F&N Sales and Distribution Management: Report on Company Strategies

This report provides a comprehensive analysis of Fraser & Neave (F&N)'s sales and distribution management. It begins with a description of the company's background, mission, and vision, followed by details of new product descriptions and market forecasts. The report delves into environmental forecasting, scenario development, and economic, social, political, and technological forecasts. It explores industry and company sales forecasts, sales force management, and sales analysis. The report also includes recommendations for an organizational structure and strategies for sales force management. Finally, it covers distribution channel strategy and management, offering a detailed overview of F&N's operations and strategic planning in the food and beverage industry. The report incorporates various aspects of the company's operations, from product launches to market analysis, providing a holistic view of F&N's approach to sales and distribution.

Sales and Distribution Management of
Fraser and Neave
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Fraser and Neave (F&N)
Table of Contents
Part A...............................................................................................................................................2
Description...................................................................................................................................2
Background of the company....................................................................................................3
Mission & Vision of the Company..........................................................................................4
New Product Description.........................................................................................................5
Market or Sales Forecast.............................................................................................................6
Environmental Forecast...........................................................................................................7
Scenario Development Technique...........................................................................................8
Economic Forecast...................................................................................................................8
Social Forecast.........................................................................................................................9
Political Forecast...................................................................................................................10
Technological Forecast..........................................................................................................11
Industry Sales Forecast..........................................................................................................12
Company Sales Forecast........................................................................................................13
Sales Force Management...........................................................................................................15
Sales Analysis........................................................................................................................16
Recommendation of an Organizational Structure..................................................................17
Strategies for Sales Force Management................................................................................18
Part B.............................................................................................................................................20
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Distribution Channel Strategy...................................................................................................20
Distribution Channel Management............................................................................................20
Conclusion.....................................................................................................................................24
References......................................................................................................................................25
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Part A
Description
Fraser & Neave (F&N) is a Food and Beverage Company that was opened in 6th November
2013 in Singapore. It was founded in the year 1883 by Fraser and Chalmers Neave, and at the
time the name of the company was Singapore and Straits Aerated Water Company and later, they
expanded their business to publishing and printing company. In 1898, a brand new company was
ventured and the businesses were then sold at a cost of $29000 to Fraser and Neave (F&N). Later
in 1931, they expanded their business into soft drink base with the inclusion of beer. After their
success in soft drinks, they invested their money in the property development as well as
management and also included printing and publishing in the year 2000.
The chairman of Fraser and Neave is Charoen Sirivadhanabhakdi, who is also an integral
member of the company. Its main headquarter is basically at Singapore and the company is now
at the top of the Asia Pacific Consumer Group. Additionally, the company mostly sells product
like milk, soft drinks and ice creams. The other companies which are associated with Fraser and
Neave (F&N) are Asia Pacific Beweries and Times Publishing, Frasers Centerpoint. In 2011, the
total income of the organization was estimated around $5.7 billion US dollar and the margin for
profit was around $590 million US dollar. Furthermore, the total asset of F&N was more than
$14 billion which was taken and have more than 7890 employees spread over different countries.
Background of the company
Fraser and Neave Holdings Bhd (F&N) is an organization in Malaysia that recorded on Bursa
Malaysia's Main Board with authority and unmistakable staying in the sustenance and drink
business. F&N works in Malaysia, Brunei, Thailand and Indochina, and is a reinforcement of
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F&N Limited, an association recorded on the Singapore Stock Exchange. An overall treasured
brand in Malaysia, today, F&N has spread its wings to more than 40 countries worldwide and set
up itself as a commonplace player (O’sullivan, 2016). In 1931, the company opened a joint
venture with Heineken Company to expand their business in the brewing business. Moreover, in
1936, the company acquired the franchise for Coca-Cola and also started selling drinks by using
the company’s labels. Later, they were able to take the rights of PepsiCo, Fanta, 7-up and
Sunkist.
