Enhancing

Go to Market(GTM ) in Channel and

Sales Management using
Technology and Innovation :
FMCG Traditional Trade

IRMA
24th Aug 2021
India, that is Bharat…
 As many “Rural “ definitions as there are Sectors of settlements !
Census : Urban Definition ( What is not Urban is Rural !)

Statutory Towns :
- All that is not the following and all All places with a municipality, corporation, cantonment
board or notified town area committee, etc. so declared by a state law are called Statutory
towns.
Census Town
- A minimum population of 5,000;
- At least 75 per cent of the male main working population engaged in non-agricultural
pursuits;
- A density of population of at least 400 persons per sq. km. (i.e. 1000 per sq. Mile)
Towns are further classified into different classes
based on the size of population:

Class I: 100,000 and above;

Class II: 50,000 to 99,999;
Reserve Bank of India (RBI) uses the same population criteria to define the Class III: 20,000 to 49,999;
"Tier centers" - a concept used in designing incentives for bank branch / Class IV: 10,000 to 19,999;
ATM expansions.
Class V: 5,000 to 9,999 and
- Towns with population below 5000 are called Tier -6 centers. Class VI : Below 5000 Pop
- Tier 1 comprises; Metropolitan and urban centres,
- Tiers 2, 3, and 4 comprise semi-urban centres and
- Tiers 5 and 6 comprise Rural centres.
The real Bharat…?
 Kahani India aur Bharat ki …..
No of No of
Pop Strata Pop Cr % of Pop Towns/Villa Pop Strata Pop Cr % of Pop Towns/Villa
ges ges
Metro+
Cities +
17.3 15% 89 50K-10K 12.4 14% 6983
Towns upto
5Lac
5Lac-2Lac 4.4 4% 146 10K-5K 12.5 14% 19013
2Lac-0.5Lac 7.8 8% 885 5K-1K 46.6 54% 229000
Below 50K 86.6 74% 595000 Below 1K 15.1 17% 339000
Market Potential Assessment

Source : RK SWAMY GUIDE TO MARKET PLANNING

Market Potential Assessment :

Source : RK SWAMY GUIDE TO MARKET PLANNING

 1. GO TO MARKET - GT
A. GEOGRAPHY WISE COVERAGE - PLAN AND EXPANSION
B. GTM NETWORK AND MODELS (DD, SD – STOCKIST, EXPANSION ETC.)
C. COST TO SERVE IN RURAL AND FOR URBAN FOR PARETO & BOTTOM
STORES
D. URBAN
I. COVERAGE FREQUENCY – STORE VISIT FREQUENCY
II. TYPES OF SALES REPS – CHANNEL LEVEL, STORE SALIENCE LEVEL,
CATEGORY/LINE LEVEL ETC.
E. RURAL
I. PLANNING VILLAGE LEVEL COVERAGE WITH TYPE OF MODEL
II. OPTIMAL COST TO SERVE
 LEVERAGING RURAL ‘POTENTIAL’… ONE OF THE “NEWER “
APPROACHES
Current approach has been to drive distribution reach/coverage segmenting by Population

1. “Potential” Villages with less population has more key retailers and better offtake than a village with high population

2. A village with availability of Mandi, Feeder Town, “Chourasta”, Panchayat, PHC, Banks with high deposit or Public School tend to have
better potential than villages segmented basis population only

3. To initiate Rural coverage in a cost efficient manner through a data based analytics on Potential Spotting, Existing distribution & Gap
identification

4. A need to target such ‘Potential’ villages , identifying Gaps versus current Coverage and plan to cover such market .

5. Cost efficient logistics hence ‘Spatial Mapping’ through ‘Digital Maps’ of these dispersed villages is required to identify distributor locations as
well as drawing out distributor Territories

Source and courtesy : Nielsen

atul.jha@nielsen.com
KEY – “HIGH THROUGH-PUT VILLAGES”

The Pareto Rule applies

% RURAL FMCG SALES

CUMULATIVE SALES

80%

ALL INIDA FMCG MARKET SIZE INR 650,000 Crs PA

(2020)

RURAL FMCG MARKET SIZE INR 2,90,000 Crs PA

200K (33%) No. of VILLAGES 6 Lakhs (Approx.)

