Organised Retail – Today and Projections

with respect to Consumer | Brands| Formats

#01
 N ANBUMANI
An MBA from Institute of Rural Management Anand (IRMA),and a master’s
degree in Sociology from Jawaharlal Nehru University he has 23 years of rich
and diversified experience in Sales, Marketing and Operations. A forward-
looking initiator, who is the Principal Consultant of Catalyst Consultancy where
he works closely with CEOs and promoters on strategy and execution.

He has worked with brands like Amul, Britannia, Godrej, Airtel,

Subhiksha, Nokia and Dalmia cements and has a successful track record
of launching and growing brands with his capability to utilize innovative
marketing approaches and smart strategies to achieve business objectives.

Awarded one of the 50 Most Talented CMO's for 2013 by World Brand
Congress. With his core competencies in Channel Sales and Business
Development, Marketing Strategy and Operations, P&L Handling, Start-up and
Turnaround, Anbumani has achieved sustained growth for companies by
engaging and empowering large teams.
#02
 Presentation Flow

• Facts of Indian Retail

• Brands - Objectives and Levers
• Organized Retail – Next Stage

#03
 Facts of Indian Retail

#04
 Facts On Indian Retail

• India is the 4th largest retail market in Globe

• Accounts for over 10% of country’s GDP
• Accounts for over 8% of employment, second to agriculture
• Total Retail Market is estimated – 71.25 lakh crore

• FMCG is values at 7.72 lakh crore by 2020

• Food Product 2.71 lakh crore

• 15 Million retail outlets spread over 500 million Sft

• Worlds Fastest growing E- Commerce Market

Source :
https://www.ibef.org/industry/fmcg.aspx#:~:text=The%20retail%20market%20in%20India,boost%20revenue%20of%20FMCG%20companies.&text=
FMCG%20market%20is%20expected%20to,10%20per%20cent%20in%202020.
https://www.ibef.org/industry/retail-india.aspx
#05
 Indian Retail is valued at ~ INR 71.25 Lakh Crores

Organized CAGR

14%
Modern Trade
Total 76% 25%
Retail, FMCG,
71.25 7.72
Un Organized
86 %
E Commerce 35%
24%

Key Notes

• FMCG Market is expected grow 9 to10%

• Rise in Rural Consumption will drive FMCG – Accounts for 36% of Over all FMCG

Source:
Article titled “Top 20 Economies in the World”. Retrieved from https://www.investopedia.com/insights/worlds-top-economies/
#06 Deloitte Report on Unravelling the Indian Consumer, 2019
 High Patronage of Modern Trade and Key Markets are in South

1 Competitive pricing and innovation in 3

South India still leads with a 22%
payment methods drive MT Growth contribution

2 channel 4
Top 29 metros make up ~72% of the MT business | < 1L Towns shown a sizeable increase
shifts are even more amplified in metros
MT Contribution of Chennai -40% | Pune -35%| Lucknow -27% |
Kochi 38%

#07 Source : https://www.nielsen.com/wp-content/uploads/sites/3/2019/04/Nielsen20Featured20Insight-20Reformatting20Retail20in20India.pdf

Three large groups based on nature of business

• Only Fast moving

Cash and products
Carry • Redistribution to
Outlets and HORECA

• Wide Range for

Large Consumers
• Best place to launch
Mega | Hyper New Products

Small • Daily Needs – FnV |

Bakery| Meat
Daily | Fresh • 365 days Discounts

#08
@600 Banners -TOP 20 Contributing to ~75% of Business
Brands Small Large Cash n Carry
Daily | FreshRetail - 12771
Reliance Hyperols
| Mega
in 7000+ Cities
Planning to expand 1500 during 2021
Reliance Selling 1Billion units | 30L units per day
7 Time larger than closest competition – Dmart|
With Jio mart – planning to tieup with 5 Million
Future Retail Ltd
Kiranas by 2023
17.7%
1800 Ols |5.5Bn
(BB -318+ FBB
116)

Spencer’s RP
Sanjeev Goenka
4%
Aditya birla group 29 ols

21.9%
Other Key Chains
196 ols
Subsidiary of Spencer's

#09 Govt approved 100 percent FDI in the cash and carry segment
 Brands Objectives and Levers

#10
 Expectation of Brand Manager and KAM

➢Market Share
➢High Visibility
➢Sustainable Profitable
growth | Hygiene

#11
 Expectation of Modern Trade

➢ Profitable
➢ High ABV
➢ Customer Loyalty
➢ Range
➢ New Launch
➢ Adequate Stocks
➢ Shopping Experience

#12
 Modern Trade

Challenges Advantages
• Limited Space • Huge Range

• Low Margins • Retail Experience – Touch and

feel the product
• High Rentals
• MRP driven market • Opportunity for Trails and New
Product Launch
• High Service orientation • Best Price
• Home delivery
• In store customer • Credit – B2B
engagement
• Complementary Products
• Small Transaction values • Large Packs and Multiple
quantity
• Diversified Shopping
• One point Purchase

#13
 What Brands can do?

