WIPRO CONSUMER CASE Gr1 SecA

WIPRO CONSUMER CASE:
Merchandising for success
SECTION- A GROUP - 1
Deeparati Choudhury 17A1HP200
Anirudh Agarwal 17A1HP210
Hinal Sanghani 17A1HP314
Swastik Mishra 17A1HP364
Subhransu Mohanty 17A1HP439
Adrija Srivastav 17A1HP250
SUMMARY:
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“The purpose of strong merchandising in key outlets is not only to boost sales in these outlets but
also to drive sellouts in other outlets through improved brand imagery” – Ravi Sharma, National
Sales Head, Wipro Consumer Care and Lighting(WCCLG).
In a highly hypercompetitive market, the value of merchandising increases manifold as apart of

media advertising, the point of purchase sellouts with the help of Visual Merchandising was a
point of high sale in the General Trade outlets. The companies were feeling that merchandising
in traditional shops is where the brand has to invest in order to make their presence felt.
Ankur Gupta, the Sales Development Manager for the Western Region at WCCLG had to
analyze all the options before him which would help him highly increase the visual impact in the
outlets. He also had to consider that the company was looking at 1) to cut costs 2) Future
recessionary period which may have adverse effects if they have already invested a lot.
The major FMCG companies were investing more in GT outlets mainly because the GT
shopkeepers kept on generating a good amount of the company’s revenue through their skills and
since majority of the population in India lives in villages, GT proved a better way of reaching the
mass instead of Modern Trade.
So, leveraging on this, the GT retailers were given good amounts of incentives and payouts in
return of increase in visibility and promotions in their outlets.
The three major dimensions which will be useful for Visual Merchandising are :
1) Operational Management
2) Analytics and Reporting
3) Human Resource Management
According to the five interns working under Mr. Ankur, the three basic models of VM that could
be followed by WCCLG are: Distributor Model, Manpower Model and End-to-End
Merchandising Model.
Model Advantages Disadvantages

1) Distributor Model  The model requires  The distributors are not
minimal investment. directly affected by the
 The distributor can merchandising and
hire merchandisers for would not care enough
a salary of mere to look after the aspect.
Rs.7000.  Distributors are more
 The expenses of the concerned about the
distributors would be products and their sale
reimbursed by the hence the POP
company. merchandising
materials may not be
even opened.
2) Manpower Model  The Talent-provider  High cost is involved
agencies would refer a in this model. The
pool of suitable agencies charge
candidates to the premium fee.
company which would  The agency would not
help the company to take responsibility of
choose the best people the operational
with the best skill-set management.
for the activity  The talent provider
 Supervisors/team agency was limited to
leaders would inspect only staffing and
their performances. providing manpower.
 Quick replacement
would be needed.
3) End-to-End  This model will take  Greater lead time (four
Merchandising into consideration all to six weeks after
three disciplines: receiving the project)
operations, analytics  High cost and
and human resource investment (costliest of
management. the three options)
 The entire process will required for the third
be handed over to the party and staffing.
third party.
 The agency would take
care of the VM POP
materials which
reduces the task of the
sales team.
 The involvement of the
team leader in taking
care of the operations
would increase
efficiency to a great
extent.
 Technological IT
operations and in-
house apps of the third
parties would help in
getting things done
faster and have
superior grip over
operations.
Accordingly, two merchandising agency plans were chalked out by the interns – MARGINDIZE
and VISUALEVERAGE.
They were evaluated on the following parameters:
1) Monthly fixed costs to the company per store 2) Real time data capture capabilities
3)Relevant industry experience 4) Reporting mechanisms
Mr. Ankur Gupta had to choose and finalize on a plan which was to be executed within the next
two months. Before implementing nationwide, pilot testing will be done of the chosen option to
measure the effectiveness.
Q1) How is visual merchandising related to channel management, what are its benefits for
manufacturers and channel members?
Ans 1) Visual merchandising is defined as an art of creating visual displays and arranging
merchandise assortments within a store to improve the layout and presentation and to increase
growth, sales and profitability. Channels used for visual merchandising are department stores,
hypermarkets and supermarkets which acts as a medium for the company to reach out to
consumers in an appealing way. Therefore, visual merchandising acts as an advertising
influencer of channel management.
Benefits:
Through visual merchandising, manufacturers can boost their sales at the GT stores and it also
helps them in creating brand imagery. It also aids in product visibility.
Visual merchandising will ease the task of the channel members as visuals have a far reaching
impression in the minds of the customers which usually cannot be tapped through conventional
mode of advertising.
Q2. Compare the proposals of 2 outsourced agencies?
Ans 2) MarginDize and VisuaLeverage are two offices considered by Mr. Gupta for assessment.
His center angles for contrasting two viewpoints are come down with four noteworthy points.
They are:
1. Monthly settled cost to the organization per store

