VIZAG, JUNE 30TH

WHAT IS THE MISSING PIECE?

• WE HAVE….

– GREAT BRANDS

– ONE OF THE HIGHEST ADVERTISING SPENDS IN THE WORLD

– MILLIONS OF LOYAL CONSUMERS ACROSS THE COUNTRY.

– ARGUABLY THE MOST TALENTED AND EXPERIENCED FIELD FORCE IN

THE COUNTRY

• SO, WHAT IS THE MISSING PIECE?

HUL’S DISTRIBUTION EDGE SLIPPING

• VWD TRENDS GROWING FOR COMPETITION WHILE HUL DECLINING/STABLE

• ISSUES CROP UP AT BRAND/SKU/GEOGRAPHY CUT

• DIRECT COVERED OUTLETS= BETTER SHARE IN O/L

AND IN SOUTH?

• CLEAR CORELATION BETWEEN WTD VAL

DISTRIBUTION AND MARKET SHARE

• IN 2 YEARS ALL OUR LOSSES HAVE BEEN GAINS

FOR SANTOOR AND GODREJ

• URGENT NEED TO INCREASE WTD VAL

WHAT’S DOING?

• P&G APPOINTING – SUB STOCKIEST (SS) IN THE SUB URBAN MARKETS + KEY RURAL

MARKETS. AGENDA IS TO COVER MORE OUTLETS TO INCREASE WIDTH OF

DISTRIBUTIONS THRU THE SUB – STOCKIEST

• P&G IS SELECTING/APPROACHING ALL THE KEY WS PARTIES/MAJOR DISTRIBUTORS

IN VILLAGES ( LIKE LOCAL NESTLE,BRITANIA DISTRIBUTORS/SUB STOCKIEST)

WHAT’S DOING?

• TATA TEA’S ‘GAON CHALO’, A RURAL MARKETING

PROJECT IN A TIE-UP WITH NGOS.

– IN EARLY 2006, TATA TEA TIED UP WITH 12 NGOS TO

SPREAD ITS REACH ACROSS RURAL MARKETS. BY 2008,

ADDED > 20,000 RETAILERS, INCLUDING 500 NEW

RURAL DISTRIBUTORS, IN 10,000 VILLAGES. IN

CONTRAST, IT HAD TAKEN ALMOST 20 YEARS TO BE IN

50,000 URBAN OUTLETS VIA 500 DISTRIBUTORS.

• NIELSEN DATA INDICATED IN UP, WHERE THIS WAS

PILOTED, TATA TEA’S MARKET SHARE ROSE FROM

18.1% TO 26.6%, WHILE HUL LOST MORE THAN 6%

IN JANUARY-MARCH 2008

WHAT’S DOING?

• AN E-CHAUPAL HAS TRANSFORMED INTO A PRODUCT HUB – THEY DISTRIBUTE PRODUCTS OF MORE

THAN 70 ORGANIZATIONS

• NOW THAT ITC HAS A STRONG NON CIGARETTE FMCG BASKET, THEY CAN USE THIS NETWORK TO

FURTHER THE REACH OF THEIR PRODUCTS

• HUL’S COMPETITORS (DUNCAN TEA/ EMAMI) USE THIS NETWORK TO GAIN RURAL REACH

MILESTONES 2007 2010 (PROJECTED)STATES COVERED 9 15

VILLAGE COVERED 38,500 100,000

E-CHOUPAL INFO KIOSKS 6,500 20,000

EMPOWERED FARMERS 3.5 MILLION 10 MILLION

WHAT SHOULD DO?

VWD TRENDS GROWING FOR COMPETITION WHILE HUL DECLINING/STABLE

ISSUES CROP UP AT BRAND/SKU/GEOGRAPHY CUT

CLEAR CORELATION BETWEEN WTD VAL DISTRIBUTION AND MARKET SHARE

WITH DIRECT COVERAGE, WE HAVE

BETTER ABILITY TO DIRECTLY INFLUENCE AND ACTIVATE POS

BETTER SHARE IN OUTLET (ASSORTMENT / INFLUENCING DEPTH/ROLE OF CREDIT / BETTER

SERVICE / ACTIVITIES / OPS /CHANNEL PROGRAMME/VISIBILITY )

BETTER VISIBILITY OF EXECUTION DATA AT OUTLET LEVEL

BETTER MONITORING AND SCOPE FOR IMPROVING PERFORMANCE

MORE STORES, MORE VWD, MORE MARKET SHARE

CON

CERN

THE

FACT

SSO

?

