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IIM Lucknow
AdvantAge Elders Case Study
A Case Study on Getting Active at 60+
T
Rah
Aru
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Problem Statement
Helpage India started Advantage
Centers
Like-Minded Groups formed
Initial investment provided and than
self-sufficiency reached
AdvantAge Ageing Centers
Replicate th
Geographie
Sources for
Advantage C
How to mak
T
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High Performance
Sales
New Centers Initial Funding
Self-Sustaining Other Solution
Old Family houseGovernment
Collaboration
Charity Houses Corporate
Family members
Government Sources Ban
AdvantAge India
Marketing Services Human Touch
Experience Consulting
Hiring Consultants
Metrics & Track
Executive Summary
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutio
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Understanding needs of the aged - Mostly highly skilled and willing to work
Areas of influence - Metros are high vs Non-metros (Majorly cited reason of need ofnuclear family in case of metros)
Charity willingness (Willing given high amount of work)
The Company
Research Design Exploratory Research
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutio
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Urban Distribution Strategy
Using old Family houses to start the AdvantAge Centers
Government Collaboration to find the new houses at subsidized rate or using old public places
Charity Houses can be leveraged to start AdvantAge Centers
Collaborating with Corporate to provide places
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutio
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Urban Distribution Strategy
Vicinity: Should be located in center of city
Marketing of the AdvantAge Centers by using cheaper sources of marketing like online portals, using family contacts
Field trips to surrounding places to create more awareness about the Centers
Collaborating with other NGOs and helping them conduct activities at AdvantAge Centermay be source for funding also
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutio
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Comparing with Competition
HUL
Manufacturing (2000 suppliers, 40 plants)
Carrying & Forwarding Agents (35)
Redistribution Stockists
Wholesalers
Retailers
(6.3 million)
Supermarket
Channel
HUL provides tailor made services to each of its channel
partners. It has developed customer management and supply
chain capabilities for partnering emerging self service stores and
super markets
Consumers
Selection
Distributor is selected on basis
van, computer, warehouse, sale
Population based (1 Distributo
Control
Uses coercive power To deal in cigarettes it is importa
products
Order
Distributorsweekly
Retailerstwice a week
Paanwalasdaily
Online order is placed by distrib
The periodical order from whol
paanwalas, is called by DSR
Hub
Exclusive
Distributor
Whole
Reta
Ma
PanDaHUL
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Other than the hair serum category where Maricos Hair &
Care Silk n Shine had the second highest market share,
Marico had little or no experience in the other categories.
Traditionally, Maricos strength lay in hair oils and edible
oils category which reflected in the type of outlets that it
serviced.
Since Marico enjoyed market leadership in these
categories, the way Marico played in these markets was
very different- these were not competition intense
categories and hence Marico played a huge role in shaping
the terms of trade.
Can Marico use VMI for Paras Brands??
Vendor Managed Inventory
Vendor Managed In
VMI reduces stock-outs and reduces inven
Shortening of the supply chain
Centralized forecasting
Frequent communication of inventory, s
promotions.
No manufacturer promotions
Relationship with downstream distributi
Result: Inventory reduction and stock-o
Marico has been using IT systems for Sales & Operations since
2002
Rolled out VMI in 2008-09 after an overhaul of the IT support
system, reducing the inventory turnover time to 10 days
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
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VMI is dependent on big business. If you have customers who order infrequently from you and ev
they dont actually order that much, then a VMI system is probably not going to work successfullybe effective and cost effective then the customers have to be ordering frequently and in bulk
Partially yes (We have the value share values, an
Data analytics should make it possible for us to
Typically for deodorants, frequency is 1 SKU (100g/ 15
~ 1 bottle
For VMI to operate effectively it needs to be built on trust and that is something that will only gro
be bought or acquired; it has to be earned. This means that VMI can take some time to become e
-> Since 80% of distribution channel of Marico vis--vis Paras is the same, building trust shouldn
A VMI system often requires the vendor to make more deliveries of goods, especially if the custom
stocks quite low and this can be problematic
Disadvantages of Vendor Management Inventory
Vendor Managed Inventory
Is the demand of the new products predictable?
Are these products purchased frequently?
If they are purchased, are they purchased in bulk?
Launching 23 SKUs and all at once may be an area of concern
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
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Provide DSRs with S
A company Appto r
The App transfers t
storage
Based on the input,
and the information
stakeholders
The DSRs can take calls till 5 pm
With 50% efforts focused on gettin
increase in coverage - 30%
Provides ability to persuade retaile
SKUs [16% increase]
Better traceabilityand distribution
Leveraging IT to Increasing Efficiency
A DSR (Distributor Sales Representative) covers between
15-25retail outlets in a day to take orders
Reaches the first outlet at 10in the morning
Finishes his/her beat (set of outlets for the
day) by 3 pm
Goes back to the distributor point to enter
his ordersin the distributor software
for the next day deliveries
The order taking process or the call-consists of the DSR explaining each
brand and its benefits to the retailer,
-the margins and discounts,
checking the stock levels of each SKU and
-then finalizing the order
Typically, a call can take from 20 min for
large outlets to 5 min for smaller outlets
The Current Status
Time Spent on Calls = 5 Hrs Time Spent on Ca
Proposed Soluti
Use of Handhelds/Sma
Expected Results
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
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Rapome
Set
Suggested SKUs: End-to-end can feature allproducts.