Knowledge is Power Partner Category Manager

• Research Inputs • Sales Volume | Gross Margin Rs.

Value| Gross Margin % | Number
• Market Potential
of Days
• Consumer Insights
• Consumer Buying Behavior • Effective utilization of investment
• New Segments of Consumers • Stock Rotation
• Stock Liquidation
• Best Practice in Trade • Avoid Stock outs | Realign MBQ
• Market share – Market Vs MT with market Trends
Vs Particular Outlets • Claim Settlement
• New Trends – During Covid
• With in Category Sub Category Mix
changes Eg . Hot Beverage – Health Drink
• Investment to increase efficiency
• SKU Rationalization -Fast moving SKUs • Walk-in drive
• Planogram Change • Bill buster – Product in every
basket
• New Launches Plan | ATL and • Increase Frequency | Large
BTL Plan | Co Branding Purchase
Opportunities

#14
 Timely Rollout of Monthly Inputs

• Close Monitoring of outlet

1st to 10th stocks
• Incentive tracker

• Service Stocks

26th to 30th • Merchandise

• Ensure Planogram

• Finalize Inputs

21st 26th • Discuss and Agree

• Set Target

Timely rollout of monthly inputs to maximize during

buying cycle and Track performance
#14A
Together make customer to Buy

#15
Together make customer to Buy
How are you going to
put your brand in
every basket?

#16
 Product Focus according to Retail Format

Levers
High

3 2
B2C 1. Direct Supplies
Regional National 2. Add Margins
B2B 3. Large Volume
discount
4. Visibility
Margin

FMCG 5. Credit terms

1 6. Consumer offer
7. Incentives
8. Key SKUs
Small Stand 9. Stock Rotation
10. Stock Return
Alone 11. New SKU
Low

12. Co Branding

Low Product Movement High

Manage Margins and gain Maximum Market share

#17
 Brands TOT according to Retail Formats

Levers
High

3 2
High Margin Moderate Margin
High Credit Moderate Credit 1. Direct Supplies
Huge Volume New Launch 2. Add Margins
High Operating Cost Moderate Operating Cost 3. Large Volume
Maximum Discount Huge Range discount
4. Visibility
Margin

FMCG 1
5. Credit terms
6. Consumer offer
Regular Margin 7. Incentives
No Credit 8. Key SKUs
Fast Moving Products 9. Stock Rotation
Less Operating Cost 10. Stock Return
11. New SKU
Low

Convenience
12. Co Branding

Low Product Movement High

#18
 Negotiation with Organised Retail
Used Case of Butter Brands
Amul | Britannia | President

#19
 Butter ~3500 Cr | CAGR @19% (2011-18)

Amul accounts for around 83% 500g SKUs Sells mostly in

of the entire India market... modern trade ~

40

• Mother dairy is third largest brand; • Many Biscuit manufactures and

“Milky Mist” is aggressive
51 in South: Institutions buy Salted butter large
strong Cold Chain in Fruits and Vegetable packs
Shops

#47
 Butter ~Channel Mix and Margin Structure

Modern Trade in Metro ~6800 Outlets Except Amul other brands give
propelled major growth additional sec incentive to MT@ 10%

40

1. Modern trade account for @ 40% of

Butter 51

2. Institution buy form modern trade –

Range +availability+ Credit+ Best Price
for large purchase and most important
single source
#48
 Retail Formats – Product Mix
Store Size

High
High Low

B2C
High

High Margin Regional

Moderate Margin
AMUL |Britannia | Milk Mist
High Credit AMUL | Private
Moderate Label
Credit
| Mother Dairy
Huge | Nandini
Volume New Launch
High Operating Cost Moderate Operating Cost

Operating Cost
MaximumB2BDiscount National
Huge Range
AMUL AMUL | Britannia
Margin

Milky Mist/ Britannia Milky Mist / CoOp

FMCG
Regular Margin
AMUL
No Credit
Fast Moving Products
Less Operating
Maximum One Cost
More
Convenience
Brand
Low

