Wipro Consumer Care

Learning Team 3
 About Wipro Consumer Care and
Lighting
• Wipro consumer care and lighting in 2013 was among the top 10
FMCG companies in the country while also being the fastest growing

• A presence in more than 40 countries, WCCLG operated across a

diverse portfolio including consumer care, commercial lighting and
office furniture

• Santoor, the companys largest brand was the third best selling soap
in India
 Wipro Consumer Care:
The problem statement
Making a decision on visual merchandising using one of the three models:

a. Distributor Model

b. Manpower Model

c. End to End Model

 The Fmcg market in India
• The market size of this industry in India was close
to $35 billion and was estimated to reach $100
billion by 2025

• Organized retail in India, characterized by

department stores, hypermarkets and
supermarkets- 10 per cent of the total market.

• “kirana” shops, general stores and convenience

stores made up 90 per cent of the market.

• Modern trade- Urban Areas, General Trade- Rural

area
 WCLG SWOT Analysis
Strength Weakness
• Diverse product portfolio • Pressure to control costs
• Global footprint with presence in 40
countries
• Among top 10 FMCG companies in India
• Its largest brand Santoor was third best-
selling soap

Opportunity
• Healthy growth of FMCG sector
• Penetration into rural market by
leveraging GT retailers’ established
network
Threat
• Imminent fear of recession
• Increasing competition
Key facts are relevant and should be considered for
decision-making?
Facts:

● Current and future sales ● Real time data-capture capabilities

● Brand Image ● Relevant industry experience

● Cost control ● Reporting mechanisms

● Flexibility of deployment of the merchandising ● Monthly FC to the company per

teams store

● Budget should not exceed Rs. 175 per store

 1. Distributor Model
Outlets-14,500
Distributor
Merch-135

Merch Merch

Distributor would hire these personnel

• - without a structured recruitment process
Company reimburses:
• 7000 – merchandiser; 800 per bus pass
• POP material would be sent to every
distribution point from the company
warehouse

Cost per outlet = 72.09

 Distributor Model
Pros
The investment required in the model is
less compared to other models.
The investment is further reduced if the
distributor makes a good deal of
business by sharing the expenses
Cons
No initiative taken by the distributor to
monitor the activities as there would be
no direct benefit to them
The sales team would have an arduous
task of territory allocation and preparing
journey plans for every merchandiser.
The distributor may not maintain the
outlet coverage efficiency as promised
 Distributor Model Calculation
Components contributing to cost.

1) Salary
2) Consumables ( Unit Cost = 20000)
3) Sales Kit

Salary
No of Workers 13
Salary/person/month 7800

Manpower needed(Large) 58
Manpower needed(Medium) 77
TOTAL REQUIREMENT 135

No X Per unit 1053000

 Distributor Model Calculation
Consumables 20000
Sales Kit Unit cost 500
PAX 135
Total Cost 11250

5 shared resources
Salary 7800
Merchandizers 2
Distributors 5
39000

TOTAL COST 1045250

Total Outlets 15000
Total Cost 69.68333

TOTAL COST OF THIS MODEL = 69.68

 2. Manpower Model

• The second model under consideration is directly hiring the merchandisers through talent
provider agencies
• This model of merchandising requires a higher expenditure for the company as compared to
the distributor model:
• Fully loaded cost of merchandiser =Rs 12,000 per month, Team Leader Rs 20,000 per month
• Agency would charge an additional 15% as agency fee and additional government taxes
• The agency planned to have one team leader for handling a team of 12 merchandisers
 2. Manpower Model Calculation
Salary
Consumables
Sales Kit
Agency Cost
Service Tax

Salary
No of Merchendizers 84
Salary/person/month 12000
1008000
No of Team Leads 7
Salary/person/month 20000
140000
TOTAL Salary Component 1148000

