WO2013008243A2

WO2013008243A2 - Process for appointment of a distributor

Info

Publication number: WO2013008243A2
Application number: PCT/IN2011/000465
Authority: WO
Inventors: Jagdeep KAPOOR
Original assignee: Samsika Marketing Consultants Pvt. Ltd.
Priority date: 2011-07-13
Filing date: 2011-07-13
Publication date: 2013-01-17
Also published as: WO2013008243A3

Abstract

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.

Description

TITLE OF INVENTION - Process for appointment of a distributor

PREAMBLE OF INVENTION- This invention in particular describes the nature of the invention and the manner in which it is to be performed.

FIELD OF INVENTION- The disclosures made herein relate generally to the appointment methods and more specifically related to process for appointment of distributor.

PRIOR ART-

In prior art in US Patent No. 20030055750, a system, method and computer program product are disclosed for projecting distribution center usage in a supply chain management framework. A plurality of supply chain sales distributors are displayed utilizing a graphical user interface. The entry of a growth value is allowed utilizing the graphical user interface so that a projected parameter amount associated with the supply chain sales distributors can then be calculated based on the growth value.

In prior art, a system for managing sales distributor information is disclosed in US Patent No. 7 908304 which enables financial services companies to manage and track information about a sales force. The system includes components for managing sales distributor's information, for validating and tracking licenses and credentials, for creating customized contracts and for maintaining compensation structures. The system allows for configuring compensations, providing financial services companies a toolkit for creating and modeling their complex commission schedules used to compensate their sales force. The system also provides modeling tools for agreements and contracts between a financial services company or provider and the sales distributors who sell products.

In PCT/US2003/024446, a system, method, and computer software product for use by a manufacturer to offset a loss of one or more of the manufacturer's sales distributors caused by a displacing a distributor's sale when the manufacturer operates an e-commerce enabled web site that sells products directly to consumers is disclosed. The sales distributor is compensated in response to be identified by the consumer as where the consumer would have bought the product if the product was not directly available from the manufacturer.

In US Patent No. 7546243, systems and methods for processing sales leads is disclosed which comprises inputting a sales lead, having lead information, to a lead processing portion; performing a decision process relating to assignment of the sales lead, the decision process determining the recipient of the sales lead for working the sales lead, wherein at least a call center is included in the decision process as a possible recipient; and outputting information regarding the sales lead from the lead processing portion to the recipient of the sales lead for access and working of the sales lead by the recipient. BACKGROUND OF THE INVENTION

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.

In case of a business on a credit basis, there may be chances of non payment or non-recovery of payment. Bad debt is the money lost in a business as a loss to the business and classified as an expense because the debt owed to the business is unable to be collected from customers or clients and also loans or guarantees of loans that make in the course of trade or business and all reasonable efforts have been exhausted to collect the amount owed. This usually occurs when the debtor has declared bankruptcy or the cost of pursuing further action in an attempt to collect the debt exceeds the debt itself.

The drawbacks of the prior art process is as follows:

1. Difficult to find a good relevant distributor in this environment.

2. Distributors ask for credit and do not make payment in advance.

3. Distributors are appointed not on merit but on vested interests.

4. Distributors blackmail and put un-favorable conditions on a company. 5. Company plays truant and cheats distributors by not having a proper policy.

6. A transparent, uniform and systematic way of selection and appointment of a distributor doesn't exist.

7. The entire market is not mapped before choosing a distributor.

8. Expectations of Distributors and Company are not met leading to a dispute.

9. Clear expectations are not defined.

10. A systematic evaluation is not done in a market before appointing a distributor leading to a wrong choice.

11.Frequent changes of distributors leads to a waste of time in searching distributors rather than customers / retailers and increasing sales.

