Sales and Distribution Channel Structure of Madura Garments Group B9 Ishan Agrawal (11P081) Jaya S Choubey (11P083) Kumar Rahul(11P087) Abhishek Narayan (11P145) Madhur Paul (11P147) Contents Madura Garments3 Background4 Louis Philippe:4 Van Heusen:4 Allen Solly:4 Esprit:4 Planet Fashion:5 Madura Fashion & Lifestyle Channel Structure6 Data on the Channel Structure of Madura Fashion & Lifestyle8 New Product Development10 Market Overview13 Product positioning:13 Product pricing13 Competitor Channel Strategy13 Process followed15 Issues in Channel Strategy16 Issue: Selecting Channel Members16
Issue: Fostering Channel Member acceptance of the new products16 Issue: Stocking and Visual merchandising17 Issue: Maintaining Product Differentiation17 Recommendations:17 Issue: Product Positioning:17 Issue: Product line expansion17 Issue: Sales Organization and Sales Culture:18 Sales Culture:18 Personal Selling Process:19 Recruitment, Selection and Training of Sales Personnel21 Step 1: Manpower Planning21 Step 2: Sourcing activity21 Internal Sourcing21 External Sourcing21 Step 3: Approval22 Training and Development :-22 Probation Appraisal Forms:22 Territory and Quota Management23
Evaluation of Sales Personnel24 Challenges faced in implementing recommendations:26 What can be done to address these challenges? 26 References27 Madura Garments Background Madura Garments, a division of Aditya Birla Nuvo is India’s leading apparel retail company. It consists of the brands: Louis Philippe, Van Heusen, Allen Solly and Peter England. Apart from these it has a distribution agreement with the international brand Esprit for which it has opened exclusive brand outlets. Louis Philippe: Louis Philippe was the first genuinely international garment label introduced in the Indian market in 1989.
Recognised as a Superbrand, Louis Philippe epitomises elegance, class and status, addressing the needs of the style conscious, contemporary Indian men. The brand brings superbly crafted range of silks, trousers, blazers, ties and T-shirts that makes an exclusive fashion statement recognised by its distinctive icon The Upper Crest. The brand creates an image of stylish, confident, spirited, cool ensemble with hidden details, slimmer cuts. LP the youth brand from Louis Philippe, has introduced new fashion formals range for today’s young and successful urbanites. The range exudes elan, style and success which personifies today’s youth.
Van Heusen: Van Heusen, India’s premium work-wear brand, brought to India in 1990, has given corporate attire altogether a new look and meaning through continuous product innovation and exclusive collections such as Autumn Winter, Ken & Tony, Worldwear, Informals, IQ Clothing, winter wear, knits, innerwear and accessories. Cool Pants, designed using breakthrough technology adopted by NASA, or the Oxyrich shirts with oxygen ions to neutralise high stress levels in the intelligent clothing (IQ)range, are a few examples of the tradition of innovation that began with the invention of the collar in 1919.
Worldwear is Van Heusen’s extension of the best-selling range of corporate wear for the global Indian. Allen Solly: Allen Solly has established itself as the leading western wear brand redefining the wardrobe of the modern Indian. It has popularised the Friday dressing concept in India. With the launch of its women’s wear range in December 2001, Allen Solly has made a successful foray into the growing women’s work and casual wear market. The brand has won the most admired brand – Womens wear IFA 2004, 2005, 2007; most admired brand -trousers IFA 2005; most admired brand – smart casuals IFA 2006.
It has also won the IFA Images 2001 best brand award in the readymade menswear category. Esprit: Esprit provides a fresh look and a new style to its existing variety every month. The brand offers a variety of choices with the availability of its various collections in all the stores, to keep satisfying the needs of its growing customers. EDC by Esprit addresses young, spontaneous people who live for the moment and express this lifestyle with an individual look. Planet Fashion:
Planet Fashion is the apparel retailing arm of Madura Garments, Aditya Birla Nuvo Ltd. It houses not only our leading (inhouse) menswear brands like Louis Philippe, VanHeusen, Allen Solly and Peter England, but also Levi’s denim, Monte Carlo knitwear and most recently, Jocky innerwear in selected stores. It aims to be the complete wardrobe solution for a man – a one-stop destination for all his apparel needs. Its product portfolio ranges from corporate formal wear to casual leisurewear, accessories, t-shirts, interwear and lately, denims and innerwear. In the dynamic readymade garments industry, speed in reacting to changes in trends and customer tastes, and constant introduction of new styles are critical to success. This in turn depends on the availability of constantly updated information, up-to-date and accurate market data, which is critical to Madura Garments for strategic decisions involving introduction of new products, quick response to customer needs, inventory management, and overall market competitiveness.
