VIZAG, JUNE 30TH

WHAT IS THE MISSING PIECE?

• WE HAVE….
– GREAT BRANDS
– ONE OF THE HIGHEST ADVERTISING SPENDS IN THE
WORLD
– MILLIONS OF LOYAL CONSUMERS ACROSS THE
COUNTRY.
– ARGUABLY THE MOST TALENTED AND EXPERIENCED
FIELD FORCE IN THE COUNTRY
• SO, WHAT IS THE MISSING PIECE?
 HUL’S DISTRIBUTION EDGE
SLIPPING

E H UL
W HIL
ON
MPETITI
C O
N G FOR Y CUT
H
S G ROWI E O G RAP I N O/L
T R END L E D / S KU/G S H A RE
•V W
D
N G / STAB A T BRAN B E T TER
INI P
DECL C R OP U U T L ETS=
S S U ES
E R E D O
•I T COV
R E C
•D I
 AND IN SOUTH?

•C LE A R C O R E LA T IO N B E T W E E N W T D V A L
D IS T R IB U T IO N A N D M A R K E T S H A R E
•IN 2 Y E A R S A LL O U R LO S S E S H A V E B E E N
G A IN S FO R S A N T O O R A N D G O D R E J
•U R G E N T N E E D T O IN C R E A S E W T D V A L
•
 WHAT’S DOING?
• P&G APPOINTING – SUB STOCKIEST (SS) IN THE SUB URBAN
MARKETS + KEY RURAL MARKETS. AGENDA IS TO COVER MORE
OUTLETS TO INCREASE WIDTH OF DISTRIBUTIONS THRU THE
SUB – STOCKIEST
• P&G IS SELECTING/APPROACHING ALL THE KEY WS PARTIES/MAJOR
DISTRIBUTORS IN VILLAGES ( LIKE LOCAL NESTLE,BRITANIA
DISTRIBUTORS/SUB STOCKIEST)
WHAT’S DOING?

• TATA TEA’S ‘GAON CHALO’, A RURAL

MARKETING PROJECT IN A TIE-UP WITH
NGOS.
– IN EARLY 2006, TATA TEA TIED UP WITH
12 NGOS TO SPREAD ITS REACH
ACROSS RURAL MARKETS. BY 2008,
ADDED > 20,000 RETAILERS,
INCLUDING 500 NEW RURAL
DISTRIBUTORS, IN 10,000 VILLAGES.
IN CONTRAST, IT HAD TAKEN
ALMOST 20 YEARS TO BE IN 50,000
URBAN OUTLETS VIA 500
DISTRIBUTORS.
• NIELSEN DATA INDICATED IN UP, WHERE
THIS WAS PILOTED, TATA TEA’S
MARKET SHARE ROSE FROM 18.1% TO
26.6%, WHILE HUL LOST MORE THAN
6% IN JANUARY-MARCH 2008
 WHAT’S DOING?
MILESTONES 2007 2010 (PROJECTED)
STATES COVERED 9 15
VILLAGE COVERED 38,500 100,000
E-CHOUPAL INFO KIOSKS 6,500 20,000
EMPOWERED FARMERS 3.5 MILLION 10 MILLION

• AN E-CHAUPAL HAS TRANSFORMED INTO A PRODUCT HUB – THEY DISTRIBUTE

PRODUCTS OF MORE THAN 70 ORGANIZATIONS
• NOW THAT ITC HAS A STRONG NON CIGARETTE FMCG BASKET, THEY CAN USE
THIS NETWORK TO FURTHER THE REACH OF THEIR PRODUCTS
• HUL’S COMPETITORS (DUNCAN TEA/ EMAMI) USE THIS NETWORK TO GAIN
RURAL REACH
 WHAT SHOULD DO?

