SALES AND DISTRIBUTION

MANAGEMENT
PROJECT

SUBMITED BY
TIJO THOMAS
P17217
PGDM B
INTRODUCTION
Mondelez India Foods Private Limited is a part of the Mondelēz International group of
companies and is in the business of creating delicious moments of joy by producing delectable
chocolate confectionaries, gum and candy products, and popular beverages and foods that
include many of India's most popular and trusted food brands.

Ranked 3rd amongst India’s Most Admired Companies by Fortune India in 2013, , Mondelez
India Foods Private Limited is a part of Mondelēz International (NASDAQ: MDLZ), the global
snacking and food company and a spin-off from Kraft Foods Inc. Mondelēz International is the
world's largest chocolatier, biscuit baker and candy maker, and the second-largest maker of
gum. Mondelez India Foods Private Limited has been in India for over 6 decades, having
started in 1948 as an importer of chocolates. Headquartered in Mumbai, Mondelez India Foods
Private Limited has sales offices in New Delhi, Mumbai, Kolkata and Chennai and
manufacturing facilities at Induri (Pune), Malanpur (Gwalior), Baddi (Himachal Pradesh) and
Sri City.

PRODUCTS
The average company will compete for customer by conforming to his expectation
consistently. But the winner will surpass them by constantly exceeding his expectation,
delivering to his door step additional benefits which he would never have imagined.
Cadbury’s offer such product. The wide variety products offered by the company include:
I. Chocolate & Confectionary
1) Dairy Milk
2) Fruit & Nut
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages
III. Food Drinks
1) Bourn vita
2) Drinking chocolate
3) Cocoa
SEGMENTATION OF MONDALEZ.
Segmentation, targeting, positioning in the Marketing strategy of Cadbury- The
segmentation of Cadbury products is based on mix of demographics, behavioural &
psychographic factors; like on the basis of income & occasions. They target all the age
groups and different class people based on their products.

SEGMENTING CONSUMER MARKETS

There are basically four types of segmentation. Those are as follows:
Geographic
Demographic
Psychographic
Behavioural

DEMOGRAPHIC SEGMENTATION
Age and Life Cycle: Under this type of segmentation the buyers who mostly prefer the Cadbury
dairy milk comes under the age group of 4-50 years.

Gender: For purchasing Cadbury dairy milk gender doesn’t matter. Cadbury dairy milk are for
all types of persons whether male or female.

Income: The price of Cadbury dairy milk is reasonable and affordable. So a person does not
need to think much before purchasing it. They can easily buy it any time when they want to
buy. The income of a person does not play an important role in it.

Generation: Cadbury dairy milk will not be much affected by the generation differences. All
types of peoples like to purchase the Cadbury dairy milk when they want to buy it.

BEHAVIORAL SEGMENTATION
Decision Roles: The decision role is played by the children’s and youngsters. They play an
important role in taking the decision of when to buy the Cadbury dairy milk.
Occasions: For purchasing the Cadbury dairy milk no special occasions are required. People
can easily purchase it on regular basis also if they need it. Also occasions such as diwali,
rakshabandhan has lot increase in sales of dairy milk.

Benefits: Cadbury dairy milk is easily available anywhere when we need it. The supply chain
of Cadbury dairy milk is very good. Also it a quality conscious. So there are two main types of
benefits given by Cadbury dairy milk are supply and quality.
User Status: There are mainly the regular users found in the user status of Cadbury dairy milk.
Usage Rate: The user rate is heavy in the behavioural segmentation of Cadbury dairy milk.
Buyer-Readiness: There is mainly the intending to buy type of readiness status.
Loyalty Status: There is mainly the absolute loyalty status.
Attitude: There is an enthusiastic type of attitude of the buyers.
SEGMENTING FOR BUSINESS MARKETS
Demographic:
Operating Variable
Purchasing Approaches
Situational Factors
Personal Characteristics

SALES FIGURES

Full Year 2017 FY 2017 FY 2017

Gross Profit 10,065 (0.6 )% 10,210 0.9 % 0.5 %
Gross Profit Margin 38.9 % (0.2)pp 39.8 % (0.3)pp
 Operating Income 3,506 36.5 % 4,178 9.9 % 9.9 %
Operating Income Margin 13.5 % 3.6 pp 16.3 % 1.3 pp

Net Earnings 2,922 76.1 % 3,270 11.9 % 11.4 %

Diluted EPS 1.91 81.9 % 2.14 15.1 % 14.5 %

This statistic presents the net revenue of Mondelez International worldwide from 2011 to 2017. In
2012, Mondelez International's global net revenue amounted to about 35.3 billion U.S. dollars.
Mondelez International is one of the largest global companies operating in the snack business. It
was launched on October 1st, 2012 due to the spin-off of Kraft Foods' North American grocery
business to shareholders.