To effectively deliver its products to customers, Madura Garments employs multiple distribution channels. This includes their dedicated network (Planet Fashion and Dress Circle stores), multi brand outlets, distributors, agents and branded exports, which totally add up to more than 21 distributors with 1000+ retailers and 150+ factory owned retail outlets spread over a large territory. Madura Fashion & Lifestyle Channel Structure Trade Channels: Multi Brand Outlets: This channel of Madura has declined over the years. At present, it is contributing around 20-25% of the revenue share.
According to a retail manager at Madura, customers today are unwilling to buy clothes from MBOs, with modern well-staffed malls and exclusive outlets offering more personalised service. MBOs usually adopt branded shelf approach for stocking various products. MBOs are located throughout the country including Tier II and Tier III towns. MBOs have enabled Madura to increase its reach but they offer very poor returns, to the order, of only 2%. The channel structure for a Multi Brand Outlet is a multilayered one. Usually, it is a three level channel.
The products move from the factory to major wholesalers who then distribute tham to regional distributors who finally take the product to the retail shop floor. This multilayered channel is responsible for lesser return. Factory Wholesalers Distributors Multi Brand Outlets Exclusive Business Outlets: Madura Fashion & Lifestyle has more than 1,000 exclusive branded outlets with over 1 million square feet of retail space across the country. The company greatly ramped up its exclusive Brand outlets business in 2011 by adding 250 stores in that single year only.
The current count stands at 1129. Exclusive Business Outlets contribute around 30-35% share in revenue and provide 10-15% return which is highest among that provided by any other channel of Madura except planet fashion. It is essentially a zero level channel with products provided directly from the company to the outlet. The shorter channel can also be seen as one of the reasons for higher return. Department Stores: It has more than 1,000 exclusive branded outlets with over 1 million square feet of retail space across the country.
The company’s brands are also present in over 100 department stores. All major department stores like Central, Lifestyle, Shopper’s Stop, Reliance and Max, to name just a few, stock different Madura brands. Planet Fashion: In 2001, Madura Fashion & Lifestyle envisioned providing a unique shopping experience to delight its customers. Soon, the company opened a distinct, specialty menswear showroom at Commercial Street in Bangalore. The thinking behind the store was to provide a superior retail experience and offer men a one-stop destination for all their apparel needs.
Each of the brands is a complete lifestyle brand and has an exhaustive range of shirts, trousers, knits, winter wear, suits and accessories. They offer the best range across formal, semi-formal and casual occasions and across various price ranges. Louis Philippe caters to the style-conscious contemporary man. Van Heusen formals are the ideal choice for the corporate customer, while Allen Solly is unconventional and associated with Friday Dressing, and offers relaxed wear for the young and ambitious trendsetter. Peter England is value for money, and caters to the mid-price segment.
In order to pursue its intention of providing a complete wardrobe solution to its customers, Planet Fashion has been looking at brands beyond the Madura Fashion & Lifestyle stable. Recognising the need for brand names in winter wear, inner wear, and denims, it introduced Monte Carlo, Jockey and Levi’s in select stores. Realising that wedding apparel for men was a huge untapped market, Planet Fashion also tied up with “Manyawar” for its range of ethnic menswear. With a strong presence in 88 cities across India as well as in the Gulf and SAARC countries, Planet Fashion stores greet more than three million customers each year.