CONCERN
VWD TRENDS GROWING FOR COMPETITION WHILE HUL DECLINING/STABLE
ISSUES CROP UP AT BRAND/SKU/GEOGRAPHY CUT
CLEAR CORELATION BETWEEN WTD VAL DISTRIBUTION AND MARKET SHARE

RAGE, WE HAVE

THE FACTS
BETTER ABILITY TO DIRECTLY INFLUENCE AND ACTIVATE POS
OUTLET (ASSORTMENT / INFLUENCING DEPTH/ROLE OF CREDIT / BETTER SERVICE / ACTIVITIES / OPS /CHANNEL PROGRAM
BETTER VISIBILITY OF EXECUTION DATA AT OUTLET LEVEL
BETTER MONITORING AND SCOPE FOR IMPROVING PERFORMANCE

SO?
MORE STORES, MORE VWD, MORE MARKET SHARE
 RURAL DIRECT COVERAGE 2010

5,00,000
2,50,000

3,00,000
2,00,000
AND HOW DID SOUTH RURAL DO?
 RAJENDRAN
JAYARAM SHETTY WHO DID THIS?
JAGADEESH SUBBU VAMSI
SUBBU
MANOHAR SANKARNARAYAN JITENDER
NAGESHWARAN

NAVALGUND D KRISHNAKUMAR KARTHIKEYAN

D.MADESHWARAN GURUVARUR RSN PRASAD

P V SANDHYAVE
HAREESH
LOKESH V BALASUBRAMANIAM
KRISHNAKUMAAR
C KRISHNAMURTHY VALLI
AREA NAME TARGET ACHIEVEMENT % ACH

MUMBAI TOTAL 36,779 31512 86%

KOLKATA 53,687 36722 68%

TOTAL
DELHI TOTAL 58,466 45,548 78%

CHENNAI 47292 48266 102%

TOTAL
ALL INDIA TTL 196,224 162,048 83%
BRANCH AV
 PHASE 2: SHAKTIMAAN

ADDING NEW MARKETS SATURATE > 2K MARKETS

ADDING OUTLETS IN RAISE THE COVERAGE LEVELS IN

COVERED MARKETS LINE WITH BEST PRACTICE

REACHING INACCESSIBLE
MARKETS LEVERAGE SHAKTI FOR COVERAGE
 LEARNING FROM BANGLADESH

UB
• POLLYDUT IS BENGALI FOR RURAL L
AMBASSADOR. D IS T R IB U T O
– A COMMISSION BASED FREE-LANCE DSR R
(FDSR) IS APPOINTED. PO LY D U
– PROVIDED WITH A BI-CYCLE OR TRI-CYCLE FOR T
BOTH ORDER TAKING AND DELIVERY.
– SELLS TO THE OUTLETS WITHIN THE GIVEN
R E TA ILE
GEOGRAPHICAL AREAS. R
INDIA: SHAKTIMAAN
• SHAKTIMAN IS NOT JUST IMPROVING
INFRASTRUCTURE IN SHAKTI, BUT
INCREASING OUR INDIRECT
COVERAGE IN <2K VILLAGES
•  SHAKTIMAN HAS THE POTENTIAL
TO INCREASE SHAKTI SALES
(CURRENTLY AT 10% OF
RURAL SALES) BY 60%
• SHAKTIMAN WILL ALSO IMPROVE
THE MIX SOLD IN SHAKTI AND
MAKE THE BUSINESS MORE
VIABLE
• PILOT LAUNCHES HAVE SHOWN
ENCOURAGING RESULTS
ACROSS THE COUNTRY
INDIA: SHAKTIMAAN
• A MALE FAMILY MEMBER HELPS IN
RETAIL COVERAGE WHILE THE SE
FOCUSES ON HOME TO HOME
• SHAKTIMAAN TO FOCUS ON
INACCESSIBLE AND REMOTE
MARKETS
• FORMALIZE BY PROVIDING A CYCLE
AND REGULAR PJP AND SALES
PROCESSES
• TRAINING AND MANAGEMENT OF THE
SHAKTIMAAN THROUGH SHAKTI
RSP
• EACH SHAKTIMAAN TO COVER AT
LEAST 14 - 18 ADDITIONAL
OUTLETS FROM NEARBY SMALL
MARKETS
• TOTAL AMBITION TO COVER 3,00,000
OUTLETS
 LEARNING FROM ORISSA
25
unique
50% lines sold
per SE
turnover
increase in
Shakti
turnover
3.8
average
3978 drops per
SE
villages
covered
16566
outlets
covered

