Sales Management & Sales Promotions

Organization: Johnson & Johnson Ltd.

Shailesh Bhadra Shreya Bhan Aakash Chaturvedi Amir Choudhary Divya Kumar Devanshu Oza
1 January 2014

Organizational Structure

Managing Director

Vice President HR

Vice President Sales & Export

Vice President Factory/Works

Vice President Finance

Sales Manager

ASM/ F&M Area Sales Manager/ Front Line Manager

Salesman

1 January 2014

Problems faced by the Sales team

The main problem which was noticed was the salesmans hesitation in visiting the outlets.
- Meeting the target - Payment Issues - Trust factor Distributors and retailers are not keen in keeping all the registered SKUs with them in the store As all the variants of a particular category not kept in store. This led to lack of awareness among the consumers about other variants Constant communication gap between the company and the distributors and retailers regarding the schemes from the company. Overburdening the retailer with the stock and releasing the pressure of targets from the shoulders of the sales force.
1 January 2014

Suggested Solutions
Regular survey at retail chains to see, what kind of variant of the product and size of the pack is preferred by the consumers. Feedback and suggestions can be taken through online surveys. More margins to retailers on the sale of slow moving SKUs. Special retail schemes can also be introduced like, on purchase of 500 units of product 100 units free. This will not only motivate the retailer to sell slow moving products but will also increase the sales for the company. Giving special discount schemes and high margins to retailers will also improve relationship between the company and the retail outlets.
1 January 2014

Suggested Solutions
A notification should be sent to all the distributors and retailers in case company introduces any new product or SKU. Promotional schemes should also be communicated to the retailers through email.

Special incentives should be given to the salesman on achieving their targets. to keep them motivated, and those who are unable to achieve targets can be given training to teach them special selling techniques to improve their productivity.
Change in the incentive system which should motivate the salesman so that sales increase.
1 January 2014

Responsibilities of key players in the Sales Organization

Area Sales Manager :1. Handling a group (4-5) of Area Business In-charge 2. Visiting the areas and keeping a check on the changing trend 3. Collect payments from distributors and making sure goods are reached on time.

Area business in-charge :1. Visibility Maintenance for prescribed area/location 2. Executing inputs for new Launches 3. Brand campaigns & Promotions 4. Create & maintain the data base of the retailers in his area 5. Coordination with Sales team, keeping a check on the sales team for achieving targets
1 January 2014

Responsibilities of key players in the Sales Organization

Salesman:1. 2. 3. 4. 5. Selling and collecting payments from retailers Developing good personal relationship with the retailers Keeping a check on goods being dispatched on time Solving any issues faced by the retailer Observing the changing trend in the market and communicating it to either the distributor or area business incharge.

1 January 2014

Basis of preparing Sales target

Sales targets are prepared by the Area Sales manager for the Area Sales Team, depending on his previous sales. It is the policy of the company that the sales has to increase by 10% every year, so the sales target are also allotted by increasing the previous target achieved. The total target is than distributed among the salesman by the Area Business In-charge on the basis of the area covered by him and his relations in the market and based on his experience. For a new salesman lower sales target are allotted so that he gets used to the market situation and is motivated so that turnover is less and eventually these targets increase with time.
1 January 2014

How territory coverage is planned

Territory coverage is planned at the distributor level depending on the area catered by the distributor. On an average there are around 1200 shops under 1 distributor once it exceeds a new distributor is appointed and the area is divided. Based on an total number of shops, the salesman are recruited. On an average a salesman can cover around 30 shops in a day. There are around 7 salesman who fall under the distributor. (7 * 6 days * 30 shops = 1260 total shops) hence covering the entire area. All the shops are visited once in a week.
1 January 2014

Appraisal & Evaluation Pattern

At J&J, they have incentives only on completion of the entire target i.e. 100% of the target is achieved salesman gets incentive, else no incentive. Apart from incentives on total target, they had incentives on certain SKUs, these SKUs used to keep on changing on monthly basis. They get incentives if they sell total number of that SKU (decided by Area Sales Manager), it was seen that salesman used to concentrate more on the SKU sales then the Actual Sales Target, as selling a certain SKU was easier than achieving the total sales, due to which there was a change in incentive schemes wherein the sales person gets the incentive only if he is able to achieve a minimum of 80% of his total sales target.
1 January 2014

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