Delhi Icecream Business

8/8/2019 Delhi Icecream Business

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INDIA

NEW DELHI


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Key Learning's

New Delhi


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Knowing the seller ..who is he

T ypical Ice cream sellers observed in Delhi were You ng Aged ar ound 18-25 Y ears Educated till primary level M ost of them have attended school till 5th

-6 th standard BU T quick in calc ulati on Have migrated f r om small towns to make money Have high am bitions Belong to jo int f amilies ..thus carrying big resp onsi bilities on their

shoulder to su pport f amily

I started working at age of 18 because my father passed

away

I have come to Delhi 3 yearsback with my brother in law and started working here

I live here alone ..my family is in village but I visit them

twice a year

I am 21 years of age and doing this business from 2

years

Learning Ic e c ream sellers are young males who have high ambition togrow. Typi c al mindset is to have money BUT NO R ISK OR RISK AVERSER

They c an be lured by money AND growth with the c ompanyThey want to see a future where they work ..also future means se c ure job

for them


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E ntry into Ice Cream business

FRIENDS

NEIGHBOUR

RELATIVE

VILLAGER

FAMILY BUSINESS

NOTHING ELSE TODO

EASY TO GET JOB

Learning Majority of i c e c ream sellers have got into this profession by referen c eTo some it was a family business taken forward by them hen c e no option to c hooseCommon points to enter this business was friend , villager or neighbor s influen c e

Referen c e work a lot for them It s a sec urity to join any business

My father use to do it My neighbor was workingwith Vadilal he told me tocome and do the same

My brother in law got me here

My uncle wasworking with

Kwality so he got me here from

village

I was not doinganything so I came

here

I got this job easily .distributor

contacted me Distributor is fr my village


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M otivations for Ice Cream Business

MONEY

SALES

APPRECIATION

SECURITY /STABILITY

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2

3

F or seller the biggest motivati on for this businessis MO NEY = H is margins and earnings !!

Some talks a bou t appreciati on = PRAISE FO R ACHIEVEING SALES TARGE T

Another area where seller is concerned is sta bility with the company M ost sellers pref er to stick to one brand on account of sta bility with the companyBrand switches thus is not a comm on practice observed

Security means to stay with one company O ne knows the pricesAwareness of pr oductsGoo dwill with distri bu tor F avorite point of sale ( ADDA)Co mpany sales are pre assumed

I don t want to go tosome other company ..i know my company well and my area is so good

We work for money ..every company offers

same margin so nobody changes

Distributor knows mewell, sometimes he gave

me credit also

Learning Ic e c ream seller works for MONEYHe is always c on c erned about his monthly earnings sin c e that is never stable

Hen c e stability and surety of in c ome plays a c ru c ial role for him sti c king to the business

He wants to earn good BUT fixed earning is bigger motivator than higher earning


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Daily Rou tine

D ay BeginsM ost of the sellers start their day between 8 am -9 am

Product Pick Pr oduct is picked

between 11 am to 2 pm for ma jority

Cleaning /Bathing /F reshen u p

and eating before

leaving for work Start SalesSales is started anywhere

between 3 to 4 pm for most sellers

High Sales Time6 pm till 11.30 pm in the night is the key hours for sales

Visit to distri bu tors godownCleaning the hand cart

Demand list readyPr oduct purchase

Accounts settlement

Post receiving the pr oducts Sellers reach the sales spot

allotted to them by 4 pmSales end by 12.00 in night and this time seller move back

to his house Hand cart and lef t over

pr oducts are dep osited back todistri bu tors godown

M ost of the sales occurs between 6 pm to 11.30 pm in

the night acr oss

I go to thekedaar around 11.30 -12.Noonin the morning and take

products from him

Most of my customerscome between 7-10 pm

I reach my place daily

latest by 4.30 pm

In night most familiesare there to enjoy icecreams ..so sales are

high

After completing my work I go to godown and

leave my cart oncharging there

Wake up at 9-9.30 amand then fresh up

Morning starts from 9am only because I sleep

late

Learning Seller starts day late be c ause working hours are stret c hed till midnightEvening till midnight ( 6 pm -12 night) are the most crucial sales hours

Hand c arts and left over produ c ts are deposited to distributors godown only


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Pattern of pr oduct picking ..