1337
Cycles
landed
 LEARNING FROM ORISSA
• SE meeting attendance & communication of
prime importance
• Alternatives if SE doesn’t want to become SM
– Employ another cycle man to do SM’s job
– Appoint separate SM for retail coverage in the village
• Frequency of RSP contact crucial
•
THE PROCESS
 LOCALITY BLUEPRINT
MAPPING

SHAKTIMAAN RSP RECRUITMENT

RECRUITMENT

OUTLET HANDSET
IDENTIFICATION

OUTLET
CREATION FIRST BILL
 LOCALITY BLUEPRINT
MAPPING

SHAKTIMAAN RSP RECRUITMENT

RECRUITMENT

OUTLET HANDSET
SCOUTING

OUTLET
CREATION FIRST BILL
 LOCALITY UPDATION

LOCALITY MAPPING UPDATED IN RS UNITY

 BETA BLUEPRINT

A LPH A B LU E P R IN T

T H IS W O R K S H O P T O W O R K O N B E TA B LU E PR IN T:
•M A P V ILLA G E S T O S E s/ S M s
•FR E E Z E N E T W O R K S O N P E R IP H E R A LS
•FR E E Z E N E T W O R K S O N S E M E E T IN G S

S E / S M W IS E V ILLA G E +
O U T LE T TA R G E T
 SHAKTIMAAN RECRUITMENT
• ALL BDEs TO CONDUCT SE-WISE WORKSHOPS TO
– CASCADE SHAKTIMAAN PLAN
– SIGN AGREEMENT
– ALLOCATE TARGETS
– FREEZE SCOUTING/ OUTLET ADDITION NETWORKs
• WORKSHOPS FROM JUL 23RD – JUL 30TH
– BUDGET DETAILS INCLUDED LATER
• PARALLEL RSP RECRUITMENT PROCESS INITIATED
–
 OUTLET SCOUTING/ ADDITION

1
SM SCOUTS
THE OUTLETS

2 RSP VERIFIES +
COLLECTS DATA IN
GIVEN FORMAT

3 OUTLET UPLOADED
FROM BACKEND
 WAYS OF WORKING (RSP)
• 1 RSP FOR EVERY 20 SMs
– 1 RSP FOR EVERY 40 SEs
• RSP TO VISIT EVERY SM AT LEAST ONCE AN MOC
– TO RECORD SALES MOC TD ON MOBILE APPLET
• APPLET TO SEND OUTLETWISE DATA VIA GPRS TO UNIFY
BIW
– DATA CAPTURED INCLUDE OUTLET/ DATE/ SALES VALUE/
NO. OF LINES
• RSP TO RECEIVE AN INCENTIVE OF RS. 250 FOR
SUCCESSFUL ADDITION OF ALL TARGETED OUTLETS
• RSP TO BE GIVEN MOBILE HANDSET
– RS. 500 TO BE DEDUCTED FROM SALARY OVER NEXT 5
MOCs
• RSP SALARY
•
 WAYS OF WORKING (SHAKTIMAAN)
• ALL SM+SEs TO RECEIVE CREDIT FROM RS
• ALL SM+SEs TO RECEIVE AT LEAST 4 DROPs PER MOC
• ALL SEs TO WORK FOR 2-3 DAYS A WEEK
• ALL SM+SEs TO COVER 20 OUTLETS PER MOC
– SE: 5
– SM: 15
• ALL SMs TO TAKE ORDERS ON PROVIDED BILL BOOK
• ALL SMs TO BE PROVIDED CYCLE FOR CONVENIENCE
– AGREEMENT TO BE SIGNED FOR SAME
–
BUSINESS CASE (OPTIONAL)
  SOURCE SE SE + SM
HOME2HOME 4800 4800

RETAIL COVERAGE 4 20

PER OUTLET (EXISTING) 1800 1800

PER OUTLET (NEW) - 750

RETAIL 7200 19200

TOTAL 12000 24000

RETAINED EARN 696 1056

HOME2HOME% 40 % 20 %
 NETWORK

WHO? JULY AUGUST

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
 

ASMs CYCLES TO REACH ALL DEPOTS CYCLES TO ALL SMs          

 
 
 
 

RSP RECRUITMENT
 

SELLING AIDS TO ALL SMs          
 
 
 
 
 
 
 
 
 
 
 

     

