SALES AND DISTRIBUTION NETWORK

TATA MOTORS

GROUP 7
AVNIE SAXENA 16P015
DEEPANJALI KHURANA 16P019

SHASHANK MITTAL 16P050

ANIRBAN MAITI 16P069
MAHIM DWIVEDI 16P090
RAHUL DWIVEDI 16P101
ABOUT TATA MOTORS
Formerly known as TELCO, Tata Motors Ltd is a
multinational corporation headquartered in Mumbai,
India.
It has products in the compact, midsize car and utility
vehicle segments.
Since its first roll out in 1954, it has produced and sold
over 4 million vehicles in India.
The company is ranked 226th on the Fortune Global 500
list of the world's biggest corporations as of 2016
 competition
COMMERCIAL VEHICLES PASSENGER VEHICLES

MARKET SHARE
COMMERCIAL VEHICLES PASSENGER VEHICLES
 SALES AND DISTRIBUTION NETWORK
For the purpose of sales and distribution network management the sales territory
of India has been divided into two zones which are further divided into 4 sub
territories
Zone (North and East):North 1, North 2, North 3, East
Zone (West and South): South 1, South 2, West 1, West 2
Now in any region three parallel activities take place Sales, Service and Spare
Parts.

Three parallel running divisions, known as 3S, oversee the entire sales process at
TATA Motors
Sales (Passenger and Utility Vehicles)
Spare parts ( Tata Motors and Open Market)
Service (After Sales Service)

The Company's 100% subsidiary, TML Distribution Company Ltd (TDCL), acts as a
dedicated distribution and logistics management company to support the
sales and distribution operations of vehicles in India.
 SALES CHANNEL STRUCTURE
TATA Motors follows a three-tier channel structure for the sales of its cars and
utility vehicles

3S Dealers: These dealers offer all three services to the customer that is
Sales, Service and Spares.
F Class Outlets: These are also called 1s Outlet and are purely sales
outlets.
2S Dealers: Earlier this part of the channel was called The Nano Exclusive
Dealerships. But once the Nano Exclusive Dealerships were
discontinued, the established dealerships were converted into Service
and Spare parts dealerships
SALES FORCE STRUCTURE
The sales force with the channel is divided as shown below

*VP Sales- Vice President Sales; *RM- Regional Manager; *State Head-
Dealer Network Sales Head; *TSM- Territory Sales Manager
 SPARE PARTS CHANNEL STRUCTURE
The spare parts sales in all the zones and their respective sub territories are
handled by a separate sales force through the channel below mentioned

The sale of spare parts is conducted to two types of customers:

The Tata Motors Customer
Customers using other automobile manufacturer vehicles
SPARE PARTS SALES FORCE STRUCTURE

The Spare parts sales structure is as follows:

*VP Customer Support Vice President Customer Support; DGM

Deputy General Manager; AGM- Assistant General Manager; SHQ-
Sales Head Quarters
 MAJOR ISSUES IN THE SALES AND
DISTRIBUTION NETWORK
ISSUE 1:
Multiple Point of contacts with the dealership creates problems
The TSM Sales should be the primary point of contact for the dealer and
he should be interacting at the dealer GM level but in reality the dealer is
dealing with TSM Sales, TSM emerging markets, TSM Corporate sales etc
creating multiple lines of company channel partner interaction and thus
resulting in confusion about the sales strategy

Solution
Develop a simplified structure ,with issues of emerging markets taken
care of at the national level and single point of contact at the lowest
level. Further develop a Comprehensive and exhaustive sales strategy
(discussed beforehand). And any discrepancy should be settled by
consensus or higher authority(Regional head).

Implementation Challenge
Structural reform implementation will incur time and capital issues
 MAJOR ISSUES IN THE SALES AND
DISTRIBUTION NETWORK
ISSUE 2:
Dealer sales structure need improvement:
The position of the Team Lead (above the dealer Sales Executive) is one
which needs to be improved. The team leads are more interested in their
individual sales performance than the teams function. His Responsibilities
as the team leader are more or less ignored

Solution
The incentive component of the salary should be a percentage of
individual sales effort and leadership skills. This can be quantified in terms
of clarity of sales goals and procedure his team is following. The
performance of his team members can also give an estimate to his
direction.

Implementation Challenge
Time investment activity to optimize the employee remuneration
structure for the dealers
 MAJOR ISSUES IN THE SALES AND
DISTRIBUTION NETWORK
ISSUE 3:
No policy for Lemon Pieces:
A reason for conflict between the channel partners that is between the
dealer and Tata Motors is that there is no policy for recall of Lemon pieces.
The local sales team is not enforced to take a decision on this and thus a
secondary deal once executed cant be reversed and thus leads to
conflict

Solution
Main problem is that there is no central policy on how to handle
additional inventory. Restructuring of the inventory into a Lean form with
disposal rate proportional to the rate of replenishment. Further, additional
discounts to offer on lemon pieces or one day special discount
campaigns etc. to exhaust inventory.

Implementation Challenge
Generation of appropriate marketing campaign which will facilitate
inventory disposal will be critical.
 MAJOR ISSUES IN THE SALES AND
DISTRIBUTION NETWORK
ISSUE 4:
Dealer sales force not up to the mark:
There is a need to improve the skill level of the dealer sales force. This can
be seen in the large number of customer complaint cases which are
escalated to the TSM Level

Solution
Develop a central performance index for each dealer sales force via. a
central accreditation for each employee. The benchmarking for this will
be via a predefined standard. Further a proper training regime can be
setup to fill in gaps in execution for each resource.

Implementation Challenge
Introduction of a new central policy will require approval from
stakeholders and consensus from majority management
 MAJOR ISSUES IN THE SALES AND
DISTRIBUTION NETWORK
ISSUE 5:
ROI Problems
Due to low volumes there is always a demand from the dealers to
increase the margins so as to improve their revenues and ROI
Associated Issues: Sales Planning: There is a huge waiting time for the
recently launched vehicles. This shows a problem in the sales forecasting
and thus this is another area which needs improvement
Solution
Focus should be on volumes , this will increase revenues for each
channel member and ultimately increase productivity. Augment
reach to Tier 2 and Tier 3 areas to facilitate increase in volumes ,
primarily via low cost dealership development

Implementation Challenge
Additional capital investment will be required, approval from investors
is required. Development of relations with low tier dealers will be a
long process
THANK YOU