Furthermore, in 1999, F&N brought a 20% of the stake at Times Publishing and were later able
to take over the entire in 2000 by a mere investment of $575 million. They also started venturing
into new businesses like printing, publishing, retail bookstore and even sales and delivery. In
2006, Temasek Holding a government earned company invested about $950 million stakes in the
company and also became the second largest investor of F&N. However, the entire stake of
Temasek later was sold for 1.30 billion to the Japanese company named Kirin Holding in 2010.
The company too had to face a tough time in the market as their partnership with Coca-Cola
ended in Malaysia in 2011, Brunei and Singapore. During that time, Heineken offered F&N to
take a share in Asia Pacific Breweries for USD 4.2 billion and they also accepted the offer. The
company’s stake also increased by 24%, when ThaiBey took 22% of a stake from the Oversea
Chinese Banking Corporation.
Mission & Vision of the Company
The mission, as well as the vision of the company, is to work hard and give their entire effort in
making products that will earn them the top spot in the market. Their priority is the safety of the
customers, and they try their best to make it sure that the products they sell are full of nutrients
and good for health (Ogunyemi, Ayios and Spiegler, 2016). The mission and vision of the
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company are to give an appropriate bearing to the organization and motivate the employees to
work as indicated by the decided target. The long-haul vision and missions are going to help the
employees to work as needs be and to fulfil the objectives of the organization. The mission and
the vision of the organization likewise help in deciding the qualities and culture of the company.
It is vital for everyone to follow the rules and regulations to keep up the bet quality of food and
beverage which are made by the company. The vision is to not only help the company to achieve
success but will also show them a proper direction of what resources they need to achieve the
desired goals. The mission statement includes the whole deal outlines and cannot be used by the
differing rivals in business. Additionally, the mission statement helps in working up an intriguing
qualification in business.
The F&N mission statement is to keep expanding by achieving success and maintaining the
profit margin ahead of their competitors in food and beverage industry in the Asian market by
offering various types of innovative and healthy items to customers. The value of F&N is very
simple as their main motive is to respect the co-workers and work with integrity. They
communicate with their employees regularly to make them understand the primary objectives of
the organization and what they want to achieve shortly.
New Product Description
Due to the increase in competition in the market, the companies are forced to launch latest
products frequently to survive in the market. Fraser and Neave always think about the customer
first before making any product because it is necessary for the customers to like the product
which they make. The company works on the philosophy of “Pure Enjoyment. Pure Goodness”-
which means they are determined to supply quality products to the customers that are good in
taste but also should have proper nutrition which is effective for health. Furthermore, the
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company does not want to loose their top spot in food and beverage industry in the Asian
markets. Whenever F&N create any product, they try and think out of the box and be innovative
so that it attracts customers and they can remain ahead of the competitors in the market.
Moreover, before they launch any new product in the market, it goes through a lot of testing
which is done by the proper scientific process as the well-being of the customers is the foremost
duty of the company (Kumar, 2016).
The company recently launched three different types of fruit juices in Singapore and Malaysia.
F&N Fruit Tree Fresh came in the flavour of berries and lime, 100PLUS Active is a non-
carbonated product, and 100PLUS came with limited edition SEA Games packing that was very
innovative. F&N thinking about the health of the customers continued to launch beverages that
contain zero sugar content. The products are OISHI Kabusecha Low Sugar, OISHI Kabusecha
No Sugar, F&N ICE MOUNTAIN Sparkling Water Classic and F&N SEASONS Ice Lemon Tea
Reduced Sugar. Furthermore, another important product which was launched was RIBENA that
has 11 flavours and MAGNERS in Singapore. All these products are expected to do well in the
market because of the creativity and safety that is being used is needless to say that it will attract
customers.
Market or Sales Forecast
Market or sales forecast helps in understanding the sales objectives of F&N (Akey and
Korotayey, 2016). In this part, the various types of market or sales forecast are explained in
detailed to get a clear idea about the objectives of the company. To estimate the future sales of
Fraser and Neave, which are based on the records of sale, sales forecasting can be applied as it is
one of the best methods for market research. Additionally, for forecasting sales, it is essential to
have the data arranged systematically so that it is easy for calculations. The information must
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include the statistical data as well as competitor records to understand the reason that might
affect the customer base of the organization. Moreover, F&N applies sales forecast to get the
knowledge of different patterns and to increase the profit margin that can be done by increasing
the cash flow.