Source and courtesy : Nielsen
atul.jha@nielsen.com
 ALL GEOGRAPHIES MAY NOT BE EQUAL AS FAR AS THE
RURAL MARKETS ARE CONCERNED…!
Segmented Coverage: Prioritize states and villages basis “market potential” only
• What are the metric we should use to categorose a State/District as “ Prosperous” or
Laggard(aspirational )?

• Monthly Per Capita Consumer ( MPCE )expenditure can be one , what could be others
(https://data.gov.in/keywords/monthly-capita-consumption-expenditure)

• Rural Market Potential Value ?

(http://www.rkswamymedia.com/pdf/Sample_Pages_RKS_Hansa_GMP.pdf)

• Bank deposits ( Rural ) @ District level ?

• FMCG Sales (Rural) @ District level ?

• Mobility Consumption per capita ? Is that a right indicator ? Or no of handsets /per capita
price of handset

• What about District level GST collection ?

• Or a mix of above Do we need a Customized approach to unlock the Rural opportunities ?

FUTURE OF RETAIL SUPPLY CHAIN SOLUTIONS USING TECHNOLOGY. WHAT
KIND OF INNOVATIONS ARE DOABLE IN RURAL ?

With small drop sizes at each village level, will a formal collaborated supply chain
business emerge for Cos to embrace using technology ?

Will there be emergence of a shared service like Ola , Uber to transport goods to
village traders from Primary Sales Centres/Depots/ Warehouses.

IIM Raipur Mahindra Logistics Report

2. EFFECTIVELY MANGING RETAIL GT – CHANNELS
A. CHANNEL DEFINITIONS – SHOPPER MISSION LED, STORE
LOCATION, STORE SIZE, STORE PROFILE
B. CHANNEL LEVEL ASSORTMENT DEFINITION – MUST HAVE, CAN
HAVE, NO GO
C. CHANNEL LOYALTY PROGRAMS – TYPES OF PROGRAMS,
OBJECTIVES AND DELTA GROWTHS, STORE COMMUNICATION
AND MANAGEMENT
D. CHANNEL SPECIFIC MERCHANDISING – MERCHANDISER VISIT
FREQ., JBP FOR VISIBILITIES, CATEGORY MANAGEMENT, SHOPPER
LED VISIBILITY ELEMENTS
BI TOOL CAPABILTY :
USE OF PREDICTIVE ANALYTICS IN TRADITIONAL RETAIL

Benefits of Predictive Analytics with Machine Learning

Conventional Methods Machine Learning-based methods

Predictive analytics in its initial form relies on classical Uses more advanced computational algorithms such as
statistical techniques as Regression Decision Trees or Random Forest;

It works only on “cause” data and must be redone with It is self-learning and has automated improvement in
“change” data response to pattern changes in the training data;

Cannot go without human aid in discovering associations Machine Learning engineers work to create efficient AI
between the reasons and the result. software which enables them to get much more
impressive results.
 3. SALES ORGANIZATION STRUCTURE

A. CENTRAL ORG STRUCTURE AND IDENTIFYING NEEDS FOR SPECIALISTS

B. FIELD STRUCTURE – QUANTITY: SPAN OF CONTROL, BUSINESS PER FF
C. FIELD STRUCTURE – QUALITY: STABILITY, ROLES DEFINITIONS, PROFILE,
COMPENSATION BENCHMARKING
D. ASSESSMENT OF FF QUALITY, UPGRADING FF QUALITY AND
CHURNING OF BOTTOM LEVEL FF – MANAGING CAPABILITY &
PERFORMANCE
E. PERFORMANCE MANAGEMENT
I. DEFINING KPIS TO DRIVE BUSINESS – EVOLUTION AND PHASING
OF KPI
II. INCENTIVES – BENCHMARKING, ACHIEVEMENT LEVELS ETC.
4. CHANNEL PARTNER MANAGEMENT
A. PROCESS TRAINING AND ADHERENCE
B. RIGHT SIZE OF DISTRIBUTORS TO ENSURE ROI
& EARNINGS
C. MARGIN STRUCTURE OF DDS – FIXED, PAY
FOR PERFORMANCE, COST PLUS, ROI
SUBSIDY BASED ETC.
D. STANDARDIZATION OF DISTRIBUTION COSTS
ELEMENTS
E. SELECTION, ON-BOARDING, MANAGING
EXITS
 6. SALES CAPABILITY BUILDING