2. Real time information capacities
3. Relevant industry experience
4. Reporting Mechanisms
MarginDize, however a firm with restricted experience contrasted with VisuaLeverage, appears
to have more mechanical focused edge. This mechanical favorable position encourages
MarginDize to have better constant information catch and revealing components. Call
proficiency every day per client is more than that of VisuaLeverage. Albeit the two offices have
their applications, Margindize's application is bolstered by low end android telephones likewise
where as VisuaLeverage's application is upheld by just center level telephones. This is
additionally a huge preferred standpoint as the majority of merchandisers utilize low level
telephones. MarginDize relatively needs fewer information passage administrators and
operational officials as it is utilizing on innovation. MarginDize invests more an incentive on
their workers by paying them more than industry standards. This enhances the quality of work
conveyed by people. Yet, normal month to month settled cost to the organization per store is
more for MarginDize, and this ends up being a negative perspective. In any case, MarginDize's
appears to have better control over tasks through innovation.
By and large, MarginDize has advantage as far as Real time information capacities and
Reporting systems where as VisuaLeverage has advantage as far as month to month settled cost
to the organization per store and important industry encounter.
After the calculation it seems VisuaLeverage is a better choice.
Q3. Develop an action plan for Gupta based on the information provided?
Ans 3) As per the discussion among the management and National sales head Ravi Sharma, the
management came to a conclusion that they can allocate a maximum monthly budget of Rs 175
per store for VM program. Keeping in mind the following parameters
 Each selected merchandiser was given a target of visiting maximum 15 stores per month
to ensure that work quality remain same.
 Every merchandiser is supposed to work 24 days per month.
On the basis of our analysis we came to a conclusion that Wipro should adopt the distribution
model as they are meeting above mentioned parameters as well as restricting the monthly budget
to Rs 175 per store.
Distribution Model
Merchandiser Salary (Per Month) ₹
7,000
₹
Travel Allowance (per month) 800
Expense
Consumables (per month) ₹ 20,000
₹
Sales Kit (each) 500
Monthly Expense
Distributor Large Medium Small
Merchandiser Salary (Per Month) ₹ 14,000 ₹ 7,000 ₹ 7,000
₹ ₹ ₹
Travel Allowance (per month) 1,600 800 800
Consumables (per month) ₹ 40,000 ₹ 20,000 ₹ 20,000
₹ ₹ ₹
Sales Kit (each) 1,000 500 500
Total Expense ₹ 56,600 ₹ 28,300 ₹ 28,300
₹
Expense per store ₹ 157.22 ₹ 78.61 78.61
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WIPRO CONSUMER CASE:

Merchandising for success

Deeparati Choudhury 17A1HP200

Anirudh Agarwal 17A1HP210

Hinal Sanghani 17A1HP314

Swastik Mishra 17A1HP364

Subhransu Mohanty 17A1HP439

Adrija Srivastav 17A1HP250

In a highly hypercompetitive market, the value of merchandising increases manifold as apart of

Model Advantages Disadvantages

Q2. Compare the proposals of 2 outsourced agencies?

1. Monthly settled cost to the organization per store

After the calculation it seems VisuaLeverage is a better choice.

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