SALES AND DISTRIBUTION AML

Channel of distribution is the most powerful element among marketing mix elements.
The main function of this element is to find out appropriate ways through which goods
are made available to the markets. It is a managerial function and hence proper decisions
are to be taken in this matter before commercial production begins. This is so because
the efficiency of its channel of distribution is often what separates a successful firm from
an unsuccessful firm.

Marketing channels are the most complicated phenomena encountered in the

study of marketing. They encompass elaborate behavioural systems that usually involve
many decision makers and often extend over a wide geographical area. One aspect of
these systems is their constants interaction they lead, there follow, they control, they
conflict, they co-operate.

Customers are usually scattered, where as production is concentrated in a few centers.

This may be treated as spatial gap. Transportation is used to cover up this gap and
includes all activities directly concerned with moving goods form the place of production
to the place consumption.
Customers make their purchases at regular intervals, where as production has to be
organized on continues process. This is a temporal gap. Inventory deals with these gaps.
This includes activities concerned with holding goods between the time of production and
the time of sale.
Manufacturers organize large-scale production to reap benefits of economies whereas
customers prefer to by only in small quantities. This would naturally create a gap to be
called perception gap. This gap is covered by promotional activities. The include giving
of percussive information and buyers re prompted at make quick repeal purchases.
Basically customers cannot have full information of producers and products available and
naturally this prevents free exchanges. This may be designated as transactional gap. This
is the most difficult gap to be filled up. This gap could be effectively covered only by
proper distribution arrangements.
DEFINITION:

Every producer seeks to link together a set of marketing intermediaries that fulfil the firms
objective. This set of marketing intermediaries is called the marketing channel. The American
marketing association defined the term as the structure of introduced company organization units
and extra company agents and dealers. Whole wholesalers and retailer through which a product or
service is marketed.

The definition includes two aspects:

1. The firms internal marketing organization units and the outside business units, which a firm
uses in its marketing work.

2. The channel structure of the individual firm and the firm entire channel complex available to
all firms.

The channel is also described as a grouping of intermediaries from first owner to the last owner,
who take title to a product during the marketing processes.

The process of distribution encompasses the movement of goods form the point of production, or
from storage locations, along the channel of distribution. The marketing function includes three
elements.

1. The transportation of goods physical movement of goods or traffic management.

2. The location of goods storage.

3. The institutions facilitating the easy movement of goods.

CHANNEL OBJECTIVES

There is, however, a misconception that channels are permanent features of a companys
marketing activity. But this does not seem to be correct. Along with the shifts in overall strategy
of firm corresponding changes in channels system may be necessary. In other words, existing
trade channels are not a constraint in the design of marketing strategy;, for this reason, channel
decisions are included as a part of strategy rather than as part of the; marketing organization.

The channel objectives may be numerous depending upon the marketing and corporate
objectives. A few examples are mentioned below:

1. Growth in sales by establishing distribution in new markets.

2. Improvements/maintenance of market share.

3. Creation of an efficient channel system.

DECISION MAKING FOR CHANNEL OF DISTRIBUTION For AML

The marketing executive must undertake to following steps in order to establish

the channel of distribution for a company.

1. He/She must understand the retail and wholesales market and type of middlemen
available in both.
2. He/She must understand the various conflicts which continually exist between and
within the channel.
3. He/She must select the general channel to be used keeping in mind the goals of
the company marketing programme and the job to be done by distribution system.
 4. He/She must take decision regarding be intensity of the distribution (i.e. the
number of middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then
manage the day to day working relationship with them.
6. He/She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme)
in the physical distribution of the product.
PLANT LAYOUT OF AML
The layout of the bottling plant of AM Beverage confines for all the products based on
the line layout. The machines and equipment have been imported from Germany, which
produces the best capital equipment in the World. The machinery and all the equipment are
arranged as per the sequence of operations. The machines and workers are specialized in
operations such as the preparations of syrup, cleaning the bottles, filling the bottles, aerating
and sealing the bottles with crowns. All these operations are carried on a continuous
movement. The reasons for choosing the product layout are

There is continuous supply of material.

The brands are all standardized products.
The demand for the products brand is reasonably stable.
The volume of production is adequate for the reasonable utilization of equipment.
Due to the above reasons, the product layout offers certain advantages. The product
cycle is speeded up since the company follows a continuous operation movement; the cost of
material handling goes low. The total floor space is required by the machine is less than for
other types of plant layout.
Manufacturing Process of Coca Cola:
Soft drink bottling or manufacturing involves a process, each with its own safety issues
that must be evaluated and controlled.