A. COMPETENCY FRAMEWORK
B. CAPABILITY PIPELINE FOR FIELD FORCE
C. MODULE LIBRARY AND CERTIFICATION MANDATES AS PER
LEVELS – CORE, FUNDAMENTAL, ADVANCED, ELECTIVES
D. MEASURING CAPABILITY & OUTCOMES – CAPABILITY
SCORECARD
E. MEDIUMS/CONTENT/PEDAGOGY – TRAINER TYPES, TTT,
ONLINE, GAMIFICATION, AVs, OJC(ON JOB COACHING) ETC.
5. KPIS KRAS SALES PERF REVIEW , DASHBOARDS
SALES DASH BOARDS
• Sales DashBoards.

• Visual representation of your sales data . Can often be filtered by

o Different time periods, and many sales dashboards can pull in real-time data.
o Common metrics that are tracked
o Target Achievement
o Perf OLY Same Period
o Average Ticket size,
o Revenue,
o Cross selling/ UP selling metric
o Sales funnel leakage.
• Most challenging part
o Which metrics are regularly reviewed in company, sales team, and one-on-one meetings?
o What are your key performance indicators (KPIs)
o Who will use (TSIs, BMs, Zonal Heads, NSM, CXO Level Leaders)
o How often would they use?
o Which metrics, visualizations, and calculations each one might like to look at?
o If a remote Sales Team who'll be on-the-go, a mobile-friendly version of the dashboard so it can
be viewed from a Mobile Phone, Tablet, or computer.
SALES DASH BOARDS ( CON’D)

• Chose the Right Sales Dashboard Software.

• Building reports for the Sales dashboard. Wide range of charts to visualize data. A variety of
chart types can be used.
o Comparing values (e.g., compare Sales from two different Territories): Bar chart, column
chart, line graph, pie graph, scatter plot
o Composition (e.g., Total sales broken down by TSIs): Pie chart, Stacked bar chart, Stacked
Column chart, Area chart, Waterfall chart.
o Trends (e.g., Month over Month Revenue growth): Line chart, Dual-axis line chart,
Column chart
• (The best visualizations are those that are easy-to-read and actionable. The intended user of the dashboard
should be able to read and understand the charts at a glance, without having to click into the full report).
SALES DASH BOARDS ( CON’D)
• Dash Board Types
o TSI Dashboard:Provide to TSIs with a dashboard that allows them to track their .Individual
performance. Include Reports for key metrics like No of Outlets Targeted/Visited , FTM,
Cum, Productive/Unproductive , No of Lines sold. Cat of Product wise Perf. Incentive
speedometer. Forecasted Sales FTM, Competitive landscaping .
o BMs Dashboard : Provides an overview of many key metrics BM use to measure
performance. It may include FTD statistics on Branch KPIs FTM progress towards the TSI's
target and Monthly Run rate goal at Product /Focussed product level, Channel level.
o Sales Leadership board: See who's performing the best out of all your Barnches . Process and
Revenue Goals vrs acheivemnts . New accounts addition , Customer (Retailer) retention
numbers. Where are we making the most sales? And what products are end Customers
buying? This dashboard gives insight into which territories are selling the most of each
product type. Plus, it provides an overview of Monthly run rate compared to the previous
month.
o Scheme Performance Dashboard: Impact pf scheme Geography level/ Customer level, Target
vrs achievement, Scheme productivity.
o Sales Activities Dashboard: Visual representation of what the TSIs are doing on a day-to-day
basis vrs assigned in non Revenue parameters . Like New Outlet creation, No of Sampling,
Merchandising , Competition tracking, Converting Disgruntled/Disconnected dealers etc.
o Time-Tracking Sales Dashboard:See where TSI’s time is being spent vrs how much revenue
they're generating .
ENHANCING
GO TO MARKET(GTM ) IN CHANNEL AND SALES MANAGEMENT USING
TECHNOLOGY AND INNOVATION :
FMCG TRADITIONAL TRADE

NMIMS

12TH DEC 2021

SANJAYPANIGRAHI@OUTLOOK.COM

Thank you….