DABUR INDIA LTD.: BUILDING EFFICIENCY AND OPTIMIZING
RETAIL PERFORMANCE CASE STUDY SOLUTION
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pl
SYNOPSIS
m
Sa
Sarvesh Kumar, a senior sales executive at Dabur India Ltd. (Dabur), was facing mounting pressure to meet
the company’s sales and distribution key performance indicators. Kumar was responsible for urban retail
expansion, as well as promoting new products. He was managing Dabur’s stockists and their sales team
n
members, in a territory where Dabur dominated the market. However, challenges such as retailer
dissatisfaction and low sales were persisting due to expired products cluttering retailer shelves and other
tio
issues. Kumar was grappling to maintain sales efficiency and customer satisfaction, amid sales team
governance setbacks. Key concerns included expired items on retail shelves, lack of in-store promotions,
and competing sales forces becoming increasingly automated. Kumar had to address these challenges to
lu
improve the territory’s performance and sales.
So
OBJECTIVES
• Identify methods for assessing field force efficiency in the Indian FMCG context (e.g., bill cut targets,
weighted distribution, numeric distribution).
The Case Solution Starts From page 6
,• Understand the significance of secondary sales and the need to keep retailers stocking the company’s
products, in the Indian FMCG context.
• Assess the role of POS materials in the FMCG industry.
• Evaluate the role of sales force automation in enhancing trade confidence and satisfaction levels.
• Understand the significance of the AIDA experiential marketing model.
• Identify the responsibilities of the distribution sales force and how they help deliver growth, while
adapting to a changing competitive retail environment.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What KPIs apply to sales team members in India’s FMCG industry, to ensure an adequate level of sales
efficiency and output in the marketplace?
2. What dilemma did Kumar face when trying to push secondary sales to retail outlets. How did he resolve
the issue?
3. After removing all expired items from retailers, why did sales of Dabur products fail to meet the areas
sales manager’s expectations? What was the major finding in Kumar’s retail survey?
4. How could sales force automation improve Dabur’s sales team results and productivity?
5. How did Kumar apply the AIDA model to promote sales of Dabur’s new Homemade Tasty Masala?
6. Which distribution sales force responsibilities drive growth and adapt to the evolving competitive retail
landscape? Define the corresponding KPIs for each of these responsibilities.
The Case Solution Starts From page 6
, e
pl
ANALYSIS
m
Sa
1. What KPIs apply to sales team members in India’s FMCG industry, to ensure an adequate level
of sales efficiency and output in the marketplace?
KPIs and metrics for sales teams in India’s FMCG industry are designed to measure various aspects of
performance and to ensure sales force efficiency and output in the marketplace. KPIs can vary based on the
n
company’s specific goals and strategies, but the following common metrics typically apply in India’s
tio
FMCG industry:
• Sales volume—Total quantity of products sold by a sales team member within a specific period
•
lu
Revenue generation—Total revenue generated by a sales team member (critical indicator of team
performance)
•
So
Sales quota—Sales target assigned to a sales team member to achieve during a given period
•
•
•
•
•
o
The Case Solution Starts From page 6
, e
pl
6. Which distribution sales force responsibilities drive growth and adapt to the evolving
m
competitive retail landscape? Define the corresponding KPIs for each of these responsibilities.
Sa
Dabur’s distribution sales force ensures that products are readily available and visible across all retail outlets
to influence the success of two key marketing mix components—place and promotion. In alignment with
the ethos of customer-centric marketing, the responsibilities of the sales force are focused on understanding
and meeting customer needs, while adapting to the dynamic retail environment.
n
Each of the following key responsibilities of sales team members is matched with the relevant KPIs that
tio
are required to successfully perform that responsibility:
• Territory management—Efficiently and effectively ensure coverage among the assigned territory to
lu
maximize sales output to gain the largest counter share of retail outlets.
o KPIs: Bill cut, sales target and quota, revenue generation, distribution metric, counter share, sales
So
conversion rate, average order size, market share growth, new outlet opening, primary sales,
secondary sales, tertiary sales
• Availability and visibility of products—
•
•
•
The Case Solution Starts From page 6
, EXHIBIT -1: AIDA FRAMEWORK
Attention
The consumer becomes aware of a category,
A product or brand (through salespeople or
advertising).