Planet Fashion has 146 stores, which by the end of the year will touch 200. The winning retail model has been successful not only in premium locations, but also in smaller towns such as Udupi, Bareilly and Dehradun. Planet Fashion is the largest chain of stores of its kind in India, with an average store footprint that ranges from 1,500-6,000 sq ft, depending on its location. To drive its growth objective, it has launched a new format of store christened – Planet Fashion Grande, which is for both men and women and offers a large section for the growing accessories market.
The first Planet Fashion Grande store opened at Indiranagar, Bangalore in December 2011. Planet Fashion has ensured that no stone is left unturned to create a store that truly lives up to its name. The new store showcases select international brands such as Calvin Klein, Nautica, Esprit and EDC. For those particular about exclusive tailoring, there is a section dedicated to custom tailoring. Planet Fashion Grande is also launching made-to-measure service, where the suits will be custom tailored at the company’s factory set up with Italian collaboration. The ladies section is one-of-its-kind in Bangalore.
It offers the pret line of Ritu Kumar, the exclusive printed sarees from Satya Paul, the pure ethnic collection from Seven East and the ethnic fusion range of Global Desi. On the formal front there is and, a western fusion range, Allen Solly and Van Heusen Women. All this is complemented with footwear and handbags. Madura Fashion and Lifestyle employs a direct distribution channel to Planet Fashion retail channel from its warehouses. The model of distribution employed is Consignment model wherein the stock is completely owned by the company and merchandising and Visual marketing is handled by the Company’s retail staff.
The return on this business realized is 20% and it forms a 10% share of the company’s revenue. Value Channels: The value channels comprise mostly of depletion channels. This channel includes specific sales like employee sales and sales through factory outlets and also multi-brand depletion channels like Brand Factory and Lootmart. The stock is completely owned by the company in case of company specific sales while it is franchisee owned in multi-brand depletion channels.
The return realized is negligible for the company. E-commerce: Electronic commerce, commonly known as e-commerce or e-commerce, is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. Madura Fashion and lifestyle does not sell its products via company owned online space but rather sells to big online retailers like Jabong and Myntra in India.
As of now, e-retail is not a big part of the company’s revenues. The stock is franchisee owned and distribution is taken care of by the company itself. It is a part of the company’s long term future to start retailing through its own brand portals and through mobile-based applications. Industrial Sales: This is a special case where specific orders are addressed by the company itself. This could be a case in case of very large orders or a valuable B2B business. This is a negligible portion of the company’s yearly revenues.
Exports: The company exports merchandise to different countries where it operates in and to other retailers to. This is guided by license agreements between the parent brands and the company. Data on the Channel Structure of Madura Fashion ; Lifestyle Channels| About| Model| Return| Revenue Share| 1. Trade | MBOs (Multi-brand outlets)| Buy n Sell| 2%| 20-25%| 2. EBOs (Exclusive business outlets)| Buy and Sell EBOs and Consignment EBOs| Buy n SellConsignment| 10-15%| 30-35%| 3. DS (Department stores)| Shoppers Stop, Lifestyle, Max, Westside| Buy n Sell| | 15-20%| 4. PF (Planet fashion)| | | 20%| 10%| . Value Channels| Factory outlets, Brand Factory, Loot mart etc| | Marginal| 0| 6. E-commerce| | | | Marginal| 7. Industrial Sales| | | | marginal| 8. Exports| | | | 5%| New Product Development New Product Development is a process which consists of developing, testing and considering the viability of products which are new to the market. It is a complete process of bringing a new product to the market. If a company has many new products in the pipeline, then cost of development per new product is less. Also, it should be noted that most product ideas are aborted before launch.
Thus, if a company has only one product in development and that product is aborted before launch, then significant costs are incurred both financially and in terms of morale of the new product team. A new product may manifest itself in different forms and have associated channel issues. These are discussed below. 1. A new product may be a product that opens up an entirely new market. In this case, the entire channel strategy has to be designed for the new market. It has to be checked whether the new product to be introduced can be served by existing channel or not. If not, then this involves the complete process of designing a new channel. . A new product may be a product that adapts or replaces an existing product. In such a case, the existing channel may work with little redesigning. 3. The new product may be such that it significantly broadens the market for an existing product. For example, new models of printers use same kind of cartridges. Here also, the existing channel may suffice to serve the new product. 4. A new product may also be an old product introduced into a new market. In such a case, a channel parallel and similar to the channel in the old market has to be established after studying the market demographics. . An old product packaged in a different way or an old product marketed in a different way might also be called a new product. In this case, existing channel may suffice if target market and positioning are same. Our Louis Philippe footwear fall into category defined by point no. 1, that is, it is a product that has opened up an entirely new market. LP has since long focused only on garments and clothing. Now, Madura wants to leverage its brand name and sell other merchandise under it. Footwear is an entirely new product category with new set of competitors coming into picture.
