sales & distribution management
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The document compares the sales territories of Hero MotoCorp and Bajaj Auto, two major two-wheeler companies in India. It discusses factors that influence the establishment of sales territories such as market size, demand, competition, and methods of distribution. The key steps in establishing sales territories are selecting boundaries, determining customer locations and potential, deciding initial territories, assigning salespeople, and periodically reviewing and revising the territories. Details are provided about Hero MotoCorp and Bajaj Auto, including their market share and strengths and weaknesses. Maps show the presence of each company across India.
![CONSTRUCTION OF SALES TERRITORIES
ï‚¡ Balance workloads
ï‚¡ Balance sales potential
ï‚¡ Develop compact territories
ï‚¡ Minimize disruptions during the redesigns.
The workload for a territory can be calculated as follows:
• Workload= [Current accounts * Average time to service an active account] + [Prospects * Time spent trying to
convert a prospect into an active account]
The sales potential in a territory can be determined as follows:
• Sales potential (₹) = Number of possible accounts x Buying power (₹)](https://image.slidesharecdn.com/sdmfinalppt-180923081257/85/sales-distribution-management-4-320.jpg)
sales & distribution management
- 1. STUDY AND COMPARISON THE SALES TERRITORIES OF TWO-WHEELER AUTOMOBILE COMPANIES – HERO & BAJAJ Team Members:- Prateek Gupta Abha Priya Anurag Srivastava Neha Kumari Abhishek Chaudhary Neelam Kislay Kumar (17090) Presented To:- Mr. Atul Kumar Arora
- 2. CONTENT ï‚¡ Introduction ï‚¡ sales territories
- 3. SALES TERRITORIES  Customer group or geographical area for which an individual salesperson or a sales team holds responsibility.  Reduce costs and increase sales.  Defined on basis: • Geography • Sales potential • History • Or combination of factors.
- 4. CONSTRUCTION OF SALES TERRITORIES  Balance workloads  Balance sales potential  Develop compact territories  Minimize disruptions during the redesigns. The workload for a territory can be calculated as follows: • Workload= [Current accounts * Average time to service an active account] + [Prospects * Time spent trying to convert a prospect into an active account] The sales potential in a territory can be determined as follows: • Sales potential (₹) = Number of possible accounts x Buying power (₹)
- 5. NEED FOR ESTABLISHING TERRITORIES  Type of product or product line you have  Competition in territories  Channels of distribution and the transport system  Workload of the salesperson and the nature of the assignment or job  Sales potential and servicing requirements of territory – territories with limited potential can serve as a training ground for new sales reps  Performance of a particular salesperson – this will determine if they get more or less challenging territories *Territories must be balanced, Non-balance territories are resulted into: Under-serviced Over-serviced
- 6. FACTORS INFLUENCING ESTABLISHMENT OF SALES TERRITORIES • Size of Market. • Demand for product or services. • Nature and degree of competition. • Market and sales potential. • Methods of Distribution, etc.
- 7. STEPS INVOLVED IN ESTABLISHING SALES TERRITORIES • Select control unit for territorial boundary. • Determine location and potential of customers. • Deciding basic territories. • Assigning sales person to territory. • Formulate territorial coverage plan. • Reviewing and revising sales territory.
- 8. HERO MOTOCORP ï‚¡ the largest manufacturer of motorcycles in the world ï‚¡ engaged in manufacturing and sale of motorcycles and gearless scooters ï‚¡ The country's largest two-wheeler maker Hero MotoCorp has crossed the 75 lakh units sales mark in 2017-18 fiscal ï‚¡ Hero MotoCorp's overall market share in the domestic two-wheeler market stood at 37.4 per cent
- 9. 9 Hero Motocop STRENGTHS • Huge Brand Equity • Huge Brand Image • Wide Variety of products WEAKNESS • Strong Competition • Lack of Innovation OPPRTUNITY • Growing Industry THREATS • Strong Competition • Better of Public Transport
- 10. BAJAJ ï‚¡ Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. ï‚¡ The company's sales mix consists of motorcycles (88%) and three-wheelers (12%). ï‚¡ Bajaj Auto enjoys 25.4% market share (FY12) in the motorcycle segment in India.
- 11. BAJAJ 11 . STRENGTHS • Highly Experienced Management • Extensive R&D focus • Alliance with KTM WEAKNESS • Lack of Presence in the scooter market • Labour Issues • Not a global brand OPPRTUNITY • Growth in motorcycle market • Launch new vehicles THREATS • Intense competition in the 2- wheeler market • Environmental Regulations
- 12. PRESENCE OF HERO
Editor's Notes
- #12: Alliance with KTM: Bajaj Auto through its subsidiary Bajaj Auto International Holdings (BAIH) holds a 48% stake in Europe’s second-largest sports motorcycle manufacturer, KTM of Austria. KTM has a strong brand equity globally and the alliance with Bajaj Auto help both the companies to deliver sustainable result focusing on offering cost and quality benefits. KTM provides Bajaj Auto with a large global reach.