Fraser and Neave can carry out sales forecasting periodically like they can plan short term,
intermediate as well as long term forecasting. The important sales forecast are mentioned below:
1. It will help in controlling by maintaining the entire stock like overstocking and under
stocking of materials.
2. The knowledge of different sales opportunities can be known with the help of sales
forecasting.
3. F&N can use sales forecasting to control the different types of activities going around in
the company.
4. With the help of sales forecast, F&N can do financial planning.
5. Additionally, sales forecasting will also help in adjusting the supply and demand of
various types of products.
6. Notice and the offers of the distinctive advancement and costs which depend on the
figure.
Environmental Forecast
In order to run a business successfully, it is important to first understand the different parts of
business environment that involves the technological, social or political changes. These parts are
relatively very important for the future of the company. But it is one of the most difficult process
that is involved regarding strategic management of the company. So, it is necessary to
understand forecasting by F&N in order to anticipate the threats and opportunities that can
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happen in future in food and beverage industry (Lee, 2017). There are different elements present
in the normal deciding and it is basic to recognize the relevant variables. The particular advances
which are used while forecasting the environment involves the aggregate recognizing evidence
of the distinctive components related to environment of F&N.
Additionally, monitoring of the various techniques is important and also to achieve results along
with the proper use of technologies that meet the purpose of forecasting. It is important to
identify the different parts which are present in environmental forecasting. The particular
strategies for assessing incorporate the political, social, economic and innovative figure.
Furthermore, it is vital to measure the deciding technique which can benefit F&N. Moreover,
deciding for food and beverage is by and large subject to the exactness and the basis of the
information. Each immense variable is found out to be seen as paying little heed to whether the
chances of their occasion is low and critical disasters are needed to be ignored similar to the
business. Moreover, environmental forecasting is used to implement new strategies that can
benefit the company.
Scenario Development Technique
Scenario Development Technique can be used by F&N to determine and analyze the growth as
well as development in the business from within the outside the country (Belentsov et al. 2017).
The technique is often used by the company to predict the occurrence of complicated events that
are happening in the company’s environment. It is also important to understand the
environmental events which depend on different kinds of variables. However, it includes various
steps for developing that firstly includes identifying the strategic issues in environment that can
affect F&N. After identifying the issues, it is essential to prepare a proper description of the
issues and focus on working on these. This will help F&N to overcome the difficulties related to
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environment. The senior members as well as the managers must take this issue seriously because
this is an important factor that can destroy a company if not worked upon. The food and
beverage industry in Asian markets is getting much more competition due to the involvement of
foreign companies who are investing in the market. A proper planning and a detailed analysis
can only help the company to understand about the surrounding and then they can fulfill the
demands of the customers.
Economic Forecast
Economic forecasting is one of the important aspects of F&N because it helps in making
prediction about the economy. This can be carried out at various stages like for example for
GDP, unemployment, inflation etc. Economic forecasting is the expectation of any of the
components of financial movement. Furthermore, this theory also decides the general framework
of an estimate, judgment additionally regularly assumes an essential part. Such gauges might be
made in awesome detail or might be extremely broad. Regardless, they depict the normal future
conduct of all or part of the economy and help form the principle of arranging. A forecaster may
choose that the conditions existing apart from everything else are one of a kind and that a
conjecture delivered by the typical factual strategies ought to be altered to assess exceptional
current conditions (Johnston and Marshall, 2016). F&N uses this theory to determine the
economic condition of food and beverage industry and take measure accordingly. Additionally,
education publishing kept on differentiating and develop its client base and solid abroad deals
from its key markets of the US and Latin America; new requests from the UK.
