CORE SALES

Concepts we wish we knew

before stepping in sales
Agenda
Types of Sales Structures
Sales Planning and Metrics
Inventory and Margins
TYPES OF SALES
STRUCTURES
GENERAL TRADE
MODERN TRADE
SAMT
ECOMMERCE
GENERAL TRADE - URBAN
Company → CFA → Distributor → Retailer → Consumer

HUL - A SUCCESS STORY

WIMI model (Win in Many Indias): Hyper-local GT strategy by city tier and region.
Micro-market approach: Different plans for Mumbai suburbs vs. Tier 2 cities.
Leveraged Shikhar app to digitize retailer orders.
 WIMI model- A Sales GT Strategy Case

Element Urban Maharashtra (Mumbai) Rural UP (Village cluster)

Consumer Behavior

Preferred Pack Size

Retailer Type

Scheme Strategy

Communication Style

Order Mode

Sales Rep KPIs

Availability Focus
 WIMI model- A Sales GT Strategy Case

Element Urban Maharashtra (Mumbai) Rural Bihar (Village cluster)

Regular users, brand-aware, prefer family-size

Consumer Behavior Occasional users, price-sensitive, prefer sachets
bottles

Preferred Pack Size 340 ml & 650 ml bottles ₹1 and ₹3 sachets

Retailer Type Modern kiranas, organized GT outlets Small kirana stores, often single-owner operations

Cashback on combo packs, bundling with

Scheme Strategy 2 sachets free on pack of 10, visible shelf danglers
conditioner

Communication Style Urban tone, lifestyle-led (TV + Instagram ads) Vernacular, radio, wall paints, auto-rickshaw audio promos

Primarily through ISR (some Shikhar onboarding in

Order Mode Shikhar app + ISR
progress)

Sales Rep KPIs Uplift in high-value SKUs, in-store visibility Outlet coverage, sachet penetration, distributor servicing

Availability Focus All variants (Anti-dandruff, Strong & Long, etc.) Best-selling ₹1 SKU only, limited assortment due to volume
Distributer Management System

BHS
Pimpiri

Baner
Hinjewadi Phase 1 Wakad
PROBLEMS ????????
 Largely manual in order-taking

Lacking real-time analytics and scheme communication

planning inputs

PROBLEMS
Order frequency
Struggling with order accuracy, and timely
fulfillment

Dependent on sales reps for stock

visibility
CASE- DIRECT CHANNEL SALES
GENERAL TRADE - RURAL
Company → Super Stockist → Sub-stockist → Retailer → Consumer

Created Rural Van Program with “mobile

distributors”.
Introduced Parachute Lite packs priced
at ₹5 to ₹10.
Built multi-layer sub-stockist networks
with replenishment norms.
 MODERN TRADE
COMPANY → MT KEY ACCOUNT → STORES → CONSUMER

large retail chains like Smart Bazaar , D-Mart, Reliance Retail, Spencer’s.

Low-Cost, High-Volume Model (Everyday Low Price - EDLP)

Standalone Modern Trade
These are independent, large-format stores that look and operate like

modern trade stores but aren’t part of a chain.

Each has individual buying authority.

ex: Haiko Supermarket (Powai), Modern Bazaar , Nature’s Basket

ITC may launch a discount bundle of premium biscuits at Le Marche

Feature Modern Trade (MT) Standalone Modern Trade (SAMT)

Store Ownership Chain-based (central control) Individually owned

Buying Decision Centralized Decentralized

Visibility Contracts Negotiated nationally Negotiated store-by-store

Distribution Direct or via MT warehouse Via GT distributor or company rep

SKU Assortment Strategy Uniform across stores Varies store-to-store

WHY DMART OFFERS SUCH DEEP DISCOUNTS??
 Bulk Buying Lower unit cost from brands

Quick Supplier Payments Negotiates better prices

Fewer SKUs Fast turnover, less wastage

Lean Operations Saves on salaries, decor, marketing

Low-Cost, High-Volume Model (Everyday Low Price - EDLP)

E -commerce
Includes platforms like Amazon, Blinkit, BigBasket, JioMart, Flipkart, Zepto

Structure:

Company → E-Com Warehouse → Consumer (B2C)

OR Company → Marketplace Listing → Consumer

Key Features:

Digital listing, algorithm-based pricing

Sponsored products, influencer tie-ups

Fast-growing in urban areas, especially for niche or D2C brands

MARGINS AND CREDIT
 Level Margin % Margin ₹ Landing Cost Explanation

Sells at ₹30 to consumer;

Retailer 11.70% ₹3.50 ₹26.50 buys from Sub-stockist at
₹26.50

Buys from Distributor at

Sub-stockist 3.33% ₹1.00 ₹25.50 ₹25.50, sells to Retailer
at ₹26.50

Buys from company at

Distributor 5% ₹1.50 ₹24.00 ₹24.00, sells to Sub-
stockist at ₹25.50

Primary Billing (Marico to Distributor)