It demands modification of existing channel or designing of a completely new channel. Existing stores which carry LP garments might not be willing to stock footwear also. The importance of new product development is immense. New products can be used to: * Increase/ defend market share by offering more choice or updating older products. * Appeal to new segments. * Diversify into new markets. * Improve relations with distributors. * Maintain the firm’s position as a leading edge company. Even out peaks and troughs in demand. * Make better use of organisation’s resources. Stages in new product development: 1.
Idea Generation: It involves conceptualization of new ideas. Eg: Sales, R;D and production department confluence to generate new ideas. Sales team identifies a new market opportunity, R;D develops is design and production department determines its production feasibility. These functions may be cross performed also. Analysis of customers or market research by an external agency may also spur new product development. 2. Idea Screening: Ideas are checked for technical feasibility, financial viability and marketability and the poor ones are dropped. Product is evaluated on its demand, marketability and profit potential.
Ideas may be rated according to marketing, production and strategic factors. 3. Concept development and testing: This stage involves turning ideas into tangible products that consumers perceive as being valuable. Concept testing consists of testing new products with a group of consumers to find out if the concepts have strong consumer appeal. 4. Marketing strategy development: An initial marketing strategy for a new product is designed based on the product concept. 5. Business Analysis: A review of the sales, costs, profit projections and breakeven points for the new product to find out whether these factors satisfy the firm’s objective. . Product Development: Engineering and production issues are resolved and the idea is translated into reality through prototypes and simulations. 7. Test Marketing: Launching a product in a small geographical area. 8. Commercialization: The product is introduced into the market. Timing is critical for success. Product has to be well targeted and positioned. The LP footwear is in the stage of commercialization. Earlier ideas considered were LP artificial jewellery, LP clothing accessories, LP sunglasses etc. But footwear was decided by management to be most appropriate and in sync with the objectives and practical constraints.
There are three ways to introduce new products under the auspices of existing products: Line extension: Using an existing brand name on products within the same category. Brand extension: Using an existing brand name on products in a new category but within the same broadly defined market. Brand stretching: Using an existing name on a product in a different market. Using LP name to introduce footwear is a case of brand extension. The fears of brand dilution are minimized by the fact that footwear also form part of fashion and clothing and are integral to style statement of a person.
For the purposes of this project, we have identified issues in the channel that are associated with changes in the marketing environment, most typically in the case of a new product development and introduction. On interaction with the channel managers, it was found that one major issue they had been facing with their channel is introduction of new products into the channel. Madura Fashion ; Lifestyle wants to leverage its brand names to introduce merchandise other than clothing. Madura Fashion and Lifestyle introduced Louis Philippe Footwear in the Spring Summer Collection, 2010.
The footwear served as a means of brand extension. The brand wanted to move forward from being an apparel category player to a wider lifestyle brand. Diversifying into newer product categories, expanding the existing product portfolio and targeting newer customers seemed like a good idea to go about doing this. The reason they chose to enter the footwear category were many. Market Overview The Indian footwear market is expected to generate total revenue of $2. 5 billion in 2011, representing a compound annual growth rate (CAGR) of 10. 3% between 2007 and 2011. In comparison, the Chinese market will increase with a CAGR of 5. %, and the Japanese market will decline with a compound annual rate of change (CARC) of -1. 1%, over the same period, to reach respective values of $13. 7 billion and $13. 9 billion in 2011. Sales generated through clothing, footwear, sportswear and accessories retailers are expected to be the most lucrative for the Indian footwear market in 2011, with total revenues of $2,314. 9 million, equivalent to 91. 5% of the market’s overall value. In comparison, sales through discount, variety store, and general merchandise retailers will generate revenues of $103 million in 2011, equating to 4. 1% of the market’s aggregate revenues.