With the help of economic theory, F&N determines the economic conditions of different
countries and then makes products so as to increase the company’s profit margin because of
different economic rates. There are other methods with which the economy of the organization
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can be determined such as quantitative methods, time series method and econometric model. The
quantitative method involves the technique of judgmental method. Enhanced deals in Magazine
Distribution. Income picks up balance by bring down print volume and weaker deals in book
distribution and retail (Polearus, 2017). Furthermore, this method uses the relationship between
linear and non-linear in order to determine the economic forecast of the organization.
Additionally, this method will definitely help the company to predict any economic disaster and
thus saving a lot of money which in turn gives them an advantage over their competitors.
Social Forecast
Social forecasting is another integral part of an organization. Social forecasting is basically used
to recognize the social pressure which is becoming an increasing factor for the progress of a
company. Society changes with time and the mentality of people today will not be same after
five years and this is what makes business though now a days. F&N has to be very careful for
surviving in the market as they have to predict these changes and work on long term plans for the
betterment of the organization. Social factors help in understanding the forces and changes which
are currently shaping the environment. The manager of the company should be confident enough
in taking decisions that reflect assessment of these issues. They should include the environmental
factors which are not currently considered by the technological or economic forecasting. Social
forecasting involves both political and legal factors along with social factors (Armstrong et al.
2014).
Additionally, it is very important to understand the nature of a particular area before launching
any new product like is there minimum number of people that can possibly increase the profit
margin. They must think if the general population of certain region will be able to effort the
product they are launching or is there any ethic connection related to the product. Furthermore, it
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is important to survey their life style, nature and pattern and also their attitude towards the
society. All these factors plays an essential role in determining the success of any organization.
Fraser and Neave must understand and have a proper knowledge about their surroundings before
launching any new product in the industry. This decision and the process of forecasting will
definitely help F&N to reach their desired goals.
Political Forecast
The success of any organization largely depends on the political issues and the economic policies
in a country. In order to overcome these issues related to legislation and economic conditions,
F&N must make efforts that are important to take care of the issues regarding politics and
economy. Without proper forecasting of political issues the company can face huge loss that will
be hard for the organization to survive in the market and compete with their competitors. A large
amount of company’s overall revenue and profit margin depends on the political condition of
that country. So, in order to keep their strong hold in food and beverage industry, they must
focus in the politics issues in Singapore, Malaysian markets (Borodow et al. 2015). Though the
company is still expanding it needs to be clear about their thought process of what they from
their customers. Their main priority should be to make products which are creative and healthy
enough that will attract customers.
Furthermore, the income of the organization was influenced because of the weak execution of
Soft Drinks as well as Dairies in a few areas and on account to which the info cost and venture
done likewise expanded. Beer and Dairies recorded twofold digit profit growth. Boosted by
bringing down information costs and enhanced assembling and course to-advertise efficiencies.
Soft drinks profit unfavorably affected by pre-Goods and Services Tax destocking and surges in
Malaysia. Income bounced 15% as volume rose 9%. Expanded outlet infiltration, centered brand
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building activities, compelling special and exchange administration exercises and enhanced
supply of crude material drove deals and higher deals from F&N TEAPOT and Carnation canned
drain (Xu et al. 2016).
Technological Forecast
Technological Forecasting (TF) mainly deals about the examination of new patterns, profoundly
new innovations, and new powers which could emerge from the interchange of variables like
new open concerns, national strategies and logical revelations of Fraser and Neave. Essentially, a
technological forecast manages the qualities of innovation, for example, levels of specialized
execution, similar to the speed of a military airplane, the power in watts of a specific future
motor, the exactness or accuracy of an estimating instrument, the quantity of transistors in a chip
in the year 2015, and so forth (Wang and Miao, 2015). A significant number of these powers are
outside the ability to control, impact and learning of individual companies. Technology Forecast
is a blend of imaginative reasoning, master perspectives and elective situations to make a
commitment to key arranging. The gauge does not need to state how these qualities will be
achieved.
