Sales and Distribution of a New Brand of Soap
The Background
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Your company is a well-established company in the space of Personal Care products and other
FMCG products.
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You have two brands of shampoo, one in mid-priced and one in premium segment. In soaps, you
have a mid-priced brand, which has 5% market share. The brand for this case study, Brand X, is in
the premium segment and it has been launched 3 years back.
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The company has been in existence for many decades and over this period, it has built up a robust
distribution network. Their main coverage consists of Large Paan shops that also sell some FMCG
items. They are also significantly present in Grocery (Kirana) and General/Variety stores.
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The data provided is for the city of Kolkata (under Municipal Corporation), for the year 2014
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The number of Households in Kolkata (under Municipal Corporation) is 10.2 lakhs in 2014.
The Data and its Use in this Situation
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The data is given for the calendar year 2014.
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Data from the Consumer Track, Consumer Panel and Retail Audit have been given by the Research
Agency. This is captured in Columns B to M.
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Data from internal sources is captured in Columns N to R. Please note that the Closing Stock with
the Distributor (11,000) as on 31st December 2013 has been given and this constitutes the Opening
Stock as on 1st January 2014. Similarly, the Closing Stock with the retail/wholesale channel (8000)
as on 31st December 2013 has been given and this constitutes the Opening Stock as on 1st January
2014.
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Media data is captured in Columns S to T. You may assume that the cost of each GRP is Rs. 10,000.
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Analyze this data from the following perspectives: Stock in Pipeline, Sales Calls, Distribution
Coverage, Offtake
Purpose of this Exercise
Understanding the basic concepts of Sales, Distribution and Brand Management and its relation to the
Marketing Mix. What it takes to be a good sales and/or brand manager and why knowledge of sales and
distribution channels is important for a Brand Manager.
Questions for Analysis
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Is there a stock buildup anywhere in the Distribution Channel ? Yes or No?
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If yes, is the stock build up at Retail level due to decreasing Brand pull or inadequate sales &
distribution effort?
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Is the sales and distribution coverage and number of calls made adequate for Brand X?
This case was originally written by Prof. Prasenjit and Prof. Govindrajan and it has been modified and
adapted for teaching some concepts of FMCG sales and distribution channel management.