Bright Sparks i i Ml

8/11/2019 Bright Sparks i i Ml

1/23

IIM Lucknow

AdvantAge Elders Case Study

A Case Study on Getting Active at 60+

T

Rah

Aru


2/23

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


3/23

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


4/23

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



5/23

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



6/23

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



7/23

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



8/23

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


9/23

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



10/23

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



11/23

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


S l F D l


12/23

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


S l F D l t


13/23

Sales Force Deployment

Recommend Ca

No focus on increasin

No focus on New Ret

Too much expenditur

Optimum Efficiency



14/23


15/23

Sales & Promotion Strategy


16/23


T

ca

In

Id

co

p

In

is

a

su




17/23


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


E-Influence


18/23

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


E-Influence


19/23

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


E-Influence


20/23

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


Promotional Strategy


21/23

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


The Way Ahead


22/23

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


The W

THANK YOU


23/23

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

Documents

Bright Sparks i i Ml