The process of manufacture of Aerated water (soft drink) like Coca Cola brand product is
divided into mainly five parts such as

1. Water Treatment
2. Syrup Making
3. Bottle Washing
4. Filling
5. Testing of Product

(1) Water Treatment: - Water treatment is very essential in soft drinks plants as the
nature and quality of water varies from place to place. To set uniform and standard water
the process of treatment is carried on. The water taken out from bore well by the help of
motor pump and pipe line are collected in storage tank where is pre chlorinated by
chlorinators and by the help of pipe lines comes to treatment tank called coagulation tank
where to this water solutions of different strength of bleaching powder, ferrous sulphate,
hydrated lime are added through dosing pump to reduce alkalinity, hardness, kill the
bacteria .The chemical are mixed by mechanical stripper and then the suspend mattress
settle down as sludge and clear water passes to retention tank. From this tank, the water
passes through sand filter containing fine sand and pebbles and carbon filter containing
granular carbon and finely through water polisher, micron filter, and UV lamp to ensure
clear and sanitary water for use. Further water used in bottle washer and boiler need
softening .for this purpose ,the water from storage tank ,after passing through two filter
beds contain fine sand and granular carbon respectively comes to pass through bad resin
were it is softened .this soft water is essential to use in and bottle washer to reduce scale
formation inside the machines.
(2) Syrup Making:- For syrup making of particular brand, calculate quantity of sugar
water activated carbon and high flow super cell known as filter aid taken in to sugar to
enter steam and also filled by a motor with agitator. Sugar syrup called raw-syrup is
prepared by dissolving the sugar with continuous stirring and heating by steam supplied by
fired boiler. This hot syrup by the help of pump is filtered through a filter press attached
with a series of quality filter paper to separate out carbon particles. Clear hot syrup by the
help of SS pipe lines passes through water for cooling and the then another circulated by
glycol for further cooling. The chilled syrup comes to a mixing tank to use calculating of
sugar quantity by Brix Hydrometer, concentrate added and mix thoroughly by a mechanical
Stirrer fitted to the tank. This syrup is now finished syrup ready for use. The concentrate
mainly, the liquid part are kept in a cold store, the temperature of finished syrup is also
maintained by air-conditioner. All the containers used for syrup making are cleaned and
sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda solution.

(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The empty
durable and returnable bottle used are returned from market in plastic carats are fed to a
bottle washing machine (washer). The machine has double end system with circular chain
to carry the bottles. Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to
the caustic by the supplied. The Caustic tank filled in with water heated by steam supplied
by the boiler. The empty bottles enter to the hot Caustic tank in one end and after being
cleaned by hot Caustic solution and finally washed with water through spray jets fitted are
discharged in other end.

(4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump which
mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to
carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylinders are
connected through CO2 manifold to tank to use requisite quantity of gas. To control CO2
pressure and temperature of liquid; we used recording control (Taylor). The syrup passed
through a P.H.E. which is called itself by circulation of chilled glycol supplied chilling F-22
gas used. The syrup being chilled easily mixed with CO2 gas and enters to filter for bottling.
The filter is connected with filling valves and lift cylinders. The lift cylinder functions by
pressure of air supplied by an air composer. The syrup is known as beverage in this stage is
 filled in the cleaned bottles which are durable in nature and returnable by buyer filling
machine (filter) by a counter pressure of carbon dioxide gas. After beverage filled in bottle
it goes to the crowner where with the help of crown crocks the bottles are sealed
(crowned) to project the carbonation, flavor, outside contamination and spoilage. The
finished products are coded by a coding machine and inspected properly by inspection light
while passing through the conveyor where finished product are accumulated enters to
carat washer machine and it is washed moves through the conveyor where finished
product are accumulated.
Then the products are kept in plastic carats which are durable in nature and returnable
by buyer, put on palates and sent to shipping for shipment. The entire container in
contact with syrup are properly cleaned and sanitized by Soda-Bi-Carbonate, hot water,
caustic soda solution and strong chlorine does.