₹6.00 Manufactures the Secondary Billing (Distributor to Retailers
(assumed Cost of goods product, absorbs
Tertiary Billing (Retailer to End Customer)
Company ~20%+ packaging, marketing,
gross profit, ~₹18 transport, and earns
profit
varies)
SALES PLANNING
 Route-to-Market (RTM)
RTM is the path a product takes from the
manufacturer to the end consumer, including:
Distribution channels
Coverage model
Role of distributors, stockists, sub-stockists
Technology in the process (DMS, SFA)

Example RTM Types:

Direct RTM: HUL to Reliance Retail

Indirect RTM: GCPL → Super Stockist → Sub-stockist → Retailer → Consumer
Rural RTM: Often includes van operations, feet-on-street ISR coverage, and feeder town
distribution.
Beat Planning
Beat Planning = scheduling the daily routes of salespeople to visit retailers.

Beat: A fixed route or group of outlets covered by an ISR/SO in a day.

PJP (Permanent Journey Plan): Calendar of beats across the week.
Outlets per Beat: Usually 25–40 depending on territory and geography.
Billing Beats vs Order Beats: Some beats generate bills; others only take orders for later delivery.
ISR or Sales Officer (SO) is the frontline salesperson responsible for:Visiting retail outlets daily,
Taking orders,Ensuring SKU availability and visibility, Influencing retailer relationship

Example:
ITC’s ISR in a Pune beat covers 30 outlets/day across a 5-day week = 150 retail touches/week.
Saturday is for stock audit, van sales check, and reporting.
PJP BEAT

ISR’S DAY
 ROUTE PLANS
Dynamic Route Plan
Used by: PepsiCo, Cadbury (Mondelez)

Example: PepsiCo routes

during IPL
During Diwali, Cadbury reassigns its sales team’s daily routes
change based
based on store-specific demand surge for gift boxes in Delhi on match
NCR. venues.
PepsiCo’s snacks team dynamically plans routes based on
real-time secondary sales in summer months.

Hub & Spoke

Used by: Marico, Dabur

Example:
In Bihar and Jharkhand, Marico serves distant villages by
shipping from one large rural stockist (hub) to multiple
ITC: Hub in
sub-stockists (spokes), who then cater to kirana stores. Lucknow →
spokes in
rural UP
Van Sales : Colgate, GCPL towns.

Colgate sells single toothbrushes/paste directly in Himachal

and Uttarakhand through mobile vans — with sales reps
collecting orders and payments on the spot.

Milk Run
Used by: Coca Cola

One truck is loaded at a warehouse.

It travels through 5 nearby villages.
At each stop, stock is delivered based on previous day’s sale.
Return loop collects empty crates and unsold stock.
Outcome: Lower cost than sending 5 individual deliveries.
ASSORTMENT PLANNING
 Assortment Planning

Deciding which SKUs should be present in which outlets:

ABC ANALYSIS:
Hindustan Unilever (HUL)
Category A (Lifebuoy, Clinic Plus):
Product SKU Annual Sales (₹ Cr) % Revenue Category
High focus in primary and secondary sales.
Lifebuoy Soap 125g ₹300 Cr 35% A
Ensured must-stock list (MSL) for all distributors.
Frequent billing and zero stock-out. Clinic Plus Shampoo 175ml ₹200 Cr 23% A

Category B (Pond’s, Vaseline):

Pond’s Face Wash 100g ₹120 Cr 14% B
Medium push with seasonal schemes.
Stocked regularly but not heavily promoted. Vaseline Lotion 200ml ₹80 Cr 9% B

Category C (Rexona, Liril): Rexona Roll-On 50ml ₹40 Cr 5% C

Low inventory priority.
Liril Body Wash 250ml ₹30 Cr 3% C
Focused on niche geographies or premium outlets.
Pruned periodically if underperforming. Others (20+ SKUs) ₹100 Cr (combined) 11% C
KEY METRICS IN SALES
KPI Definition Example

Primary Sales Company to Distributor HUL sells 100 cartons to Super Stockist

Secondary Sales Distributor to Retailer Stockist bills 80 cartons to 30 kirana stores

Tertiary Sales Retailer to Consumer Consumer buys 1 shampoo sachet from kirana

Fill Rate % of order fulfilled Retailer orders 100 units, receives 90 → 90%

Width of Distribution No. of outlets a brand reaches Colgate available in 30,000 outlets

Depth of Distribution No. of SKUs sold per outlet Each outlet sells 5 Colgate variants

Drop Size Avg quantity sold per outlet 5 cartons of biscuits per order

ROI (Return on Investment) Profit vs. investment (esp. for trade spends) ₹5 lakh scheme generates ₹8 lakh sales = ROI 1.6x

Stock Turnover Ratio How fast inventory is sold and replaced 4 turns/month = 1 refill per week