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Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 1
Submitted By-
Sushrut Choubey
Roll No: 11BM60026
Vinod Gupta School of Management
IIT Kharagpur
UNDERSTANDING AND IMPACTING
THE DYNAMICS OF THE DTC
CHANNEL - BOP
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 2
ACKNOWLEDGEMENT
The completion of this project would be incomplete without the mention of the people whose
constant support and guidance have helped me to complete this project successfully.
I would like to express my deepest appreciation to Mr. Sunil Khosla (Sales Head), Danone Foods
& Beverages India Pvt. Ltd., for his words of encouragement and extending all help from his
department, necessary for the project. I am thankful to him for giving his valuable time and for
providing a systematic way for completing the project in time.
I am really grateful to Mr. Dadhich Patel (Manager- Trade Marketing), Danone Foods &
Beverages India Pvt. Ltd., for giving an in-depth knowledge about the industry and providing me
continuous guidance and direction to the course of the project.
I would like to specially thank my Project Mentor, Prof. Anand Teltumbde ,Vinod Gupta School
of Management, IIT Kharagpur, for his great help. He provided me necessary guidance and
support until the completion of my project.
Last, but not the least, I would like to thank my esteemed Institute and my Faculty, for the
learning given to me so that I could complete my Project.
Sushrut Choubey
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 3
Table of Contents
Page No.
1. Executive Summary 4
2. Goals 5
3. Company Background 6
4. Survey Literature 9
5. Methodology 16
a. Understanding the FMCG business environment 17
b. Understanding the FMCG direct to consumer environment 17
of push carts
c. Learnings 19
6. Results 23
a. Recommended changes 23
b. Changes accepted and taken forward 28
c. The Results 37
7. References 38
8. Certificate 39
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 4
Executive Summary
The motive behind the project was primarily to understand the reasons behind the declining
sales figure for Danone – Bottom of the pyramid in the Gurgaon region for the push carts and to
try to improve on them with an aim to increase the sales figures.
The activities performed included firstly understanding the working environment of an FMCG
company, understanding how it is for Danone and then understanding it specifically for the
direct to consumer channel. The above mentioned activities were done for the first three weeks
of the internship duration. This helped in forming a sound base for all the future activities as I
did not have any prior experience either in the sales function or in the FMCG sector. After
gaining a sound knowledge of the environment and the existing system, recommendations
were given to make changes in the existing system which should put a stop to the dwindling
sales figure and if possible, increase them.
The recommendations which were given were then presented to the company project guide
with the help of a presentation and the rationale behind each of the recommendations was
explained. Taking the company policies, existing scenario and the recommendations given into
consideration, certain recommendations were approved by the company project guide and I
was asked to implement them in the most effective manner.
I also helped launch the Danone bottom of the pyramid products in Ghaziabad, Vaishali and
New Gurgaon region. Activities performed included identifying the prospective distributors,
negotiations, appointment of distributors and push cart vendors and vendor management.
The second half of the summer internship was dedicated towards implementing the approved
recommendations. This involved a lot of intensive interaction with customers, distributors,
push-cart vendors of Danone and also the potential competitors to figure out the best way to
implement each change in the most effective manner. The recommendation were implemented
as much as possible in the given time frame and were able to revive the sales for the Gurgaon
region.
The implemented activities helped in increasing the sales average by 80%.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 5
Goals
A set of specific goals were given at the beginning of the summer internship so that the focus
was kept on achieving them in all the activities that were performed during the summer
internship. This exercise certainly resulted in a lot of clarity in all the activities and a focussed
thought process.
Project Title: Understanding and Impacting the dynamics of the DTC channel – BOP
The goals are listed below:
• Studying the FMCG DTC environment with the frontline team.
• Carts/Channel/Process documentation.
• Recommending few changes in the overall process in the same environment.
• Post approval from Guide, executing the recommendations & delivering the expected
higher output.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 6
Company Background
Danone – An Introduction
Mission: Bringing health through food to as many people as possible.
Danone is one of the largest food and beverages company and the largest fresh dairy company
in the world. Danone exists primarily in four key verticals:
Its current standing in the world in the above mentioned verticals is given below:
1. Fresh Dairy Products: World No. 1
2. Waters: World No. 2
3. Medical Nutrition: World No. 2
4. Baby Nutrition: World No. 2
Fresh Dairy Products
Waters
Medical Nutrition
Baby Nutrition
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 7
The fact that all the verticals that Danone is involved in, it is either world no. one or two speaks
volumes about the performance of the company in all the businesses that the company is
involved in.
Some useful information related to the company is mentioned below.
