Divisionalisation: An evalution, Bangalore and Hyderabad; LAKME Ltd.

Abstract

Lakme Ltd. has modified the distribution network in the metros and the mini metros in the country. This system known as divisionalisation, has been introduced to enable better coverage and better focus on the two divisions: colour cosmetics and personal products. Has this new system benefitted the company?. The study was restricted to Bangalore and Hyderabad only. An in-depth study in Bangalore city and a preliminary study in Hyderabad were made. Dealers in major and minor areas were consulted and visits were made to all the stockists. Opinions and suggestions (including, problems, if any) were taken from the field force (ie) the area field managers, the sales officer, the company salesmen and the interim salesmen. All data was culled from the records and other documents maintained by the company. The figures to calculate the ROI of the stockists were taken from the stockists themselves.