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Presented by: Tushar Phopli

Rohit Patel

Satyam Sharma

Gagan Singh
ABOUT THE COMPANY…….

• Reckitt Benckiser is a global force in household, health and


personal care products, delivering ever better solution to
consumers.

• The company was formed by a merger between Britain's Reckitt


& Colman and the Dutch company Benckiser NV in December of
1999
KEY PRODUCTS IN INDIAN MARKET

• Health and Personal Care


• Surface care
• Fabric Care
• Home Care
Indian Market - Facts
• Market facts

− 72% of All India consumers live in the Rural areas (Source - Census of India – 2001)

− Rural growth outpacing urban growth i.e. Rural markets are growing 5-12% higher than
urban market (the trend to continue) – (Source – NCAER)

− Rural has been attracting huge attention from the government and the industry alike

− Massive increase in budgetary allocations (2009-10 budget)

− Huge waivers for farmers (to benefit rural economy)

− Strengthening Rural Employment Guarantee scheme (would result in increase in


disposable income)

• Rural – Huge market with untapped potential (Source – NCAER)

− Rural is a huge contributor across various product/service segments

− e.g. 55% of LIC policies are from Rural, 70% of toilet soaps are in Rural, 50% of
TV/Fridges/Wrist watches etc
Rural Market – Facts
• Industry investing in Rural areas

− Huge untapped potential, Focus on increasing distribution and tapping the huge consumer
base (Source : RMAI)

− Focused channel programs by FMCG players to address the needs of the channel

− HUL – “Project Shakti”

− ITC – “E-Chaupal”

− Coca-Cola – Project “Parivartan”

− Tata Tea – Project “Gaon Chalo”

− Dabur – ASTRA (Advanced Sales Training for Retail Ascendence)

− Non-FMCG also targeting rural to drive growth

− SBI – Project Tiny Account

− Indian Postal department – Offering more services via its strong 150000 office strong
network
Rural Market – Changing principles
• Rural Market
− Consumer awareness similar to urban – TV acts as a great leveler

− Higher disposable incomes makes the market more attractive

• Shift from the conventional 4Ps model to 4As model

Product Affordability

Price Awareness

Place Availability

Promotion Acceptability

• Organizations focusing on driving 4As to leverage the strong


rural markets
RB - Way Forward
• Focusing on 4A principles

− Focus initiatives to address some/all of the 4As

• Proposed initiatives to address


Affordability
− Awareness i.e. awareness generation via
high impact in-Market visibility as well as
Awareness Point of Sales elements

Availability
− Availability i.e. ensuring wider product
availability
Acceptability − Driving wider distribution, focus on
covering more towns
Deep Dive – National Roll Out 2010
Deep Dive
Objective – to deliver incremental business growth in the Super Stockist
channel by improving overall Quality of Coverage

Huge Investments on Visibility


front across these towns i.e. Big rewards for field force and
Rs4Crs to be spent This
on is the
SS biggest
Channel initiative channel partners
visibility
from usfuelling
in the last 5 years.
SS the
Lets make this a grand
business
Channe
success growths
and fuel for
the growths
l
Additional resources in the
RBSS Channel
India in Focused media inputs in the rural
(PSRs/ASEs) to get the maximum 2010 territories – for the first time
out of these highly prosperous & media focus to be given to these
growing towns towns

Delivering 35% business growth across


Deep Dive towns
Deep Dive – Plan 2010

1. Improved 2. Differential 3. Trade 4. Team 5. Sub-DB


Coverage Visibility Initiatives Incentive Incentive

Total of 766 Differential


Visibility Tools to Structured WS ASM/ASE/PSR to incentive for
Towns (>2Lacs
ramp up in- program across be incentivised program Sub-
of business) to
Market visibility >3.5Lac Sub- on Deep Dive DBs on planned
be enrolled in across these Targets
DB towns Business ach
the program towns

25% of numeric - Dealer Boards Top 4 Parties To be Target


distribution (34150 Nos) across 288 integrated in incentives of
covering 58% towns to be the standard Rs3500/6000
of SS Channel - Tin Plates enrolled into incentive for two quarters
business (22980 Nos) the program Design in the year

-1054 Mandays - Target


- Wall Painting
to be increased delivery Integrate the
(766000 Sq
incentive for same in Sub-
- 53 additional Feet)
the WS parties DB Incentive
PSRs required - In-Shop for 2010
- 0.6%
- 7 additional Branding (500
incremental
ASEs O/Ls)
spend

Deep Dive towns to grow by atleast 35%


Program Element details & Status Update
1. Additional Manpower Plans
2. Differential Visibility
Visibility Element Planned Nos
Dealer Boards 3.5 Lac + Towns –
(all Towns) 50 per Town
2-3.5 Lac + Towns –
40 per Town

Tin Plates
(all Towns)
30 per town

Wall Paintings (all Towns) 1000Sq Feet per town

In-Store Branding
Top 10 OLs in the town
(Top 50 towns)
3. Trade Initiative – Sub-DB WS program

Salient Points
Structured incentive prog for
Sub-DB WS

Enrollment of Top 4-5 parties in


the program

Qualifier for the program - Rs 10K -


Minimum business per month

Point based incentive program


for WS parties

Point ->

1. Base Points – 1 point on


purchase of Rs1000/-

2. Bonus Points – 10% of total


points ach on target ach by
the party
4. Sub-DB Incentive
• For the enrolled Sub-DBs

− Incentive for Q1 (only Quarter 1) on delivering the Deep Dive target


− Slab 1 (>3.5 Lacs per month) – Gift worth Rs6000/-

− Slab 2 (2-3.5 Lacs per month) – Gift worth Rs3500/-

• This incentive integrated with Sub-DB incentive for Half-1 2010

− Sub-DB program brochures would be carrying all the details


NEED GAP ANALYSIS

• Stiff competition in the urban market

• Increasing the size of market share

• Difference between customer expectation and perception

• Knowing the demand of the consumers

• Availability of the products and communication

• Responsiveness
CHALLENGES

• Market criticalities- clashes at upper and lower level

• Infrastructure bottlenecks

• Education of customer

• Creation of market

• Skilled man force for work


OPPURTUNITIES

• Large untapped market

• Increase of potential consumers and buyers

• Raising level of literacy

• Government initiatives e.g.. Financial inclusion etc

• Demand and supply gap


LEARNINGS
• A strong sector of India’s market is yet to be explored properly which
can help in increasing the market share to a great extent.

• The company Deep Dive Plan is excellent and must focus on it with a
great note.

• The company must constantly keep on increasing the size of the Deep
Dive towns so that the reach becomes easier and faster.

• Knowledge about the untapped rural market.

• Measures should be made in order to educate the Customer about the


duplicate products.

• The company must keep a check on the Stockiest to a great extent and
monitor his working very closely in terms of sales.
Thank You!!!

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