The Indian footwear market experienced strong growth during 2011 after also having strong growth in 2010. The market is predicted to continue growing strongly over the forecast period to 2016. The performance of the market is forecast to accelerate, with an anticipated CAGR of 15. 1% for the five-year period 2011 – 2016, which is expected to drive the market to a value of $5. 1 billion by the end of 2016. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 7. 8% and 0. 3% respectively, over the same period, to reach respective values of $20 billion and $14. 1 billion in 2016. Product positioning:
The product was positioned as a premium category product targeted at customers who had high disposable incomes. The product could serve as a potential hook for acquiring new customers as well transforming the brand into a premium lifestyle player. The channel strategy would serve a critical factor in achieving the desired result. Product pricing The product was introduced in the premium range in the Indian market. The starting price was Rs 2400 and the closing price was 5400. Competitor Channel Strategy The Indian footwear market was densely populated with competitors. The competitors can be divided into three broad categories.
The first category is product specialists who manufacture and sell their own products. The second category is the brand extension products that are sourced by companies and sold through the channels. The third category is the private players consisting of the unorganized sector of the market. The channel strategy for different companies that have launched products in this market category depends on a lot on the scale of operations they are aiming at. Channels like Market development partners (MDPs) are generally employed in areas that are geographically or logistically difficult to handle exclusively.
Different brands employ different channel strategies. Another factor that determines the channel strategy of a brand is the positioning. An economy brand is more liable to enter small markets via MDPs as the target customers reside there and because it makes business sense. Contrastingly, a premium player may choose to employ a strategy of opening only Exclusive business outlets (EBOs) to preserve its shopping experience and exclusivity. Experience also plays a big part in deciding the channel strategy. Generally, core category players have a wider distribution network as this is their revenue generating business.
Consequently they also have the required experience to carry out the operations. The following are an attempt to summarize the size and the channel strategy employed by the major market leaders in the Indian footwear market. The data employed for this analysis is indicative and approximate. Brands| Exclusive Business Outlets(EBOs)| Management Development Parters(MDPs)| Multi-brand Outlets (MBOs)/Department Stores(DS)| Turnover(Rs Cr. )| Lee Cooper| 100| 750| 1500| 200| Red Tape| 200| 500| 1500| 400| Woodland| 300| 1000| 1500| 750|
Bata| 1300| 30000| 1000| 1540. 59| Liberty| 350| 4500| 1500| 310| Franco Leone| 25| 0| 850| 100| Nike| 150| 600| 1000| 700| Adidas| 350| 750| 1000| 585| Puma| 150| 500| 700| 550| Reebok| 900| 700| 1000| 1400| From the above data, we can observe that the core category players in the Indian market, the product specialists have a distinctly different channel strategy from products which are brand extensions. Product specialists usually rely on a licensee model with Management Development Partners (MDPs) to open exclusive stores in different parts of the company.
However, these exclusive stores are different from company owned stores which are relatively few in number, but still far greater than the number of Lifestyle EBOs that carry footwear as brand extension products. Process followed Issues in Channel Strategy Issue: Selecting Channel Members The channel strategy has to be such that the product fulfills its potential to act as a brand accelerator and complete the Lifestyle promise of the brand. It has to be consistent with the brand’s core promise of freedom, individuality and success.
