Summer Internship Mid-Review

VARUN GARG

SUMMER INTERNSHIP PRESENTATION SUB-TOPICSProject detailsScopeMentorDeliverablesProject plan Gantt chart, progress indicatedApproach methodology adopted and whyLiterature/ data / journals etc. review - internal/ external sourcesAnalysis and insights gainedCurrent statusKey deliverables achievedSpecific support required (if any)Your learning so farWay Forward

SUMMER INTERNSHIP PRESENTATION SUB-TOPICSProject DetailsScope: Delivering 20% share in private retail channel in DelhiMentor: Mr. Sanjeet Kumar (Senior Manager- Trade Marketing)Deliverables: Strategy to achieve the target share encompassing detailed sales, supply chain and marketing plans with keen focus on WM Brands.Total Budget Required & Cost Benefit Analysis of the planChallenges:Low Gross Margin State leading to limited capacity to spendIntense competition in WM space with competition out spending SABM with added advantage on MRPVery strict excise norms restricting scope of execution plans

PROJECT PLAN/GANTT CHART

APPROACHUnderstand the Beer Industry: Visits at different Retail Outlets in Delhi Region

Visited Private Retail Shops in different regions of Delhi( East, West, North, South and Central)Covered Lighthouses, WM, Mainstream and Other Outlets.Got a clear understanding of how Delhi Market operates and how order placement, supply, dark marketing activities performed in Delhi.Proper sales data analysis is done on last 2 years( F14 and F15).Delhi Group (i.e. Bali, Aneja etc.) level sales data has been created for F16(WM, MSM and MSS). Currently working on Promotional Activities and Budget allocation.Also aligned with Santosh this week in promotion of Foster.

CURRENT STATUS

Delhi is very tough place for marketing people. For every promotional activity, there always be a fear of Excise breach.We have a lot of supply issues in Delhi. During my discussions with retailers, most of them were upset with the shortage of supply we have during peak time( May-Sep) for many Brands.WMS segment has a lot of potential in some areas like South Delhi, Mayur Vihar, Lajpat Nagar, Cross River Mall etc. We can launch our MAG Can in these places.East Delhi Region has major consumers of MSS segment. Can do promotion for H5 also. FG and FL promotions had great response in these areas.Brand Displays inside the shop is quite high for Kingfisher and Carlsberg. We need to work in this area aggressively.Consumers like the idea of Corona Pack of 6 Pints. We can try this concept for MAG, MHL Pints.Every Store manager Is bothered about his benefits. By providing Merchandize, glasses and some openers might help to get good display points.

LEARNINGS SO FARLEARNINGS SO FAR

Gaurav Sharmas ShopA lot of stock of Miller Ace was in the Freeze. Good visibility of Ace. Still consumers were not ordering.

Retailer(Siddharth) wanted to do promotion for Ace instead of Foster. As foster is already selling good.

Nirman Vihar market is not for ACE consumer. People coming out with Tuborg or kingfisher can. We could do some promotion of Haywards 5000 more here. Cross River Mall( Rakesh Verma)

Non-Availability of Peroni at this store. Can do some promotion of Peroni here as customer disposable income is high in this region.

No Counter Branding, No In-store Promotion, No Fridge of any Brewing company. Fridges are only of Western and Blue Star. Can do a lot of Branding activities here at this shop.

Budweiser sales is really good. Not only for its premium brand but also for Magnum. Elephant can sales is superb in this region.

As per retailer, customer doesnt like the taste of Miller Ace. We can work on it. Same response came from Rajiv Motors ( CP).

Retailers want to get some schemes. Some T-Shirts, Key Chains etc. I think we should provide these small things on regular basis.

No promotion of foster is done there. Maybe we can put promotion for Ace and Peroni there.

Near about 2-3 more shops are about to open there. If we Tie up with already existing shops and make a good market share, we can target shops also in future too.

Can do some Audio Promotion inside the shop. May be some type of song or jingle play in these shops.

High disposable income consumers arrives at this location. They wont mind to spend more. CORONA Pint sales is good. Even though New Corona price touches 300Rs for a Pint but still 25 bottles per day averagely sales goes. Can go for some serious promotion of Peroni and ACE in this market.Can provide at least our Signage hereOBSERVATIONS AT VARIOUS RETAIL POINTS AND NECESSARY SUGGESTIONS

MAYUR VIHAR (Galleria Mall)Shiva PetroleumMiller Signage was hidden here. No point of such promotion.