Low
Low Product Movement High

#20
 Amul Outlet Strategy

Distributor Margin Distributor Margin Consumer Pull |

High

uses trade just to

B2B
Bulk Pack and LUPs
Merchandiser Support
Increase Frequency
Regional
Adequate 100g and 500g reach
QPS – Institutional Supplies
B2C
Promo during festivals
National
Merchandiser Support
Market Leader with
Promo during festivals
Pro Magazine and incl in 83% Market Share
Margin

Additional Stock Holding Adv

FMCG Regular Margin
Must have brand
for all category of
Regular Stock outlets
Increase Frequency
Break Case – 100g Need to expand
Stand Alone
Stock Rotation retail outlets as
Consumer engagement market leader
Low

Activities
Protect Market
Low Product Movement High Share in Chains and
Large Formats

Objective: Regular stock Position and Retain Market share

#21
Amul - Leadership

• Closely Track Consumer Preferences

• Follow Competition activities
• Co creating Business Plan – Quarterly
• Market Trends
• Best Practices
• Sharing Research findings
• Consumer Trends Buying behavior
• Fast turnout of customers
• Category trends
• New Launches Planned
• Promo Planning
• ATL Co branding Opportunities
• BTL Spend planned
• Evolved relationship will lead to Joint Business Plan

#22 25
 Britannia Outlet Strategy

Distributor Margin Distributor Margin Played strong

High

B2B
Tailor Make Products
Bundled Offers Regional
Merchandiser Support
Challenger role
for more than
Regular Secondary Scheme
B2C
Promo during festivals
National
6 months QPS 10yrs in Dairy
Bill Buster | Buying Basket
Additional Stock Holding Additional Shelf Space| Visi Market Leader
Margin

Cooler Possibility in Bakery

FMCG Regular Margin Had huge impact
in dairy product
Additional Stock with Cows milk
Promoter Support products
Stand Alone
Break Case |Stock Rotation
Secondary Scheme | Grab
Low

Did not invest in

Market Share Production
capability
Low Product Movement High

Objective : Additional Margins and gain Market share

#23
Britannia - Challenger
Focused should be Regular Stocks and Systems and Process

• Line and Order Fill Rate

• Stock Position Current
• On Monday Morning | Opportunity Loss
• Age of Stocks | Promotion
• Potential Damage Stocks | Liquidation Plan
• Stock Rotation Plan
• Pending Items
• Scheme Settlement
• Claim Deduction
• Inputs from the Category Head
• Service Improvements
• Category Trends
• How to increase Sales
• Competition Activities | Best BTL program
#24 27
 Competition Current Value Chain
Butter Distribution
CFA

Modern
Super
Distributors Trade Chain Institutions
stockist
of outlets

Stand Alone
Retail Super Wholesale Sub Stockist
markets

Margin Structure
Consumer
Company Distributors Retailer
Modern Trade Institution Sec Scheme Scheme
Amul 2.9% 8.4% 11.3% 11.5%
Britannia 4.5% 9.0% 13.0% 15.0% 10.0% 5.0%
Milky Mist 4.5% 12.0% 20.0% 20.0% 5.0%
AMUL Milky Mist
Channels supplied through distributors Britannia
and additional margin given for Flat Margins and try to supply
achieving TO | By this they ensure no directly the Modern Trade, Keeps the trade
price under cutting| Drives Consumer Institutions | Operated consumer on its side
pull by aggressive promo and promo for 6 months during season Offers attractive
#25
advertisement | margins28
 What should President Butter’s Strategy be?
Butter Brands
World’s No. 3 Dairy Brand
2nd Largest Butter Brand in the world
• International Image | 160 countries
• 120+ Years
• Bouquet of Brands
Coming with Own Procurement and Manufacturing
• Cows Milk Butter – Spreads smoother
• Low Salt
Approach : Challenger
• Need to capitalize Global Leadership - Imagery
• They need to keep pricing with GM of @ 45 %
• Need to build Product selling team - rollout schemes
• Establish Cold chain of its own – Retail | MT | 5 Star Horeca
• Focus on Trials – Brand Activation in HNI
#26 29
 Listing of Brand in Modern Trade Outlets
• Listing Charges
• Mostly used to avoid non serious players
• Per SKU | Per Outlet | 60/36/12 units as per the Shelf space and
product size - Rs.2K to 5K
• Avoid Keeping 12 units – Your product will get lost
• Ideally try in few outlets or cities before you expand

• Additional Visibility and Promotion Support to make it

Win Win
• Multiple visibility and Stacking Possibilities

#27
Branding – Opportunities in Modern Trade
Branding Formats Purpose Duration Cost
Promo Stall Larger Format Launch | Demo Weekend 1L to 3L