Secondly, mechanical determining generally manages just utilize machines, methods or
strategies. Technological forecasting endeavors to predict the future qualities of helpful
mechanical machines, strategies or systems. Furthermore, F&N can use these forecast to avoid
from the area of innovative gauging those wares, administrations or methods proposed for
extravagance. Together this can be communicated that the imaginative measure is to a great
degree fundamental for the F&N. Due to this reason that development and the progression can
strongly impact and furthermore change the entire state of business an association is doing.
Moreover, technology forecast helps F&N to forecast different types of new technologies and
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create innovative products with the help of these technologies (Wong et al. 2018). This will
definitely help in increasing the profit margin of the company and keeping their strong hold in
the market.
Industry Sales Forecast
The sales of an organization depend on product quality, price and market demand of the product.
The management plays the key role to manage the sales forecast of an organization. The number
of customer of this organization is 40000 per year, and the average selling price of the
organization is $20. For that reason Market demand for F&N Limited is (customer numbers *
Average product price) that means (20 * 40000) = RM800,000. Identification of market demand
is important to identify the demand for a particular quantity of goods in a specific period.
Figure: F&N Malyasia’s Revenue
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(Source: Fifthperson, 2018)
Based on above graphical representation it has been identified that the In case of financial year
2015 the overall revenue of this company was more than RM 2590 Million but in case of 2016
the overall revenue of this organization generally decreased.
Company Sales Forecast
The sales volume of this organization will increase in 2018 due to the implementation of a
different strategy that helps attract the customer leads to improves the financial profitability of
F&n Limited. On the other hand due to the low expense and higher revenue of this company the
net profit will increase in the financial year 2018 and 2019.
On the other hand the demand of this organization is = (market share parcntage of this
organization * Market Demand) that means = ( RM 800000 * 30/100) = RM240000.
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Sales Force Management
Sale force management is very essential for any organization as it is directly related to the
success of the company in the future (Rochford and Wotruba, 2015). Sales force management
implies the regulator of individual offering, arranging and bearing additionally including
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enrolling, persuading, steering, allocating, preparing as this things identify with the individual
deals drive. For an organization like F&N, administration of sales force is extremely necessary
on the grounds that the business compel chooses the eventual fate of the organization.
Furthermore, if the organization fails to develop a proper sale force which can handle during the
time of difficult circumstances in the market, then the future of the company is at risk. They
should be focused on the activity like for this situation offering food and beverage or publishing
and imprinting in Fraser and Neave. In addition, sale force group is one of the important
members in an organization and so they cannot be ignored. Through a convincing arrangements
drive, various arrangements will be made which will provoke high arrangements turnover
achieved the business.
The administration must investigate the choice system of the organization and it must
incorporate present businessperson, work offices, university campus and grouped promotions to
get the best sales person for the organization. Furthermore, some critical qualities of sales
representatives are they should be excited and self-assured with the item they need to offer. So,
the first step towards the management of sale force is to design and analyze a proper structure,
strategy and size for sale force. Besides, the choice strategy ought to incorporate deals bent,
scientific and authoritative aptitudes, individual attributes and different deals trademark which
the organization wants from their representatives.
Sales Analysis
Analyzing of sales is very essential for any organization because it shows the entire scenario of
how the company is running. F&N should analyze the sales since it helps to discover the quantity
of sold and unsold items. The outcomes is later used to choose how to stock, how to check the
feasibility of business force as well as how to set collecting limit, to see how the association is
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performing alongside its destinations. The money related features propose the general income of
the organization is $1429.5 million and acquiring before premium and assessment is $147.8
million. The different processes by which sales of F&N are analyzed are as follows:
1. Periodic comparisons: In periodic comparisons, the sales are analyzed over a period of
time. Essentially, sales are contrasted from a period to another similar period from the
past that can give an exact result of company’s total profit or loss during that period of
time (Kezner and Kerzer, 2017). This can be done differently depending upon the need of
the organization like month to month sale, year to year sale contingent upon the
administration of the organization.