Foster Cans were not placed at a good location. As we have a very small Fosters fridge there; our cans were in Carlsberg fridge.

This is a place where sales for H5, FS can shoot up a lot. But our fridge was at the extreme right after Carlsberg and Kingfisher fridge.

A girl came to take Miller Ace Can. She took one in Haryana last week. Somewhat disappointed after not getting the Can. Can think to launch MAG Can in Delhi soon. ------------------------------------------------------------------------Problem: Retailers were upset of Fosters Promotion. According to them there is no point for doing promotion of just 2 hours. Consumers demand the glasses after promotion ends.

Solution: We can place a board inside the shop by putting the exact promotional hours. It will make the things clear to consumers also.

Do the promotional at least for 3 days in a shop. There is no point to do it for 2 hours only in a day to maximize the coverage.

Pitampura, RohiniArtic Promotion looked to be a good prospect. Can go for Ace and Peroni Pint.

MHL: Pint sales were less than 650/Can. We need to work on it.

Good visibility of H5, MAG and MHL in stores.

Our Freezers were small as compared to Carlsberg Freezers. Not a good display when our brands are placed in others freezers.

Can do branding at the back of Computer Systems and Billing Machines. A great place where consumer is bound to see our brand.

Counter Branding is very less from our side. For most of the shops, I have seen it for Kingfisher. For F16, we can do it for MAG and FG.

Can do Floor Poster Display like Heineken for MAG and MHL. Like in the pic there are 2 cans: we can show 2 bottles,1 for MAG and other for MHL.

F15 GOVN. CHANNEL

F16 TIE- UPS WITH GROUPS

S.NoGroupsNo of OutletsTie-Ups No of Cases,(000)WM TotalNo of Cases,(000)MS TotalNo of Cases,(000)Amount(in millions)1BALI312004016092ANEJA2410020804.53RATTAN SINGH36010502.14SAJJAN5503471.255MARWAH7408321.66VERMA9408322.47JINDAL4304.525.51.658ANIL MALHOTRA5303.526.50.759GULRAJANI6206141.110GOLDY4204160.511ASHYIYANA TOWERS1200.819.20.412BIG CHILL CORNER3150.514.50.22513OBEROI110190.1514TANDON210190.1515SANJEEV MITTAL4100.59.50.2516HOT SPOT1100.79.30.2517SHYMALEE CHANDEL3100.29.80.2518RAJINDER KALRA2101.58.50.2519AKASH DEPT2100100.1520SNEHARI150.24.80.125TOTAL118 700 113.4586.6 27.05

Haryana Breweries, Sonepat, HaryanaPals Distillery, Aurangabad, MaharashtraRochees Breweries, Neemrana, RajasthanDelhi Supply Scenario:3 breweries supply beer for delhi state.Hbl is the major contributor among these.Delhi is the only state where bar code system is applied. On each bottle/can an additional bar code is placed. Bar code is applied through manual process. Delhi is basically a brand building state and haryana is a drive state for our company.Gross margin in Haryana is more than Delhi. During demand from Haryana and Delhi, Haryana is given more preference. Recommendations:Our F16 target is of 20% MS through private channels. 40% of the sales occurs in Apr-June Period. We need to keep our Supply proper especially in these 3 months.Even though, Haryana has more Gross Margin, but we need to change our strategy. For F16, we have to focus on Delhi more. Our Depo at Okhala has a capacity of 60,000 cases at a time. During Apr- Aug period there might be some weeks when we need more capacity. Need to work on it.If possible, labelling should be done through some machines. Delhi will generate enough money to take out the price of machines. UBL supplies the cases to retailers overnight. We also need to optimize our supply upto that level. SUPPLY CHAIN

MARKETING PLANFocus more on Extra Cold Refreshment positioning of Fosters.

Permanent visibility elements at Vantage points in shops.

Warm displays at shops which have good sales( i.e. INA, Rajiv motors etc)

Extra Cold refreshment chillers at private retail shops(35 Nos)

Neon/Signages of Fosters at good locations( 45 Nos)

Counter Branding: 30% with Tie-Up Outlets(118 outlets).

