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Pidilite distribution structure. Pidilite is Indias largest manufacturer of adhesive.

Extracts from this document...

Introduction

TABLE OF CONTENTS Details Page no. Distribution Structure Of Pidilite India - Structure - Ownership transfer - Transportation - Policies 4 Selection of distributors 9 Incentives to the distributors 10 Motivation of Channel Partners 12 Evaluation 14 Distribution in Practice (DIP) Training 17 Forecasting and target setting 18 Channel Conflicts - Distributor - Sales Officer 21 Distributor survey - Ghaziabad 24 Retailer Survey - Delhi 26 Observations 27 Annexure A Annexure B Annexure C COMPANY BACKGROUND Pidilite was established as a partnership firm, Parekh Dyechem Industries, in 1961 by Mr B K Parekh and his two brothers, SK Parekh and H K Parekh. It was converted into a private limited company in 1969. A group company Kondivita Industries was merged with the company in 1984. Its name was changed to PDI Chemicals Limited in 1988. In 1989, another group company Pidilite Industries Ltd was merged with PDI Chemicals, and the name of the merged entity was changed to Pidilite Industries. M/s Triveni Chemicals, another group company, was also merged with Pidilite in 1992. While the Fevicol brand, launched in 1959, has been in existence for almost 40 years, Pidilite's consumer products division was set up in 1984, when the company decided to build up a strong distribution network. Pidilite is India's largest manufacturer of adhesive. Pidilite's mainstay of earnings is consumer & industrial adhesives and sealants, which contribute to 60% of turnover. Its other product lines are art materials, construction/ paint chemicals, industrial and textile resins and organic pigments & preparations. Its largest brand Fevicol is synonymous with the category itself. The company has in total 40 brands spanning 400 industrial and consumer products. Pidilite has gradually expanded its branded product portfolio, which earn higher margins and has come to be recognized as a leading FMCG player. Consumer and Bazaar products today account for over 65% of the company's turnover.All its brands are either No. ...read more.

Middle

TRAINING PROGRAMMES * WHOLESALE STOKIESTS : The WSS prove to a very important channel partner for the company as they forward the goods to the retailers and make them aware about the same. Hence, product awareness becomes a mandate for this level so as to completely understand the product utility and application. Also the company has some policies which the small distributors may find difficult to understand and thus falter in implementation. To avoid the above situation , the company sends distribution managers from the head office to brief them about the products and also give them the complete system and functioning description. They are also elaborately told about the schemes launched by the company because they would be further responsible to ensure that retailers are rightly aware of the schemes. This training is mostly given to the B and C class WSS. * RETAILERS : The retailers are the most important channel partners as they are the direct link between the company channel partners and the end consumer. They are also given training in the form of seminars and meets organized by the company. * MECHANICS AND CARPENTERS : Though large offices, industries and households buy products from the company but the end users are the mechanics and carpenters among other masons. Their recommendation to buy the product is what drives the customer to buy the particular brand of adhesive. The company arranges meets and knowledge shows for them to make them aware of the products and also to know about their requirements and necessities. FORECASTING AND TARGET SETTING Target setting is a result of negotiation between the distributor and the company. Mid month targets for the next month are given by the company at around 5th -10th of a month. These are set for the RSM, ASMs and TSI in the hierarchy and driven down by them. At the month end the distributor can negotiate these targets in the range of +/- 10%.However ,we see that the Pidilite products have many seasonal ...read more.

Conclusion

Alpenlibe, Centre Shock and Centre fresh. They applied split on a equal value - equal volume basis. The same was done at Britannia to provide focus and thus increase sales. At, Pidilite , for FE division we suggest a split among the range of adhesives for sticking and those used for binding in paints. Then again, to provide atmost focus , we suggest that separate WSS for the two unlike the same handling the entire range and not being able to concentrate on all SKUs. Lets say , P1 : is the range of Hardware adhesives ( for sticking plywoods, mica etc) Then , P1a, P1b,P1c etc are the different SKUs in hardware. Similarly, P2 : is the range of Paint Adhesives ( binders, distemper etc). Then, P2a,P2b,P2c etc are the different SKUs in paint adhesives. - Separate salesman for the splits � Before split, 3 salesmen, 2 beats each all products � Now 3 salesmen, 6 beats each, 1/3rd the products (one split group) Now, as the WSS for hardware and paints are different, the ISRs under them also concentrate on separate SKUs. Thus their beat frequency would increase as the products range has largely reduced resulting in more focus and higher no. of visits to dealers. 2. CONSUMER PROMOTION SCHEMES: The comp any should start consumer promotion schemes like scratch cards etc,which will have gifts like watches,radio etc.This can woo the carpenters,painters to buy and recommend fevicol over other brands. 3. "FEVICOL SHOPPE": Since fevicol has strong brand equity even among children and stationary consumers,it can open up shops specifically for selling home consumption products.This may not drive sales but will be a right step in distribution to do brand building. Contacts PIDILITE 1. Shekhar Jethi Regional Sales Mananger Parekh marketing Limited 6th Floor,Vikas Deep Laxmi Nagar District Centre Distributors 1. Ankur Bansal M/S Bansal Traders Authorised Distributors . Mr. Lalit Kumar - Distributor, Ghaziabad 150, Durga Tower, Gound Floor, Raj Nagar, Ghaziabad Retailers Laxmi nagar * Sri Ram Plywood and Paints Ghaziabad * S.K H ardware * Jyoti Hardware ...read more.

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