Apple Food Product

QUESTIONS AND ANSWERS Question 1: Is the role of a distributor primarily that of a financer? Is he not supposed to take care of the re-distribution of the products to all the outlets in his territory? Answer: The role of a distributor is not primarily that of a financier. Financiers invested much to discover and manufacture products in order to meet the needs of the consumers. Distributors are supposedly responsible in distributing the products to all outlets in its own territory. This is to ensure close monitoring of the constant availability of the products. Therefore, he will be more familiar to the supply and demand of the consumers in his area Question 2: What should be the role of the company salesmen? Should they be used only to generate secondary sales and get new orders from the distributors? Should not the secondary sales be generated by the distributors own salesmen? Answer: The role of company salesmen is to close monitor the bulk order and supply of the distributors. Salesmen cannot only be use to generate secondary sales, however they can

directly make primary sales to retailers outside the territory of the distributors. In my own opinion, I prefer the salesmen of the distributor to make secondary sales than that of company salesmen hence, it is their territory Question 3: How will the company salesmen manage the large number of vans in operation? How does a company like AFP decide the permanent journey plan for its salesmen? Answer: Company salesmen can easily manage the large number of vans during operations. They have to arrange the schedule of delivery by region, by day and the availability of the vans. Permanent journey depends on the demands of their respective distributor, considering the volume of supply and its location

Question 4: What should be the span of control of an average salesman? Is it correct, too high or too low for AFP? Answer: The span of control of an average salesman depends on the Geographical dispersion: a. If the branches of a business are widely dispersed, then the manager will find it difficult to supervise each of them, as such the span on control will be smaller. b. Capability of workers, if workers are highly capable, need little supervision, and can be left on their own, e.g.: Type of people, they need not be supervised much as they are motivated and take initiative to work; as such the span of control will be wider. c. Capability of boss, an experienced boss with good understanding of the tasks, good knowledge of the workers and good relationships with the workers, will be able to supervise more workers d. Value added of the boss, a boss that is adding value by training and developing new skills in the workers will need a narrow span of control than one who is focused only on performance management (this is the reverse of the capability of workers point above) e. Similarity of task, if the tasks that the subordinates are performing are similar, then the span of control can be wider, as the manager can supervise them all at the same time. f. Volume of other tasks, if the boss has other responsibilities, such as membership of committees, involvement in other projects, liaising with stakeholders, the number of direct reports will need to be smaller g. Required administrative tasks, if the boss is required to have regular face to face meetings, complete appraisal and development plans, discuss remuneration benefits, write job descriptions and employment contracts, explain employment policy changes and other administrative tasks then the span of control is reduced In the case of AFP, we have to base the above listed situations which is not clearly elaborated, therefore I cannot give my conclusion.

Question 5: The Company has put in a large number of cold storage units in the market place. AFP has noticed that salesmen of the one product group do not pay attention to the cold storage unit of another product group in the same outlet. Many times these other units may be getting misused to store competitive products. Is not the use of cold storage unit part of the merchandising task of the salesmen and distributors? Answer: The use of cold storage unit is part of the merchandising task of the salesman and distributors. These items were entrusted to them by the company; therefore, they have to take care of them Question 6: The division by the product groups has created exclusive turfs for each set of salesmen. Every distributor or salesman visiting the outlet is bothered about his product group and there is no company pride. Answer: To avoid turfs between salesmen, it is better for the company to assign one salesman for all products per outlet per distributor. This way, each salesman will take pride of the product of the company Question 7: How would retailer react if five distributors and company salesmen visit him every week? How would they ration the money available for buying AFP products among the five distributors? Would not some of their calls be un-productive? Is it likely that two salesmen and distributors of AFP visit the retailer within hours of each other? Is this the meaning of intense distribution? Answer: Retailer might be confused if he will deal with many distributors/salesman. Retailer will find it hard to ration his capital it might cause trouble. They should prioritize the distributor that they feel convenient to deal with. Definitely, some calls maybe declined especially of source of funds are insufficient. This is not the meaning of intense distribution

Question 8: Bottle coolers and deep freezers were not kept in many outlets. Who is responsible for their upkeep and maintenance? Do the salespeople and distributors have any role to play in this? Answer: For the maintenance and repair of the freezers, this depends upon the agreement of the company and the distributors. If the damaged is due to ordinary wear and tear repair must be at the expense if the company. But if the damage is due to the negligence of the salesmen to the distributor, therefore it will be of their account Question 9: With so much specialization, is it possible to rotate between product groups? How would one design trade and consumer promotions? Answer: Specialization is not advisable; all salesmen must be familiar with all the products. Should specialization be a practiced to the company, then there must be rotation of salesmen. Marketing strategy helps one design trade and consumer promotion Question 10: How would one design any incentive scheme for salesmen in such a multiproduct, multi-distribution channel system to be equitable for all salesmen? Answer: Incentive depends on the income earned by the company. Salesmen with good performance must be equally compensated. They must get what is due to them if they really deserve it.