RURAL DIRECT COVERAGE 2010

BASE COVERAGE EXPANSIONBASE COVERAGE EXPANSION

2,50,0005,00,000

MC SHAKTIMAAN

2,00,000

3,00,000

AND HOW DID SOUTH RURAL DO?

WHO DID THIS?

D.MADESHWARAN

P V SANDHYAVE

NAGESHWARAN

KRISHNAKUMAAR

SANKARNARAYAN

D KRISHNAKUMAR KARTHIKEYAN

V BALASUBRAMANIAM

JAGADEESH

JITENDER

RSN PRASAD

JAYARAM SHETTY

HAREESH

NAVALGUND

C KRISHNAMURTHY

RAJENDRAN

VAMSISUBBU

LOKESH

VALLI

SUBBU

GURUVARUR

MANOHAR

AREA NAME TARGET ACHIEVEMENT % ACH

MUMBAI TOTAL 36,779 31512 86%

KOLKATA TOTAL 53,687 36722 68%

DELHI TOTAL 58,466 45,548 78%

CHENNAI TOTAL 47292 48266 102%

ALL INDIA TTL 196,224 162,048 83%

BRANCH AV

ADDING NEW MARKETS SATURATE > 2K MARKETS

RAISE THE COVERAGE LEVELS INLINE WITH BEST PRACTICE

ADDING OUTLETS IN COVERED MARKETS

LEVERAGE SHAKTI FOR COVERAGEREACHING INACCESSIBLE

MARKETS

PHASE 2: SHAKTIMAAN

LEARNING FROM BANGLADESH

• POLLYDUT IS BENGALI FOR RURAL AMBASSADOR.

– A COMMISSION BASED FREE-LANCE DSR (FDSR) IS APPOINTED.

– PROVIDED WITH A BI-CYCLE OR TRI-CYCLE FOR BOTH ORDER

TAKING AND DELIVERY.

– SELLS TO THE OUTLETS WITHIN THE GIVEN GEOGRAPHICAL

AREAS.

