Sales and Distribution

s
Network of Parle Agro

 
Gaurav-93017
Manik -93026
Monika-93031
Shashwat-93048
Richa-93060
About the company
Chauhan Family (Parle Brand)

Parle Products Parle Agro Parle Bisleri

•Parle Agro commenced operations in 1984

•Mr. Prakash Chauhan is the Executive Chairman of Parle

Agro

•Manufactures,distributes and exports fruit drinks

About the company

•Entered into snacks and confectionery business recently

(2008-09)

•Headquarters: Mumbai

•Annual turnover : Rs 1000 Cr

•12 company-owned factories across India

•Reaches out to around 5 Lakh outlets across India.

 Brands
•Beverages
 Brands
•Packaged Drinking Water

•Snacks and confectionery

 Territory Design

Business of Parle Agro is divided into following forms:

General retail
Modern Trade
HoReCa
Institutional
 Structure of Delhi Office

Business Head

Business Business Business Business

Marketing
Manager(Gen Manager manager Manager
eral Retail) (HoReCa) (Inst.) (Modern Trade) Team
 Business Manager (General Retail)

Premium Line Team Head Normal Line Team Head

RSM RSM

ASM ASM
 Regions

For all the four trades, Delhi is divided into five regions

 North Region
 Central Region
 South Region
 West Region
 East Region
 General retail Distribution Delhi

North Central South West East

South 1 South 2 South 3 East 1 East 2 East 3

North 1 North 2 Central 1 Central 2 West 1 West 2
HoReCa, Institutions and Modern
Trade

Delhi

North Central South West East

Coverage plan followed by distributors

For Delhi
Beverage Factory Location –Ghaziabad
Warehouse –Alipur, North Delhi
 
 Parle Agro has a wide product line with Frooti as their
flagship product. Frooti has such an impact that almost
every distributor is involved and the rest of the
products are carried along with the distribution of
Frooti.

 Penetration of Frooti is to the level of outlets such as

small kiosks, telephone booths and even stationery
shops now sell Frooti.
For Delhi the company has two approaches
(models).
• Model-1
Factory

Company warehouse(Alipur)

Disrtributor
General retailer wholesaler
Model-2

Factory These two models are

(Ghaziabad) implemented through
their sales team &
Distributors.

Company reaches out

company warehouse
(Alipur)

Modern Retailers (Food Bazzar, Vishal etc)

to 15000 retailers in Delhi
directly.
Distributor Requirements
1) General trade distributer:
 Fees : Initial fees of Rs 5 lakh through draft
 Space requirement: Min.100 sq metre
 Transportation required: commercial vehicles depending
upon the area such as: Tata Ace, Vikram etc.
 I.T infrastructure: No requirement
 Inventory management capability: Done manually
 Manpower requirement: 1auto driver multi tasking and
educated(12th pass)
2) Institutional Distributor:
 Fees : Initial fees of Rs 15 lakh through draft.
 Space requirement: Min.300 sq. mt
 Transportation required: commercial vehicles
depending upon the area such as: Tata Ace, Vikram etc
(2-3).
 Inventory management capability: Computerized,
centrally monitored from Alipur Warehouse.
 I.T infrastructure: 2-3 computers
 Manpower requirement: 1auto driver per vehicle multi
tasking and educated(12th pass) & 1computer operator.
Company initiatives in Distributors:

 PARB: A lot of support is provided by the company’s

active research wing, Parle Agro Retail Barometer

(PARB)intelligence, the company supports its franchisees

with an array of support systems which include,

 quality control,

 periodic technology up gradation,

 fresh distribution patterns

 even the installation of new machinery.

 Channel Partners Category
 Parle Agro has divided its Channel partners into 3
categories:-

 General Trade
 Premium Distributor
 Normal Distributor
 Modern Retail
 HORECA & Institutional
Support provided to Distributors by
Company
Some general Support provided by Company is:-

 Company Offers many types of incentives based on

sales like 1% to 2% incentive on total sales or Gifts like
LCD T.V on achieving sales target.

 Company take care of their Channel partners by

sending their sales representatives to discuss any kind
of issue they are facing in sales of particular product
also by monitoring the promotional needs in
particular area.
 Company educate their channel partners with
knowledge of new systems like inventory management
software etc and also educate them about their product
and its benefits

 Company also come up with some attractive schemes

like expensive gifts for ex Air conditioning for retailers
on achieving particular sales target these schemes act as
an external motivation to retailers so they try hard to sell
more
 Category Specific Support provided
by company
General Trade
 Growth officer of Parle Agro will accompany the
Distributor person on his vikram
 This Growth officer will not only take orders from the
Retailers but also will push them to buy more of the
different kind of products
Modern Retail
 Company provide retail outlets with Support merchandiser
inside their stores who will monitor the shelves in which
their products are and also will take care of stock
HORECA & Institutional
 Incentive based on bulk deals are given to them apart from
general benefits
Payment/Credit terms given to distributor
by company

 Every distributor would want to have some credit

period

 But It solely depends on few parameters like Past

records of the distributor in terms of both payment
and sales

 It also depends on the size of the distributor and the

territory it is handling, Company distributor
relationship is also a very big factor in this
 Normally all the goods delivered to the distributor are on
some advance basis but depending upon the above factors
and also to promote distributor to sell their goods in the
market company usually gives 0 – 15 days of credit period

 Margins given to Distributors are

4-6% in General Trade
6% in HORECA & Institutional

 Usually products of lower size like 250 ml Mango frooti or

200 ml Appy Fizz have lower margins as compared to 1 liter
bottle of the same
 Credit /Payment terms for retailers

 Every Retailer wants some credit period on purchase

from distributor.

 It is Retailer’s relationship with distributor and their

past records of payment and sales that determine credit
period

 In case of Parle agro normally there is no credit period

given but to some special case it can go up to 7-10 days
depending upon the distributor
 But in case of big retail stores like big bazaar they have
to give some extended Credit purchase period because
much of their sales come from these outlets also such
big stores can some times dictate terms

 Sales margins for the retailers varies in

 10-12% in General Retail
 20-25 % bracket in Modern Retail
 20% in HORECA & Institutional

 As retailers can sell up to any price till the MRP so

margins are higher than those of distributors
 No. of players at each level

 Distributors – 25 distributors in Delhi

 Retailers – Approx 15000 retail outlets

 Wholesalers – Unaccounted

 Modern Trade Centers – Approx 40 – 45

 Role of each intermediary
 Distributors
 Take orders
 Maintain Accounts
 Deliver Goods
3 types – 1) Catering to Institutions and HoReCa
2) Premium line distributors
3) Normal line distributors
Sales Team – Retail selling or push Retail Sales
Growth Officer – Retail selling in General trade
Merchandiser – Supervision at Modern Trade
 Shelf Space provided
 Positioning
 FIFO
 Checking Stock
Wholesalers – Do bulk buying at heavy discount
or credit. Retailers come to them
 A few Practical Insights

• Target-days for Growth Officers

– Daily routes fixed
– Clear territory division based on roads

• The role of wholesalers

– Complementary to the organized distribution
– Channel Conflict

• The case of Modern Retail

– Bargaining power of sales team: Piggybacking on brand ‘Fro
 Pain areas of distribution

• Coordination between marketing and

distribution team.

• Timely supply to all retailers.

• Channel conflicts due to wholesalers.

• Coverage conflicts among different teams.