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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
1
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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