1. Sales Plan NAGPUR
Prof. Shankar Bhusari

2. Color Indicators
Green indicates factors which are deliverables. Longer the span more is loss to the company, but gain in sales.
Red indicates factors which are external and uncontrollable.
Blue indicates factors which are controllable but difficult to control.
Black indicates components or sub-factors.

3. Assumption of Sales Sell is the result of,
Availability of product &
Home delivery service
Order for sell (Buy) is obtained only when,
Brand has superior quality &
Competitors are weaker
Orders will be diminishing,
In case quality changes (+ or -) with in a year &
Sales is on credit
Order continuously increases
Products are delivered in time
Consumer gets value for money
Retailers gets incentive to sales.

4. Most important factors in Dairy Product Sales
Availability of product under proper condition. throughout city (RETAIL NETWORK).
One sales cycle is completed in 15 hours. (DELIVERY – PAYMENT – NEXT DAY ORDER).
Deployment of honest institutional buyer, Distributors and Retailers. (CHALAK-MALAK Network)

5. Unpopular but Efficient Tools to Increase Product Sales
Size of Network – More will be institutional buyers more will be sales.
Home Delivery Network – 50% of home delivery prevent competitors to enter into market.
Timely Delivery – Different delivery times for road vendor, Daily needs, provision stores, tea-stall, hotel or canteen. Separating them according to their time preference. This will increase cost and sales as well.
Retailer’s Incentive - Helps to absorb losses & dissatisfaction generated due to “No after sales service of” company(Distributor).
Value for Money – This factor is not directly control by Sales dept.

6. Popular but Inefficient Tools to Increase Milk Sachets Sales
Distributor’s Network but lack of retail network –
Every distributor protects own sales and personal benefits, than increasing sales of new entrant.
Schemes –
Every scheme which continue for longer period (more than 3 months) without increasing output – Present popular scheme are,
1. Half liter free on purchase of 10 liters.
2. Periodic transportation benefit to distributor.
3. Reduction in purchase price with increasing risk to distributors.
Withdrawal of Sales force from market –
Top management reduces sales manpower to reduce sales cost.
Middle level managers drive removal of operational staff without taking charge at (guard of) operational level. Hence, network is then solely controlled by distributors.

7. What is Sales Plan? Principle:
Change will create challenge to competitors.
Adoption of new technique will inspire team.
To achieve success from state of failure, change and adoption is a true path.
Objective:
To achieve sales of liters per day within two years.
To create home delivery network to avoid any other competitor to enter into company's market.

8. What is Sales Plan? (Continue)
Divide Nagpur city market into three parts.
Division by North-South railway track and by Central Avenue road.
First part is called as WEST NAGPUR,
Second part is EAST NAGPUR
Third part is NORTH NAGPUR
Create three sets of three types of entities.
Transport Contactors (3)
Responsible for vehicle arrangement (All TATA-S with CHALAK-MALAK). Responsible for delivery of milk sachets. Responsible for on-time payment collection. Responsible for crates & leak pouches.
Accountability towards company is only for crates & leakage.

9. What is Sales Plan? (Continue)
2. Stockist cum Distributor(3)
Responsible for on-time & off-time payment collection. On-time collection from transport contractor. And off-time collection from market. Responsible for order from market. Small order (5 liters to 20 liters during on-time collection) and big orders (21 liters and above during off-time collection). Responsible for order and payment. Payment in bank or payment transfer through RTGS. Order to sales office or production unit.
Accountable for order and payment only.
Stockist cum distributor will have own or rented office, staff and computers, internet (broad-band), and milk sachets stocking arrangement.
Stockist cum distributor is the only person directly connected to company on commission basis.

10. What is Sales Plan? (Continue)
3. Sales Team:
Company will hire two type of sales people. One a set of 5 sales executive for each Stockist cum Distributor. And, a set of 10 sales girls for booking home delivery.
Sales Executive will be responsible for generation of small and big orders. Sales girls will be responsible for generation of home delivery. Sales team will be recruited by and it will function directly under supervision of Sales Consultant.
4. Sales Consultant:
Role will be define by contract with company. Sales Consultant will educate, train, inspire & operationalize all stakeholders (A team of Sales girls, A team of Sales Executive, Stockist cum Distributor, Transport Contractors).

11. Steps in Sales Plan 1st – Selection of three Stockist cum Distributor
One person will be selected from existing distributor and two more will be new stockist. (Selection criteria will be part of micro-plan)
Stockist will be asked to invest money in office, staff, computers , internet and bottle coolers.
Office of around sq.ft. with a bedroom, toilet, 4 table, 8 chairs, internet with Wi-Fi facility, telephone and a office boy.
Staff - a supervisor, a cashier, two data entry operators.
Computers – 2, Printer – 1, internet, Wi-Fi and a telephone.
2 Bottle Cooler (500 liters – make Blue Star)
Investment: Interim Deposit – Rs.10000/- Final Deposit – /- Fix Cost =145000/- Recurring Exp. = 68750/

