Calculate NUMBER OF SALESMEN required in your territory | FMCG | Sales Training | Beat Planning

Summary

In this video, the speaker explains how to calculate the number of salesmen required for an FMCG territory, specifically focusing on beat planning. Using examples like the Gurgaon territory, the video covers the calculation based on the number of outlets and how often the beats are covered (weekly or bi-weekly). It provides a step-by-step guide, showing how to determine the number of sales officers needed by dividing beats by 6, with additional considerations for variations in beats. The video offers practical formulas to help area sales managers or trainees estimate sales force requirements efficiently.

Takeaways

• 😀 Calculating the required number of FMCG salesmen in a territory is crucial for an area sales manager or during a management training stint.
• 😀 The territory can be divided into zones, each with multiple beats (sales areas). In this example, Gurgaon is divided into four zones.
• 😀 Each beat consists of a certain number of outlets. In this case, there are 1000 outlets and each beat covers 40 outlets, resulting in 25 beats.
• 😀 There are two types of beat coverage: weekly (every week) and bi-weekly (every alternate week).
• 😀 In weekly coverage, each beat is covered once every week, and with six working days, a salesman covers six beats in one month.
• 😀 In bi-weekly coverage, each beat is covered once every two weeks, resulting in fewer beats covered per month by the salesman.
• 😀 For 25 beats, four salesmen are needed if all the beats are covered weekly, with one beat possibly being omitted or merged due to low sales potential.
• 😀 In a mix of weekly and bi-weekly beats, additional salesmen are required to cover the bi-weekly beats, leading to the need for five salesmen for 25 beats.
• 😀 When the number of outlets is smaller, like 720 outlets, fewer salesmen are required (in this case, three salesmen for 18 beats).
• 😀 A generic formula to calculate the number of salesmen required is: number of beats ÷ 6. This formula works when the number of beats is a multiple of 6, though it may need adjustments for non-multiples.

Q & A

How do you calculate the number of salesmen required in a territory?

To calculate the number of salesmen, you need to know the total number of beats in the territory and the frequency at which each beat is covered (weekly or bi-weekly). The generic formula is: number of salesmen = number of beats / 6 (if beats are weekly). For bi-weekly beats, adjustments are made accordingly.

What is the significance of beats in territory management?

Beats refer to specific areas or sectors within a territory that need to be covered by sales officers. The number of beats is a crucial factor in determining how many salesmen are required to cover all areas in a given time frame.

How is the number of beats in a territory calculated?

The number of beats is calculated by dividing the total number of outlets in the territory by the number of outlets covered per beat. For example, with 1000 outlets and 40 outlets per beat, the number of beats is 1000 / 40 = 25 beats.

What is the difference between weekly and bi-weekly beats?

Weekly beats are covered every week, with each beat being visited once per week. Bi-weekly beats are covered every other week, meaning each beat is visited twice a month, typically every alternate Monday or Tuesday.

How many salesmen are needed to cover 25 beats if all beats are weekly?

To cover 25 beats, you would need 4 salesmen, as each salesman can cover 6 beats in a month (6 working days per week). Since 25 divided by 6 equals approximately 4, the fourth salesman may cover the remaining beats or handle less profitable ones.

What happens if a beat does not have significant sales potential?

If a beat has low sales potential, it may be omitted from the planning or clubbed with a neighboring beat to optimize the number of salesmen required in the territory.

How do weekly and bi-weekly beats affect the number of salesmen needed?

When beats are a combination of weekly and bi-weekly, you need to adjust the number of salesmen accordingly. For example, a salesman covering 5 weekly beats and 2 bi-weekly beats can handle 7 beats in total, helping optimize the coverage of the territory.

What is the formula for calculating the number of salesmen for a given number of beats?

The general formula is: number of salesmen = number of beats / 6. However, this works well only when the number of beats is a multiple of 6. If it's not, adjustments are made based on the specific requirements of the territory.

How would the number of salesmen change if the territory has 720 outlets and each beat covers 40 outlets?

If the territory has 720 outlets and each beat covers 40 outlets, the number of beats would be 720 / 40 = 18. To cover 18 beats, 3 salesmen would be required, as each salesman covers 6 beats per month.

Can the number of salesmen required be different from the generic formula?

Yes, the generic formula is a benchmark, not a rigid rule. Factors such as beat frequency, outlet sales potential, and the geographical spread of beats may require adjustments to the number of salesmen.