Key facts and figures:
• 2011 Sales: € 19.318 billion. Up 7.8%
• Europe grew by 2.4%
• Asia grew by 20.1%
• Rest of world grew by 13.3%
Growth by division:
• FDP: 4.6%
• Waters: 15.7%
• Baby nutrition: 10.7%
• Medical nutrition: 9.4%
Group’s targets for 2012:
• +5% to 7% increase in net sales
• Stable full-year trading operating margin
• Continued rise in free cash flow , reaching €2 billion
Overview of sales performance — Q1 2012
Consolidated sales rose +7.6% to €5,117 million in the first quarter of 2012. Excluding the
impact of changes in the basis for comparison, which include changes in exchange rates and
scope of consolidation, total sales were up +6.9%. This organic growth reflects a +2.2% increase
in sales volume and a +4.7% increase in sales value.
The +1.1% exchange-rate effect reflects favourable trends in certain currencies including the
Chinese Yuan and the US Dollar.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 8
2012 Outlook
Backed by sustained growth in 2011, Danone is moving into 2012 with confidence.
For 2012, the Group expects no significant improvement or decline in the macro-economic
environment from the second half of 2011:
Consumer spending to remain under pressure in Western Europe, Raw material prices to hold at levels similar to those observed at the end of 2011, implying
inflation in our raw material costs remaining strong in the first half and at mid-single digit for the full-year.
Against this backdrop, the Group’s priorities will remain the same: developing its product categories, pursuing investment in countries with high growth potential, particularly those that Danone calls “MICRUB”, and supporting operations and brands in Western Europe. Drawing on its experience of 2010 and 2011, Danone will continue to manage increases and volatility in raw material costs by focusing on sustained productivity and using selective pricing to maintain its competitive edge. GLOBAL PRESENCE
Africa and Middle East
Latin America
North America
Asia-Pacific
Central and Eastern Europe
Occidental Europe
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 9
Survey Literature
SWOT ANALYSIS OF DANONE BASE OF PYRAMID :
STRENGTH Low price per unit
Innovative sales mechanism- push carts
Worldwide leader in Fresh Dairy Products
Nutritious products
WEAKNESS Lack of distribution network
Indian consumers not aware of the company and the products
Cold supply chain not present
Lack of experience and understanding of the indian
market
Lack of manpower
OPPORTUNITY No similar products in the given
price range
No competitor in selling yogurt with the help of push carts
THREAT Nestle, Mother Dairy and other
regional players major competitors for GT, MT
Ice cream companies major competitors for DTC
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 10
PORTERS FIVE FORCE ANALYSIS OF FMCG INDUSTRY
Rivalry among competing firms: In the FMCG industry, rivalry among competitors is very fierce.
There are scarce customers because the industry is highly saturated and the competitors try to
snatch their share of market. Market players use all sorts of tactics and activities from intensive
advertising campaigns to promotional stuff and price wars etc. Hence the intensity of rivalry is
very high.
Potential entry of new competitors: FMCG industry does not have any measures which can
control the entry of new firms. The resistance is very low and the structure of the industry is so
complex that new firms can easily enter and also offer tough competition due to cost
effectiveness. Hence potential entry of new firms is highly viable.
Potential development of substitute product: There are complex and never ending consumer
needs and no firm can satisfy all sorts of needs alone. There are plenty of substitute goods
available in the market that can be replaced if consumers are not satisfied with one. The wide
ranges of choices and needs give a sufficient room for new product development that can
replace existing goods. This leads to higher consumer’s expectation.
Bargaining power of suppliers: the bargaining power of suppliers of raw materials and
intermediate goods is not very high. There is ample number of substitute suppliers available
and the raw materials are also readily available and most of the raw materials are homogenous.
There is no monopoly situation in the supplier side because the suppliers are also competing
among themselves.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 11
Bargaining power of customers: Bargaining power of consumers is very high. This is because in
the FMCG industry the switching costs of most of the goods is very low and there is no threat of
buying one product over other. Customers are never reluctant to buy or try new things off the
shelf.
Danone Base Of Pyramid – India
Danone’s Base of Pyramid centre is one of a kind centre that has been developed by Danone. It
is currently headquartered in Gurgaon, Haryana.
The Bottom of the Pyramid centre is currently operational in Delhi, parts of Punjab, Haryana
and Rajasthan and is expanding into new territories with each passing day, growing by leaps
and bounds.
The aim of the Base Of Pyramid centre and the reason for its existence is to provide healthy,
nutritious products at a low price to the people (primarily kids) who otherwise won’t be able to
afford the products.
The factory of the centre is in Sonepat, Haryana and was made to cater to the population
centres in about 250 Km radius.
Channels Used
Danone is currently using the following four channels to take its products to the target
consumers:
• Modern Trade: Modern trade is usually used to refer all the new retail outlets that have
certain set of facilities such as self service with electronic billing and credit, Above an
indexed covered area (different users have different indices but safe to say 3000 sq. ft.
as the minimum), SKUs above an index number (again, different for different users, but
again safe to peg it at above 2500), Bulk Buying/ Inventory management, Discounting
(and frequently passing it out to customers as well). This includes trade with all the big
organized retail stores.
• General Trade: General trade is used to refer to all the mom and pop stores/ the local
kirana stores. The stores which do not fall under Modern trade fall under this category.
