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AN IRATE Presented By: Prashant

Kumar

DISTRIBUTOR 160103099
CURRENT SITUATION
Problem statement-
Increasing the market share equivalent to the Competitors in
Jalgaon Market
3 Alternatives-
1. Leave the situation as it is
2. Disallow the distribution of Sachin Agency
3. Convince Sachin Mandor of further investments
EVALUATION OF
ALTERNATIVES
NO CHANGE DISALLOW CONVINCE

Pros – This would not Pros – Disallowing the current Pros – This alternative
hamper the relationship distributor would give Mr. Kumar would allow Mr. Kumar to
between Nutripack and to look out for new distributors maintain relationship
Sachin Agency. As this who are willing to work extra with the current
relation has been going on and invest more. distributor as well as
for long, it would allow the increase the investment
relationship to stay intact Cons – Searching for new of the same.
distributor would take time.
Cons – Nutripack could not Moreover, the relationship with Cons – In future, Mr.
tap the potential market Sachin Agency has been long so Sachin Mandore can have
share, also this would lead to breaking it might not be a similar issues with
decline in the market share suitable idea. Sachin Agency has Nutripack.
in the future been the biggest distributor in
the Central Maharashtra.
MR. KUMAR’S PERSPECTIVE
If we consider Mr. Kumar’s Perspective –
Low Margins High Volumes
 Have a wide reach so as to cover as many villages as possible

2nd most populous district in Central Maharashtra


 16% volume share but 8% contribution

Interior markets need to be serviced well in terms of-


 Extending the credit
 Uniform discounts and schemes
 Regular market visits
MR. MANDOR’S
PERSPECTIVE
Considering Mr. Sachin Mandore’s Perspective –
Largest distributor in Central Maharashtra
Veteran in the FMCG distribution business
Content to meet company’s targets
Maintains good relationship with major retailers
Would like certain issues to be addressed before making
further investments-
 Pending secondary claims
 Low distributor margin
Convincing Mr. Mandor can be done by the below table –

Monthly Expenses
Particulars Nos Unit Price Total
Motor Vehicle 2 18000 36000
Salesman Salary 3 4000 12000
Salesman Bonus 3 1000 3000
Driver 2 3000 6000
Delivery boy 2 3000 6000
Godown Keeper 1 3000 3000
Helper 1 3000 3000
Operator 1 7000 7000
Computer 1 500 500
Printer 2 1000 1000
Internet 1 450 450
Telephone 1 500 500
Admin Exp 1 500 500
Godown rental 3000 7 21000
TOTAL 99950
Annual Expense 1199400
Monthly Income
Particulars Gross Net
540000 515700
Turnover CP
00 00
141287.
Margin 4.50%
7
243000 339090
Net Margin
0 4
100000 421602
Security Deposit
0 4
Return 8%
Net return 80000
251000
Total Return
0

nce, the return he gets by staying with nutripack is 39.12% as compared 641542
to 10.5% from people’s bank.
eased reputation. 4
return 39.12%
educe the problems between Sachin Agency and Retailers, following steps could be followed –
Uniform schemes and cash discounts across all outlets of similar value.
ncrease personal visits to retailers.