Gate Arch Small Formats Thematic –Multi Brand Week| Month 1L to 3L

Promo Magazine All Formats Promo Comm Promo Period Free

Standees All Formats New Products Month 10K

Floor Branding Large New Products Month 50K to 1L

Pallet Wrapping Large Promo Month 50K to 1L
End Cap| Gondola All Format Promo |New Month 50K to 1L

Aisle Branding Large Given with End Cap Monthly

Category Header All Formats Big Brand Comm Long Term @10K
Fixed Shelf Units All Formats Promo Monthly @ 25K

Shelf Sticker All Formats Highlight Promo Monthly Free

Clip Strips All Formats Add on Medium Term Add on
#27A 31
 Never give your margins in one go |
next time the conversation will start
from where you left

#28
 Multiple Layer of engagement

• Promoter Support
Store Manager • Incentive
• Listing | Portfolio |Category
Penetration| Sec Schemes|
Shelf space increase |
Category Head Visibility – 3%
• Consumer Scheme | Bill
Buster 2%
• Target 18% 20%
Ops Head • Yearly Quantity Target – 2%
• Cash Payment 2% for 3 days
Comm Head and 1% for 7days

#29
 Margin Structure and other Inputs
• Don't give More of Fixed Margin | Give Incentive
for Performance
• Ensure no Price under cut
• Sign up for Bill buster for minimum bill with
relevant category
• Possibilities of Cross Selling with allied
categories
• Additional Promoter
• More Facing | Vantage Placement

#30
 Seek information on Regular basis from the
Modern Trade

• Category Growth Vs Our Performance

• Off take Report – Outlet wise | Week day | Week End |
Buying Cycle |Festival | Prom Period
• Daily Inventory Holding – End of the day
• Fill Rates – Line and Order
• Best Promo learnings
• Allied Category Off take Report – No always
• Stock holding beyond MBQ with PKD
• Stock Rotation Plan
• Promo Plan for liquidation

#29
 No matter what margins one gets; only by
operational efficiency profitability can be
increased.
• Manpower External Factors :
• Procurement Efficiency Maximum Earning 23%
• Supply Chain innovations
( HUL 19% to Rickett 30% + New Products 45%)
Discounts Range from 6% to 12%

• Advertisement Earnings Internal Factors :

Operating Expenditure + Profit – 12%
• Business Model
Manpower -3.8%+ Rent -2.8%+ Electricity – 3.6% +
Others – 1.3% =@11.5%

Reducing Operation Cost & increasing Profitability

#30
 President Strategy

Distributor Margin Distributor Margin

High

Opportunity to be
B2B
Tailor Making Products
Promoter Support | Trials Regional
Increase Frequency
strong second
brand | with
Product Usage Training for
B2C
Chief and Accessories – 5*
National
Sec Scheme Cash Discount production
Promoter Support | Trials capacity
Listing Charges | Tagged Stock Rotation | Return
Margin

Visibility |Add Stock Holding Visi Cooler Support Need to invest in

FMCG Regular Margin
building cold
chain for retail
Regular Stock
Paid Visibility
B2B to reach start
Break Case |Stock Rotation
Horeca to cater to
Stand Alone
Develop Cold Storage
international
Consumer engagement
Low

travelers
Activities

Low Product Movement High

Build Visibility and Capitalize on International Brand

#31 Imagery to get into the top 2 Brands
Take Away
1. Brand to share Research inputs to Modern Trade MT – Key Levers
- Market Potential | Consumer Insights | Buying Behavior Over Head
1. Outlet Location
2. Share Best Trade Practice 2. Outlet Size
MS - Market Vs MT Vs Particular Outlets | New Trends 3. Interiors
4. Electricity
3. Never give your margins in one go | next time the 5. Manpower – No of Shifts
conversation will start from where you left. 6. Consumables
Variable spend to drive performance
Income Opportunity
4. Timely rollout of monthly inputs to maximize 1. Sourcing

Efficiency
during buying cycle and adequate stock 2. Inventory Levels
3. Category Mix
4. Brand Mix
5. Seek information on Regular basis from the 5. Asset Turnover
Modern Trade 6. Schemes

Barraging
7. Incentives

Power
6. Help outlet to increase efficiency 8. Display
Share Best Trade practices | Inventory Planning | Training 9. Advertisement
|Promo Planning | Measure Promos n Suggest Corrections 10. Listing Charges
In short manage cost and run business efficiently and attract more customers

#32
 Organized Retail – Next Stage

#33
 Organised Retail – Next Stage
Hybrid Model – Online to Offline

Omnichannel commerce
Consumers are increasingly switching between offline and online
touchpoints across their purchase journey. Offline retailers are also
increasingly going online and are partnering with e-retailers to offer
consumers a seamless experience.