(5) Testing of product:- Finally the finished syrup during bottle is tested in laboratory to
meet the parameters and also to get a standard and quality products to maintain the
standard and information and uniformity in products the sugar contents and carbonation in
the bottle are checked in regular intervals by Brix-hydrometers, Refrectometer and
pressure gauge. The dead weight tested is used to calculate pressure gauge to know the
correct pressure. TA & Ph are tested by digital Ph meter. Electronic digital balanced is used
to weight chemical to conduct test in lab. The purity of CO2 is checked by CO2 purity tester.
The chlorine comparators. The microbiology test of the product and water used in syrup
making and production are also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro test hot sterilizer incubator, autoclave,
pads filter membranes, media are produced and used.
The Diesel generator is operated in case of electricity failure for smooth
operation of the plant. To drawn electricity for the State Electricity Board the
transformer is used.
The steps involved in the production process are:-

First the fork lift supplies the empty bottles which are collected from the
distributions.
Then depalletising is done i.e. separating cases filled or empty bottles from the
wooden planks.
Uncasing is done by separating empty bottles from the cases/carats.
Empty bottles are then fed into the bottle washer where stream with some
chemical is used for washing.
Washed bottles are then send to the filler where premix (Composed of syrup,
treated water bulk CO2) is filled in it.
The whole concentrated is chilled with glycol before filling and then crowning is
done.
The filled bottles are passed through inkjet coder for printing price and date.
Then again the filled bottles are send for final light inspection and from there
they are collected on a table.
Lastly the filled bottles are arranged in the crates (casing) and then palletizing is
done for storing it in the warehouse.

PREPARATION OF SYRUP

Treated water + Sugar = Flavour

Distribution channels of AML:
AM Beverage Ltd ensures a supply chain worthy and fulfilling the current market situation. It
supplies its products through a series of marketing intermediaries who play vital roles in
reaching the final consumer. These intermediaries vary with the domestic
market. The supply chain also changes side by side.
AM Beverage inputs emphasis much more on the domestic market rather than the
international market. It is a nation oriented organization. It is engaged in reaching the
consumers on the farthest corners of the country through effective supply chain. For that
reason they have a strong distribution facility which ensures timely and effectively
reaching the final consumer.
The supply chain of AM Beverage in the domestic regions comprise of certain layers of
market intermediaries.

Value Chain and Vertical Integration

As a group of company, AML enjoys the privilege of vertical integration through both
forward and backward linkage operations. It has its own plants for producing raw materials
and own diverse and well equipped distribution channel for distributing the finished product.

The Value Chain starts from acquiring the main ingredient of the beverage, called the
FORMULA. The FORMULA is a chemical compound that works as the heart of the
beverage and due to business secret, no one except for the original Coca Cola Company can
produce it. After receiving the concentrated FORMULA, it is diluted and processed by
adding other components like drinking water, sugar, Carbon Dioxide and so on. The sugar
used in this process demand high quality, so AML established its own sugar plant, IGLOO
Sugar to get a regular supply of high quality sugar.

The finished beverage is then bottled and sent to the major regional distributors who make it
available in the shops for the customers through local dealers.

A flow chart for the complete Value Chain process is given below:
 Business plant model of AML

Let us look at these system of the distribution network right from the beginning.

Regional depot
Comilla plant Plant warehouse
house of
Chittagong,Khulna
,brishal,sylhet

Distribution routes of
retail shelf

Consumer
Distribution network
AML has a wide and well managed network of salesman appointed for taking up the
responsibility of distribution of products to delivers parts of the cities. the distribution
channels are constructed in such a way that the demand for customers is fulfilled at the right
place and the right time when it is needed by them.

A typical distribution channel at AML would be

Comilla Plant ware

Depot
manufacturi house
warehouse
ng plant

consumer Retail Shelf Retail stock Distributor

Selection of Channel for Coca cola:

3 important issues should be considered

1. Consumer realizes they want it.

2. Aggressive promotion is needed.

3. All possible efforts will have to be made.

CHANNEL MANAGEMENT of AML

The selection of marketing channel systems by manufacturers is one of the most critical marketing
decisions to be made. It is strategic decision. The objective of this strategic action is to place the
firm and its products into a market position which is very safe.

The channel decision has far-reaching consequences and even affects the manufactures mix. For
ex: the producers freedom of pricing is limited by the trade discount arranged with resellers. His
advertising and use of personal selling are influenced by the role of the middlemen promoting his
brands. Even the products features or its packing may be affected buy the assortment of needs and
merchandising policies of important sellers. Consequently the channel decision represents one of
the; most important decisions a manufacturers must make and therefore, a decision that deserves
extensive analysis and careful planning.

