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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