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The In practice structure was having too much reliant on primary sales and relations with trade and coverage was not extensive to deliver the desired results. A new distribution structure was needed. Ha launched a project which was named ‘FERREIRA’ (taken from the brand of car which symbolizes for outstanding performance with fastest speed, premium image). Hash’s Background Muscular Hal joined Milliner In 1983 In Its Research Department. Alumni of Boston university, Hal was fortunate to move into new assignments after every three to four years. Hash’s real success came as Marketing Manager and she was posted to the
Headquarters in detergents coordination for East Asia Pacific and Africa/Middle East region. Her exposure of more than 30 countries improved her strategic thinking. Hash’s strength was her unwavering focus, determined attitude and high level of energy. On these strengths Ha was made chairman PULP In 2001 to add vitality to the untapped potential of Pakistan. Disposable Income In Pakistan economy was Increasing as political conditions Improved and economy showed vibrancy. Scenario at Milliner Pakistan PULP was going through post merger synergy after the acquisition of Polka and Orphan Best Foods (REF).
Ha and her team with their vision started off by analyzing the industry and emerging markets. They found out that new Innovation levels were needed. Previously companies were able to achieve global leadership by acquisitions and concentration on core brands and categories. Also further cost cutting was not possible from global purchasing and growth cannot be fueled solely from centralized supply chain or information technology. This case was written by Zinnia Khan under the supervision of Mr.. Keelhaul Named, Faculty CB as the basis for class discussion rather to illustrate either effective or ineffective handling of an administrative issue.
For confidentially reasons dates, figures & some facts have been hypothesized but without distorting the learning on processes. The consumer industry in the emerging markets needed the local touch. The success formula required innovation in value creation and service levels. PULP with the help of Malaysia, Bangladesh and Brazil. They concluded that companies which lacked service levels could not achieve the success they had aimed at. Also only innovations in the service levels to the retailers and customers increased returns for the companies.
Hence, the distribution model had to be redesigned and its structure was studied in four domains namely: 1 Geographic Distribution 2 Distributor Operations 3 Sales Hierarchy, and 4 Sales Monitoring System and Reporting. Company Background PULP formerly Lever Brothers Pakistan Limited was established in Pakistan in 1958. The town of Ihram Khan was the site chosen for setting up a vegetable oil factory. Milliner Pakistan is the largest FMC company in Pakistan as well as one of the largest multinationals operating in the country now operating with six factories located at different locations around the country.
Its head office was shifted to Karachi from Ihram Khan in mid ass’s. Business Areas Restructuring and consolidating activities at Milliner includes the decision to sell or withdraw many brands and concentrate on those with the biggest potential. Restructuring created the following core business areas: 1 Home and Personal Care 2 Foods 3 Beverages 4 Ice Creams 5 Best Foods Meeting every day needs of nutrition, hygiene and personal care Milliner has the following distribution of share in its product portfolio: Home Care Personal care Ice cream Beverages Spreads Savory & Dressing 26 16 8 11 100% 2 Mission
Leading consumer Product Company in Pakistan, a multinational with deeps roots in the country. Attract and develop highly talented people to empower double digit growth Serve the everyday needs for foods, hygiene and beauty of all consumers Produce breakthrough innovation in brands and channel Managing responsive supply chain maximize value from suppliers to customers Exemplary through commitment to business ethics, safety, health, environment and involvement in the community Conventional System of Sales & Distribution Conventional system of distribution of sales in the company was focused primarily awards urban market.
The growing rural and suburban markets were being ignored in terms of needed attention to get improved results. Primary sales and quantitative achievements were the key objectives and accountability in the sales team. Geographic distribution Pakistan was divided into three regions namely, Karachi, Lahore city and Islamabad. Karachi region covered Karachi, Hydrated, few cities of Shins rural, Lower Punjab e. G. , Umlaut and Coastal belt and parts of Balloonists province. Karachi contributed 25% in the overall sales and 20% of the coverage was done by Karachi.
Karachi region had 82 distributors to manage. Most distributors were sole distributors of Milliner and credit was given to these distributors. Lahore city covered Lahore and nearby towns. Lahore had the biggest potential in terms of sales. The population was concentrated and dense. Lahore had 34 distributors to manage. Islamabad region had a vast area to cover but had less potential as compared to Lahore. It covered Islamabad, NFW and northern cities of Punjab. It had 57 Sales Hierarchy Sales hierarchy consisted of Director C&CD, National Sales Manager (NSA), three
Regional Sales Managers, 20 Area Managers and 45 Field Managers. Field Managers used to report to their Area Managers. Field Managers looked after corporate business which means managing all categories. In the urban cities, Field Managers had only one distributor under its control. However, in the rural towns one Field Manager used to look after 13, 15 or even 22 distributors at one point in time. Field Manager’s responsibility was to verify distributor’s redistribution claims. Administrative and commercial documentation was heavy in his Job description. Even at times Field 3