The other functions this product could perform are to appeal to a wider set of audience in a pure category play, to engage brand loyal customers and act as a hook for potential customers. The major tasks required to be performed by the channel members are * EBOs: Complete the Lifestyle look and drive premiumness * DS and MBOs: Create a larger play for the brand * Depletion channels: Recruit customers for the brand Madura Fashion ; Lifestyle introduced these products in EBOs, Department Stores, MBOs, Planet Fashion and on the e-commerce platform. Recommendation:
Footwear is introduced in Exclusive Brand Outlets (EBOs), MBOs (Multi Brand Outlets), Department stores (DS) and Planet Fashion (PF) showrooms. The remaining four channels are not relevant for a new product like footwear. Moreover, EBOs and DS are very short channels ( 2 step), so company has more control over them. Issue: Fostering Channel Member acceptance of the new products Recommendations: * Reinforce the belief of the channel members that the product would sell by sharing the results of consumer response * Convincing the retailer of the high potential value creation by the product Issue: Stocking and Visual merchandising Stocking and display handled by the company in the case of EBOs and large Multi-Brand Outlets like Shoppers Stop etc * Stocking and display to be handled by the retailer in the case of trade channels. * Training imparted to all store managers for the Visual Merchandising. * Store Management handled by the company in EBOs, and the vendor in the case of large MBOs and trade channels Issue: Maintaining Product Differentiation Louis Philippe footwear is similar to other products offered by Madura Garments: they project the same sense of quality, style and prestige.
They are differentiated on these grounds and are premium priced. They are sold in certain outlets to enhance the exclusivity factor. Since they are present across India in various stores, it is important that channel members also help create a differentiated product by conveying the same to the customers. Recommendations: * They should be displayed properly and stylishly and good services must be provided by retailers to the customers because even the customers’ experience at the outlet adds to the way the product is perceived to be different from others. The salespeople present at the store must be well trained and must communicate the superior quality and style of the footwear to the customers. Issue: Product Positioning: The retailer support is required in the form of proper merchandise presentation and display. Since the competition is very strong in this segment, focus on product positioning is essential. Recommendations: Madura Garment should provide attractive incentives in the form of promotional allowances and special merchandising deals so that the retailer positioning is in line with the image projected by the company. Issue: Product line expansion
Since Madura Garments is foraying into a new product category of footwear, it is important to aid the channel members who are used to the apparel category. Recommendations: * Explain to the channel members the reason for the addition of footwear category and its feasibility * Frequent communication with the channel members to ensure a smooth flow of information about the demand for the footwear * Company should aid the channel members in stocking, choosing a display pattern (if required) and merchandising * Ensuring trouble-free products and making provisions for return of dissatisfactory stocks
Issue: Sales Organization and Sales Culture: Currently Madura Garments have 82 stores in India and 5 outside India. In India it has store across 50 cities in India, ranging from high streets like Connaught Place and South Ex to smaller towns like Bareilly, Karnal and Dehradun. International presence inDubai, Sharjah, Qatar and Kathmandu. Sales Culture: * Components of sales culture. * Role of sales culture in developing a sound sales organization Personal Selling Process: It is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Personal selling is paid personal communication that attempts to inform customers and persuade them to purchase products or services. Personal Selling Process consists of the following steps: Prospecting Pre approach Approach Presentation and Demonstration Handling Objective Closing Follow up Company’s records: Salesman refers to the company’s records and gets in touch with several old and new contact. Through this way sales may be promoted Retailers: The sales force get the valuable leads from the retailers since they are in direct contact with the customer and are familiar with the taste, needs, preference. 1. Pre approach:
After identifying the prospect in the prospecting stage. , the second step of salesman to know about the prospect likes, dislike, preference, nature, behavior, economic and social status. 2. Approach: In this stage prospect and the salesman come in contact with each other face-to-face. Madura Garment brand and its product are well reputed to all. The branded product also generated the curiosity among the prospects. 3. Presentation and Demonstration: Salesman gives the description about the product to the prospect through this as follow: Salesman comes within the store or the shop of the prospect can promptly present it to the prospect.
Salesman shows the kind of quality that customer is looking for and also shows some new trend garments, it saves time ; also the customer tends to make a quick buying decision. Salesman demonstrates the product to increase the interest of the customer. 4. The Close: This is the last stage of the presentation and demonstration, in this salesman does the analysis after the presentation as : Salesman judges the mood, attitude , perception of the prospect. In all over the presentation, the salesman faces every objection with a smile and his face and confidently answering to any queries of the prospect. . Follow up: This is a critical step in creating customer satisfaction and building long-term relationships with customers. If the customer experienced any problems whatsoever, the sales professional can intervene and become a customer advocate to ensure 100% satisfaction. Recruitment, Selection and Training of Sales Personnel Madura aims in keeping its Employment policy non-discriminative. The policy is framed in a way that it ensures consistency and equal opportunity. Utmost care is taken to check any kind of discrimination based on caste, religion, colour, age, sex, national origin etc.