Temporary Visibility( Beer Placement in 2-3 shelves of other company Chillers): Apr- May during Sales promotion. Also during Oct-Nov when sales again increases(50 shops) HauslaBulandAcademy campaign to attract customers. Distribute Pamphlets of successful entrepreneurs stories.

Warm displays at Main Stream and Mass Outlets (20 Nos)

Fridge/Chillers at MS and MO(50 Nos)

Neon/Signages: HauslaBulandAcademy at MS/MO shops

Counter Branding: 30% with Tie-Up Outlets(118 outlets).

Temporary Visibility( Beer Placement in 2-3 shelves of other company Chillers): - JUL-SEP during Sales promotion.(50 shops)

Promotion more of Peroni 6 pack. Corona pack of 6 sales good in the same category.Bottle display(50Nos) placed at vantage points in the shops.Peroni Small freezers (25 Nos) provide at WM A outlets.Select high imaginary contributing outlets and correspondigly provide the warm displays.Window display at WM A premium segment outletsSignages/ Neon: At WM and Lighthouses(25 Nos)

WHY No Promotion for MHL:

MHL comes under WM Light Segment Beer.WM segment expects to increase by 20% this year.In F15, we sold 53,438 cases of MHL and this year we have a target of 72,193. As WM industry is growing rapidly, we can expect 10, 000 extra cases will be sold more. Also, MHL has shown very good growth in Delhi Region. WHY H5 Promotion in Jul-Sep:Our targets for H5 this year, for July, Aug and Sep period are 63883, 59536 and 50452 respectively. Initiation of Promotion in July will give a good kick start for next 3 moths sales. WHY Miller Ace Gold Promotion in June-July:MAG comes under WM strong segment. Compete with Budweiser Magnum. June and July months showed good sales for this segment.SALES PROMOTION DURATIONFoster, 87462

APRMAYJUNEJULAUGUSTSEPFOSTERSH5MILLER ACEPNA 330ML

PROMOTION BUDGETING

DetailsFOSTER'SHAYWARD'SMAGPNAPromotion1 Glass Free with Two 650 ml bottle Three Can Four Pints1 Glass Free with Two 650 ml bottle Three Can 1 MAG Pint Free Two 650 ml Four Pints 6 Pints: Rs 300 Dominos Voucher free 4 Pints: Rs 200 Dominos Voucher free No of outlets with promoters10878No. of outlets in a week20161416No of Days in Week3344No of weeks91395Total Mandays540624504320Total Unique outlets1001357040Cost per promoter800750800800Total promoter cost(in Rs) 216,000 234,000 201,600 128,000 Pre sales per outlet/day(in cases)290.50.68Total Sales per outlet during Promotion /day(in cases)31111Total Sale(in cases) 1,620 6,864 504 320 Type of Promotion( Glass/ Pint/ Pizza Gift Voucher)GlassGlassPintDominos Pizza Gift VoucherTotal Quantity95744056630243840Cost of a Glass/ Pint/Dominos Gift Voucher502090100Total Glass Costing478710811324.8272160384000Promoter T-shirt 5,000 5,000 5,000 5,000 Miscellaneous cost 25,000 25,000 25,000 25,000 Promotion Costing 724,710 1,075,325 503,760 542,000 Total Costing 28,45,795/-(Twenty Eight Lacs Forty Five Thousand Seven Hundred Ninety Five Only)

VISIBILITY BUDGET

VISIBILITY BUDGET`FOSTERHAYWARDSMILLER HIGH LIFEMILLER ACE GOLDPERONI NASTRO AZZURROLighthouse Outlets1520151510Worth More Outlets505040Mainstream Outlets3015Mass Outlets3525353510No Of Shops806010010060Neon/Signages(nos)45506025Cost At 1 Outlet(in Rs)3000300030003000Total Neon Cost(in Millions)0.1350.150.180.075Bottle Display(nos)252050Cost At 1 Outlet(in Rs)200020002000Total Bottle Display Cost (In Millions)0.050.040.1In Shop Branding806010010060Cost At 1 Outlet(in Millions)0.04830.0330.0160.03280.0216Total In Shop Branding Cost(In Millions)3.86521.63.2891.3Total Cost(in millions) 4 2 1.83.5091.475 13

Cost benefit Analysis of my Plan.WAY FORWARD

Thank you!