Concept NoteReal Time Tracking Of Tertiary Sales Data By ICT

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Tracking of Tertiary Sales data thus essential to

1.Gauge The difference at each level in sales which is directly proportional to amount of inventory left in the warehouse or stores

2.Pull effect of consumers can easily be analysed based on demand generated for respective products

3.Evaluating distribution strategies for channel effectiveness

Tertiary Sales Data: A goldmine to GTM

Primary Sales

Secondary Sales

Tertiary Sales

Output Sales Inventory

Sample Study Insight, i.e. “ PULL” theory of demand induces manufacturers to produce MORE

Channel management thumb rule, i.e. “ PUSH” theory of excess SUPPLY

No equilibrium in demand and supply and dead sales accounted

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Consumer Journey and Real Time Data Tracking

Govt. Body to regulate

rate and publish

Doorstep Supply

By Store Operators

Production Information

Received

Consumer to track and

post requirement

Real Time PULL PUSH Data for Govt. to regulate price and supply

Govt. Body to ensure supply at

chain stores

Real Time Sales Data

@ Convenience

Store

Surplus product

movement across

channel

Track competition

& build strategy

Low Trade Spend in Incentives & Promotion

Better Logistic to

actual users at a less cost

Track customer

loyalty

Schemes to Actual

Users

Real Time Consumer

Purchase Data

Govt.

Private Manufacturer

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I. Daily households buy from chosen favorite stores within location

II. Receive daily effective rates

III. Receive Coupons, Discount, Refunds and Loyalty bonus

IV. Option for payment to retailers like COD or MONTHLY or ONLINE

V. Doorstep supply of commodities

Solution is to move Towards a digital collaborative platform………..

I. Handheld information about daily demand of local consumers

II. Only procure stocks that has demand within location

III. Can take more financial obligation for secured supply by channel partners

IV. Working as logistic agents between manufacturers & customers @profit

I. Enumerated demand by locations and category of product

II. Stock management by rotations among channels

III. More regulation than spend on promotion

IV. Less credit to partners as cash flow is regular

V. Better interaction with end customers to test schemes and variants

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Target Market FMCG

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16.25

23.75

53.75

31.25

Rural Tier 2,3,4 Tier 1 Megacity

Expected Spent by Locations in USD BLN

Indian FMCG Consumer Market by 2020

Source: BCG & CII Reports

650

15075

Pop. In Million

Internet Users

Internet Users FMCGBuyer

FMCG OnlinePurchasers

18%32%

50%24%

26%

50%

Food & Beverages Health Care Personal & Household

Market Share Revenue Share

Category Share

35%of the population

will buy Online

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Challenges for Go To Market : Private Manufacturers

At least 30% Trade Spends are not Planned or Effective at all

Channel Partners are either not economically capable or NOT WILLING

Average 20% annual attrition from retailers base largely influenced due to conflict with emerging channels like MTF

I. More Incentives to Employee and Partners

II. High ATL promotion including social media

III. High spend for POS display

I. Rural Coverage means vast geographical coverage

II. Growth trends are volatile due to less awareness

III. Stock piled for return

I. ROI on promotion is less compared to MTF

II. Convention credit giving policy to customers clotting regular flow of cash

III. Only food & spices are widely sold whereas MTF & online caters all FMCG

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4.9

2.9

2.2

2.13

2.16

1.97

1.64

1.23

Biscuits

Refined Oil

Non Refined Oil

Salty Snacks

Toilet Soaps

Washing Powder

Chocolates

Packaged Atta

Secured Sales @ Doorstep: Tertiary Sales by Convenience Store

In 2015 FMCG sales in unorganized retails was USD~ 19 BLN

25 Million Convenience

Store

17.7 Million Convenience store Cater to Food, Grocery & Wellness Only

Only Mumbai, Delhi & Kolkata have ~4 million store in these category with per day sales of INR 1000

All convenience stores suffer from limited demands and return stocks due to EXPIRY valued AT LEAST INR 20 Per day per shop

At least USD 2.5 BLN worth

product may be piled for stock return accountable for 2020 FY only

At least USD 77 BLN market exist

in Tier 1,2,3,4 cities where 62 % consumers will reside by the end of 2020

At least USD 17 BLN market of

health care FMCG already influenced by Mobile Sales by end of 2014 BY PHARMACEUTICAL RETAIL GIANTS

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Target Market Agricultural Product

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1332 Million

Source: Agri Ministry Eco & Stat Dept. & Nabard

Indian Agri Consumer Market by 2020

2477 Principal

Regulated Markets

4843 Sub

Regulated Markets

1,47,000 Farmers’

ClubMarkets

Regulated Supply

4.8

2.9

3.3

Inflation Rate

Producer Prices Change

Food Inflation

158119

Consumer Price Index CPI CPI Transportation

Need for Location based Mandi to curb transportation cost & fair pricing for estimated production of 280.6 MT of agri products

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Challenges for Go To Market

Principal Regulated Market Sub Regulated Market Farmers’ Club & Individual Farmers

I. A market exist per 114 Sqkm compared to a regulated market exist per 462 Sqkm

II. 24% of traders know MSP of product whereas 19% knows the procurement agencies

III. Only 9.9% sell to agencies

I. At least 57% traders prefer local private traders and 45% of total quantity normally sold by private traders still

II. The regulation in sub market are as stringent as principal market whereas objective is known by a few

III. There is less of PPP initiative or collective farming hence lower than MSP obsrved

I. Less availability of institutional credit

II. Less awareness of ICT based techniques and benefits of regulated market

III. High amount of perishable crops in stock result to lower sale even at much lower price than MSP

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West Bengal

WBECSC has launched in July’16 exclusive agricultural retail outlet “Roudra Brishti”. The FCI lab facilities integrated

State agricultural & horticultural department have introduced fair price vegetable shop from June’16.

India Govt. has launched Mkisan portal in 2013 and complete web based system accessible by feature and smartphone, mainly caters to Farmers and institutional buyers

Case Study: Agricultural Marketing

Mission•Farmers get a premium price and rational share in CPI•Allow consumers to pay competitive price for food, vegetables and essential commodities

Producers’ Benefits•13 FPOs initiated with 275 farmers to start producers supply mart•356 individual farmers who are not part of the FPO, are daily interacting to Singur Hub only•Initiation of logistics support and buyer seller interaction

Consumers’ Benefits•Fresh fruit and vegetables at a competitive cost least 10% less than MOP •All essential food products under one roof•Choose locations to shop

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