USP & POSITIONING

 Cadbuy chocolate bar USP is the creame cremlines of the milk chocolate and use of
finest possible ingredients to create the product and make it as best quality as possible
 They also use cocoa beans and help farmers from asia to create their chocolate bars so
people will therefor also wants to buy the chocolate as they will be helping the farmers
make a living out of their business
 It’s a motto ”A glass and a half full of milk” helps people remember the company
product

Cadburys has identified these brand values and adjusts its advertising strategies to reflect these
values in different markets. Its strategy can vary from increasing brand awareness, educating
potential customers about a new product, increasing seasonal purchases, or as is currently the
case in the ‘Choose Cadbury’ campaign to highlight the positive emotional value of the brand.

In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take home’ and
‘gift’. These segments reflect consumers’ decision-making processes.

Since its inception, Cadbury in India has stayed ahead thanks to their constant marketing
initiatives that have at all points in time understood the needs of and opportunities in a changing
nation

SALES PROCESS
PURPLE CHAMP
 Distributor's sales force is called as purple champ.
 They report directly to territory sales in charge (tsi).
  Usually 10-12 pcs are appointed by a distributor.
 Usually 10-12 pcs are appointed by a distributor.
 They need to vist the retailers and take orders
 They will get incentives according t their performance

SALES HIERARCHY
 DISTRIBUTION NETWORK OF CADBURY

SALES AND DISTRIBUTION STRUCTURE OF CADBURY

 PROBLEMS AND CHALLENGES IN SALES AND DISTRIBUTION

 VC coolers are not properly supplied

 PC are not getting incentives on time
 Distributors are not getting the stock on time
 Some of the products were stock out for eg Cadbury Fuse
 Logistics cost was high
 Transportation is less in rural areas
 Small pan shops were ofently missed

SUMMARY OF INTERVIEW
Distributor: Thomas joseph Agencies
Pc name: Manoj Joseph

He is the salesman of Thomas Joseph agencies he is working there for the last 4 years I
approached him with some questions regarding the sales and distribution of mondalez products,
What is the major problem in distribution of products?
The product are not properly supplied by the company due to non-availability of stocks
Is products always available for customers in rural areas?

No, we are not specifically going there if we are going nearby that place then only we will
supply the reason is transportation cost mostly it’s not profitable also products are not received
on time
Vc coolers are properly distributed in all stores?
No improper distribution is happening there eligible retailers are not getting the coolers

Then he told me about the distribution problem and how a recently happened disuse is tackled
and ho again the supply get smooth again mostly the problems are occurring because of the
problem from distributor or retailer lack of communication with the company is the root cause
behind it

COST OF SALES AND DISTRIBUTION

Restructuring Program costs, higher Adjusted Operating Income margin is a significant portion of the
company's global sales, distribution
Mondelēz International provides guidance on a non-GAAP basis, as the company cannot
predict some elements that are included in reported GAAP results, including the impact of
foreign exchange

For 2018, the company expects Organic Net Revenue to increase 1 to 2 percent. The
company expects Adjusted Operating Income margin of approximately 17 percent. The
company also expects double-digit Adjusted EPS growth on a constant-currency basis. This
2018 outlook includes an expected Adjusted Effective Tax Rate in the low-to-mid 20 percent
range, The company estimates currency translation would increase net revenue growth by
approximately 4 percent3 and Adjusted EPS by approximately 0.12

The distribution of mondalez in Kottayam and the distributor is Thomas Joseph Agencies it is
designed in a manner that there is a Van sale that is mainly focusing the outskirts of kottayam
The main focus is to get more access to wholesales, retails, bakeries, supermarkets and also to
medical shops. There is seven different routes designed and the repetition happens in a weekly
manner. There are 3 pcs mainly for taking orders and 3 drivers delivering goods and also for
collecting payments from the shops within the town limits. Another area of distribution is to
the supermarkets, the delivery are made according to the order forms send by the supermarkets.
So the main cost incurred by the distributors are like van expenses, wages to the employees,
cost of warehousing, billing expenses, cost of damaged products etc. are the main expenses
incurred for the distributor

SALES FORCE MANAGEMENT

FMCG, healthcare and pharma companies are equipping their field sales teams with mobile
sales force automation solutions for faster relaying of sales data and information from the field
to the distribution centres.

