PROCESS FOR APPOINTMENT OF A DISTRIBUTOR

This is a unique appointment process for a distributor which promotes the smooth functioning of the organization in short span of time on all over India or International basis. Sales representative visits the retailer for listing of distributors and then visits the listed distributor one by one inquiring about their interest to become company’s distributor. Interested distributor sends letter of interest to the company inquiring terms and conditions for becoming territory distributor. Interested distributor provides personal as well as business information to the company. Short listings of distributors are on the basis of market evaluation criteria involving certain parameters. Distributors are informed to visit company premises. Appointment of the distributor takes place only after advance payment and territory is finalized on the basis of expectation from distributors.

 

1) An innovative process for appointment of distributor for smooth functioning of the organization comprising of

– listing of distributors by the sales representative of particular territory;

– visiting the prospective distributor premises for knowing their interest for selling company product as distributor;

– taking letter of interest to the company by the prospective distributor;

– filling the distributor profile;

– evaluating the distributor on various parameter on information based from retailer before selection;

– short listing of distributor;

– calling the distributor to company’s premises

– discussing terms and conditions with the distributor including advance payment criteria;

– finalizing the territory of the distributor;

– giving letter of appointment to the distributor.

2) A process for appointment of distributor as per claim 1 is carried out by sales representative visit to the retailer shop for listing the names of distributor of various companies. 3) A process for appointment of distributor as per claim 1, where in the sales representative visit the distributor premises to offer the enrollment for bidding for distributorship of the company.

4) A process for appointment of distributor as per claim 1, wherein the distributor interested to become the distributor of the company has to write the letter of interest asking for terms and conditions of becoming a distributor.

5) A Process for appointment of distributor as per claim 1, wherein sales representative fills the complete details as per distributor profile (Before Selection) duly signed by the distributor.

6) A process for appointment of distributor as per claim 1, wherein sales representative fills distribution evaluation sheet by asking questions on certain parameters about the distributor to the retailer whom he serves.

7) A process for appointment of distributor as per claim 1, wherein the short listing of distributor is carried out by sending letter from the company to the prospective distributor to visit premises for discussing terms and conditions of becoming territory distributor.

8) A process for appointment of distributor as per claim 1, is finalized considering expectations of the distributor. 9) A process for appointment of distributor for smooth functioning of the organization where final selection of the distributor is carried out only after receipt of first advance payment.

 

Marketing is a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Sales operations are a set of activities that help a sales organization run effectively, efficiently and help to support business strategies. Sales operations help to improve sales performance through better processes, technology and methodologies and also help to improve employee morale. Marketing of a business mainly involves three persons like retailers, distributors and consumers.

Retailing is a necessary part of their overall distribution strategy of the manufacturing marketers. Distributors are the persons who sell and send goods to retailer. A particular geographical territory is assigned to every distributor. Retailer buys goods from distributor and sells goods to customer. Advertisement is used for consumption of goods. Direct and indirect channels are also used for distribution of goods. Distributor channel sales are a chain to market a product through different sources. The typical method of distributing goods to consumers is inclusive distribution. It is a distribution method of distributing products or services in a particular market territory by selecting a distributor for all retailers in a territory. It allows manufacturers to maintain more control over the way their products are sold and minimizes price competition among sellers of the products. Distributors are given a particular territory for selling goods of the company.

Payment of goods is coming from distributor after delivery of goods but a lot of time is required from distributors to make payment of goods. There is no advance payment method before the delivery of goods. The payment is not received to company within a particular time resulting in creation of cash flow problems for company. Another reason causing harm to business is conflict of interest. Conflict of interest is created due to multiple relationships with another competing individual or company. This could keep them from being loyal.

 

The process for appointment of distributor on the basis of listing of is as follows.

Sales representative visits the retailers to inquire about the various distributors serving the particular territory. He makes the list of all distributors in that territory along with the company that distributor is representing. After finalizing the list, sales representative visits the various distributors in person one by one asking them about their interest for working with the company. In case the distributor replies in the affirmative, then a letter of interest from the distributor is taken in a particular format on their letter head. Once the letter of interest is given by the distributor, the sales representative fills the profile of the distributor which is in a specific format. After collecting all letters of interest from different distributors and filling the distributor profile, the sales representative evaluates the distributor as per a specified format by enquiring about the distributor’s performance on various parameters from the retailer. Sales representative then sends the Distributor Evaluation Sheet along with the letter of interest and distributor profile to the company. Distributors are then asked to visit company premises based on the selection process. Once the distributor comes for meeting, he is briefed about the uniform distributor policy of the company, advance payment policy, product quality, product servicing policy, support with good margin, advertising, promotion and sales strategy, distributor contest, seminar, no deposit policy, POP (Point of Purchase material) and collateral policy. Once the distributor agrees for advance payment policy and other terms and conditions/expectation of the company, the territory is finalized on the basis of expectation from distributors. The distributor then makes the advance payment and places the order. Then appointment letter is signed.

Selection of distributor includes certain terms and conditions involving selling the product at the price decided by company, visiting all potential customers biweekly, maintenance of records such as daily sales record, frequency chart, sales and stock statement. The performance of the distributor can be reviewed by territory sales manager or sales representative. In case of non performance or deviation from company’s policies or any action detrimental to the company brand or image leads to termination of distributor.

 

Benefit to the Distributor: – Since there is no pressure on the distributor to buy in large quantity, the sales representative cannot dump the product in large quantity to the distributor. Benefit to the Sales Representative: – Sales representative can concentrate 100% on sales business without taking burden of collection of payment from the distributor due to advance payment policy.

Benefit to the Company: – Company can plan production accordingly as Company can correctly forecast demand.

Benefit to the Customer: – Fresh product or latest product from the company is received as the product gets rotated therefore.