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1 My Understanding of PepsiCo GTM in India

2 GTM Transformation

3 My Understanding of A Segmentation

4

Execution in A Customer

Why?

Options

5

Project- Hyderabad Pilot

(Objectives, Details, Audit Results, MarketObservations, Evaluation of Pilot, Conclusion)

6 My Learnings and Summer Experience

Contents

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Pepsico GTM

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PRE SELLING

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Why have we embarked on GTM

Transformation?

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SegmentationSegmentation on basis of Channels & Size and will have Differentiated SERVICE

Ideally, the Best Way to go to the market is on the basis of channels. Limitations: Geographic

Optimization , Critical Mass for a particular channel

Combination of channel and size segmentation.

Top 12 % Customers

71 % Sales !

Hyderabad

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Why Merchandising?A shopper has 6 seconds to make a purchase decision in TT

KPI s / GOLD STANDARDS

Whyin A, Whynot in B or C?

Cost-Pareto LogicLow SR in Core

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Project-Merchandising Execution in A Class OutletPilot objective is to select the merchandising model that enables Gold Standard execution at A

Customers

Additional Manpower (or can the same be done by the A PSR)?

Operating Modelfor merchandising?

Route # 1

Route # 2

Route # 3

No change

PSR Model

PSR +

Merchandiser

Model

Merchandiser

in phase lag

with DA

Control Sample

1

2a

2b

3

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The proportion of E,C,G in

Base lining and Audit 3

Samples is Similar

Channel Wise

Analysis

Channel/Model CONTROL PSR PSR+M DA+M

TotalSample

E 82% 72% 66% 73% 74%

C 11% 10% 20% 8% 12%

G 7% 18% 14% 19% 14%

The proportion of E,C,G across al the models in

Audit 3 Sample is Comparable

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AUDIT RESULTS ANALYSIS

Market Observations in Hyderabad

75 Outlets Covered

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Cost advantage-No additional Cost for Merchandising andhigh standards of Execution

Calls reduced. More time available. Enough for PSR alone

to sell and execute merchandising

PSR

Poor Time Utilization by PSR. Outlet time increases withoutan increase in KPIs or Time per Outlet Increases, butQuality of time decreases-Even when more time Is spenton Cooler (3,14 Min), purity and charge are lower or sameto PSR(5Min)

Myth-Large Retail Ac require greater Selling Time (Inpresence of Merchandiser PSR time on WS increases buton Selling remains same)

PSR+M

Hypothesis-PSR willfocus and get more

time on Selling

Merchandiser arrives before DA Low Charge

Delivery cannot wait for Merchandising

DA-Merchandiser Coordination Absent

DA-Limited access to Cooler during LUNCH HOURS Poor Knowledge of Backroom, SKU Range, FMO

Misdirected Focus-Rack Stock increased only for DA+M inE Channel( where no one goes to Rack to Consume a PET)

No TRACKING of Merchandiser in PSR Absence

Low Purity and Charge because of merchandiser'sirregularity or PSR not doing merchandising.

Low POG Execution

DA+M

Hypothesis-Dailymerchandising,Ready Stock forMerchandising

GROUNDREALITYEXPERIENCE FROM HYDERABAD

Source: Market Visit Hyderabad, Delhi, NCR

60 % OF 10

Hours =24

Min/OL

-4 %in E

29 % in

DA+M of E

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Invisible Warm Stock Display

if 2 PI Coolers, One of them used as Refrigeratorfor other FMCG SKUs

Convenience/

Grocery

POG Customized-HOT SELLING SKUs in middleshelves-Accessibility

Eateries do not allow merchandising in LunchHours

On channel with opposite directions of Cold Stock&Warm Stock Movements .Misdirected Focusbecause of Boot Strength?

Eateries

Source: Market Visit Hyderabad, Delhi, NCR

GROUNDREALITYEXPERIENCE FROM HYDERABAD

Hospitals and Transport Channel-No Range Selling

PSR TIME to Outlet Declines by the end of day-Low Physical Strike Rate

CRATES Display-CCX>PI even if CCX Stock Absent

Importance of Cooler-Case in Point Marya Pan

Low Truck Utilization due to A Segmentation. DA+M fails if Truck covers Core and A

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1st

DA+M

2nd

PSR

3RD

PSR+M

Source: Solutions Audit, Nikhils Market Visit Audit Hyderabad, Delhi, NCR

1st

DA+M

PSR andPSR+M Neck to Neck


WS highest (35%) rise in E Channel. Also within E, highest in DA+M (82%) Is it because 70% footprint isE? NO. Is it low base effect? NO

Rack Stockhighest(78%) rise in Groceryanddecline(4%) in E. However ithas increasedin DA+M (29%)

within E. Misdirectedfocus in case of DA+M. It is because PSR andM have been decoupled.

Final

PSR

34%

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Rack Shelf VT CT/AH CRATES/FLOOR/B

R

PSR

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R

PSR+M

eye catching

innovation or

misuse?

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R

DA+M

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323E

132C/G

455No o

Outet

(Qua

yGo

d

)

1212Tota Out et

ET, 6

ET )

( n mum equ rement-24 D

+

+

On y

Warm

to D

p ay

323E

132C/G

455No o

Outet

(Qua

yGo

d

)

1212Tota Out et

ET, 6

ET )

( n mum equ rement-24 D

+

+

On y

Warm

to D

p ay

3RD

DA+M

1ST

PSR

CLOSE 2nd

PSR +M

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all EQUAL

1st

DA+M

2nd

PSR+M

Contrary found in Hyderabad-Charge in DA+M lowest@ 64.2%, 75% in PSR, 85% in PSR+M

Conditions Apply-Merchandiser should be able maintain phase lag with DA in DA+M


Cooler Charge should be high in DA+M as frequency of merchandising increased. Is found almost equal(60%) in all models in Audit3. Increased only for DA+M (7%)-Low Base Effect ? YESFinal

PSR+M

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1st

DA+M

1ST

DA+M

Contrary found in Hyderabad. DA+M lowest@ 28%, PSR 67%, PSR+M 61%

(PSR is higher because PSR spending more quality time (5 Min)on cooler as compared to PSR+M (3Min, 14

Min)). Limited Influence of Merchandiser?

Conditions Apply-Merchandiser should be able maintain phase lag with DA.

Merchandising has not helped improving Purity in E ChannelPurity higher in presence of dedicated Merchandiser. Highest increase in Purity for PSR+M in G and E

Channels. Overall highest increase in Purity for DA+M due toover performance in C Channel


Final

PSR, PSR+M

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All

EQUAL

1ST

PSR


Final

PSR

Documents

ppt part 1