#34
 Hybrid Model – O2O | Existing E Commerce
AMAZON

BRANDS Brand Register with

Amazon as vendor
3

Customer
Place order
2 with Amazon

Nearest Distributor will

4
deliver the products

Faster Fulfillment – Same day delivery

Less Cost – Cover all PIN codes
Additional business – use eco system
Brands get to know customer
Upselling posssiblites
Price stability | No undercutting
#35
 Hybrid Model – O2O | OWN E Commerce

2
Brand will instruct the Fulfillment BRANDS

center to raise invoice and hand it

over to point of sales
3

1
Customer
Place order
CFA DISTRI
BUTOR
EXCLUS
IVE O/L
with Amazon

Faster Fulfillment – Same day delivery 4

Additional business – use eco system
Brands get to know customer
Personalized Delivery
Upselling posssiblites | Experience Zones
Price stability | No undercutting

Additional cost to manage Ecommerce

Retailer and Distributor compensation to be
factored in the Online pricing
#36
 E Commerce – B2B

Good Model. Its doing well

#37
Hybrid Model – O2O -New Commerce Model

In this model virtually role of Distributor will disappear

#38
Larger Digital Ecosystem are with companies

#39 Amazon’s Alexa | Google Assistant, Apple’ s Siri, Samsung’s Bixby 45

 Next Stage of Organised Retail – Hybird Model
Model Advantages Disadvantages
Brands use offline distribution to 1. Additional Business
reach non mapped pin codes 2. Wider market
online. Brands will register with e 3. Reduce servicing cost
commerce sites | As the orders 4. Faster fulfillment
come they will allocate to nearest 5. Visibility of customer
network for fulfillment 6. Price Stability

Brands Create Ecommerce and
sell through network
Pure Ecommerce for B2B
Jio Model – Online to Offline -
Jio’s model of integrating Kirana
#40
In addition to the above
Experience centers and
Upselling Possibilities
• Faster Fulfillment
• Best Price and Terms of
trade
• One point solution
1. Wide range of SKUs
2. Less inventory cost
3. Faster service
4. Current store will double
up as fulfillment centers
1. Retailer and Distributor
compensation to be
factored in the Online
pricing
2. Ecommerce Cost
1. Distributors need to
operate more efficiently
1. Distributors will be
disapper | redundant
2. Customer info shared
3. Brands will loose grip
 E Retail to out grow Modern Trade by Fy 2026
The overall retail
market shrunk by
5%, along with a
7.3% contraction
in GDP. However,
the Indian e-retail
market saw a
25% growth
despite lockdown.
Thanks to
reverse migration
to smaller towns.

The pandemic
was a watershed
moment for
India’s e-retail
market 4.6% by
Fy2021

#41 Source : Bain & Company https://lnkd.in/eEmrk_cv

 Consumer - Experience new age shopping

#42
.

Thank You
 Diversified shopping experiences
Grocery Store
- Outlet dealing mainly in
grains,spices, edible oil,
vanaspati etc
- Most of them from this
outlet are weighed and sold
- No of outlets : 1.6m (86%)
- Volume % : 83% (21k t)
Paan Plus
-Any outlet that sells a
substantial volume of FMCG
in addition to selling Paan /
Bidi
- Sells high vol of cigarettes
- No of outlets : 182k (10%)
- Volume % : 6% (1551 t)
- Value % : 6% (952Mn)
- Avg price/kg : INR 614
Chemists
- Selling RX drugs, OTC &
4 - Primarily sell more of Food5
additional product groups
- Outlets selling only ayurvedic,
Unani, or Homeopathic are not
chemists
- No of outlets : 28.8k (2%)
- Volume % : 0.3% (74t)
- Value % : 0.4% (70Mn)
- Avg price/kg : INR 952
Source : Internal market intelligence
1 General Store
- Outlet dealing in day-day
requirements. Stocking no of
SKUs
- Do not stock unbranded
grocery
- Value % : 80%(13.6bn)
- Avg price/kg : INR 669
3 Modern Trade Format 2
- Large format stores either self
service or part of Chain
- Provide Shopping carts
- Driven by discounts or
speciality
- No of outlets : 6244 (0.3%)
- Volume % : 9% (2.4k t)
- Value % : 12% (1995Mn)
- Avg price/kg : INR 840
Food Stores
Products (Branded,
Unbranded& own brands)
- Vegetables & fruits sold on
weight
- No of outlets : 44k (2%)
- Volume % : 1.3% (335t)
- Value % : 2% (351 Mn)
- Avg price INR 797/kg
Diversified shopping experiences - Shampoo