Seller

D emandsheet

Cash(Amount)

D istributor

RecordSeller picks the pr oduct everyday f r om distri bu tors godown

A demand sheet is maintained everydayCalculate how much is

purchasedKey pr oducts neededQuantityPrice

Pr oducts are always purchased in cashAmount varies between R s 1000-1200 fo r ma jority

Distri bu tor allots the pr oduct to each seller basis of the demand sheet f illed

by themPu rchase is always done in cash

Distri bu tor keeps a record who has purchased how much R ecord is man ual in a register

We have to buy products daily

There is a demand sheet given to us and w

all fills that

We purchase products

daily on cash Daily purchase is

anywhere between 1000-1500 for us

We get products fromdistributor basis what we have asked in the

demand sheet

Distributor writeseverything in his register

Learning Produ c t Pic king and selling is a daily pro c essIt s a c yc le from distributor to seller and finally to c onsumer whi c h goes daily

Produ c ts are pur c hased in c ash and so seller also gets his margins daily on c ash salesSellers motivation High Sales = High Margins Everyday


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Commissi ons and M argins15%FLAT

15%FLAT

14%FLAT

15-17%Different for differentprodu c ts

17%Additional 5% isgiven in winters

Nov/De c /Jan

Different on produ c tslike 13 % bri c k, 16% onc one and 15 % on c up

Learning All c ompaniesoperating at nearly c lose

margins ( 14-15%)Big brands like Kwality

Walls/Amul and Mother Dairyhave fixed margins

Whereas lo c al ones do offermore for motivating seller to

stic k


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Earnings : Net Net

R s 200-250

Per DayDaily Sales :R s 1800-2000

SummersA pril- Ju ly

Winters No v-F e b

Ex pense on transp ort/Lunch

S napshot of Daily earnings

R s 100-150Per Day

Daily Sales :R s 800-1000

R s 50 D aily

In summers sellers acr oss the brands are a ble to earn

anything between Rs 6000-7000 a month

In winters earning is restricted to Rs 3000-3500

only that too with diff iculty

Sellers monthly ex pense on himsel f

comes to Rs 1500 for food and transp ort

Learning Earning for seller a c ross the brands isnot fixed , it is varying as per the season

However maximum earning noti c ed were Rs6000/7000 a month for peak season and Rs 3000

for off seasonsThis is earned as per margins ..so even if the

margin is low high sales volume is the key driverfor generating in c ome

Seller has to be aggressive in his sales units perday to earn more

Lunch and dinner canbe done in Rs 40-50 for

me

Winters it is so difficult we can hardly make Rs100 -120 in a day

In Summers salesare good, at least

Rs 2000 salehappens and

sometimes morealso


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Incentives and Gif ts

Brand work with diff erent marketing strategies to pr omote salesM ost brands have sales targets r unning for diff erent quartersSome brands like Vadilal and Cream bell have winter sales margin u p off er also

F or sale of Rs 25,000 amonth, seller will get a

bagSale of Rs 100,000,

seller will get a mobile.Sale of Rs 2,00,000

there is a TV.. MOTHERDAIRY

Sale of Rs 125,000 in 6months, seller will get a

mobile,Sale of Rs 150,000, sellerwill get a 21 in c h TV. SaleFor sale of Rs 2,00,000

there is a TV + DVDplayer and 5 day trip to

GoaVA DILA L

Inc entives are given inwinters. 2% on sales of

Rs 10,000, 4% on40,000. c ommission israised 20% in winters

CREAM BELL

Sale of Rs 100,000, get amobile. Those whose sale is Rs100,000, if they do Rs 200,000

they would get a TV. Like on25,000 you will get bag

They give bag, mobile, fridgeto those who c omplete the

target

KWA LITY WA LLS

Sales and targets areac hieved then prize is given

. Sc heme varies to 2 monthsto 6 months. Varioussc hemes are given in

winters to lure the vendorslike TV ..Fridge , Mobile on

a c hieving sale targetsAM UL

Learning Brands do offer Inc entives and Giftstarget on a c hieving sales

It work as motivators for vendors and hen c emaximum efforts are put to a c hieve the targets

BUT Vendors c omplains for not a c hieving targetsdespite working hard

Material Goods are generally offered as giftshowever sellers also would appre c iate CA SH

REWARDS whi c h are not given c urrently

they give gifts onachieving target but that

never happens

Only 1 or 2 sellers canget that because that is

difficult

Instead they can give uscash prize that would be

great

Incentives are announced for winters so that we can

generate sales


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Sales F orecast

APRIL/M AY/JUNE

Contin ues till July..Au g

NO V/DEC/JAN

M ARCH/APRIL

TOO LO W =LEAN PERI O DS

SALES BEGIN TO PIC K

PEA K SALES

SEP T /O CT

Dec/Jan there are nosales..

This time I am at my village..

Till october sales aregood for us..

April to June are best seasons for us.. Learning Maximum sales c ould be expe c ted between April To July

Though sales are good tillS

eptember but it starts to drip by October endLEAN PERIODS : NOV//DEC/JAN = BIG CHALLENGE


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Lean PeriodsLean Periods O ctober/November/ D ecember/January

M ost sellers didn't o perate during this timeM a jority of sellers went back to villages

Its a time for meeting f amilies and engage in village f arming NO big motivati on to stick in city that time NO SALES

December /January there are no sales so I go

back

There is nothing to dohere no sales at all..

