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ALLIANCES A PERSPECTIVE PRESENTATION FOR
By Romesh Advani
Mumbai – The Urban Agglomerate Includes districts of Mumbai, Greater Mumbai and parts of Thane Districts (Kalyan,Dombivili,Thane town, Panvel,Navi Mumbai)
Amchi Mumbai Population : 24.3 Mn. Area : 1426 sq km (Districts of Mumbai and Greater Mumbai, parts
of Thane) Sex Ratio of 750 females per 1000 males Literacy : 86% 40% of India’s foreign trade Highest GDP ,Wealthiest City Huge Migrant Population
Melting pot of communities
On the other hand
54% population lives in slums in sub human conditions
Dharavi is Asia’s second largest slum and the most densely populated slum in the world: but home to 15000 small one room mfring units
CONSUMPTION PATTERN
Food Products Biscuit packets - Parle, Britannia, ITC, Cadburys Salty Snacks & Noodles etc etc- PepsiCo ,Maggi etc
Personal Care Products Toothpaste - Colgate Palmolive, HLL, P&G, Himalaya Skin Care- Face wash –Anti ageing, Under eye care use Hair Oil – Parachute, Dabur, Vatika, Shampoo- HLL, P&G . (Sachets driving penetration) Soaps: HLL, P&G, Godrej, Nirma Sanitary Napkins - Kimberly Clark (Kotex), Energizer (owns
Stayfree, Carefree), P&G (Whisper) Detergent cakes & bars/powder for washing clothes -
HLL,P&G, Nirma, Rohit Surfacants (ghari detergent powder), Razor blades for shaving - Topaz, 7’o Clock, Super Max,
Wilkinson
CONSUMPTION PATTERN
Edible Oils Dhara, Sweekar, Saffola, Gemini, Fortune, Dalda
Lighting category Light Bulb makers: Wipro, Osram, ECE, Havells, Philips, Eveready,
Transportation & Fuel Petrol, Diesel, LPG & CNG brands - BP, Indian Oil, HP, Essar, Shell
Beverages: that sell cool drinks for as low as 10rs
Coca Cola, Pepsi, Dukes, Parle, Tata, Tea ,Juices ,Health drinks The above not a Exhaustive List of
Category ,Brands ,Companies ,Detailed list need to be worked out this just a starting point of describing the consumption patterns of a customer(rural + urban)
TELECOM SERVICETelecom and Handset
Idea, Airtel, Reliance, Vodafone, Aircel,Uninor, Tata Docomo. Samsung, Nokia, Lava, Karbon, Micromax. Celkon, Xaomi etc
Telecom Service Users- India Population 1.25billion Mobile Users – 886 Crores ( 70% penetration) Prepaid – 95%, Postpaid – 5%, 3G (10%) Effort need to be Made to up the monthly recharge of the
customer by having a long term loyalty plan Telecom Program becomes very Popular because of the Sheer
Numbers & Visibility it garners for any organization & because of the relevance & utility value in bop space
Trade has a Special role to Play in the Scheme of Things for any program to be run
REACH (URBAN + RURAL)
Sham
poo
Bisc
uits
Toile
t Soa
ps
Was
hing
Pwdr
& Liq
Hair O
ils
Salty
Sna
cks
Toot
hPas
tes
Deter
gent
Cak
es &
Bar
s
Skin
Cre
ams
Toot
hbru
sh
0%
20%
40%
60%
80%79% 78% 75%
70% 68%64% 63%
59%54%
35%
Reach %Sept 2014 Nielsen Data -Base -88 Lacs store
SALES PITCH-1(Telecom Service Provider)
3 Simple Condition for customer to be part of the program., To fulfill any one
Condition 1-Become a Idea Prepaid customer, by buying a SUK + FRC
Condition 2-MNP to IDEA Condition 3- Existing customers automatically can enter Age on network for customer to claim reward at the end of the
program must be greater than 6 months. To be part of program Idea customer must send SMS SPACE
m.paani/outlet name TO 52525 immediately on fulfilling any Above Condition
Recharge Slabs & Benefits to be designed ,Logistics need to be worked out
Trader/Retail Benefit to be worked out ,Coverage Plan needs to be worked out
CUSTOMER REWARDS – PRE-REQUISITES
Recharg
e amount
(Rs)Duration
Amount
Reward points
Gifts
250 6 1500 1500 1 LED Light or 1.5 Litre Petrol 0r 60 Litres Safe Drinking Water
300 12 3600 3600Two months 2nd class monthly pass plus one free Doctor Consultation
400 12 4800 4800
Free MC-Donald meal for family of 4 + educational books for primary students
500 12 6000 6000Sanitary napkins OR shaving kit stock for the entire year
Terms & condition apply *
*Many More reward option will be worked ,This just a Representation*To claim reward customer must SMS m.paani reward to 52525 mentioning the reward item*Trader incentive program/ benefit need to be worked on program enrollment & execution
Sales Pitch(Continuation –Idea)
Apart from Traditional Retail create a “ Saarthi” channel similar to MLM which will include young ,women ,taxi drivers ,SHG who will propagate thru word of mouth for rewards & who will buy stock directly from distributor if required.
Saarthi channel program to be worked out in detail based on the area of focus.
Trade benefits to be worked to kick start the loyalty program .
Training , Promotion ,Propaganda ,Market Visibility plan needs to be worked out in details.
Sales Pitch 2(Target FMCG ) Consumption moving from Unbranded to Branded Consumption- EG Edible Oils Loyalty Programs have not succeeded much in Traditional retail ,need to have
a commercial angle ,not just a visibility or branding tool FMCG Majors Pushing entire range of the Products to garner shelf space Opportunity exist to push for a loyalty program in standalone product like
Shampoo or Food Products or hygiene products or build a loyalty program on a bundled kit(Soaps + Shampoos + Detergent Cakes +Creams etc) to start with
Need to Approach HLL OR PG OR COLGATE OR Godrej or Nestle all of them with the Idea
Once a Customer purchases a bundled kit he will SMS to a mobile no which will start tracking his purchases & total his point & send him SMS update on his points tally viz a viz the nearest slab
Post initial purchase of the bundled kit for every purchase worth a minimum amount he will get points which will be tracked via SMS mode
On reaching a slab he can redeem his gift by calling a no or sending a SMS and gift will be delivered to him
Slabs & Gift Structure need to be Made including Trader Benefit & Visibility plan ,One to Two Area to be selected for Program lets say Borivalli or Thane or Kalyan to start with as this program has the potential to build brand loyalty for a FMCG company
Final Thoughts
Customer Loyalty Programs in FMCG etc is a huge market specifically in the balance half of the market
Loyalty Programs are running in Organized/Modern Trade Retail and it is surprising that literally no one has tapped Traditional retail to run these program
Traditional retail will give serious competition to Organized Retail if these customer programs are run successfully and they will support to as they know the benefit for them in driving more customer walk-in to there outlet
We are sitting in the Tip of iceberg