The sophistication of the device and the range of functions the device can manage depends on
the employee role mostly. Here's how Cadbury Mondelez India does it: The smartphone device
has a list of retailers, the salesperson is scheduled to visit to book order for the day. The
smartphone device also records the past purchase data for each retailer. The device has colour
coding wherein, the outlet that has not purchased stock during the month appears as red and
those that have bought appear in green. Equipping the sales force with handheld devices also
means putting mobile electronic promotional material at their disposal. This augurs well for
rural markets where the reach of television and digital campaigns is limited. Mobile sales force
automation empowers organisational sales and distribution team to bring efficiency in their
operations. It addresses the biggest challenge of streamlining the sales processes from reducing
order delays to streamlining production. The results into just in time delivery, ensuring
optimum inventories, allow for well-defined production runs and reduce wastages and returns
especially in case of perishable items.
TERRITORY MAPPING
Mondalez uses InSite Field Force’s territory optimiser and mapping software. With InSite
Field Force's territory optimiser and mapping software, we can help you ensure that every
person has a balanced and drive time efficient territory.

Through a fast optimisation process which compares “what if…” scenarios within minutes you
can ensure your sales territories are workload balanced and drive time compact.

Manual methods are highly subjective, time consuming, and often create significant
Inefficiencies. For example, a manually created territory structure (with no drive time factored
in), will probably have:
Reps living in the wrong locations
Unnecessary driving time
IMBALANCED TERRITORIES
Territory imbalance also has a very real effect on the bottom line.

Imbalanced territories can lead to many customers (both current and potential) being
overlooked by reps who are overstretched. Likewise, if a territory is underworked, field sales
reps that could be making more calls and selling more, simply aren’t doing so.
Fix an imbalanced territory structure and you’ll increase call coverage by 3%.

SALES PERFORMANCE EVALUATION.

The invoice is generated by the company and the stock is sent along with the invoice and a
copy of it for the distributor. WINOMKAR is a software where all the data and reports are
maintained and is made available for the ASMs, the BMs and SE's(Limited Access) online for
making further decisions. Provides all the data, Performance reports Beat Wise, Outlet wise
Sales Trends over the years and months and Inventory Report (MIS of company developed by
Pune based ‘Heerasoft’) Documentation is required once a retailer enrols for a display scheme
or receives a visicooler or SMD or Fridge by the company Meranet is a software through which
the SO reports everything on a daily basis to the ASM. Daily sales figures get synced here and
the SO can view the summary at a glance. SO also mandatorily has to mail it to the ASM on a
daily basis. IT & Documentations in the company and what recommendation you make/
already solved challenges have to be written as a case with data from the company.In this way
the sales performance of the company is checked day wise.

PROBLEM OF THE COMPANY

As MOndalez is an FMCG product company and Cadbury is the main product of the company
most of its sales happen when the customer sees the product which is impulse purchase, so the
product should be displayed to increase the sales. Hit is why company provided coolers to the
retailers but due to the improper distribution the cooler is not place on the right shops also
coolers are not available sufficiently often retailers complained about it rural areas are not
properly taken care of coolers are not there, hence the melting of chocolates happen it causes
loss of money to the company in order to solve this, the company then uses proper distribution
and arrange a data of every retailers who have made purchase above the cooler eligibility and
then made a list.in case of dairy milk silk it can only place in coolers so company give
instructions to the sales people, then the salesmen go and evaluate the retailer shops and
conduct an analysis about how much they purchase as a result the company then taken back
the coolers from ineligible customers, and solved the problem this make the chocolate visible
and draws customer attraction ,then Thomas Joseph kottayam has rectified their cooler
distribution problem and the company had solved the chocolate melting problem as per the
request from the distributor and salesman company is now providing more products for rural
areas special consideration list of pan shops are also then made for evaluation.

SUGGESTIONS TO AVOID THIS IN FUTURE

 Salary structure of pc’s should be revised they should be given incentives for vpo
achievement in their area

 Palmtop which is using for order taking should be updated make it as more user friendly
and add new beats

 Supply of Cadbury products should be on time when the distributed ordered the
products unavailability of products should be minimized

 Some of the closed shops are still in the list remove them and add eligible shops which
are outside vpo list and provide them coolers

 Provide alternative schemes which would aide in the sales of the chocolate products.

 Special distribution system to rural areas like small vehicle transportation