This document provides an overview of a talk given by Steve on sales and leadership. Some key points discussed include:
- Defining the sales equation and key factors that influence sales like width, line, depth, and value productivity.
- Qualities of an ideal salesperson including curiosity, tenacity, diplomacy, patience, and energy.
- The structure of an ASM's job including obvious responsibilities like delivering growth and less obvious ones like leading large teams.
- The growth curve an ASM experiences moving from efficiency, to motivation, infrastructure, and ultimately strategy.
- Key moments in an ASM's career like the first JC meeting, market visit, confrontation, and more
1. THE ASCM
One Person, Infinite Challenges
Steve
XIM
November 13-14, 2004
13-
Bhubaneswar
2. TALK STRUCTURE
• Evolution of Sales in India
• Emerging Channels
• The ASCM
– Some Thoughts
– Infrastructure
– ASMDP
• The Brand Manager
– Brand Strategy
– Some Frameworks
• My Thoughts on Leadership
3. SOME ICE BREAKERS
And a gentle warning about my
autonomous reactions to any sleeping
beauties...
5. SALESMANSHIP
“Ability to get a person to take as much
as you want them to take, which in the
normal course of business if they had
access to the same information as you -
they are unlikely to take the desired
amount”
7. JC PLANNING
Understanding the SALES EQUATION
• Sales ?
• Is there a equation which defines and
quantifies the impact of each element?
8. JC PLANNING
Understanding the SALES EQUATION
• [ Sales = ] per unit time
[
No. of (bill) * Value / bill
] per unit time
9. JC PLANNING
Understanding the SALES EQUATION
• [ Sales = ] per unit time
[
No. of (bill) * lines / bill * Value / line
] per unit time
10. JC PLANNING
Understanding the SALES EQUATION
• [ Sales = ] per unit time
[
No. of bill * lines / bill * unit / line * Value / unit
] per unit time
11. JC PLANNING
Understanding the SALES EQUATION
No. of bills * Lines / bill * Units / line * Value / Unit
SALES =
Width * Line * Depth * Value
SALES = Productivity Productivity Productivity Productivity
12. JC PLANNING
Understanding the SALES EQUATION
• Sales per unit time is a product of
– Width Productivity
– Pack / Line Productivity
– Depth Productivity
– Value Productivity
13. Why do we do this?
– Width Productivity – Replenishment at
outlet level at lower
– Pack / Line value / bill
Productivity – Suggested orders by
outlet
– Depth Productivity – Only in Wholesale /
Certain Categories
– More valuable SKU
– Value Productivity
14. JC PLANNING
Understanding the SALES EQUATION
No. of bills * Lines / bill * Units / line * Value / Unit
SALES =
Width * Line * Depth * Value
Productivity Productivity Productivity Productivity
Key Influencers
Sales related Effectiveness of Sales Call / Market Work
-Coverage Increase -Price Increase
-Billing Efficiency -Selling Efficiency -Price Realization
-T/L[2] -T/L[2] -T/L[1] -Nurturing high value
-CP[2] -CP[2] -CP[1] categories
-DI -Driving larger packs
Key Interventions Project STRIP Project STRIP -Primary purpose -Ops on larger packs /
Lines scheme of regular OPS Deo, KCLL, Fal, Bottle
Wholesale loyalty
program
Activation related Offtake
-Extending to new -New product ln. -Driving pen. -Driving con. qty. [Shift
markets & geographies -New sku ln. -Driving con. freq.[ larger packs]
-Driving pen. no. packs / unit time] -Extending to higher value
categories
15. CAUTION
“Not everything that counts can be
counted, and not everything that can be
counted counts”
- Albert Einstein
16. WHAT ARE THE QUALITIES OF
AN IDEAL SALESMAN
Are you cut out to be an ASCM?
17. SALES
Tons of Travel
Lots of People Skills
Little or no Personal Life
18. HARRY MOOCK
VP Chrysler Corp
Describing the ideal man of a certain
profession...
19. He should have...
• the curiosity of a cat,
• the tenacity of a bulldog,
• the friendship of a little child,
• the diplomacy of a wayward husband,
• the patience of a self-sacrificing wife,
self-
• the enthusiasm of a Beethoven fan,
• the assurance of a Harvard man,
• the good humor of a comedian,
• the simplicity of a jackass,
• and the tireless energy of a bill-collector
bill-
20. Structure
• The Job (Obvious and Not so Obvious)
• Learning the ropes
• The Growth Curve
• The Moments of Truth
• The JC Meeting
• Planning and Delivering
• Leadership
• Conclusion
21. The Job - Obvious
• Deliver Growth - Sales
• Deliver More Growth - Brands
• Deliver Even More Growth - People
• Manage a Sales Area
• Keep commitments
• Deliver Quarter Endings
• Give returns when asked for
• Travel 144 days a year
22. The Not So Obvious
• Lead - A team of 2/3/4 people
• Lead - A team > 15 people
• Lead - A team of > 100 people
• Lead - A team of > 300 people
• Change lives
• Influence people
• See this beautiful country
• Have fun
• Party like there is no tomorrow
23. Learning the Ropes
• Data
• Zone RR
• Brand contributions (C+ / DFT / Pep)
• Best Ever JC on Key SKU (C+ 8 / DFT 100)
• Contribution to branch T/O
• SKU with higher contribution
• SKU with lower contribution
• PDP structure across depots
• Previous CRM Docket
24. Learning the Ropes
• People
– Area Steno - Continuity in the Job!
