain with their channel members?
15) How they are able to motivate their channel members for achieving the target?
16) How company is motivating the sales people for achieving the objectives of business?
43
17) Which of your IT infrastructure do you share with your distributions?
18) Do you have your own distribution network?
19) Which trade shows you generally participate in?
20) How empowered are salespeople to solve the problems of channel members?
Strongly Agree Agree Disagree Strongly Disagree
21) Are you satisfied with numbers of promotion activities undertaken by the company?
22) Who bears the cost of transportation?
23) What are the modes of transportation?
24) What are the various cost involved in transportation?
44
25) What type of market research being carried out by the organizations with respect to customers?
26) What type of targets company sets for it’s sales people?
27) What factors are taken into account while finalizing and assigning targets?
28) What factors are taken into account while assigning territories to salespeople?
29) What are the payment terms for the sales people?
30) What percentage of discount are you authorized to give to the company channel members?
1% - 5% 5%- 10% 10%- 15% Above15%
31) What percentage of margin the sales people get for selling the product?
1% - 5% 5%- 10% 10%- 15% Above15%
32) Do you think your company is providing you with the best infrastructure?
45
34) How frequently does the company take feedback from you?
Very Frequently Frequently Sometimes Rarely
35) How often does company respond to the customers view?
Always Often Sometimes Never
36) How do you rate the company’s customer orientation process?
37) How do you relate the behaviour of transporters?
38) What is the condition of product at the time of delivery?
39) Does the company show flexibility in its delivery and quantity operations?
40) What is the frequency of sales people visit to its channel members?
Weekly Bi monthly Quarterly Others (please specify)
41) Are you satisfied with the quality and quantity of promotions?
42) Do you agree with timing of promotions and distribution?
Strongly Agree Agree Neutral Disagree
46

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IIPM SALES & DISTRIBUTION MANAGEMENT PROJECT

SALES AND DISTRIBUTION PROJECT

SNOWCEN INDIA LIMITED

PRIMARY DATA SOURCES-

SECONDARY DATA SOURCES-

DATA COLLECTION TOOLS

SAMPLE SIZE USED

Indian Paint Market

Demand for paints comes from two broad categories:

Key Positives Key Negatives

The company boasts of state-of-the-art manufacturing plants at Bhandup in the State of

Asian Paints India Ltd.

Dealer/ distributor Warehouse

Responsibilities and Functions of the dealers

The dealer has to thus cater to 3 major areas:

The order processing system is as follows:

RESPONSIBILITIES OF A SALES PERSON

 Follow up with the prospect

PERFORMANCE APPRAISAL OF SALES PERSON

FEEDBACK FROM CUSTOMERS

SSI (Sales Satisfaction Index)

CSI (Customer Satisfaction Index)

Service Support Field Support

On the job Training

Snowcem India Limited

October 1959, Snowcem commenced manufacturing cement paints and allied

• Gotan, Nagaur Rajasthan

Channel structure, members and their selection

Snowcem India Ltd.

Dealer/ distributor Warehouse

Responsibilities and Functions of the dealers

2) Training and development of manpower with company assistance

3) Servicing according to the size of orders

4) Customer relation management

5) Promote other products of the company

6) Create goodwill for the company

For the dealers-

The order processing system is as follows:

RESPONSIBILITIES OF A SALES PERSON

PERFORMANCE APPRAISAL OF SALES PERSON

FEEDBACK FROM CUSTOMERS

SSI (Sales Satisfaction Index)

CSI (Customer Satisfaction Index)

Service Support Field Support

On the job Training

For Channel Members

Asian Paints Channel Members-Effectiveness

Snowcem Channel Members- Effectiveness

3.5 3.222 3.3

For sales People

Comparison of channel member effectiveness

Com parison of Channel Mem ber Effectiveness

Asian Paints Snow cem

Comparison of Sales Person effectiveness

COmparison Of Salespersons Effectiveness

Asian Paints Snow cem

Snowcem India Ltd.

Questionnaire for Channel Members

2) What is the distribution network of the company?

3) What do you think about the distribution network of the company?

Excellent Good Average Poor

4) Whether the company is able to provide material in time or not?