UBL

DISTRIBUTOR

POLYDUT

RETAILER

INDIA: SHAKTIMAAN• SHAKTIMAN IS NOT JUST IMPROVING

INFRASTRUCTURE IN SHAKTI, BUT

INCREASING OUR INDIRECT COVERAGE

IN <2K VILLAGES

• SHAKTIMAN HAS THE POTENTIAL TO

INCREASE SHAKTI SALES (CURRENTLY AT 10%

OF RURAL SALES) BY 60%

• SHAKTIMAN WILL ALSO IMPROVE THE MIX

SOLD IN SHAKTI AND MAKE THE BUSINESS

MORE VIABLE

• PILOT LAUNCHES HAVE SHOWN

ENCOURAGING RESULTS ACROSS THE

COUNTRY

INDIA: SHAKTIMAAN• A MALE FAMILY MEMBER HELPS IN RETAIL

COVERAGE WHILE THE SE FOCUSES ON HOME

TO HOME

• SHAKTIMAAN TO FOCUS ON INACCESSIBLE AND

REMOTE MARKETS

• FORMALIZE BY PROVIDING A CYCLE AND

REGULAR PJP AND SALES PROCESSES

• TRAINING AND MANAGEMENT OF THE

SHAKTIMAAN THROUGH SHAKTI RSP

• EACH SHAKTIMAAN TO COVER AT LEAST 14 - 18

ADDITIONAL OUTLETS FROM NEARBY SMALL

MARKETS

• TOTAL AMBITION TO COVER 3,00,000 OUTLETS

LEARNING FROM ORISSA

1337Cycles landed

3978 villages covered 16566

outlets covered

50%

turnover increase in

Shakti turnover 3.8

average drops per SE

25

unique lines sold per SE

LEARNING FROM ORISSA

• SE meeting attendance & communication of prime

importance

• Alternatives if SE doesn’t want to become SM

– Employ another cycle man to do SM’s job

– Appoint separate SM for retail coverage in the village

• Frequency of RSP contact crucial

THE PROCESS

LOCALITY MAPPING

SHAKTIMAANRECRUITMENT

RSP RECRUITMENT

BLUEPRINT

OUTLETIDENTIFICATION

OUTLETCREATION

HANDSET

FIRST BILL

LOCALITY MAPPING

SHAKTIMAANRECRUITMENT

RSP RECRUITMENT

BLUEPRINT

OUTLETSCOUTING

OUTLETCREATION

HANDSET

FIRST BILL

LOCALITY UPDATION

LOCALITY MAPPING UPDATED IN RS UNITY

BETA BLUEPRINT

ALPHA BLUEPRINTTHIS WORKSHOP TO WORK ON

BETA BLUEPRINT:

• MAP VILLAGES TO SEs/ SMs

• FREEZE NETWORKS ON

PERIPHERALS

• FREEZE NETWORKS ON SE

MEETINGSSE/SM WISE VILLAGE+

OUTLET TARGET

SHAKTIMAAN RECRUITMENT

• ALL BDEs TO CONDUCT SE-WISE WORKSHOPS TO

– CASCADE SHAKTIMAAN PLAN

– SIGN AGREEMENT

– ALLOCATE TARGETS

– FREEZE SCOUTING/ OUTLET ADDITION NETWORKs

• WORKSHOPS FROM JUL 23RD – JUL 30TH

– BUDGET DETAILS INCLUDED LATER

• PARALLEL RSP RECRUITMENT PROCESS INITIATED

OUTLET SCOUTING/ ADDITION

SM SCOUTS THE OUTLETS

1

RSP VERIFIES +COLLECTS DATA IN GIVEN FORMAT

2

OUTLET UPLOADEDFROM BACKEND

3

WAYS OF WORKING (RSP)

• 1 RSP FOR EVERY 20 SMs

– 1 RSP FOR EVERY 40 SEs

• RSP TO VISIT EVERY SM AT LEAST ONCE AN MOC

– TO RECORD SALES MOC TD ON MOBILE APPLET

• APPLET TO SEND OUTLETWISE DATA VIA GPRS TO UNIFY BIW

– DATA CAPTURED INCLUDE OUTLET/ DATE/ SALES VALUE/ NO. OF LINES

• RSP TO RECEIVE AN INCENTIVE OF RS. 250 FOR SUCCESSFUL ADDITION OF

ALL TARGETED OUTLETS

• RSP TO BE GIVEN MOBILE HANDSET

– RS. 500 TO BE DEDUCTED FROM SALARY OVER NEXT 5 MOCs

• RSP SALARY

WAYS OF WORKING (SHAKTIMAAN)

• ALL SM+SEs TO RECEIVE CREDIT FROM RS

• ALL SM+SEs TO RECEIVE AT LEAST 4 DROPs PER MOC

• ALL SEs TO WORK FOR 2-3 DAYS A WEEK

• ALL SM+SEs TO COVER 20 OUTLETS PER MOC

– SE: 5

– SM: 15

• ALL SMs TO TAKE ORDERS ON PROVIDED BILL BOOK

• ALL SMs TO BE PROVIDED CYCLE FOR CONVENIENCE

– AGREEMENT TO BE SIGNED FOR SAME

BUSINESS CASE (OPTIONAL)

SOURCE SE SE+SM

HOME2HOME 4800 4800

RETAIL COVERAGE 4 20

PER OUTLET (EXISTING) 1800 1800

PER OUTLET (NEW) - 750

RETAIL 7200 19200

TOTAL 12000 24000

RETAINED EARN 696 1056

HOME2HOME% 40% 20%

NETWORK

WHO?JULY AUGUST

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

ASMs     

RSP RECRUITMENT

CYCLES TO REACH ALL DEPOTS CYCLES TO ALL SMs          

            