……………………………
Range
Best Price
Range Complementary
Explore products
Convenience New Brand (Trials) Large| Multi
No access
Medium SKU
Known Brand
Small SKU
Journey of Brand Manager | Key AC Mgr

As a fresher you will face 5 situations:

How will you deal with it?
1. Orientation
2. Interaction with Marketing and MT Team
3. Outlet Visit
4. Interaction with Modern Trade
5. Plan | Rollout and Review

#15
1. Orientation – Information to seek

Marketing Head Sales Head

Brand Positioning, Key Competition
Consumer and Market Research, Growth Projection with assumptions
Retail audit Category Growth
Consumption, Occasions, TG Channel wise Penetration and
Marketing Plan for the Year Contribution - past 3years
Watershed Planning (inputs Vs
Market Share) Brand
Manager
KAM – Regional and Finance and Commercial
National Sustainable Profitable Growth
How do they plan Promotions Claim Settlements
What reports they take from the MT?
Distribution infrastructure
When do they rollout ?
Banner wise PnL
Additional Spend on the Chain

#16
 43 of 90 categories.. higher MT contribution

#17
 2. Deliverable for Sales Team
Role Details
ASM to SO 1. Sales Op
Plan vs Actual PAYMENT RS.2
Day Stock Received
Sold Closing UNITS SOLD
2. Trade marketing and Execution plan RS.10 /UNIT MARGIN/UNIT

3. 1
Portfolio 10 initiatives
growth 20 20 10 20 40
USAGE OF 7 10 20 20 10 20 40
INVESTMENT 4. Assortment planning , Launch Planning and execution
14 10 20 20 10 20 40
5. Work
21 with in allotted budget and achieve 20*10=200 120
6. Customer's
28 trade issues, complaints and operational matters
SO to Executive 1. Fill RateOp– Line and Case Sold
Received
Fill ratesClosing Potential to
Sales Saels In Units
Days
2. Opportunity loss - Planogram sell
Mon
3. Number of days5 Stock holding35 5 35 5 Daily Sales 5
MBQ
Tue
4. Nearing Expiry35and possible 0 5
solutions 30 5 Weekend 10
Possible Stock Wed 30 5
5. Payment Receivable and Collection plan 25 5 Festival 20
Out | Thur
6.
25 20 5
Trade information, competitor's activities and market intelligent
20
Opportunity Fri 5 5 0 20
7. Actual Billing Price vs agreed This Week Thur and Fri - Festival
Sat 0 0 0 10
Loss 8.
Sun Damage stocks0| Stock Return 0 0 10
9. Promo
StockPerformance
Holding 100 Weekly Supplies - On Mondays
Mon 0 0 0 5
Damaged Stock 20
Executive to 1. Planogram
Expiry
and Actual implementation Normal
15 5
Merchandiser Actual
2. PKD Sales
– Oldest PKD details 40 Consumption
Primary Scheme 5
3. Nearing Expiry and possible solutions
Placement Gap Potential toStock
Actual
4. Stock
sell
Position
60 80
Delivery Time 7 days
Norms Vs Daily Sales 15
Actual Opportunity
5. Condition Loss
of
After fourthcompany investment –
day ; will run out of stocksVisi 40
cooler | Display Reorder
units ectLevel 35 units
With Promoters 1. Number of Customers buy this category
2. Which customer is buying and Why
#18 3. Customer feedback in general
 3. Outlet Visit - Shelf Planning

Category ❑ Category is collection of things sharing

a common attribute

❑ Sub Category has common

Sub Category distinguished characteristics within a
larger category

Variant ❑ Variant is the group of similar items in

a Sub Category

❑ Brand is a name given to a product or

Brand - Pack / SKU service

❑ Pack / SKU is lowest level of product

detail which is at a certain Price Point
Price Point

Brands Movement Number of Objective

✓ Super Premium Brands
✓ Premium Must Have Fast Moving 2 Rotation
✓ Popular
Alternative Moderate 2 Display
✓ Economy
High Profit Slow Moving 2 Margin
#19
To Maximise Revenue and Profitability

Different shelf
stacking

b)
a) Category c) Consumer
Complementary
Shelf Profile
Products

Price Point
wise

Sub Categories

Usage based

#20
Shelf Planning – Price Pointwise

SHELF VISIBILITY SUB CATEGORY

Super Premium

Premium
Premium

Popular

Economy

#21 58
 Shelf Planning - Corner for Sub Category
High Margin – Typhoo| Teami Alternative –Twining | Organic India