12. Steps in Sales Plan (continue)
2nd – Selection of three Transport contractors
Transport contractors is a service provider.
Responsibility:
1. Hire 10 TATA-S vehicles for company on terms and conditions given by the company.
2. Responsible for on time and small orders (Delivery-Payment-Next day order) of around retailers assigned to stockist.
3. Reporting to Stockist for all accounting and operational purpose. And, to Sales consultant (or say company) for all execution and decision purposes.
Investment: Nil, Remuneration: Rs.250/- per vehicle per day. Accountability: Sachet delivery, On time payment , Next-day order from all retailers whose sell quantity is 1 liter to 20 liters & leakage milk. Penalty: Recovery of sachets delivered but payment is not collected against on-time orders. Support & coordination by : Stockist cum Distributor

13. Steps in Sales Plan (Continue)
3rd – Selection & training of Sales Team
A team of 15 sales person and 30 sales girls will be selected by Sales consultant (or say company). Appropriate training will be given.
Responsibility of Sales Person:
1. Every day visit to 20 milk outlets & collect order for milk sachets.
2. Handover new order to Stockist.
3. Next day, show the place of delivery to contractor’s vehicle owner.
4. Report to team leader (at distributor’s office) and take directives.
Accountability:
Accountable for increasing order of the allocated routes.
Accountable for delivery of publicity materials at the retailer’s point of sale.
Accountable to his team leader for all purposes helpful directly or indirectly to increase sale of the firm.

14. Steps in Sales Plan (Continue)
3rd – Selection & training of Sales Team
A team of 15 sales person and 30 sales girls will be selected by Sales consultant (or say company). Appropriate training will be given.
Responsibility of Sales girls:
1. Every day visit to 60 houses between 8.00 – am. in area allocated by team leader. 2. Handover company leaflet to the housewife and tell about milk sachet and nearest retailer’s shop.
3. Request to buy milk sachets at least once and use it. 4. Enquire about requirement of home delivery. In case, it is required. Note address in a register. Hanover this address to nearest shop for delivery of milk sachets on the term and conditions acceptable to retailer and buyer.
Accountability:
Accountable for increasing order of the allocated shop. Accountable for delivery of publicity materials at the customer’s home. Accountable to his/her team leader for promotional task given from time to time.
Reporting: Team leader at stockist office.

15. Steps in Sales Plan (Continue)
4th – Training of Sales Team
Training will be given Sales personnel and sales girls separately.
The focus of training will be, One – Assumptions of sales plan. Two – Important factors in milk sales. Three – Creation of goodwill for the company.
5th – Training of Sales girls
Sales girls will be trained to educate and lure customer to buy and use milk, at least once and continue it’s repurchase either by taking home delivery or buying regularly from shop.
Explained all technique to knock door and allow home-lady to listen for two minutes.

16. Steps in Sales Plan (Continue)
6th Step – Operationalization of Sales plan
In each set of network of Stockist cum Distributor, order will be collected from minimum 300 retailer.
Time Frame(In months):
Selection and finalization of Stockist cum Distributors – 3
Appointment of transport contractor – 1
Selection of Sales person - 1
Training of Sales personnel - 1
Selection of sales girls and their training - 3
Designing of 30 routes – 1
If all work done simultaneously, it will take 6 months for Operationalization of this sales plan.

17. Publicity
Sales girl as a resource is most important medium of publicity.
She/he will carry,
Leaflet containing information about company, product, price and cost effectiveness, consumer scheme, retailer’s address and lot of reliance.
She may carry gift or sample pouches and materials to create records.
Sales Executive is authorized to,
Flex sign board – size (2x4 and 3x8), Requirement 3000 no.
Painting – minimum 100 sq.ft – Maximum 300 sq.ft
Danglers – In shop display: produced new dangler every after 3 months.
Deliver monthly incentive (or gift) to retailers.

18. Cost of Sales Proposed Change in Margin:
Present Distributor Margin + half liter scheme is Rs.3.20
Proposed Change in Margin:
Retailer’s Margin per liter
Stockist cum Distributor’s Margin per liter
Proposed Fix cost to the company till reaching target of liter/day
Transport contractor payment (3) /- per day
Tata –S 30 vehicle (CHALAK-MALAK Network) /- per day
Recurring cost of distributor /- per day
Cost of Sales Executives (15) /- per day
One time cost to the company for 2 year (Publicity + Manpower):
Rs /- ( Rs per liter )
See quarterly progress chart for details.

19. Support & Service from Sales Consultant
Will operate from own office, equipped with computers, printers, internet, stationary, mobile, training room and office staff.
Recruitment agency will be hired to select sales executives and sales girls/boys
All normal expenses incurred in Nagpur for coordination of business activities, includes car-petrol, tea-snacks etc.

20. Issues not addressed in this plan
Why this budget tends to incur losses for 2 years, since product has completely collapsed in market.
How margin structure will be transformed to gain more income and reduce risk after 2 years.
What will be plan B? In case this plan is challenged by existing competitor or new entrant.
What will be the mode of operation if sale does not increase as projected in this plan.

21. Color Indicators
Green indicates factors which are deliverables. Longer the span more is loss to the company, but gain in sales.
Red indicates factors which are external and uncontrollable.
Blue indicates factors which are controllable but difficult to control.
Black indicates components or sub-factors.

22. Thank You Prof. SHANKAR BHUSARI