SELLING AIDS TO ALL SMs          

BDEs                

SE/SM MEETINGS      

SCOUTING + ADDITION SUPERVISIONSM CLASS TRAINING

    

RSP TRAINING

SMs         

OUTLET SCOUTING                    

RSPs          

OUTLET VERIFICATION + TEMPLATE SUBMISSION          

JULY / AUGUST 2010

SU MO TU WE TH FR SA

        1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

1 2 3 4 5 6 7

8 9 10 11 12 13 14

PROCESS FLOW

• Locality Updation for Shakti > 90%

• Alpha Blueprint circulated to FF

• Workshop• Finalizing numbers of collaterals RS-wise

• Recruitment of RSPs• Assigning SEs to RSPs

• SEs meeting with RSPs : Introduction & Agreement signing• New RSP’s on-the-job training

• Download & Install software on the handset

• Identifying outlets by SM• RSP to freeze PJPs

• Finalize PDP and credit with RSs

• Distribution of collaterals to SM

• Child party creation on Unify according to excel

• Beta Blueprint circulated to FF

• Handsets provided to RSPs

BUDGETs (OPTIONAL)

• OTHER THAN THIS, BILLBOOK, TBF, BAGS, ETC. WILL BE PROVIDED CENTRALLY

FROM BRANCH

ELEMENTS PER HEAD (Rs.)

CYCLES 3000

SE/SM MEETINGS 300

MEETING GIFTS 100

SCOUTING INCENTIVE (SM) 100

SCOUTING INCENTIVE (RSP) 250

TO BE CLOSED TODAY

• BETA BLUEPRINT

– SMWISE TARGETS

• SM WORKSHOP NETWORK

• CYCLE NETWORK

• MOBILE TRAINING

OUTPUT of WORKSHOPRURAL South - mC Task 2

Particulars <2K 2K-5K >5K Total

UNIVERSE SE Possible Shaktiman % Shaktiman

Alpha Blue Print No of Markets To Be Covered Targeted OL (20 OL/SE) 0 0 0 0 Beta Blue Print - Rural Task No of Markets To Be Covered Targeted OL (20 OL/SE) Targeted Total OL to be covered

LET’S BE NO. 1 AGAIN

OUTLET ADDITION TEMPLATE

FIELD EXPLANATION EXAMPLE

RSCODE THE RS CODE 431234

PARTYNAME NAME OF THE CHILD PARTY TO BE CREATED KUNI SAHOO

PARTYHLLCODE PARTY HLL CODE TO WHICH TO BE ATTACHED AS CHILD HUL-203045P1234PARTYMASTERCODE PARTY MASTER CODE THAT CORRESPONDS TO PARTY HLL CODE P1234

ADDRESS1 FIRST LINE OF ADDRESS. MAX 50 CHARACTERS NO. 9, GAJA GOWRI NILAYA

ADDRESS2 SECOND LINE OF ADDRESS - MAX 50 CHARACTERS385/2, 4TH CROSS, MUNIYAPPA LAYOUT

ADDRESS3 THIRD LINE OF ADDRESS - MAX 50 CHARACTERS MUNEKOLALA

ADDRESS4 FOURTH LINE OF ADDRESS - MAX 50 CHARACTERS BANGALORE

PAR_STARTYPE LOCALITY OF OUTLET (CENSUS VILL. NAME) MUNEKOLALA

RSP SALARYELEMENT COST Basic 3000 HRA 600 Conveyance 800 Medical 1250 Deputation 2905 DA 0 Bonus 600 GROSS 9155 PF (Employer) 360 ESIC (Employer) 435 Ins. 35 CTC 9985 PF (Employee) 360 ESIC (Employee) 160 PT 0 Total Deduction 520 Net Salary 8635 Expenses 2860 Incentives 750 TOTAL IN HAND (for deputees) 12245GRAND TOTAL 13595