Two basic goals are commonly pointed out:

1. The achievement of a sufficiently board product availability in the market. This would assure
ready exposure of the product to potential buyers.

2. The creation of uninterrupted trading relationships with the middlemen. These goods are often
described as long-range goal of channel management. On the basis of this short-run channel
objectives are established. They are,

A. Coverage of geographical markets to ensure prompt and quick delivery.

B. Coverage of important resellers this will ensure product availability over a wide area.

C. Coverage of personal selling support.

D. Effective sales promotion.

CHANNEL OPTIONS:

The second stage in the channel management is to choose from among the various adoptions
available. The options are made on the basis of

1. The degree of directness or number of levels of middlemen to be in the channel.

2. The degree of selectivity number of middlemen required in a specified area.

3. The types of middlemen what types of wholesalers, retailers and facilitation middleman are
needed.

4. The number of separate distribution channels.

5. The choice of the individual middlemen

CHANGE IN CHANNELS OF DISTRIBUTION of AML

Some times AML changes its channel of distribution for the following reasons.

1. The development of better and cheaper means of transport.

2. The growing importance of branded

3. Controlling of facts and distribution

4. Development of retail trade.

5. The population growth and movement with in the country.

6. Conditions of business and market changes.

7. Remodel or change of the flow of goods.

Factors Affecting in Choice of Distribution of AML

1. Market Consideration

a. This include the nature of market

b. The nature of potential customers
c. Geographical concentration of the ;market
d. Order and size
e. Customer buying and wealth
2. Product Consideration

a. Unit Sale value

b .Bulk and weight

c. Technical nature of the product

d. The broader the product line, the shorter shall be the channel

e. If the product is custom make.

3. Company Consideration

A. Financial sound companies

B. Desire for control of channel

4. Middlemen Consideration

a. Services

b. Maximum Sales volume

c. Choice of sales/channels

5. Consumer Consideration

a. Consumer4 requirements

b. Convenient location
The Nature Of Distribution Routes of AML:

The customers of the company are divided into different categories and different routes and every
salesman is assigned to one particular routes, and every salesman is engaged to one particular routes.
Which is to be followed by him on a daily basis. A detailed and well organised distribution system
contribute to the efficiency of the salesman. it also leads to low cost, higher sales and higher
efficiency thereby leading to higher profits to the firm.

The various routes followed by the distribution of products are as follows:

Key Accounts: The customers of this category collectively contribute a large quantity
of the sales of the company. It basically consists of organizations that buy large quantities of
product in one single transaction the company provides goods of this customer on credit
,payments are being made by them after a certain period of time. i.e., a week or either a
month of half.

Example: Restaurants, hotels, clubs etc.

Future consumption: this routes consists of outlets of coca cola products ,where in a
considerable amount of stock is kept in order to use for future consumption. The stock does
not exhausted within a day or two ,instead as and when required stocks are stacked up by
them so as to avoid shortage or non availability of product.

Example: Departmental stores ,Super market etc.

Immediate Consumption: The outlets in this route are those which require stocks on
daily basis .The stocks of products in these outlets are not stored for future use instead ,are
exhausted on the same day and might run a little into the next day .i.e. the products are
consumed at a fast pace.

Example: small size restaurant, educational institution.

General: under this route, all the outlets that come in a particular area or an area along with
its neighbouring areas are created to. The consumption period is not taken into consideration
in this particular route.
Distribution System:
This system adopted by the AML to distribute its products in the city is, direct on spot
delivery by the retail outlet.

The salesman hired but the company is accompanied by an assistant and a market
Developer(MD). They carry all the skus in the goods carrying truck and are assigned a
specific route, on which they have to deliver all the products to all the retail outlets that falls
along that routes ,and deliver as per the demand on spot and get paid in cash (exception in
there)

Direct Distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales ,delivery, and merchandising and local accounts
management at the store level.

Indirect Distribution: Indirect distribution, an organization which is not part of the

Coca cola system has control on one or more of the distribution elements(sales, delivery,
merchandising, and local account management)

Merchandising: Merchandising means communication with the consumer at the

point of purchase to convey product benefit ,value and quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specially merchandise the products.

Departments involved in the distribution Process:

The distribution process consists of three departments:

Distribution Departments: it appoints distributors and established a distribution

network processes approved sales orders and prepare invoices, arranges logistics the
products, co ordinates with distributors for collections and distributions stocks and their set-
up.

Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors, periodically
,reconciles outstanding balances from distributors ,obtain balance conformation from
distributors and follows up outstanding balances.

Shipping or Warehousing Department: It dispatches goods as per approved by

order, ensuring that stocks are dispatched on a FIFO basis, ensures physical control over load
out area updates warehouse stock records in a timely manner.
Outlet structure of AML beverage
AML believes that its success depends on their ability to connect with consumers by
providing them with a wide variety of choices to meet their desire, needs and life style
choices. Companys success depends on the ability of its people by executing RED
effectively every day.

Outlets can be classified as per following criteria:

1. Consumption Pattern

2. Volume Pattern

1. Consumption pattern:
E&D:
Those outlets where people visit to eat and drink are known as eating and
drinking outlets such as Restaurants and Hotels.
convenience:

Those outlets like super shop and general store where people visit regularly for
various purposes

Grocery:

Those outlets where people visit to purchase food grains and any to such
things for future consumption are called as Grocery shop.

2. Volume pattern

According to volume sales in the outlets the company has adapted a unique policy of
categorising the outlets in four different segments .such as

DIAMOND: Those outlets, which give an annual sale of more than 800 crates of Coca
cola products, are listed in this segment.

Gold: Those outlets which give an annual sale between 500 to 799 crates of Coca cola
products are listed in this segment.

Silver: Those outlets which give an annual sales between 200 to 499 creates of coca cola are
listed in this categories

Bronze: Those outlets which give an annual sales less than 200 creates of coca cola are
listed in this category.
Order processing System of AML
The order processing system of AML is based on the demand forecasting of potential
customer. AML maintains the demand forecasting on the basis of previous sales of that
specific region .On the basis of previous sales company set a target of its respective regions
and try to fulfil this target. On the basis of its specific target the regional distribution
department has to keep 60% of its product as stock so that the customer demand can be
fulfilled as early as possible.

For taking the order from the customer AML maintains a system by which the customer
demand can be easily fulfilled. It involves some steps by which the order is processed in the
firm. There are some parties who are involved here. The processes and activities of those
parties are given below.

Area sales Area sales

Pre -
Distributor Officer(AS Manager(A
Seller(PSR)
M) SO)

Finance
&Accounts Distribution
Department

1. Pre-Seller:
Pre seller indicates the salesman who basically engaged to generate the order and delivering
the pre sold order.

At first, the Pre-seller generates orders in advance after activating the outlet. He also
communicates the scheme and promotional offer apart from carrying out his
executing an outlet responsibility.
Also perform back-end activities like preparing invoice, delivering stocks and
collecting cash &glass are carried out by others.
 Delivery vehicles are loaded as per the orders.

Pre-seller generate the demand from the retailer and then inform it to the distributor of
respective areas.

2. Distributors:

Retailers or owners of any outlet cannot take the delivery from company. They have to take
the products from their respective or nearest distributor. After confirming the order from
individual, Pre-seller and the distributor accumulate the demand of products, and then inform
it to the Area Sales officer. There are about 52 distributors and innumerable number of retail
outlets operating with the company in its entire market areas of Chittagong. These
distributors are selected on the basis of assurance given by them regarding the minimum sales
which they have to maintain annually. The selection is also done on the basis of the financial
position and reputation of the distributor in the market.

Area Sales Officers (ASO):

After confirming the order from the Distributors the ASO send these information to the
respective Area Sales Manager. ASO also inform to ASM how to send the products to
distributor also with quantities. After getting the order from the distributor the ASO also
contract with Finance & Accounts department to confirm about the credit information about
this respective distributor. In Chittagong region, there are 13 Area Sales Officers are working
in three respective areas like, Base, North and South area of Chittagong.

Area Sales Manager (ASM):

After receiving information about the order of the products from the ASO than ASM contract
with the Distribution department foe delivering the product to the respective distributor.
There are 3 ASM are working in 3 respective areas in Chittagong Region. They are
responsible of all the activities of their respective zone.

Distribution:
After confirming the order from ASM, the distribution department contract with the
distributor through mail or phone for confirmation and also the sanding the product to the
distributor .According the distributor instruction, the distribution department delivers the
products to the distributor. The head of distribution in Chittagong places the demand to
Comilla plant in daily basis.

Three important documents must be used for delivering the products to the customers. These
are

demand sheet
gate pass (3copise)
 Product invoice.

