next leap of distribution
DESCRIPTION
Keynote at a leading Auto-maker's National Sales Conference.TRANSCRIPT
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It’s all about rotations!
3-4% Gross Margin
Loss Leadership brands. Negligible margins
Focus on selling the whole stack
RoI = Income = Net Margins x Rotations Investment
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Disruption needs rethinking the whole mix!
Wheel today: Rs. 2,000 Crore Brand.
“Operation STING” Critical Success Factors: Relevant consumer insight, optimum supply chain & wide distribution reach
Outsourced manufacturing & distribution
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Sustained growth driver for the company
“HUL profit rises 18% on home, personal product segments” Jul 2011
Distribution Initiatives: Bifurcation, Key Account Network, Diamond Model
Field Sales measured on “Quality of Contribution (QOC)”
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Assurance of Quality & Reliability
Consumers insist on Intel processor
~70% of assemblers use an Intel motherboard too! 30-40% more expensive
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Tata = Trust!
Changing a watch battery, every so often
Titan batteries are ~60-80% premium
Customers insist on brand, even outside the company stores
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Key Learnings
The New Way of Distribution
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People will forget what you said, people will forget what you did but people will never forget how you
made them feel !
Maya Angelou
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Embrace technology… there is no getting away!
Invest in the next wave and harness full benefits
Compute, connect & collaborate
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