Merit based Selection of candidates. 1) Sourcing the candidate by ordering for forms 2) Screening the candidate 3) Selection test 4) Personal interview 5) To ensure that all candidates are assessed objectively and fairly. 6) To appoint the Right candidate for the Right job. The recruitment process starts with the arising of a vacancy in the organization. A vacancy can arise in the following ways: Madura Garment follows following sources planning:- Step 1: Manpower Planning AOP (Annual Operating Plan), this process is taken up every year. It is taken up at Personal Level and Entity Level.
Several points like Revenue generation, Acquisition number, etc. Step 2: Sourcing activity There are three types of sourcing done at Bombay dyeing. After the resumes of candidates are chosen then the same is sent to the department head where the vacancy arises. The department head will then shortlist the same and they ask the HR department to fix an interview with the selected candidates. There are two type of interview which is taken up at Bombay dyeing, firstly the Functional interview and then the Functional Head and HR Head takes the interview. Internal Sourcing
This system provides the existing employees an opportunity to apply for higher posts aswell as for vacancies in other departments thus allow them a take up more challenging job profile / responsibilities in other/same department. This thus becomes a kind of motivation factor for the employees. * Employee Reference * Re-employment of former employee External Sourcing * Placement Consultant * Job Portals : timesjobs, Monster, NAUKRI. * Campus Recruitment Step 3: Approval * The process of recruitment takes about 10 ± 15 days Selection : Training and Development :-
Training and development is perhaps one of the fastest growing fields in any company. The significance and value of training has been recognised by the corporate world to a great extent. Training is an act of increasing the knowledge and skills of an employee which they need to perform their jobs. Need for Training and Development in an Organization: * Contributes towards organizational objectives * Acquiring the requisite knowledge, skill and attitude * To achieve individual growth * Need for cross functional managers * Prepare employees for higher level jobs * Training Need Identification
The need for training is identified in the following manner: Probation Appraisal Forms: The appraiser appraises the performance of the employee and gives the recommendations as to the kind of training required by the individual. Thus the training need identified. Through Performance managing strategy :- In the system, the individuals are supposed to identify training areas for themselves along with their superiors doing the same. This is utilized by the HR. Departmental and Divisional Needs :- If a new system is started in a particular department, the employees of that dept. are required to be trained for using the same.
Transfer :- If an individual is transferred from one dept. to other, he needs to be trained Promotion :- If an employee is promoted, he may require training in the skills to handle the new position. Also a gap arises in his current position and to fill this gap, training may be required. Territory and Quota Management Sales Territory Management by Madura Garments it’s Activities to Produce Maximum Results :- How you prioritize your sales territory management activities depends upon whether you are managing a territory that has existing customers, or whether you are building your customer base from scratch.
If you manage a territory that has existing customers, your first priority should be to introduce yourself to every single one of your customers. This should be a pleasant, low-key introduction along the lines of:”I just wanted to introduce myself and see if there is anything I can do to help you. “Then, as you are chatting with your customers, you can ask:”Would you mind sharing with me how you think my company’s relationship with you has been going so far? What have we been doing well? Where could we improve? ” The Benefits of Sales Territory management for company :- Optimal quota and territory assignments for best use of selling resources * Immediate integration of planning outputs into a production commissions system for accuracy and low cost operation * Easy adjustments to attribution and change crediting * Optimized pay plan effectiveness * Maximized seller motivation * Increased sales supervisor efficiency and effectiveness * Alignment of individual goals with strategic objectives Quota Management:- Analysts estimate organizations may lose as much as 10% of total annual sales in “lost opportunity” revenue based on misaligned territories and quotas.