Travelling 200000

No X Per unit 1348000

 2. Manpower Model Calculation

Consumables 20000
Sales Kit Unit cost 500
PAX 91
Total Cost 7583.333

Agency Cost 206338

Service Tax 195525
TOTAL COST 1777446
Total Outlets 15000
Total Cost 118.4964

TOTAL COST OF THIS MODEL = 118.49

 Manpower Model
Pros
Greater control over operations by hiring a
field supervisor/team leader to monitor
field-force activity and send daily report to
the Area sales manager
The agencies are specialized in sourcing
pool of candidates as per specific
requirements on a demand basis. Also, the
agency could guarantee quick replacement
in case of attrition or request by company
Cons
This model has substantially high
expenditure. The scope of the agency is
limited to staffing and payroll
management and no ownership of the
program w.r.t operational management
All other operational work like territory
division, store mapping, journey
planning is out of scope of the agencies
 3. End to End Model

• The entire VM program will be run by third party vendor which will conceptualize and design
the entire project from manpower planning to deployment of POP material.

• The agency would require detailed project brief including the inputs such as:
o Number of key outlets (Statewise & Townwise plan)
o Frequency of store visits
o Expected minimum daily outlet coverage per merchandiser
o Job description of field merchandiser
o Planogram & per outlet POP allocation

• The agency will prepare the operational framework using the above data points which will
include:
o Territory division
o Optimum manpower
o Merchandiser-retail outlet mapping
o Beat planning for team leaders and merchandisers
 3. End to End Model Calculation

End to End Merchandise Model

Particulars MarginDize Visualeverage Remarks
Call efficiency per merchandiser per day 16 15 Want 15 only so parity
Ratio of team leaders required to
1:12 1:12 parity
merchandisers
Requires less-
Data entry operators Required 5 8
marginDize better
Operational executives required 3 5 MarginDize better
National MIS officers 1 1 Parity
Program managers 1 1 Parity
 3. End to End Model Calculation

Costing
Particulars MarginDize Visualeverage
Cost of 1 merchandiser 13000 11000
Team leader cost 18000 15000
1 DEO cost 10000 10000
OE cost 25000 23000
NMO cost 18000 19000
Program manager cost 50000 52000
3. End to End Model Calculation

Total Cost to company MarginDize Visualeverage

Merchandising 1092000 924000
Team leader 126000 105000
DEO 50000 80000
OE 75000 115000
NMO 18000 19000
Program Manager 50000 52000
Rental warehouse 60000 60000
Classroom induction training 100000 100000
Cost of buying phones 672000
Sum 1571000 2127000
No of stores 15000 15000
Expense per store 104.7333333 141.8
Budget 175 175
Savings 70.26666667 33.2
Total Savings 1054000 498000
 End to End Model

Pros Cons

The whole project will be assigned to The expenditure will be high. Different
the third party. Sales team will have less warehouses will be required
burden. As the whole project will be
given to the agency a sense of
ownership will be there.

Agency will be accountable for the

results. A Perfect MIS can be maintained.
 Our Recommendation
We recommend Wipro go ahead with End to End Model

- WCCL can focus on their core competencies

- Agencies are well versed and Industry have attained high experience in the industry

- Agencies had developed in house IT systems and mobile app based real time reporting to provide
robust daily auditing mechanisms and superior operational control

- We suggest going with VisualLeverage, since they have established their name in the FMCG
sector and would be able to provide mobile based comprehensive report.

- The decision as per our group, needs to be taken without the monetory aspect since it has deep
impacts on the brand image.
 Thank you!
By Learning Team III

Anubhav Srivastava 2020192

Archit Thanekar 2020193
Bir Vikram Dev 2020197
Heramb Naik 2020210
Jatinpal Bawa 2020204
Nirja Pandya 2020214
Prachi Naik 2020162
Raj Nunes 2020163
Rohit Gurav 2020201
Shobha Dhond 2020170
Siddhi Maheshwari 2020174
Vaibhav Barapatre 2020182