BDEs SE/SM MEETINGS SM CLASS TRAINING

     
     
     
   
   
 

SCOUTING + ADDITION SUPERVISION
 
 
 
 
 
 
 
 
 

RSP TRAINING

SMs OUTLET SCOUTING                    
 
 
 
 
 
 
 
 

RSPs OUTLET VERIFICATION + TEMPLATE SUBMISSION          
 
 
 
 
 
 
 
 
 
 PROCESS FLOW
JULY / AUGUST 2010
SU MO TU WE TH FR SA

        1 2 3
•Workshop
Alpha Blueprint circulated
numbers of to
•Locality Updation for Shakti > •90 % •Finalizing FF
collaterals RS-wise
4 5 6 7 8 9 10
•Beta Blueprint•Recruitment
circulated of
to RSPs
FF •SEs meeting with RSPs : Introduction & Agree
•Assigning SEs to RSPs
•New RSP’s on-the-job training
11 12 13 14 15 16 17

18 19 20 21 22 23 24
•Identifying outlets PDP
by •Distribution
SM
•Finalize and credit with
of collaterals
RSs
•Handsets
•Download
to
provided
SM & Install
to RSPs software on th
•RSP25to freeze
26 PJPs 27 28 29 30 31
•Child party creation on Unify according to excel
1 2 3 4 5 6 7

8 9 10 11 12 13 14
 BUDGETs (OPTIONAL)
ELEMENTS PER HEAD (Rs.)

CYCLES 3000

SE/SM MEETINGS 300

MEETING GIFTS 100

SCOUTING INCENTIVE 100

(SM)
SCOUTING INCENTIVE 250
(RSP)

• OTHER THAN THIS, BILLBOOK, TBF, BAGS, ETC. WILL BE PROVIDED

CENTRALLY FROM BRANCH
 TO BE CLOSED TODAY
• BETA BLUEPRINT
– SMWISE TARGETS
• SM WORKSHOP NETWORK
• CYCLE NETWORK
• MOBILE TRAINING
 OUTPUT of WORKSHOP
RURAL South - mC Task 2
Particulars <2K 2K - 5K >5K Tota
l 
UNIVERSE SE      
Possible Shaktiman        
% Shaktiman        
         
Alpha Blue Print        
No of Markets To Be Covered        
Targeted OL (20 OL/SE) 0 0 0 0
         
         
Beta Blue Print - Rural        
Task
No of Markets To Be Covered        
Targeted OL (20 OL/SE)        
         
         
Targeted Total OL to be covered        
         
         
LET’S BE NO. 1
AGAIN
 OUTLET ADDITION TEMPLATE

FIELD EXPLANATION EXAMPLE

RSCODE THE RS CODE 431234
PARTYNAME NAME OF THE CHILD PARTY TO BE CREATED KUNI SAHOO
PARTYHLLCODE PARTY HLL CODE TO WHICH TO BE ATTACHED AS CHILD HUL-203045P1234
PARTYMASTERCO PARTY MASTER CODE THAT CORRESPONDS TO PARTY HLL CODE P1234
DE
ADDRESS1 FIRST LINE OF ADDRESS. MAX 50 CHARACTERS NO. 9, GAJA GOWRI NILAYA
ADDRESS2 SECOND LINE OF ADDRESS - MAX 50 CHARACTERS 385/2, 4TH CROSS, MUNIYAPPA
LAYOUT
ADDRESS3 THIRD LINE OF ADDRESS - MAX 50 CHARACTERS MUNEKOLALA
ADDRESS4 FOURTH LINE OF ADDRESS  - MAX 50 CHARACTERS BANGALORE
PAR_STARTYPE LOCALITY OF OUTLET (CENSUS VILL. NAME) MUNEKOLALA
 RSP SALARY
ELEMENT COST
Basic 3000
HRA 600
Conveyance 800
Medical 1250
Deputation 2905
DA 0
Bonus 600
GROSS 9155
PF (Employer) 360
ESIC (Employer) 435
Ins. 35
CTC 9985
PF (Employee) 360
ESIC (Employee) 160
PT 0
Total Deduction 520
Net Salary 8635
Expenses 2860
Incentives 750
TOTAL IN HAND (for deputees) 12245
GRAND TOTAL 13595