Regional segmentation of AML(Chittagong Division)

For conducting their sales activities the Chittagong division is divided into 3 zones. The total
coverage area of CTG division is Shitakundo to Teknaf. Regional sales manager (RGM) is
responsible for all of its activities. In every zone there are three Area Sale Managers (ASM)
conducting sale activities of their respective areas. ASM also recruits Area sales officers,
Distributors, and Pre-seller for ensuring the smooth sales operations.

1. Base Area.
2. North Area and
3. South Area

The total areas which these zones cover are given below

1. Base Area (The territories are coverages)

SL Territory No of Area No of Area No of

Sales Sales Distributor
Manager(ASM) Officer(ASO)
1 Bandartila
2 Agrabad
3 Halishahar
4 GEC 1 7 16
5 Chakbazar
6 Newmarket
7 Shitakundo
2. North Area

SL Territory No of Area No of Area No of

Sales Sales Distributor
Manager(ASM) Officer(ASO)
1 Baharderhat
2 Hathazari
1 5 15
3 Kaptai
4 Rangamati
5 Khagrachari
 3. South Area

SL Territory No of Area No of Area No of

Sales Sales Distributor
Manager(ASM) Officer(ASO)
1 Patia
2 Anawoara.
1 5 16
3 Satkania
4 Chakaria
5 Coxs bazaar

Distributor Information For Chittagong Region:

SL Territory No of No of No of No of Pre- No of No of Total
ASM ASO Distributors Seller(PSR) Outlets Routes Vehicles
1. Base 1 7 16 38 9835 104 36
2. North 1 5 15 18 6875 71 23
3 South 1 5 16 16 6505 87 31
Total 3 17 48 72 23215 262 90

WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is necessary
because production and consumption cycles rarely match.

Warehousing is not a simply storing activity but a package of services that enables the
smooth running of the industry.

The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up in the
warehousing stores in equal to money.

The stores functions can be organized in the following manner:-

a) To receive raw material components equipments etc.

b) To meet the demand of use department by issuing the order
 c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and using correct
preservation method.
The company supply finished products frequently to different distributors as per the
demand.

Every distributor keeps a minimum stock of different products of the product line so that
the uninterrupted supply could not affect.

In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably. The
problem arises from the material that are in stock the form of capital cost, storage loss, pilferage
obsolescence, insurance, handling, documentation etc. Services level that can be maintained and
hence the concept stores in money should be understood by everybody in the organization.

TRANSPORTATION

Transportation is life blood of business management and commerce. The purchase offices
job in incomplete until and unless he ensures that the material is shipped from the vendors
premises located in different areas to his organization. Purchasing the transportation is a
key element in his job particularly in the context of the transportation cost.

In deciding to transporting models shippers can choose from private contract and common
carriers.

Transport decisions must consider the complex trade off between various transportation
mode and their implications for other distribution elements such as warehousing and
inventory.

Sales Activities of AML:

Todays sales executives are professionals. They plan, build, and maintain effective
organizations and design and utilize efficient control procedures
 Sales management is the planning, direction and control of personal selling, including,
recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks
apply to the personal sales force.

There are three general objectives are maintained by AML of sales management.

a. Sales volume
b. Contribution to profits
c. Continuing growth.

OBJECTIVES of SALES MANAGEMENT

There are three general objectives of sales management

1. Sales volume
2. Contribution to profits
3. Continuing growth
QUALITIES OF EFFECTIVE SALES EXECUTIVES for AML

Abilities to define the position exact function and duties in relation to the goals the company
should expect to attain
Abilities to select and train capable subordinates And willingness to delegate sufficient
authority to enable to carry out assigned takes with minimum supervision
Ability to use time efficiently
Ability to allocate sufficient time for planning and implementing the plans

SOME IMPORTANT TERMS

1. MARKET POTENTIAL:

A market potential is an estimate of the maximum possible sales opportunities present

in a particular market segment and open to all sellers of a good or services during a stated
future period.
2. SALES POTENTIAL:

A sales potential is an estimate of the maximum possible sales opportunities present

in a particular market segment open to a specified company selling again or service during a
stated future period

3. SALES FORECAST:

A sales forecast is an estimation of sales, in dollars of physical units in a future period

under a particular marketing program and an assumed set of economic and other factors
outside the unit for which the forecast is made

QUALITIES OF EFFECTIVE SALES EXECUTIVES:

Abilities to define the position exact function and duties in relation to the goals the
company should expect to attain
Abilities to select and train capable subordinates And willingness to delegate sufficient
authority to enable to carry out assigned takes with minimum supervision
Ability to use time efficiently
Ability to allocate sufficient time for planning and implementing the plans
Ability to exercise leadership
Selling Process of AML:

For conducting the selling activities the firm maintain a specific process which is known as the selling
process. There are six steps included in this process. These are

1. Preparation
2. Introduction
3. Analyzing the inventory of Seller
4. Order Conformation
5. Merchandising and
6. Reporting

1. Preparation:

At first the company takes the preparation to sell its products to the seller. At preparation
stage the activities are following
 To take the idea about the quantity of order and also determine the quantity of supply
of product.
Should be prepared if any special plan is taken by the company to its seller.
Try to impress the seller by offering the different promotional activities which are
provided by company.

2. Introduction:

Under this stage the Pre-Seller (recruited by firm) try to maintain a good relationship
with the retailer.
Pre seller should have the idea about the retailer business.
It is also important to him to know the name of all retailers where he works.

3. Analysing the inventory of seller:

Have to determine the amount of product (soft drinks Coca cola) to be stocked in
retailer shop. It should be done properly.
Analysing the amount of empty glass bottle and also inform the retailer to return
obsolete products.
If any complain is placed by the retailer, the pre seller try to solve this problem if it is
possible.

4. Confermation of Order:

Under this stage, pre -seller tries to confirm the order from the retailers and also
provides a memo to the retailer.
Also informs the seller about the price of the products and the possible date of
delivering the products

5. Merchandising

If the retailer uses the company provided cooler (fridge) which is provided, the pre
sellers need to make assurance that they stock only the companys products like Coca
cola, Fanta, and Sprite etc.
If any repair is needed of this cooler it should be inform to the officer of the company.
Also ensuring the proper advertisement of the Coca cola product in this retail shop.

6. Reporting

At the end of the day, the pre seller reports to the company about of all its activities.
The order processing should be accurate and clear to the company.

Total Sales of AML:

Sales activities of AML can be divided into two categories. These are following
1. Primary Sales

2. Secondary Sales.

1. Primary Sales: Primary sales take place when company sales its product to channel
partners. Under this process company reaches its products to the distributor points by
using its own transportation. Company bears all the costs and provide the transportation
facilities to its distributors.

Company Distributors

2. Secondary Sales

When channel partners sales the product to retailers and wholesalers so that the product
can be reached to end users is called secondary sales. Sometimes the company also assists
to the distributor of doing this works.

Distributors End users

Comparative sales statement For Chittagong Zone

Primary Sales Secondary Sales

SL Territory Target Total Achievement Target Total Achievement
Name sales Sales
1 Bandartila 2793 3186 114% 4001 3475 87%
2 Agrabad 3491 2583 74% 4927 5370 109%
3 Halishahar 3142 1751 56% 4446 4580 103%
4 Gec 4674 4263 91% 7039 7223 103%
5 Chakbazar 4189 5057 121% 6298 7956 126%
6 Newmarket 3351 5560 166% 5965 7030 118%
7 Shitakundo 1240 745 60% 2630 685 26%
Base Total 22880 23145 101% 35306 36319 103%

Primary Sales Secondary Sales

SL Territory Target Total Achievement Target Total Achievement
Name sales Sales
1 Baharderhat 748 1065 142% 4264 4166 98%
2 Hathazari 803 954 119% 5261 3530 67%
3 Kaptai 402 546 136% 2519 869 34%
4 Rangamati 663 900 136% 4446 1465 33%
5 Khagrachari 384 855 223% 1852 1427 77%
North Total 3000 4320 144% 18346 11457 62%

Primary Sales Secondary Sales

SL Territory Target Total Achievement Target Total Achievement
Name sales Sales

1 Patia 1842 1285 70% 4197 2098 50%

2 Anawoara. 819 483 59% 1753 1439 82%
3 Satkania 2932 2706 92% 7410 4684 63%
4 Chakaria 895 845 94% 1899 1271 67%
5 Coxs 2542 3450 136% 5184 4416 85%
bazaar
South Total 34910 8769 97% 20443 13908 68%
Region Total 34910 36257 104% 74095 61684 83%
 Achievement (%)
120%

100%
103%
80%
83%
60% 68%
62% Achievement (%)
40%

20%

0%
Base North South Total