For sub-urban areas, focusonly on smaller size SKUs
For stores located in urbanareas, focus on larger sizes
SKUs
Chemist Outlets
Pre-dominantly sellmedicines
Suggested SKUs:
Livon Hair Gain, LivonSilky Potion
Outlet Comparison
URBAN SETTING
General Outlets
Small space
General line ofmerchandise
Main shop ofcommunity
Suggested SKUs: SetWet Gel (10g, 50g);
Cosmetic Outlets
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
S l F D l
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Sales Force Deployment
Agenda of Sales Force Deployment
Optimal sizing of a sales force
Optimal allocation of sales call effort to increase salesor profit response from customers and prospects (oftenreferred to as workload allocation), and
Optimal alignment of sales territories to balanceworkload and minimize travel.
Adjustments to the sales force deployment plan inresponse to multiple product lines, product life cycles,and dynamic changes over time.
Optimising Sales forceSize
A technique often used todetermine the optimal sizeof a sales force is calledworkload buildup
The first step is todetermine the totalnumber of sales calls to bemade by the entire sellingorganization in a year.
No. of additional sales calls
to be required
CalcuBuild-
Totacall xaccoin a y
Salesneedcalls year
WorTimeCalculations follow on the next slide
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
S l F D l t
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Sales Force Deployment
Recommend Ca
No focus on increasin
No focus on New Ret
Too much expenditur
Optimum Efficiency
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Sales & Promotion Strategy
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Sales & Promotion Strategy
T
ca
In
Id
co
p
In
is
a
su
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
Sales & Promotion Strategy
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Sales & Promotion Strategy
Livon Hair Gain Tonic
It's logic, not magic.
Livon Hair Gain Tonic is a solution addresses hair fall problems
Helps in accelerating healthy hair growth.
Confidence is the key to
success and to be heard
depends on your attitu-
de... not how loud you
speak! Zatak embodies
this sense of surety and
confidence
Because your fragrance is not a pstatement
Zatak brings you fragrances that
you stand for and put every nays
place; in four distinct variants:
Gambler, Striker, Avenger &
ZatakLivon Silky Potion
I love my hair
Livon Silky Potion puts an end
to tangled, dry and unmanag-
eable hair. It promises protect-
tion of cuticle with its unique
cutisoft Formula
Enriched with Vitamin E, Livon Silky potion smoothens and
softens your hair so you can let your hairdown anytime and anywhere
Livon Silky Potion
Livon Hair Gain Tonic
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
E-Influence
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Perspective of e-influence
Per se difficult to induce people to try
cosmetic products. Customers are usuallybrand loyal
A click-and-mortar approach has its own ace
to playthe power and reach of omni-
channel interaction
Consumers still cant touch, hold, try on, or
taste a product online
Pinterest boards, QR code walls, show-
rooming, mobile couponing, pop-up shops,
mobile apps, Tweet Mirror, Facebook walls,
digital circulars, augmented reality, flash sales
E Influence
Current Sales Promotion Strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
E-Influence
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E Influence
Pinterest boards, QR code walls,
show-rooming, mobile couponing,
pop-up shops, mobile apps, Tweet
Mirror, Facebook walls, digitalcirculars, augmented reality, flash
sales
Looking beyond Facebook
Walls
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
E-Influence
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Increasing the spend on the promotional campaignsince highly competitive market
Digital Ads : Utilizing social media to engage morecustomers and on a timely manner which can besynchronised by the purchasing pattern
Print Media: Creating awareness by designing Adswhich are targeted and eye catching
Radio Strategy: To gather interest in brand by building
connect with potential customers
E Influence
It is very tempting to embrace every new platform
that a consumer embraces
Back up by sound economics, competitivedifferentiationderived out of the marketing and
financial perspectives
Can offer premium brands online to announce
category membership; Point-of-Parity with MNCs
Way Ahead: consumer-facing apps & experiences
Succeeding in the Digital Jungle
Ad strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
Promotional Strategy
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Promotional Strategy
Promotional strategy should be designed in accordance with
the types of retailers
Type of Store Promotional Strategy
Kirana Coupons, Point-of-Purchase displays
Cosmetic Coupons, Point-of-Purchase displays, Samples
General Coupons, Point-of-Purchase displays, Samples
Chemist Samples, Premiums
gy
Shifting from Percent of sales method to Competi
Disadvantages include the inability of this method to accurately predict future financial health, as tfactors to consider
Biased targeting of various stores with high share vis a vis low share which may have high potentia
Competitive parity method would lead to better allocation since it is a highly competitive market. Tbasis of market share associated with various brands would be the right strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
The Way Ahead
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Retail Channel
Promotion and Rollout
Packaging Production
Website update
Product finished goods in in
ROI Calculator
RFP Guide
Price Sheets
Reviewers Guide
Competitive analysisFinal
Customer Promotion
Analyst and Customer Reference Database
New Features and Technology overview
Distributor SKU request
Pricing determination
Introductory Pricing/Giveaways
Advertising Placements
Product Development
2 months
1 month
3 weeks
1 week
y
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deplo
The W
THANK YOU
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The report leverages data from various online sources including the Com
The Case Pre-Read and a few Third Party Data Analysis Services. We are