So there is need for an effective system and method for appointment of a distributor by incorporating a well thought out step by steps approach in the process of appointment of a distributor. The present embodiment is a process for appointment of a distributor as per laid down systematic steps Advantages of the present embodiment:-

1. Introduction of advance payment system from the distributor

2. Distributors are appointed on merit and not on vested interest.

3. A transparent, uniform and systematic way of selection and appointment of distributor is followed.

4. The entire market is mapped before choosing a distributor.

5. Expectations of Distribution & Company are met.

6. Clear expectation is defined.

7. A systematic evaluation is done in a market before appointing a distributor.

8. A proper uniform manufacturing plan can be devised as a distributor logically buys products in a limited quantity that can be sold off by him to the retailers.

OBJECT OF THE INVENTION:

The main object of the present embodiment is to overcome all the associated drawbacks and give a process for appointment of distributor Another object of the present invention is to provide an appointment process which promotes the advance payment by distributors while placing orders.

Still another object of the present invention is to provide for a system that appoints distributors on merit basis rather than on the basis of vested interests.

Yet another object of the present invention is to have a uniform distributor policy.

STATEMENT OF INVENTION-

This is a novel process for appointment of a distributor that has been invented for the first time in India by "Mr. Jagdeep Kapoor". This simple and unique process promotes smooth functioning of the organization and avoids conflict of interest while appointing a distributor. It is an industrially applicable process and can be used in any industry. It also facilitates advance payment.

This is a simple, quick, easy and effective process which can be completed in a short span of time pan India or abroad along with quality and appropriateness in appointment procedure

SUMMARY OF INVENTION-

This is a unique appointment process of a distributor which promotes the smooth functioning of the organization and improves the sales of the company. The process consists of data collection of various distributors in a particular territory, visiting the prospective distributor, taking a letter of interest from the distributor, evaluating distributor performance based on various parameter from retailers, sending evaluation sheet and letter of interest to the company, sending letter to the prospective distributor by the company for meeting, visit of prospective distribution to the company's premises, finalization of the territory and terms and conditions, first payment and placement of order by the distributor upon finalization of the agreement, leading to the appointment of a distributor.

BRIEF DESCRITION OF THE DRAWINGS

The accompanying drawings, which are incorporated into and constitute a part of this specification, illustrate one or more embodiments of the present invention and, together with the detailed description, serve to explain the principles and implementations of the invention.

In the drawings:

Figure 1 is a flow chart diagram schematically illustrating the steps involving appointment of distributor

Figure 2 is a tabular diagram schematically illustrating the format of distributor listing, in accordance with one embodiment of the present invention.

Figure 3 is a tabular diagram schematically illustrating the format of retailer and distributor listing, in accordance with one embodiment of the present invention.

Figure 4 is a diagram schematically illustrating format of letter of interest from distributor, in accordance with one embodiment of the present invention.

Figure 5 is a diagram schematically illustrating format of distributor profile (before selection), in accordance with one embodiment of the present invention.

Figure 6 is a tabular diagram schematically illustrating format for market evaluation of distributor before selection, in accordance with one embodiment of the present invention

Figure 7 is a diagram schematically illustrating format for draft of letter to the prospective distributor from the company, in accordance with one embodiment of the present invention

Figure 8 is a diagram schematically illustrating format showing expectation of distributor from the company, in accordance with one embodiment of the present invention

Figure 9 is a diagram schematically illustrating format showing expectation of company from the distributor, in accordance with one embodiment of the present invention

Figure 10 is a diagram schematically illustrating format of distributor appointment module, in accordance with one embodiment of the present invention

DETAILED DESCRIPTION OF INVENTION-

The foregoing objects of the invention are accomplished and the problems and shortcomings associated with prior art techniques and approaches are overcome by the present invention described in the present embodiment.

Detailed descriptions of the preferred embodiment are provided herein; however, it is to be understood that the present invention may be embodied in various forms. Therefore, specific details disclosed herein are not to be interpreted as limiting, but rather as a basis for the claims and as a representative basis for teaching one skilled in the art to employ the present invention in virtually any appropriately detailed system, structure or matter.

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.

