Presented by

:

Tushar Phopli Rohit Patel Satyam Sharma Gagan Singh

ABOUT THE COMPANY««.
‡ Reckitt Benckiser is a global force in household, health and personal care products, delivering ever better solution to consumers. ‡ The company was formed by a merger between Britain's Reckitt & Colman and the Dutch company Benckiser NV in December of 1999

KEY PRODUCTS IN INDIAN MARKET

‡ Health and Personal Care

‡ Surface care

‡ Fabric Care

‡ Home Care

Indian Market - Facts
‡ Market facts í 72% of All India consumers live in the Rural areas (Source - Census of India ± 2001) í Rural growth outpacing urban growth i.e. Rural markets are growing 5-12% higher than urban market (the trend to continue) ± (Source ± NCAER) í Rural has been attracting huge attention from the government and the industry alike í Massive increase in budgetary allocations (2009-10 budget) í Huge waivers for farmers (to benefit rural economy) í Strengthening Rural Employment Guarantee scheme (would result in increase in disposable income)

‡ Rural ± Huge market with untapped potential (Source ± NCAER) í Rural is a huge contributor across various product/service segments í e.g. 55% of LIC policies are from Rural, 70% of toilet soaps are in Rural, 50% of TV/Fridges/Wrist watches etc

Rural Market ² Facts
‡ Industry investing in Rural areas í Huge untapped potential, Focus on increasing distribution and tapping the huge consumer base (Source : RMAI) í Focused channel programs by FMCG players to address the needs of the channel í HUL ± ³Project Shakti´ í ITC ± ³E-Chaupal´ í Coca-Cola ± Project ³Parivartan´ í Tata Tea ± Project ³Gaon Chalo´ í Dabur ± ASTRA (Advanced Sales Training for Retail Ascendence)

í Non-FMCG also targeting rural to drive growth í SBI ± Project Tiny Account í Indian Postal department ± Offering more services via its strong 150000 office strong network

Rural Market ² Changing principles
‡ Rural Market
í Consumer awareness similar to urban ± TV acts as a great leveler í Higher disposable incomes makes the market more attractive

‡ Shift from the conventional 4Ps model to 4As model

Product Price Place Promotion

Affordability Awareness Availability Acceptability

‡ Organizations focusing on driving 4As to leverage the strong rural markets

RB - Way Forward
‡ Focusing on 4A principles
í Focus initiatives to address some/all of the 4As

Affordability

‡ Proposed initiatives to address
í Awareness i.e. awareness generation via high impact in-Market visibility as well as Point of Sales elements

Awareness

Availability

í Availability i.e. ensuring wider product availability í Driving wider distribution, focus on covering more towns

Acceptability

Deep Dive ² National Roll Out 2010

Deep Dive
Objective ± to deliver incremental business growth in the Super Stockist channel by improving overall Quality of Coverage

Huge Investments on Visibility front across these towns i.e.

This the biggest Rs4Crs to be spent on visibilityis SS Channel initiative

Big rewards for field force and channel partners

fuelling the from us in the last 5 years. Lets SS make this business a grand success and Channe growths for fuel the growths in the SS l Channel Additional resources (PSRs/ASEs) RB India in Focused media inputs in the rural to get the maximum out of these territories ± for the first time 2010
highly prosperous & growing towns media focus to be given to these towns

Delivering 35% business growth across Deep Dive towns

Deep Dive ² Plan 2010
1. Improved Coverage
Total of 766 Towns (>2Lacs of business) to be enrolled in the program 25% of numeric distribution covering 58% of SS Channel business -1054 Mandays to be increased - 53 additional PSRs required - 7 additional ASEs

2. Differential Visibility
Differential Visibility Tools to ramp up inMarket visibility across these towns

3. Trade Initiatives

4. Team Incentive

5. Sub-DB Incentive
incentive for program SubDBs on planned Business ach Target incentives of Rs3500/6000 for two quarters in the year

Structured WS program across >3.5Lac SubDB towns Top 4 Parties across 288 towns to be enrolled into the program - Target delivery incentive for the WS parties - 0.6% incremental spend

ASM/ASE/PSR to be incentivised on Deep Dive Targets

- Dealer Boards (34150 Nos) - Tin Plates (22980 Nos) - Wall Painting (766000 Sq Feet) - In-Shop Branding (500 O/Ls)

To be integrated in the standard incentive Design

Integrate the same in SubDB Incentive for 2010

Deep Dive towns to grow by atleast 35%

Program Element details & Status Update

1. Additional Manpower Plans

2. Differential Visibility
Visibility Element
Dealer Boards (all Towns)

Planned Nos
3.5 Lac + Towns ± 50 per Town 2-3.5 Lac + Towns ± 40 per Town

Tin Plates (all Towns)
Wall Paintings (all Towns) In-Store Branding (Top 50 towns)

30 per town 1000Sq Feet per town
Top 10 OLs in the town

3. Trade Initiative ² Sub-DB WS program
Salient Points
Structured incentive prog for Sub-DB WS Enrollment of Top 4-5 parties in the program
Qualifier for the program - Rs 10K -

Minimum business per month Point based incentive program for WS parties Point -> 1. Base Points ± 1 point on purchase of Rs1000/Bonus Points ± 10% of total points ach on target ach by the party

2.

4. Sub-DB Incentive
‡ For the enrolled Sub-DBs
í Incentive for Q1 (only Quarter 1) on delivering the Deep Dive target
í Slab 1 (>3.5 Lacs per month) ± Gift worth Rs6000/í Slab 2 (2-3.5 Lacs per month) ± Gift worth Rs3500/-

‡ This incentive integrated with Sub-DB incentive for Half-1 2010 í Sub-DB program brochures would be carrying all the details

NEED GAP ANALYSIS
‡ Stiff competition in the urban market ‡ Increasing the size of market share ‡ Difference between customer expectation and perception ‡ Knowing the demand of the consumers ‡ Availability of the products and communication ‡ Responsiveness

CHALLENGES
‡ Market criticalities- clashes at upper and lower level ‡ Infrastructure bottlenecks ‡ Education of customer ‡ Creation of market ‡ Skilled man force for work

OPPURTUNITIES
‡ Large untapped market ‡ Increase of potential consumers and buyers ‡ Raising level of literacy ‡ Government initiatives e.g.. Financial inclusion etc ‡ Demand and supply gap

LEARNINGS
‡ A strong sector of India¶s market is yet to be explored properly which can help in increasing the market share to a great extent. ‡ The company Deep Dive Plan is excellent and must focus on it with a great note. ‡ The company must constantly keep on increasing the size of the Deep Dive towns so that the reach becomes easier and faster. ‡ Knowledge about the untapped rural market. ‡ Measures should be made in order to educate the Customer about the duplicate products. ‡ The company must keep a check on the Stockiest to a great extent and monitor his working very closely in terms of sales.

Thank You!!!

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