• Reliability
• Data warehousing skills
– SO
• Previous appraisals / reputation / requests
– TSI
• Previous appraisals / reputation
• Time in current HQ
• Enthusiasm
25. The Growth Curve
• Growth
– From Efficiency
• From Day One
– From Motivation
• One JC
– From Infrastructure
• One Quarter
– From Strategy
• One Year
27. Growth from Efficiency
• Discipline
– Random calls to RS point at 9:00 a.m.
• Back of Control Statement Data
– Letters to TSI who make wrong entries
• Launch Scorecard Reviews
– ECO parameters have to be met
• One Page FOCUS
– Severe consequences for the lack of focus
• JC Meeting - One Day
28. Growth from Motivation
• RS
– Unnati / Newsletter / Regular Meets / Visits
• RSSM
– LEAD RSSM / Letter from ASCM / Gifts
• TSI
– Purple Cow / Moving Ratings / Birthdays
• SO
– Leadership Challenge / Quarterly Career Review /
Family Greetings
29. Growth from Infrastructure
• Coverage
– 300 o/l per lac of population
• Frequency of Coverage
– Twice a week
• Quality of Coverage
– Split beats
• Cutting edge coverage
– Hari Bhari / Shop Score / HHT
31. Growth from Strategy
2001 Size of Nature of Expected Share of
Opportunity Opportunity Growth Growth
Dental 32 23 Share Gain 20 25
Hair Oils 6 11.6 Penetration 24 6
Hair Wash 25 14.6 Visibility 13 16
Skin 33 14.5 Penetration 20 27
Rural 8 18 48 15
96 81.7 73
Focus Categories
ENABLERS / SALES THRUSTS
2001 Plan
5L+ Towns
No. of RSSM 93 142
RSSM Remuneration 2200 3960
No. of Merchandisers 27 134
FOCUS BRANDS No. of O/L 14925 20168
2001 Size of Nature of Expected Share of FOCUS CHANNELS
Opportunity Opportunity Growth Growth <5L Towns Dental Hair Oils Skin
RS Consolidation 88 83 W/S
Cu
Pep
740
750
850
920
Anti CDC
Anti CDC
15
22
11
14
No. of O/L GROWTH 11207 16000 Key Retail
RSMM Remuneration 1800 2200 Grocers/Pr.
Nihar 550 700 Penetration 27 6 Chemists
FAL 520 750 Penetration 44 27 TSI's Rural
Lux 550 630 Anti Chik 15 16 TLSD 190 240
Productivity 76% 85%
No. of TSI's 12 13
Focus Channels
Focus Brands
FOCUS GEOGRAPHIES
2001 Contr. to 2002 Contr. to Share of
Sales Expected Sales Growth
10L+ 60 52 72.6 49 48
Rural 15 13 22 15 27
Focus Geographies
32. The Moments of Truth
• First JC Meeting
• First Market Visit
• First RS Confrontation
• First FF Mistake Detected
• First Presentation
• First Firing
• First Forgiveness
• First Promotion You Engineer
• First Celebration
33. The JC Meeting
• 13 in a year
• One day and you have 13 more in the
market - 13/365 = 3% growth
• Review
– long enough to make it linger
– short enough to ensure it doesn’t fester
• Motivate
– long and constant
– it needs to last 28 days
34. JC Meeting
• Agenda • Fun Capsule
• Review of JC N-1
N- • LUNCH
• Flash Back JC N YR-1
YR- • Development Section
• Task at Hand / JC Story • LEAD RSSM Review
• OPS Plan • Tour Planning
• JC Plan - NUMBERS • Birthday Celebration
• FOCUS - One Page • Motivational Capsule
• FFIS / 1-2-ka-4
1- ka- • Concluding Remarks
• Send Off Game
35. Planning & Delivering
• The Right Balance
– Not down to 200+ SKUs
– Not as general as a Category Number
• The Horizon
– Not too long ( A year !!!)
– Not too short ( A day’s phasing)
• The Rigor
– Intellectual, yet
– Practical at the field level
37. Mike Vance
"Leadership is the ability to establish
standards and manage a creative climate
where people are self-motivated toward the
self-
mastery of long term constructive goals, in a
participatory environment of mutual respect,
compatible with personal values.”
38. Stephen R Covey
"Management is efficiency in climbing the
ladder of success; leadership determines
whether the ladder is leaning against the
right wall."
39. Peter F Drucker
"Leadership is not magnetic personality, that
can just as well be a glib tongue. It is not
"making friends and influencing people", that
is flattery. Leadership is lifting a person's
vision to higher sights, the raising of a
person's performance to a higher standard,
the building of a personality beyond its
normal limitations."
41. HOW MUCH IS GOOD ENOUGH?
• How many outlets in India?
– Population * 300
• How do you cover them?
– Direct vs Indirect
• How often do you cover them?
– Frequency
• How much time to you spend at an outlet?
– Quality
• What returns do you give the retailer?
– Margin and Credit
42. SOME METRICS
• OLP: Outlets per Lac of Population
• LPC: Lines per Call
• LPPC: Lines per Productive Call
• TLSD: Total lines sold in a Day
• BP: Bill Productivity
43. MR. TOM
The Case of the Troubled ASM
Sleep over it, we will begin our Next
Session with it.
44. IN SUMMARY
• Sales in a lot of FUN
• The People Challenges are the BIGGEST and
TOUGHEST ones
• You can make if DIFFERENCE if you CARE to.
• Sales builds LEADERSHIP CAPABILITY
• The Case of Mr. Tom is due tomorrow