ROUTE RIDE

Key Learning and Findings

GTM Model
Go To Market

Ready Sell Unit

PreSell Route

What it means..?

The chart shows how a distributor reaches the customer and provide them with goods and services. RSU- The distributor hires some RSUs and send them into the market along with the stock. PSR- They do not carry stock but instead they have a machine that can store and process the order given by the customers and this information reaches the distributor through GPRS.

ROUTE- RIDE
RSU Level

At the RSU Level

He will be assigned some route and he has to carry the stock along with him. Placing of order and delivery of the products are done simultaneously. These RSUs will be under one distributor. The place from where the stock is loaded is called the stoppage point.

Typical Situation
Stock out: It is a situation where the RSU is out of stock and there is still a demand to be fulfilled. What does he do? He goes back to the stoppage point and loads enough stock to supply again. Why does this happen? Sometimes some of the customers may demand more leading to stock outs.

Prices at which the distributors sell to the Customers

Lays, Kurkure and Uncle chips
Pack Price Lending Price Billing price Discount(%) Weightage(gms) 5 4.23 4.46265 6 14 10 8.46 8.9253 5 28 15 8.53 8.99915 0 31 20 16.93 17.86115 4 61

Distributor sells the products at billing price which is calculated as follows: Billing price= (Lending price*0.55)+ lending price This means that distributor is adding a 5.5% margin for himself.

At the Distributor Level

All the RSUs and PSRs are under the control of the distributor. RSUs will be carrying a punching machine along with them. When they enter the order and delivery details it automatically gets updated at the distributor end through GPRS. This particular software is called SAAMNA developed by some of the professionals inside the organization and Wipro Technologies.

Flow of Stock
Company
Distributor
Expires

RSUs and PSRs

Expires

Customer Consumer

What if the stock Expires?

There can be two situations in which the stock can expire 1. Godown Expiry: 15th of every month an audit comes and checks the distributor godown for damaged and expired products. If they are within the ambit of expiry-to-bepicked up from the godown, the distributor always can get the claim.

Market Expiry: Some goods after reaching the customer gets expired. In such cases if the products are within the ambit of expiry-to-be-picked up from the market he can always give them back to the salesman and get fresh stock.

Profits and Margins

If you closely look at the prices and the weightages of the Rs. 10 and Rs. 15 packs they are almost the same but the revenue that the company is gaining on each pack is Rs 5. That is the reason why huge margins have been offered to the customers on Rs. 15 pack. So if he sells a pack of Rs 15 he earns a profit of Rs 6, the margin is quite high.

What happens if the margin is reduced?

If for example the margin of Rs 6 is decreased to Rs 4 i.e. the customer gets a Rs 15 pack at a price of Rs 11 instead of Rs 9. The extra Rs 2 doesnt come under the revenues of the company as it wont get transferred back to the company. The only one who gets the benefit is the distributor. He gets that extra Rs 2 on each pack.

Targets and Priorities

Company Managers

Forward the targets

Discuss and set targets for the month

Customer Executive Manger Distributors

Ready Sell Unit Pre Sell Representative

Achieve Targets

At the Customer End

Customers

Satisfied

Dissatisfied

Push him to buy our new products.

Do not decrease the margin.

WHY?

The Answer

Due to high-handedness by the Pepsico person. They think the trolley rates are too expensive. Bad sales.

Thank You