W inter SchemesCompanies like Kwality Walls /Cream bell and Vadilal d o off er winter off ers to make seller stayT hings like blankets , jackets and sweaters are distri bu ted to those whostay back However these pr omotions dont really work for sellers and they dont

stay

Learning Majority of the sellers went ba c k to their villages during this timeKey reasons to move are low sales

No margins and less in c ome make them go ba c k to their villages this periodCompanies like Vadilal / Kwality walls /Cream bell do offer goods for making them stay BUT sellers went

ba c kSellers work for money and margin so NO SALES = NO STAY


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M ost selling ice cream of the brandsSellers speak

Orange, Mango, Campa,Mango milk, Butters c ot c h

Cho c obar

Cho c obar, Vanilla, Feast,c one. Mango c andy and

Bric ks

Cornetto, Feast, Casatta,Cho c obar

Cornetto is highest sellingunits

Butters c ot c h, Bric k,Cho c -

bar and Vanilla c upsBric ks are highest selling

unit

Cho c obar, Cho c olatec one, Butter c one, Pista

c one, Center treat, Feast

Mother Dairy

Vadilal Creambell

Kwality WallsAmul

Chocobar and butter cone are much in

demand

Cornetto and feast highest selling for u

F or me most selling arebricks because they

have schemes running

over it 1+1 free

F or Mother Dairy orange , mango and campa bars are hit


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Sales Per Day Ice categ ory v/s

cream categ ory Ice Cream Approximate Units

Sales Per D ay

Cornett o 30-40

Feast 20-25

Choc-bar 40-50

Cu ps 20-25

Cones 15-20

Bricks 3-4

Ice Bars Runs only in summers 80-100 a dayPo pular f lavors are O range /M ango and Cola

Figures are approximate units mentioned by sellers


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Price point of maximum sales

Price point of maximum sales are R s 5 fo r ice barsR s 10 fo r chocobarsR s 15-20 fo r f east and Cornett osR s 100/110 fo r bricks

Learning Maximum sales per day o cc urs at two endsOne is with bars and sti c k whi c h revolves around Rs 5-15 with Rs 5 for Ic e c ategory and Rs 10-

15 for c ream c ategoriesPremium ones like Cornetto and Feast also tou c hes Rs 20-25Bric ks generates low sales but have good pri c ing and margins


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R eporting Style

R eporting is a daily pr ocess for sellers It is done man ually by f illing a demand sheet everyday Seller f ills it daily to purchase the pr oduct

Distri bu tor keeps a track wh o has purchased what and how much sales each salespers on is generating

Example of a demand sheet

Products Quantity Price

Chocobars 3 Box es 3* 84 = R s 252Brick 10 10*90=900

We fill it daily to buy the products

Distributor notices how much we are

purchasing and thenhow much is the sales

happening At the end of themonth total is done to

find out how much salesI have done


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Consumer Informati on

Kids , teenagers and youngsters are key consumers for sticks , bars , cu ps and cones T hey are aged between 5-20 years

M ostly resp onsi ble for af tern oon and evening sales

F amilies are out during night Hence sales most rep orted between 10-11 pm

M ost comm on sales were for f amily packs and bricks

Bricks goes in the night when family buys

Day time is for kids who arecoming back from school and

tuitions but night there aremost of families

Kids like boys, girls purchases bars in day

Kids and youngstersare there during day

time and families duringnight

Learning Our produ c t has to be pla c ed for dual o cc asionsDay time for kids and youngters like anytime/anywhere refresher

Night time for family fun together


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Sales T argets No sales Targets for

Sellers Wo rk on margin and commissi on basisEveryday cash purchaseHis own margins /commissi on are f ixed for salesM ore sale = M ore commissi on for him

No press ure for sale No contr ol over sales

We don t have any suchtarget ..whatever we

sale is our choice

Its very simple that wesell then only we will

get the margin so salesis dependent on us ..but

no pressure

No body points out how much we sell ..it varies and there is no

limit to sell

Learning Seller is left on his own for selling and earning

There is no sales pressure or target alloted to him to generate minium number of sale in a day


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Uniforms

S ellers do admit that c ompany provides them with uniforms but none of them is seen wearing it .

