Discuss Sales and Distribution Management of Reckitt Benckiser

Sales and distribution management of Reckitt Benckiser (Bangladesh) Limited

Selling is the process of persuading others to exchange something in return for money. In another words, Sales is the lifeblood of an organization because in general case the selling is the revenue generating activity of an organization. So the management of sales determines whether the company will exist in the competitive business arena.

Distribution is the process to ensure the availability of final goods of right quality at right place in right quantity at right price in time to satisfy the actual customer.

Distribution is to ensure brand availability by taking accurate orders ensuring optimal stock levels ensuring efficient delivery service through right service frequency and by on time in full (OTIF) delivery ensuring product and quality such as freshness and appearance.

Distribution expansion by ensuring direct coverage in potential new markets, direct coverage in the potential new outlets within existing routs, ensuring passive distribution coverage through strategic wholesalers.

All the efforts made by the organization till the last moment of sale is only to ensure the sale of company products, as sales figure is the key factor to measure the success of a marketing company whether it is a manufacturing one or not. From the above-mentioned definition of distribution in twenty first century, it is clearly seen that selling of even diamond is quite impossible on one’s part if distribution system is inefficient.

Sales process of Reckitt Benckiser (Bangladesh) Limited:

After completion of the production process the finished goods are delivered to the depots directly from the factory of Chittagong or from the contractual manufacturers. In fact there are seven contractual manufacturers working for Dettol Soap, Mortein coil, Robin Blue and Air Wick Incense Stick. From the factory 60% of the goods are delivered to Dhaka Depot and the rest 40% are delivered to the Chittagong depot. The contractual manufacturers usually send the goods to Dhaka, but occasionally, when requirement arises goods may also be sent to Chittagong from them. From Chittagong goods are supplied to the distributor in Chittagong1, Chittagong2, Feni, Comilla Cox’s Bazar and a few other small town nearby Chittagong and from Dhaka to the distributors in the rest of the country. If shortfall arises in Chittagong, which is a very rare situation, it is met by a supply of goods from Dhaka.

The Logistic Executive controls the Depot. He looks after whether the depots are functioning properly. A Logistic Assistant and a Depot Contractor, assist each Logistic Executive. The Depot Contractor works on a contractual basis and is not an employee of Reckitt Benckiser (Bangladesh) Limited. Depot contractor is involved in loading and unloading goods, controlling the receipts and outgoing consignments, payments of labors and other miscellaneous payment.

According to the demand of the distributors, they place order in the Headquarter. Then orders are sent to the depots in Dhaka and Chittagong. Then Logistics Department makes arrangement to transport the goods to the destination.

After the products are transported to the distributor, they are sold to the retailers with the help of the Distributor sales representative (DSR). The planning is done in the periodic meeting in the middle of the months on the basis of the sales forecast depending on the feedback from the field as well as the budgeted target. These are called mid- month flashes and it includes:

• The past two week performance
• Forecast for the near future
• Activities to increase the sales.

The overall target is divided into 4 regions according to their previous contribution ratio. The Regional Sales Manager sets the target of the TSMs under him. The TSM does in turn divide the target to the Sales Representatives. The target and performance of the sales force are measured by productivity and strike rate. Productivity is the number of sales made against the number of calls and the strike rate is the number of outlets covered against the number of total shops in a certain route.

The three most important functions of the sales department are:

1. Set up, maintenance & expansion of distribution network.
2. Making products available and visible in the market place.
3. Boosting In Market Sales.

Major Responsibilities of Key Personnel:

Sales Director

The Sales Director like all other directors is in command of the entire department. He looks for new opportunities in sales; receive reports from the RSMs about the key business areas and concentrates on strategies that would help the department to gain monthly and annual targets. He also monitors and evaluates the performance of the whole department, since he is the one who is responsible for ultimate result.

Trade Marketing Manager

The major responsibilities are:

• Sales MIS development and management.
• Institutional sales development.
• Company activity planning.
• Sales training.
• Roll- out policies, schemes Templates to monitor and enhance team performance.
• Communication to sales team and distribution network.

Regional Sales Managers

• After receiving the sales target, they split the target per Distributor per territory and give it to the territory sales manager.
• Sets the sales drivers to achieve the value target. These sales drivers can be productivity target, strike rate or SKU per memo. They provide the target to the TSMs and sales people for implementation resulting in achieving the value target.
• Provide training to the Distributor’s Sales Representatives and Deliverymen both on the job and through classroom sessions.
• Develop distributor as per business requirement.
• Training on warehousing to the distributors and depot managers.
• Implementing damage stock policy by ensuring a minimum level of damaged stock.
• Effective implementation of marketing programs like consumer promotions, trade promotions etc.
• Making plans for new product launches such as how many outlets will be covered, what will be the stock depth, etc.
• Closely interact with other support departments likes marketing, supply chain, finance etc
• Provide feedback on market information and competitors activities to concerned departments.
• Identify opportunities and plan activities to utilize those.

Territory Sales Manager

1. Inducing the distributor to send DD and purchase order in time.
2. Helping them to shape the order (SKU wise).
3. Determine the demand of a particular SKU under each Distributor   point.
4. Breaking up of the sales target among the DSRs
5. Implement the sales drivers through DSRs and monitor their performance.
6. Giving training to the DSRs.
7. Reporting to the RSM about particular territory
8. Visiting the markets as per necessity.