Interest
I
Desire
D
e
pl
m
Action
A
Sa
n
tio
lu
So
The Case Solution Starts From page 6
RETAIL PERFORMANCE CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Sarvesh Kumar, a senior sales executive at Dabur India Ltd. (Dabur), was facing mounting pressure to meet
the company’s sales and distribution key performance indicators. Kumar was responsible for urban retail
expansion, as well as promoting new products. He was managing Dabur’s stockists and their sales team
n
members, in a territory where Dabur dominated the market. However, challenges such as retailer
dissatisfaction and low sales were persisting due to expired products cluttering retailer shelves and other
tio
issues. Kumar was grappling to maintain sales efficiency and customer satisfaction, amid sales team
governance setbacks. Key concerns included expired items on retail shelves, lack of in-store promotions,
and competing sales forces becoming increasingly automated. Kumar had to address these challenges to
lu
improve the territory’s performance and sales.
So
OBJECTIVES
• Identify methods for assessing field force efficiency in the Indian FMCG context (e.g., bill cut targets,
weighted distribution, numeric distribution).
The Case Solution Starts From page 6
,• Understand the significance of secondary sales and the need to keep retailers stocking the company’s
products, in the Indian FMCG context.
• Assess the role of POS materials in the FMCG industry.
• Evaluate the role of sales force automation in enhancing trade confidence and satisfaction levels.
• Understand the significance of the AIDA experiential marketing model.
• Identify the responsibilities of the distribution sales force and how they help deliver growth, while
adapting to a changing competitive retail environment.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What KPIs apply to sales team members in India’s FMCG industry, to ensure an adequate level of sales
efficiency and output in the marketplace?
2. What dilemma did Kumar face when trying to push secondary sales to retail outlets. How did he resolve
the issue?
3. After removing all expired items from retailers, why did sales of Dabur products fail to meet the areas
sales manager’s expectations? What was the major finding in Kumar’s retail survey?
4. How could sales force automation improve Dabur’s sales team results and productivity?
5. How did Kumar apply the AIDA model to promote sales of Dabur’s new Homemade Tasty Masala?
6. Which distribution sales force responsibilities drive growth and adapt to the evolving competitive retail
landscape? Define the corresponding KPIs for each of these responsibilities.
The Case Solution Starts From page 6
, e
pl
ANALYSIS
m
Sa
1. What KPIs apply to sales team members in India’s FMCG industry, to ensure an adequate level
of sales efficiency and output in the marketplace?
KPIs and metrics for sales teams in India’s FMCG industry are designed to measure various aspects of
performance and to ensure sales force efficiency and output in the marketplace. KPIs can vary based on the
n
company’s specific goals and strategies, but the following common metrics typically apply in India’s
tio
FMCG industry:
• Sales volume—Total quantity of products sold by a sales team member within a specific period
•
lu
Revenue generation—Total revenue generated by a sales team member (critical indicator of team
performance)
•
So
Sales quota—Sales target assigned to a sales team member to achieve during a given period
•
•
•
•
•
o
The Case Solution Starts From page 6
, e
pl
6. Which distribution sales force responsibilities drive growth and adapt to the evolving
m
competitive retail landscape? Define the corresponding KPIs for each of these responsibilities.
Sa
Dabur’s distribution sales force ensures that products are readily available and visible across all retail outlets
to influence the success of two key marketing mix components—place and promotion. In alignment with
the ethos of customer-centric marketing, the responsibilities of the sales force are focused on understanding
and meeting customer needs, while adapting to the dynamic retail environment.
n
Each of the following key responsibilities of sales team members is matched with the relevant KPIs that
tio
are required to successfully perform that responsibility:
• Territory management—Efficiently and effectively ensure coverage among the assigned territory to
lu
maximize sales output to gain the largest counter share of retail outlets.
o KPIs: Bill cut, sales target and quota, revenue generation, distribution metric, counter share, sales
So
conversion rate, average order size, market share growth, new outlet opening, primary sales,
secondary sales, tertiary sales
• Availability and visibility of products—
•
•
•
The Case Solution Starts From page 6
, EXHIBIT -1: AIDA FRAMEWORK
Attention
The consumer becomes aware of a category,
A product or brand (through salespeople or
advertising).
Interest
I
Desire
D
e
pl
m
Action
A
Sa
n
tio
lu
So
The Case Solution Starts From page 6
