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  • Human Resources Management Woodenship - Group 8

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    Rishabh Singh
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    Woodenship is an Indian food and beverage company founded in 2013 by Amir Siddiqui. It has since grown significantly, with annual sales revenue crossing 300 crores and 80% year-over-year growth. Woodenship produces around 35 food and beverage products, as well as environmentally friendly disposable utensils. Most of its revenues currently come from major e-commerce players in India. It is now looking to set up its own distribution network by hiring a new Sales Head and determining an optimal sales force structure and incentive program. Key factors to consider include benchmarking other FMCG companies, analyzing the effectiveness of the current incentive plan, and determining an appropriate pay and payout strategy.

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    HR CAse

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    Group8_HR

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    Woodenship is an Indian food and beverage company founded in 2013 by Amir Siddiqui. It has since grown significantly, with annual sales revenue crossing 300 crores and 80% year-over-year growth. Woodenship produces around 35 food and beverage products, as well as environmentally friendly disposable utensils. Most of its revenues currently come from major e-commerce players in India. It is now looking to set up its own distribution network by hiring a new Sales Head and determining an optimal sales force structure and incentive program. Key factors to consider include benchmarking other FMCG companies, analyzing the effectiveness of the current incentive plan, and determining an appropriate pay and payout strategy.

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    © All Rights Reserved
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    8 views9 pages

    Human Resources Management Woodenship - Group 8

    Uploaded by

    Rishabh Singh
    Woodenship is an Indian food and beverage company founded in 2013 by Amir Siddiqui. It has since grown significantly, with annual sales revenue crossing 300 crores and 80% year-over-year growth. Woodenship produces around 35 food and beverage products, as well as environmentally friendly disposable utensils. Most of its revenues currently come from major e-commerce players in India. It is now looking to set up its own distribution network by hiring a new Sales Head and determining an optimal sales force structure and incentive program. Key factors to consider include benchmarking other FMCG companies, analyzing the effectiveness of the current incentive plan, and determining an appropriate pay and payout strategy.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 9

    Human Resources Management

    Woodenship - Group 8

    Group Members

    • Anand Kumar Jha - 19P007 • Jhanvi Dubey - 19P024


    • Rachita Agarwal - 19P034 • Shivam Agarwal - 19P049
    • Rishabh Singh - 19P039 • Tarun Lahoti - 19P057
    Woodenship: Journey so far
    • Founded by Amir Siddiqui in 2013 after he returned to India after an MBA
    from Stanford
    • Had an offer from Amazon in Seattle but left it to pursue an old dream
    • Wanted to brand and market Indian traditional food items
    • Set up a manufacturing facility in Noida and a R&D unit to focus on recipe
    formulation

    Product Portfolio:
    • In 5 years of time, launched close to 35 different products in the Foods & Beverages industry
    • Bottled Aam Panna (most popular SKU), Packaged Coconut, Sesame based sweets
    • Environment friendly disposable utensils made from Wood and Banana Leaf
    Expansion Plans:
    • Annual sales revenue crossed 300 crores
    • YoY Growth Rate: 80% in each year
    • Capacity expansion in Noida and Amir appointed 2 co-manufacturers- Pune and Madurai

    Distribution Network:
    • Leveraged the E-commerce boom in India
    • Close to 80% of the revenues came from the 3 major e-commerce companies in India
    • Remaining 20% from B2B arm of their business – Selling to Hotel, Restaurant Chains, Airlines,
    Multiplex Chains
    • No Sales team and network of distributors

    Road Ahead:
    • Setting up its own distribution network and sales field force team
    Key Steps:
    • Amir hired Mr. Stanley Matthews as the Sales Head for Woodenship
    • Stanley emphasized the importance of Sales Officers
    • Sales Officers: Day to Day Engagement with distributors, supervisors for distributors’ sales team
    • Sales Officers  Area Sales Managers (North, South, East & West)  Regional Sales Manager

    Key Determinants:
    • Number of Sales Officers required to serve customers
    • Number of Outlets, Distributors being serviced in a zone
    • Number of Distributor Salesmen

    Objectives:
    • Undertake a benchmarking exercise in FMCG sector and list parameters for work load exercise
    • Propose an optimal ratio of headcount at each level
    • Design a Sales Incentive Scheme: Performance Management Program with defined monetary rewards
    • KPIs based on team goals rather than individual centric only
    1. Evaluate Business Economic Value Drivers- The sales force is impacted by several factors such as does the
    company have the best product, best price, best delivery, and best market coverage or does it rely heavily on the
    business relationships maintained by the sales force? Relative to business operations and culture, how realistic
    are management’s sales goals and marketing strategy? Is there enough inside sales support and investment in
    promotion and marketing. All of the above factors are business drivers and should be looked into while
    designing sales incentives.
    2. Analyze Current Plan Effectiveness- We also have to look into whether the current incentive plan is effective or
    not before determining the incentive plan.
    3. Determine Pay Strategy – Determine the current pay strategy. Determine what level of pay and
    performance is required to reach the 50th or 75th percentile of the market? Are there unique scientific or
    technical skills required for the job?
    4. Payout Modeling – What is the payout under various situations: below budget, at budget and above budget? Is
    the plan capped or uncapped? Does the commission rate increase after the company reaches various
    performance levels? Payout modeling is intended to ward off the effects of ‘unintended consequences.
    5. Administrative Guidelines and Communication – The actual payout for sales
    incentive plans istypically monthly or quarterly. The frequency of the payout helps to
    tie specific sales events to specific cash payments, thus keeping the sales force
    motivated

    Determining Sales incentives


    We’ll take into account the following three factors while determining the incentives that can be provided to the
    sales force. There can be other factors that can be taken into consideration too.

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