Must Have Brands –Tetley and Lipton

Private Label - For Margin creation | <3%-4% contribution

#22 59
Shelf Planning - Usage Base | Hyper
Away From Home At Home

……………

……………

#23 60
Shelf Planning – Complimentary Products

Bevera
ges + T
DW+ E
Sugar A

#24 61
Shelf Planning – Consumer Profile

T
E
A R
T
E

#25 62
 Surrogates
Before you decide on inputs; you need to understand real potential of the outlet

• How much business they are doing? Profile of Consumers? By Asking relevant
questions and observing
• 1st week end sales - Fist week end @ 10% to 12% total monthly Turnover
• First 2 week ends will contribute – 21% |First 10 days will contribute – 45+ %

• Outlet has 45 categories – You are in planned purchase category | the category.
Should contribute @ 2% to 2.5% | 40 lakh per outlet – @ 80K to 1L category sales

• Shelf stocks – Maximum 50K (15 days stock holding)

• Just check category shelf

• Look at the PKD of the stocks to understand the stock movement?
• See which price band he is stocking most – Economy | Popular | Premium | Super Premium
• Allied Category assortment

• Frequency of supplies from key categories?

• Is he plowing back earning from your brand to increase your business ? Diverting
money for other brands? Accordingly decide on your supply frequency | Terms of
trade | SKU planning |

#26
 4. Interaction with Modern Trade

4.1. MT Looks for Research Inputs from the

Brands on Consumer Insights
Research Inputs
• Market Potential
• Consumer Insights
• Consumer Buying Behavior
• New Segments of Consumers
• Best Practice in Trade
• IOT Sensor at Retail shelf by large companies
• Create Retail Shop at Home eg Pathanjali
• Uberzation – Own | Third party | Courier | Link
• New Launches Planned
• ATL and BTL Plan
#27
• Co Branding Opportunities
 4.2. Never give your margins in one go | next
time the conversation will start from where
you left

#28
 4.2 Multiple Layer of engagement

• Promoter Support
Store Manager • Incentive
• Listing | Portfolio |Category
Penetration| Sec Schemes|
Shelf space increase |
Category Head Visibility – 3%
• Consumer Scheme | Bill
Buster 2%
• Target 18% 20%
Ops Head • Yearly Quantity Target – 2%
• Cash Payment 2% for 3 days
Comm Head and 1% for 7days

#29
 4.2. Margin Structure and other Inputs
• Don't give More of Fixed Margin | Give Incentive
for Performance
• Ensure no Price under cut
• Sign up for Bill buster for minimum bill with
relevant category
• Possibilities of Cross Selling with allied
categories
• Additional Promoter
• More Facing | Vantage Placement

#30
 4.3 Listing of Brand in Modern Trade Outlets
• Listing Charges
• Mostly used to avoid non serious players
• Per SKU | Per Outlet | 8/6/3 units as per the Shelf space and
product size - Rs.2K to 5K
• Avoid Keeping 3 units – Your product will get lost
• Ideally try in few outlets or cities before you expand

• Additional Visibility and Promotion Support to make it

Win Win
• Multiple visibility and Stacking Possibilities

#31
Branding – Opportunities in Modern Trade
Branding Formats Purpose Duration Cost
Promo Stall Larger Format Launch | Demo Weekend 1L to 3L

Gate Arch Small Formats Thematic –Multi Brand Week| Month 1L to 3L

Promo Magazine All Formats Promo Comm Promo Period Free

Standees All Formats New Products Month 10K

Floor Branding Large New Products Month 50K to 1L

Pallet Wrapping Large Promo Month 50K to 1L
End Cap| Gondola All Format Promo |New Month 50K to 1L

Aisle Branding Large Given with End Cap Monthly

Category Header All Formats Big Brand Comm Long Term @10K
Fixed Shelf Units All Formats Promo Monthly @ 25K

Shelf Sticker All Formats Highlight Promo Monthly Free

Clip Strips All Formats Add on Medium Term Add on
#32 69
4.3 Where your product located makes a the difference
You have Premium or Super Premium
Product to be displayed • High value and Priority
product at the eye level at
Brand A Brand A Brand B Brand C the right side corner
Light weight Bulk packs
• 2/3 of the sales will
Super we want to
highlight
between waist and
Premium
Premium Super
eyelevel
Premium
• The moment of human
Popular
eyes follow Z posture |
Economy People will more likely
compare products
Customer Horizontally

#33
 4.4. Knowledge is Power
Share Best Trade practices | Inventory
Planning | Training for Promoters | Promo
Planning | Measure Promos

Consumer Profile | Consumer Buying Behavior

in Modern Trade | Category Mix - Product Mix|
Planogram Position | Number of Facing | Brand
Inputs