Executive MIS and Sales Administration:

Major Functions are:

• Prepare daily Sales Report.
• Support Field Staff and Manager with data and information.
• Liaisons with supply chain and Finance in day-to-day operation.
• Setting Distributor & SKU wise target per month.
• Collection of Shipment & IMS data.
• Sales Admin jobs.
• Communication with Distributor & field Staff about sales, price etc.

Distributor’s Sales Representatives

The main responsibility of the DSR is to achieve the sales target. The distributor sales force call at the shops in their respective routes and according to the plans once in a week or fortnight and induce the retailers and wholesalers to buy the products and induce the retailers to keep products in their shelves. They also install the point of sales (POS) materials and other promotional activities in their shops.

For managing the proper sales and distribution channel Reckitt Benckiser (Bangladesh) Limited has break up the whole country into 22 territories under 4 regions.

Territories of Reckitt Benckiser (Bangladesh) Limited:

There are 7 TS Ms under the RSM Central and they cover the areas of Dhaka1, Dhaka 2, Dhaka 4, Tongi, Tangail, Narayanganj and Mymensingh. Chittagonj Region has 7 TSMs under RSM East covering the area of Chittagong 1, Chittagong 2, Feni, comilla, Sylhet, Srimangal and Cox’s Bazaar. Under the RSM North, there are 4 TSM’s covering Rajshahi, Bogra, Rangpur and Dinajpur. In South region under the RSM South there are 4 TSM’s covering Khulna, Jessore, Faidpur, and Barisal. They are basically responsible for achieving the targets and carrying out Reckitt Benckiser (Bangladesh) Limited Business efficiently.

Sales Promotion strategies of Reckitt Benckiser (Bangladesh) Limited:

Reckitt Benckiser (Bangladesh) Limited have specific strategies for promoting the brands in the market to gain competitive advantage over the competitors.

Trade promotion (TP): 

Trade promotion is to encourage the wholesaler and retailers for selling Reckitt Benckiser (Bangladesh) Limited products. The objectives of Trade promotions are given below:

• Increase distribution (Stock depth and width)
• Counter competitive pressure
• Encourage buying.
• Increase brand presence in stores.

Consumer Promotion (CP): 

Consumer promotion is to encourage the consumers for buying Reckitt Benckiser (Bangladesh) Limited products. The objectives of Consumer promotions are given below:

• Designed to induce specific consumer purchase decisions.
• Increase brand awareness.
• Induce trial.
• Induce repeat purchase.
• Strengthen brand loyalty.
• Counter competitive activities.
• Secure marginal customers.

Analysis:

What we can figure out is that the sales department is not only responsible for the actual sales of product, but it also takes care of logistics functions. There is no separate Logistics department in this organization .The sales department is responsible for logistics management to some extent like transportation, depot management etc. The rest of the logistical matters like inventory management, materials management etc. are taken care by the supply department. The challenge of the sales department is to ensure that wherever customers shop they always find the products merchandized with the correct shelf placement in the right assortment and in the right price and promotional offers. It is through this department the products reach at the hands of the consumers. Sales are basically responsible for actualization of the marketing strategies and plans. All the marketing efforts will go in vain if sales department cannot function properly and fail to reach the products to the distributors, retailers and ultimately to the consumers. The marketing and the sales department combine to utilize a pull strategy, which is consumer demand is created through effective communication which makes consumer looking for the product to the retailers who in turn demand the product from the wholesalers. The major support groups of the sales department are the sales representative, distributors and customers. Retailers and wholesalers are the major pressure groups because if their demands are not met or if they are not satisfied they might refuse to accept and sell products of RBBL, which would ruin the activities of sales department. A sale is actually, the results of marketing. So, sales and marketing departments act as complementary to each other. Formulation and implementation of best possible strategies by both of these departments will only bring about optimum results and foster growth of the organization.

The sales department has no value if it cannot sell the expected volume of products. So proper distribution of products must be ensured for the existence of the company. For the smooth flow of products selling RBBL has been trying to ensure the best distribution policy for its products since its first footstep in this country.

Distributor Selection Process of Reckitt Benckiser   (Bangladesh) Limited:

At first Reckitt Benckiser (Bangladesh) Limited collects the necessary information as a tool to determine whether the organization or the person have the necessary qualification to conduct the business with Reckitt Benckiser (Bangladesh) Limited. The RSM and TSM first physically visit the prospect and they verify the prospects qualifications basing on the following factors:

• Detail of the prospect
  • Name of the firm
  • Business Address
  • Mailing address
  • Telephone and fax number
  • Nature of business
  • Name of the proprietor
  • Name of the partners (if any)

Existing business of the prospect

• Nature of existing business
• Experience
• Detail of distribution or dealership business

Logistics status of the prospect

• Name of the bank
• Number of showrooms and warehouses and their locations.
• Status of warehouses, capacity, ownership
• Manpower
• Number of managers, sections.
• Sales vans and their types.
• Monthly expenditure. (Item wise), fixed assets
• Investment, sales value and ROI on existing business.

Financial status of the prospect

• Distribution status of the prospect

• Geographical demarcation
• Existing and expected coverage
• Existing and expected volume of business
• In the market
• With bank

Business reputation:

• With suppliers
• With rivals

Recommendation of RSM

Recommendation of sales controller.

If the prospect have all the necessary qualities that are required by the Reckitt Benckiser (Bangladesh) Limited, the prospect is issued a letter by the Sales Controller regarding the duties, geographical demarcation of his distribution point, and the terms and conditions. The RSM & the TSM physically visit the point and give necessary information and training to the distributor and his sales team.