Sales And Distribution Management

Name :Shivaraj patil G D

Reg. No:19MCMS047095
Course:MBA (marketing)

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 A.1 Discuss the background study regarding case study “Sunshine Lumieres Pvt
Ltd” – appended at the bottom of this document - and define clearly any four key
business problems to be solved in the organisation.

• Sunshine Lumieres was established in 1992 in Bangalore, India to manufacture lamps

mainly for household use. The company was established by Dr. Srinath Kashyap who had
extensive experience in the lamp industry with the major multinational manufacturers in
India and overseas. Sunshine was involved till now in manufacturing and supplying lamps
for consumer and household use under various brands for the leading lamp companies.
Dr. Kashyap was involved in looking after the manufacturing and marketing functions while
his wife looked after the Finances and the HR functions. The Company had a total of 50
employees and grossed revenue of Rs.9 crores in 2005.

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 A2.Discuss if separate departments should be organised for each category of products. Justify
your answer.

• It is important to assembled separate category coordinated for every classification of

products, as they will be arranged to extend business by launching Consumer household
Lamps Industrial & Commercial lamps Specialty lamps like extreme focus lights utilized in
Medical and Office Equipment Automotive lights Miniature lights Energy proficient lights
like CFL lights, LED lights and so on.

• Associations separate tasks into different departments offices so experts in a specific

assignment can work with different experts in a similar undertaking, expanding proficiency
and profitability. At the point when an organization utilizes useful departmentalization,
advertising experts, for instance, cooperate in a similar office. At the point when an
organization utilizes item departmentalization, experts in a single product offering work
with different experts in a similar product offering. Most private ventures utilize utilitarian
departmentalization except if they have numerous unmistakable product offerings or
administrations.
•  

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 A.3 Analyse whether sales should be organized on geographic basis or product basis. Justify
your answer.

• - Geographic basis:

• This is also known as territorial sales force structure, and it means that the organization
assigns each sales rep to a certain geographic area.
• Advantages:
• Low cost
• Proper territory management leads to low geographic duplication of effort
• Low duplication of effort with customers (unless buyers are organizations that cross
territories) Disadvantages:
• Sales reps have a hard time developing product or market specialization (unless the
organization commits to specialized sales forces allocated by geography)
• Territory sizing can be a challenge, resulting in uneven revenue/opportunity across
geographies’

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 A.4 Analyse the pros and cons of domestic sales organization and export sales
organization being separate. Justify your answer.

• Advantages:
• Simpler Market Analysis
• Understanding each target market's preferences poses a challenge when operating in
international markets. Firms may need to invest substantial resources in analyzing what
customers from other countries are most likely to purchase, and how to market to them.
This may require a significant investment of time in each country, whereas in the domestic
environment, a firm can often predict customer preferences more easily. It likely is more
familiar with competitors' offerings and can more easily understand its own market niche.
• Communication is a Breeze
• In the domestic business environment, communication is typically easier than in
international environments. Employees in the domestic environment are typically from
the same culture and speak the same language fluently, although exceptions do of course
exist. Close communication must be maintained between operations in different nations,
which requires significant time and effort.
• Streamlined Reporting

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 • Disadvantage:
• Access to Materials and Labour
• In a domestic environment, access to materials and labour may be limited. A firm with
international operations might more easily and cheaply procure the raw materials or
component parts of its products. Likewise, it might produce products more cost-effectively
by creating them where labour is cheaper. A domestic firm might need to follow stricter
regulations regarding employee wages. However, providing domestic jobs can lead to
greater public goodwill for the company in its domestic environment.
• Greater Impact From Cyclical Changes
• Predicting cyclical changes usually tends to be easier in the domestic business
environment. This allows a firm to prepare appropriately to take advantage of economic
upturns and stay afloat during downturns. However, cyclical changes tend to affect a
domestic firm more intensely than an international firm, making it more vulnerable to the
ups and downs of the domestic market. A firm that does business in different countries
has other ways of generating profit when domestic market conditions are poor, although it
may have difficulty accurately predicting the cyclical changes in each country.
• Limited Market Size

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 • Export sales:

• Advantages:
• Increased Competitiveness: Exporting can allow you to gain exposure to new ideas,
management practices, marketing techniques, and ways of competing which can help you
to better position your business both within the Caribbean and overseas markets to
increase competitiveness.
• Increased Sales: Exporting is one way of increasing your sales potential. Given the small
size of most Caribbean markets, exporting allows a firm to expand its market beyond the
scope of a limited and increasingly saturated national market. For instance, a producer in
Trinidad and Tobago has access to a market of just over 1.5 million people. However,
exporting to Brazil for example expands that producer’s potential market to close to

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 • Disadvantages:
• Competition: Competitors can typically not be avoided in export markets. The world is
global and to stay competitive specialty food and beverage providers need to understand
their competitive advantages to stay ahead of the competition and be successful abroad. •
Extra Costs: Developing an export market takes time. It can also be costly to develop
new promotional/marketing materials, develop new packaging and assign new personnel
to travel and undertake other administrative and operational tasks. These can place severe
strain on the financial resources of firms, especially the smaller firms.
• Product Modification: In order to meet safety, security and other requirements in the
export market, your product may have to be modified. Some firms may not have the
technical know-how where these modifications are concerned and might have to incur
the costs associated with hiring an expert. Having to modify your product for the export
market can also stretch the human and other operational resources of the firm.
• Payment: Apart from the risk of non-payment, the complicated processes involved in the
collection of payments using the various methods (consignment, letter of credit etc) can
be time consuming. Firms with limited cash-flow therefore need to fully understand the
financial pitfalls associated with exportin

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 A.5 If you were Dr. Kashyap, propose any three important initiatives in order to
professionalise and restructure the organization.

 
• To plan online business
• The same is true for starting your internet enterprise. Because a excellent idea alone is
not enough, you will need strong and sustainable bases to succeed online. Within this first
step to launching your digital business, you will notice precisely how to make a simple yet
impactful business plan and how to pronounce your brand values to be successful.
•
• Launch company online
• Now that your internet business foundations are in place, it's time to set your business
plan into motion and start your brand. The second step focuses on establishing your
business operations, designing your brand experience, and launching your online shop.
For most people, establishing business operations is a dull thing to do. You might be
tempted to jump it in the beginning as you have not sold anything yet and it's going to be
easy to keep an eye on a few earnings manually in the start.

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 • Use High-Impact Marketing
• Wasting money on ineffective marketing is easy. Seek out low-budget, high-impact
marketing strategies to improve your small business. Test one or two new tactics and see
which perform best before adding them to your marketing mix. Social media is an
excellent low-cost and low-risk way to promote your business. LinkedIn, Facebook, Twitter,
and Instagram are a few good tools to build a social presence and attract attention to your
business.
•  
• Master Business Presentations
• A powerful business presentation can help improve your small business' performance.
Start by learning the essentials of a memorable business presentation. These can include
delivering an unexpected little pearl of wisdom to captivate your audience. That said,
don't overload your presentation with information. Keep everything relevant.

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