Key Reasons for Not wearing Uniforms :Poo r Quality of F a bricsM

iss F

it or impr o per sizesDont like the colour (R ed and Yellow for most cases )Some time f a bric is r ough that is, it pinches the skin .Em barrassment to wear

The fabric of the shirt istoo bad to wear

They gave a shirt to meand it was too big for my

size

I didn t like the color ..too bright red like girl s

shirt

I can wear it but fabricis rough and it hurts my

skin

Learning Sellers are not c omfortable in wearingc ompany uniforms

None of the seller from any brand is seen wearing auniform

We need to understand in detail barriers to uniformand possible way out for making them wear it

I have uniform with me but I didn t wear it because many times we

have to go somewhere else also ..it doesn t look good to be in uniform


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Hand Carts

Hand Cart Distri bu tors resp onsi bility Seller is resp onsi ble for its cleaning and small repair like air f ill or

puncture

Complete maintenance and repair of things like light , f reezer etc is done by distri bu tor Placed at distri bu tors godown only at night Charging of hand cart also occurs in distri bu tors godown only

Learning Repair and Maintenan c e of hand c arts to beborne by distributor

Distributor looks after

its repair and maintenance

No we are not

responsible for hand cart ..it is the distributor

In the night we leavethe hand cart at

distributor s place for charging

Once my freezer wasnot working properly so

I complained it to

distributor and he got it changed for me


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Sales T rainings

Currently there is no sales training being pr ovided by any company to the sellers Sellers seen to be interested in sales training on a pr ocessed

level Current learning is thr ough f riends and colleag ues Direct interacti on between company and seller is too

limited Important to o rganize trainings during day time or times

when sales are not interr u pted Learning As the c ompetition is not offering any kind of salestraining to sellers

It would be an added advantage to engage seller with our c ompanySales training a c t as a c ushion for seller s performan c e

Moreover when asked most seller seen to be interested in su c htrainings

No training fromcompany ..I have

learnt everythingon my own

Wow ..that would begreat idea..we all can go

and learn in suchtrainings


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Permissi on T o O perate

Are provided by CompanyPre acceptance with ND M C and M CD of the areaEach seller has been assigned with a hot spot f r om distri bu tor

O ne hot spot = O ne seller of particular brandDespite having permissi on sellers are constantly bothered by local policemen of the area for money ( haf ta)Each seller pays ar ound R s 200-300 a month to these local

policemen for standing at that hotspot ND M C ( N ew Delhi M uncipal Corporati on) token is sometimes f ixed on their carts as a sign of permissi on

We stand onsame place

everyday and no 2same company

carts can stand at same point

I have a tokenattached to my

cart which is give

by NDMC

We don t know about it

..distributor told

us where to goand stand

I pay Rs 300 to policewala in

order to stand at my adda


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Su pervis or

No t Pr oactive

Visits R arely

No P r ompt Checks

No Query R esolutions

No t seen to be active and inv olved in most brands O nly in Kwality walls and M other D airy Su pervis ors are quick and per forming their r ole well

He comes but very rarely tocheck productsuniform etc

Many timesthere are new

schemes and offers but hevisits very less

He never come to

checkthat iswhy we dont

wear uniforms

He visits ever 2 weeks to check if we are doing

properly Mother Dairy

He can comeanytime without

telling us and then check

products , hand cart, uniform Kwality Walls

Learning Exc ept for KWALITY WALLS and MOTHER DAIRYsupervisors are not performing as expe c ted

There has to be a c onstant for c e on seller s mind to perform BUTc urrently he is not afraid from supervision

Hen c e he is not bothered about timings to operate , Uniforms et c


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Distri bu tors Informati onM anages Business for the

company

Companys image toseller

Big inf luencer in sellers per formance

M ost distri butors in Delhi are exclusive distri butors of

one brand

T hey o perate f r om godowns either owned or hired by them near hot spot areas

O n average each distri bu tor keeps 20-25 hand carts and thus same num ber of sellers

Sellers are recr uited by him

Hand carts are his resp onsi bility and he pr ovides a place for keeping them over

night and charging as wellPr oducts are purchased by him and stocked in

f reezers pr ovided to him by company

Learning Distributor is the key person in businessHe is the bond between c ompany and seller

His relationships with seller drives the businessHe is the manager of godown , produ c ts , hand c arts and day to day

sales operations


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Distri bu tors Informati on

Company su pport the distri bu tor in the following areas Godown rent ( 50%) F reezers Given by the company against the sec urity

dep osit taken f r om distri bu tor Hand Carts PO P material Locati ons to o perate guidance Exchange and return of ex pired pr oducts R epair of handcarts time to time


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Possi ble M otivati ons to switchT hough brand shi f t is not a comm on practice however sellers key motivati on to work is money ..hence we could play over this for making him shi f t Higher margins ( more than 15%) High sales volume assurance F or them to make atleast R s 6000 a

month if not more Sales trainings Incentives like T V, F ridge , M obile , Washing M achine on sales target

Cash rewards License of good place ( Adda ) to stand and o perate Su pport and guidance to increase sale like su pervis or , training ,

worksh o ps Uniforms ( As per their choice)


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Documents

Delhi Icecream Business