With Callidus Quota Management, businesses regain this lost revenue, ensuring quotas reflect up-to-date market dynamics and territory potential. * Helps identify opportunities to better align quotas to maximize revenue based on historical performance * Provides easy-to-use tools to uplift, discount, and prorate quota targets as needed * Supports modeling of multiple goal scenarios based on how best to achieve corporate or sales region revenue goals * Effectively automates the workflow processes around quota distribution, adjustments, and approvals * Provides up-to-date visibility into sales quotas and attainment to date
Compensation and Motivation Compensation :- Madura Garments group compensate there salesman by providing them the following benefit:- Base Salary:- The fixed amount to be paid according to a system of job classification or market based criteria (round about 2-3 lakhs ). Incentives:- Additional variable pay based on performance against objectives and payable incash, stock or tax-deferrable arrangements (1% on their sales target). Protectives:- Programs which insure employees against loss of life or earning ability, and which insure against major current expenses. life insurance * medical insurance * survivor’s income * dental insurance * disability income Paid Time Off :- Vacations, holidays, family leave, jury duty, etc Motivation:- In Madura Garments group motivation to salesperson is done accordingly :- * Performance Appraisal is the process of Evaluating the Achievements of the Sales Force in Terms of Requirements of the Job * The Appraisal System is Essentially a Comparison of Sales Force Goals and Objectives With Actual Achievements in the Field * Giving the sales achiever award to the best sales man of the year. Doing fair practices, means no bias in the organisation. * Keep improving the working standards Evaluation of Sales Personnel For any industry it is very essential to have a cost effective & efficient distribution channel that adds value in to whole value chain. Effective distribution channel and integrated supply chain management help in growth of industry and make it more competitive. India has large and diversified textile industry with different segments and sectors; therefore it has fragmented sales and distribution network Sales Channel
Madura Garments group do their product promotion by giving advertisement in T. V,Radio, Newspaper, Magazine, road side banners etc. In Madura Garments group, there are so many popular lifestyle brands and international brand. These brands are given below and Madura Garments Group also opened exclusive brand outlets:- * Louis Philippe * Peter England * Allen Solly * Van Heusen * Esprit * Planet Fashion Challenges faced in implementing recommendations: 1. Dissatisfaction in the channel members not selected for the distribution of this product. . Inventory management in the face of changing fashion tastes of the people. 3. Channel members demand of a clear return policy. 4. Fostering collaboration and shared investment in the growth of the product, visual merchandising, stocking and sales force management. 5. Training and management of sales force. 6. Evaluating channel members performance using modern trade and retail metrics What can be done to address these challenges? The company has to invest in delivering long term partnerships with the channel members.
The performance of the product is the main criteria for evaluating the success of a product. However, the success of the product also depends a lot on the acceptance of these new products in the channel. The company has to focus on continuous dialogue and information sharing between theses channel partners. The company can also offer to extend credit support to the channel members in specific cases. The flow in the channel needs to be maintained. The stocking has to be handled by the company itself following the proposed process.
Overall, greater coordination is required in all spheres of the channel relationships. References 1. http://www. sifyims. com/pdf/Sify-ES. pdf 2. Mr. Suman Saha, Manager, Key Accouts, Madura F&L (9743999672) 3. Mr. Deepak Thakur, Group Manager, Lous Phillipe, Madura F&L (9743999434) 4. Mr. Ajay Vendala, Manager, Strategy, Madura F&L (9743999287) 5. Mr. Suraj Holla, Manager, Strategy, Madura F&L (9743999239) 6. Mr.. John James, Staff Manager, Planet Fashion 7. Mr. Neeraj Asopa, Store Manager, Louis Phillipe . http://business. highbeam. com/412143/article-1G1-228248861/length-product-line-distribution-channels 9. http://www. thehindubusinessline. com/todays-paper/tp-marketing/article990515. ece 10. http://www. icmrindia. org/casestudies/catalogue/Marketing/Louis%20Philippe-Excerpts%202. htm 11. Mr. Rajat Joshi, Store Manager, Allen Solly, Ambience Mall 12. Mr. Rakesh Mehra, Store Manager, Louis Phillipe, MGF Mall 13. Planet Fashion Showroom, Mehrauli Road, Gurgaon 14. Salespeople at different outlets
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