2. Competitor sales analysis: In this process the sales of the competitors in the same field
are studied and are recorded out in the open segments. This is done because it helps in
comprehend the customer needs and get an edge over rivals in market. In addition, this is
carried out on a month to month premise.
3. Break-Even analysis: These process examination exhibits an association of what slightest
numbers of sales is required to guarantee that it does not lose cash that is already invested
in making in the product. It likewise helps in understanding the delicacy of equal the
initial investment point which is to change in both settled and variable expenses.
4. Sales analysis review: A business examination ought to be granted to people from the
association who can benefit by taking the data. The business constrain should think how
it is also getting along against the targets, store ought to have the ability to separate the
association assessing framework and its impact on arrangements, and collecting ought to
have the ability as far as possible.
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5. Context for sales analysis: In this process, year to year sales are analyzed because it will
help to understand the company’s rate of increase or decrease in sales by matching both
the data.
Recommendation of an Organizational Structure
It is exceptionally basic for any association to pick an appropriate classified structure keeping in
mind the end goal to run an organization. F&N can utilize the corporate authoritative structure to
maintain the business. In the authoritative structure, an organization is recognized by state also
by IRS, a section that is completely separate from their partners. In this way, partners are in
charge of the organization's obligation which is constrained to the measure of investment which
they do. Also, the payments which are paid to the partners cannot be diminished from business
pay as a result of which the net revenue goes twofold. There is additionally a less danger of
paying excessively expense to the legislature as there will be distinctive tax assessment
framework for the organization and the partners (Kotler, 2015).
But the court is able to penalize the organization's office as they were also in charge of the
activities. At the point when the organization utilizes enterprise classified structure which they
can pitch their stocks in order to raise their assets. The extent of the organization, assess usage
and distinctive kinds of legislative structure with which the organization's proprietors will
manage must be contemplated before choosing which structure to pick and will work for the
organization. In any case, one bad decision on enterprise means it sets aside somewhat more time
for finishing the printed material, cash to meet the state and government laws. Besides, this
process will help Fraser and Neave to effectively maintain their business globally and keep their
solid hold in Asian markets.
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Strategies for Sales Force Management
It is very essential for companies to have proper strategies for managing sale force. The
necessary part of the accomplishment of showcasing technique is the administration of offers
constrain. In perspective of the Fraser and Neave association, the association operational peril
extent in 2016 is low stood out from another year that was 0.2. The various strategies that the
company can apply in order to manage sale force are mentioned below:
1. The recruitment process is the most important part to deal with sale force. Furthermore,
this is done by getting some information about the kind of qualities they need to find in a
business representative. The organizations can additionally change their choice strategy
and incorporate tests like conduct and administration aptitudes.
2. Training process is one of the fundamental thing the newcomers to stay in front of their
rivals. An appropriate preparing should be given to the deal power of Fraser and Neave
before entering market and other different phases of their time in organization.
3. Supervision is also an effective strategy for sales force management. A general
supervision is kept up with respect to sales people overseeing potential clients. Also.
Supervision is related to capable time organization from the game plan of client call for
concluding the transactions (Pinder, 2014).
4. Motivational process is a key thing in making a successful sale force. Motivating
employees by giving them rewards for their hard work or by other tools like social
gathering and family outings.
5. Evaluation is another important part of the sales force management. The report regarding
sales which are afterwards sent to Fraser and Neave by the sale force will fill in as a
decent beginning point for assessment.
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6. The abilities of plan and relationship advancing are the two basic parts of powerful sales
characteristic and long haul advantage for association.
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Part B
Distribution Channel Strategy
Fraser and Neave started following a concept which is to see customers happy and try to satisfy
their needs with high quality and lower price (Dennis, Cheong and Sun, 2017). F&N depends on
distribution of channel strategy along with location and place which is an important role for the
market strategy of the company. F&N and all of the small companies associated with it, their
subordinate are taken care of in headquarter which is in Singapore. Furthermore, it is also
noticed that the company’s official work and marketing are done in the same nation where it is
mainly operating. Moreover, the various important issues and functions of the company like
sales, corporate job, marketing, production, trade and buying too are done in the same nation.