#34 71
 4.5. Help Category Head to Achieve is
Target
Measured on following Factors influence Other Factors
1. Sales 1. Sales Mix – Shelf | 1. Walk-in Drives
2. Rupee Gross Margin Bulk 2. Bench mark Price diff
3. Gross Margin % 2. Consumer Promotion 3. Inventory Holding
4. Stock Days 3. Visibility 4. Damage | Expiry
4. Off Invoice Discount
Sales XXXXXX Dmages Stocks at the Store IS A BLIND SPOT
DO’S Don’ts
RGM XXXXXX LIQUIDATION PLAN
1. Creating events to drive walk-ins - 1. Indecisiveness and Blocking
GM 12% CONSUMER OFFER
Cheese Festival investment on stocks – Old,
Stock days 25days
2. Support joint advertisement Damaged, Non Movement
3. Launching Products with preferred 2. Lack of ownership in Liquidating
Average Bulk | 30% Shelf | 70% Visibility Off Invoce QPSBench Mark Diff
Expiry | damage
Net Contribution Margin
partner Nearing Expiry stocks to minimize
Tea 14.0% 4.5%
4. Educate team on impact of stock 12.0% 2.0% 2.5% 0.3% 0.2% 13.998% 55% 7.6989
Coffeeout on incentive
12% 3. Inappropriate Stock Norm – Frequent
|4%Educate
10.00% them2.0% to 2.5% 0.3%
Stock 0.3%out
0.2% 12.498% 20% 2.4996
Healthplan
Beverage - 11% 3.5
inventory – Projecting 9.5 2.0% 2.5% 0.2% 11.498% 25% 2.8745
4. Promoters without Product
#35 Festivals | Holidays 13.073
knowledge
 4.6 Seek information on Regular basis from
the Modern Trade

• Category Growth Vs Our Performance

• Off take Report – Outlet wise | Week day | Week End |
Buying Cycle |Festival | Prom Period
• Daily Inventory Holding – End of the day
• Fill Rates – Line and Order
• Best Promo learnings
• Allied Category Off take Report – No always
• Stock holding beyond MBQ with PKD
• Stock Rotation Plan
• Promo Plan for liquidation
#36
 5. Plan | Rollout and Review
5.1 Timely Rollout of Plan and Inventory
Holding
• Close Monitoring of outlet
1st to 10th stocks
• Incentive tracker

• Service Stocks

26th to 30th • Merchandise

• Ensure Planogram

• Finalize Inputs

21 st 26th • Discuss and Agree

• Set Target

Timely rollout of monthly inputs to maximize during

#37 buying cycle and Track performance
 5.3 No matter what margins one gets; only
by operational efficiency profitability can
be increased.
• Manpower External Factors :
• Procurement Efficiency Maximum Earning 23%
• Supply Chain innovations
( HUL 19% to Rickett 30% + New Products 45%)
Discounts Range from 6% to 12%

• Advertisement Earnings Internal Factors :

Operating Expenditure + Profit – 12%
• Business Model
Manpower -3.8%+ Rent -2.8%+ Electricity – 3.6% +
Others – 1.3% =@11.5%

Reducing Operation Cost & increasing Profitability

#38
Branding – Opportunities in Modern Trade
Branding Formats Purpose Duration Cost
Promo Stall Larger Format Launch | Demo Weekend 1L to 3L

Gate Arch Small Formats Thematic –Multi Brand Week| Month 1L to 3L

Promo Magazine All Formats Promo Comm Promo Period Free

Standees All Formats New Products Month 10K

Floor Branding Large New Products Month 50K to 1L

Pallet Wrapping Large Promo Month 50K to 1L
End Cap| Gondola All Format Promo |New Month 50K to 1L

Aisle Branding Large Given with End Cap Monthly

Category Header All Formats Big Brand Comm Long Term @10K
Fixed Shelf Units All Formats Promo Monthly @ 25K

Shelf Sticker All Formats Highlight Promo Monthly Free

Clip Strips All Formats Add on Medium Term Add on
#39 76
Branding – Outside | Demo or Experience Centre

#40 77
Branding – Gate Arch

#41 78
Branding – Store Promo Magazine & Floor Branding

#42 79
Branding –Floor Branding | Pallet Wrapping

#43 80
Branding in– End Cap | Gondola
End
Cap

End
Cap

#44
Branding Floor Stocking Units

#45 82
Branding in Large Format –Aisle Branding

#46 83
Branding –Product Standee and Category Header

#47
 Branding – Fixed Shelf Units

#48
Branding – Shelf Windows and Clip Strips

#49 86
Branding – At the Shelf strips and Promoter

#50 87