If anyone of these appointed distributors leaves the distributorship or is asked to leave due to non performance, there is a reserve bank created because for each appointment of distributor of atleast 150 are met, at least 50 will give letter of interest, out of 50 only 25 will show interest in filling up the form, out of 25 only 15 will visit the company, out of 15 only 10 will agree with the terms and conditions, and out of 10 only 4 will agree to pay advance Demand draft. Even if only one candidate is selected out of these four, three are kept as a buffer. For a particular city, if the Company has to appoint 10 distributors in different territories, the entire process can be completed in short span of time on an all India basis or all world basis. Thus the process for appointment of distributor has a practical importance that it promotes smooth functioning of the organization and avoids conflict of interest. This process is useful in any Industry for e.g. Consumer non - durables, Hotel, Jewellery, Garments, FMCG, durables, Textiles, etc. The listing format of distributor is carried out for getting best person for the right position.

Thus the present invention is profitable and advantageous to all in following respect -

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.

Advantages of Distributors paying in Advance are as under: a. Distributors will work with heart and full concentration.

b. Paying distributors a compensation of 1.5 to 3% to give credit to retailer and cost to make DD (Demand Draft).

c. Distributor will force retailer to make payment in advance. This will help distributor to get payment in time. Also the payment which is in credit to retailer will not be invested in competitor's product.

d. Every 15 days sales representative will get in touch with retailer.

e. Company supports in Advertising & Promotions.

f. Products are sold on MRP value so there is no negotiation (time saving)

The embodiments of the invention as described above and the methods disclosed herein will suggest further modification and alterations to those skilled in the art. Such further modifications and alterations may be made without departing from the spirit and scope of the invention; which is defined by the scope of the following claims.

DETAILED DESCRIPTION OF THE DRAWINGS -

A complete understanding of the present invention may be by reference to the following detailed description which taken in connection with the accompanying drawings, wherein

Fig 1 schematically illustrates the flow chart of steps involved in appointment of distributor.

Fig 2 schematically illustrates the format of distributor listing. The sales representative uses this format to note down the name, address and Distributor Company of all distributors in a particular territory.

Fig 3 schematically illustrates the format for review of retailer and distributor listing. This helps the company to review that the sales representative has completely filled the information of all distributor and there is no bias in the distributor listing by the sales representative.

Fig 4 schematically illustrates the format for letter of interest from distributor to the company. Once the sales representative visits the distributor premises and inquires about his interest in becoming the distributor of the sales representative's company and in case the reply is in affirmative, he gives the format to be printed on distributor letter head.

Fig 5 schematically illustrates the format of Distributor Profile (Before Selection) Format. This is filled by the sales representative and contains detailing of information about distributor, duly signed by distributor. The Distributor Profile (Before Selection) Format is only filled once a letter of interest is given by the distributor to the sales representative.

Fig 6 schematically illustrates the format for market evaluation of distributor before selection. In this case the sales representative visits the retailer shop of the distributor and inquires about the distributor performance as per the parameters listed in the market evaluation sheet. He then sends this market evaluation sheet of the distributor to the company along with the letter of interest and distributor appointment module.

Fig 7 schematically illustrates the draft of letter to the prospective distributor from the company. This letter is sent by the company to the prospective distributor so that the distributor meets the company representative at the company premises at an appointed day and time.

Fig 8 schematically illustrates the format showing expectation of distributor from the company. This is a prerequisite as one embodiment of the present invention before the appointment of a distributor. Fig 9 schematically illustrates the format showing expectation of the company from the distributor. This is a prerequisite as one embodiment of the present invention before the appointment of a distributor. This is an uniform format and there is no deviation from any of the points from distributor to distributor. Thus it is an unbiased offer to all distributor to work with the company as per companies expectation.

Fig 10 schematically illustrates the format of distributor appointment module. Once all terms are agreed by the distributor and advance payment is made, the company issues distributor appointment letter to the distributor.

Claims

CLAIMS -

We "Samsika Marketing Consultants Pvt. Ltd." claims -

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.