The launching of new products is also carried out in the same nation in order to attract local
customers and increase the profit margin of the country. Similarly, F&N can carry out success
and productivity by using the distribution channel strategies. However, because of the difference
of currency in various countries leads to high labor rate as compared to import rate which is very
low. This type of channel strategy which F&N uses is relatively far more innovative and
different in comparison to their competitors. This is in fact an important aspect in success of the
company globally. The desire to be at the top in food and beverage industry by following and
applying different strategies is the reason for the success of the company.
Distribution Channel Management
It is noticed that success of an organisation is in distribution and selling process of an
organisation.. to create higher organisational performance employees satisfaction is urgent
because of their entire time and effort for the wellbeing the organisation. So, F&N should keep in
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mind that they need to understand the needs of the employees and motivate them for achieving
the desired goals and success (Fernet et al. 2015). By stimulating the employees as well as
grooming them will not only benefit the company but also help the organisation by providing
higher organisational performance. Moreover, it is also seen that when someone is motivated,
they try to give their best, thinks in innovative ways and ends up helping the organisation in
moving forward and compete in the market with their competitors. Furthermore, this is the
responsibility of the senior members of the organisation to understand the employee needs and
communicate with them regularly to keep a positive attitude in the workplace. That helps to build
a good relationship with the customer leads to increase the overall product sales of the
organisation.
The other ways through which the companies can get motivated is through rewards for their hard
work. Compensation plays a huge role in the life of an employee and so F&N must keep in mind
to reward the employees for their dedication towards the company (Lazaroiu, 2015). This will
only urge other employees to put their effort and get the reward which in turn benefits the
company. Like if a latest product of the company does a great business in market, then it is the
duty of the managers to give credit and pay incentives to employees. Following these types of
process will surely help Fraser and Neave to complete in the market and achieve the desired
goals.
The process of sending products to the market with the help of various channel partners is termed
as distribution channel management. F&N uses this management to get their latest products in
the market with efficiency and without any disturbance (White, 2015). Furthermore, the
distribution channel management impacts various sectors in the company and these are as
follows:
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1. Sales Forecasting
Sales forcasting is important process for all the organization because it ganarally signifies the
expected and current sales and product demand. That generally needed to predict overall
performance of this organization and it also help the mangers in decision making process for
sustainable strategic development.
2. Channel Marketing Management
In present days al the organization are using different marketing channels for distribution of
products. Now the use of e commerce sites also provides a huge advantages to the company. At
the same time the organizations are using proper transport system to deliver all the materials in a
proficient manner.
3. Inventory Management
Management of inventory is necessary for all the organization to manage day to day production
efficiently. Higher officials os F&N Limited also use expertise staff for inventory supervising
and company also use Automated system to collect and store all the information and status of
inventories in regular basis.
4. Risk Management
Analysis of risk is important and the management of this organization also research the whole
market to identify different upcoming threats or different factors that can hamper the total
business position. The managers also take strategies and implement it successfully to avoid
upcoming threats.
5. Finance Compliance.
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Identification of financial position is essential because that generally ensures that the company is
able to meets its all financial liabilities or not. On the other hand, identification of Liquidity and
profitability ratio generally signifies current financial condition and ability of the organization.
for that reason the management of F&N also records al the financial data for future references.
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Conclusion
F&N is a big successful company that has a strong hold in the Malaysia, Thailand and also in
global market. In order to remain at the top they should always follow the mission as well as
vision and work hard for getting success. Furthermore, they should always thin\k about the
customers before launching any new items in the market. The company must carry out sales
forecast to predict the dangers in future and try to be innovative for the survival of the company
and compete with the competitors. Additionally, it is very necessary for the company to have
proper sales management and keep them motivated by providing incentives regularly for their
effort towards F&N. Finally, they should maintain their distribution channel strategy and also
distribution channel management in order to fulfill the desired goals of the company.
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