S&D

Session -3
P&G
Subrata Majumdar
P&G
 What is meant by the term “Over
Distribution.”
 A product mix /line with high margins
and low rotation can have disastrous
impact on the channel partners across
the board. How and why?
 Discuss : 10 minutes.
P&G
 P&G is going to get a significant cost
advantage without losing out on
availability, by cutting down on reach.
Comment
 In a working capital intensive business,
rotation becomes very important. Why
does HUL with half the margin attracts
more distributors and stockists than a
P&G.1.2% vs2.5%. Time : 5 mins
P&G
 Even in a healthy FMCG distribution
system poor ‘ROI’ results in distribution
dropouts of 10% .This creates a vacuum in
the market place,leading to a drop in
market share. Discuss: Confidence at retail
level, servicing the channel.Grabbing of
retail space by market leader. (Lays-
buying out Uncle chips,Gillette buying out
Topaz etc). Time :5mins.
P&G
 Significanceof distributor’s margin
between 30%-40% per annum.
 What happens if margins are more!!
 Time: 5 minutes.
P&G
 This strategy led to a completely
different battle in the detergent
segment across the country.
 What ATL and BTL activities did we
witness across the major urban markets.
 Comment on the Ariel,Tide, Surf, Surf
Excel battle. 5 minutes.