General trade is said to be the backbone and the key to the strong functioning of a good
FMCG company. This includes trade with the usual mom and pop stores.
• Door to door: This is generally used to refer to the form of selling when the Door to door
salesmen/saleswomen approach the consumers directly at their houses.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 12
• Direct to consumer: Direct to consumer channel is used to refer all the trade done by
the push carts done with the help of push cart vendors, trade done with schools,
colleges and other institutions. Push carts form an important part of channel of a
company as the area covered by a single push cart is much more that the target area of
a local departmental store. The main advantage that the push carts have over other
channels is that they can be moved from one place to the other and are hence
considered as a moving shop. This includes push carts, schools, colleges and other
institutions.
•
By Business Line (€ min)
2010 2011 Like-for-like changes
Fresh Dairy Products 9,732 11,235 +4.6%
Waters 2,868 3,229 +15.7%
Baby Nutrition 3,355 3,673 +10.7%
Medical Nutrition 1,055 1,181 +9.4%
Group Total 17,010 19,318 +7.8%
By region (€ min)
2010 2011 Like-for-like changes
Europe 9,449 10,809 +2.4%
Asia 2,386 2,382 +20.1%
Rest of the World 5,175 5,647 +13.3%
Group Total 17,010 19,318 +7.8%
•
By Business Line (€ min)
2010 2011
Fresh Dairy Products 1,365 1,475
Waters 371 424
Baby Nutrition 635 708
Medical Nutrition 207 236
Group Total 2,578 2,843
NET SALES
Operating Income
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 13
By region (€ min)
2010 2011
Europe 1,483 1,509
Asia 445 580
Rest of the World 649 754
Group Total 2,578 2,843
The products
Long shelf life products: These products
have a shelf life of 60 days and are
available in innovative easy squeezy
packs.
• Yum Chuski Chocolate Flavor
• Yum Chuski Kulfi Flavor
• Yum Chuski Choco+
• Yum Chuski Kulfi+
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 14
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 15
Fresh dairy products: Have a shelf life of 15
days. Available in attractive neon box
packaging.
• Yum Creamy- Vanilla Flavor
• Yum Creamy- Strawberry Flavor
• Yum Creamy- Fruit Blast Flavor
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 16
Methodology
• Understanding the FMCG business
• Understanding the FMCG direct to consumer environment of push carts
• Learnings/ Activities peformed
• Analysis
• Recommendations
• Getting the recommendations approved
• Implementation
• Results
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 17
UNDERSTANDING THE FMCG BUSINESS ENVIRONMENT
• Spent the first three weeks in analyzing and understanding the workings of the very
dynamic FMCG environment in different parts of Delhi and Gurgaon.
• Special focus was given to understand the workings from the point of view of push cart
vendors and the salesmen to understand the efforts they have to put to sell the
products and how they go about it.
• Observed the distribution model and its components.
• Interacted with the sellers as well as the consumers to understand their needs and
expectations.
• Studied the current overall scenario of the market.
• Studied how a new entrant in the market works and the hardships it faces.
UNDERSTANDING THE FMCG DIRECT TO CONSUMER ENVIRONMENT
OF PUSH CARTS
• Observed how push cart vendors try to sell the product and how they interact with the
consumers.
• Understood how the consumers approach the push carts and their needs and
expectations specially in the summer season.
• Gained valuable insights into the supply chain management. E.g.: Vendor management,
negotiations, distributor selection, problem handling
• Understood the working of below the line promotional activities and their use.
• Studied the usage of point of sale marketing in impacting and driving the customer
sales.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 18
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 19
LEARNINGS
• Done by push cart vendors with the help of vending stockists/distributor.
• Push cart vendors are provided a combination of fixed and variable pay to motivate
them to try for higher sales.
• Push cart vendors are given fixed areas to cover at fixed time periods so that the
frequent customers are aware of the push cart availability at that point of time.
• Push cart vendors are the face of the company for the consumers.
• Understood how the push cart vendors care mainly about how much they make at the
end of the month.
• Importance of push cart vendors being well educated about the company and its
products.
• Motivation level of the push cart vendors is an important parameter.
• Most of the customers are first time customers and have limited/no knowledge about
the company and its products.
• Customers prefer to have an ice cream, given a choice in the current harsh summer
conditions.
• Customers expect a push cart to be present at a particular point at a specific time of the
day, every day.
• Generally when a customer who does not know about the company and the products
approaches the push cart, he expects ice cream.
• Children prefer LSL.
• Offtake percentage more for FDP.
• Most of the new push cart vendors are new to the business and need to be educated
about the working of the business model.
• Sales distribution with respect to point of sale (for Fundooz):
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 20
• Sales figures for some of the points of sale in a day by classification:
Religious places: 230
Markets: 130
Offices: 220
Residential areas: 350
Schools: 300
Crossings: 170
Road stretches: 140
0 5
10 15 20 25 30 35 40 45
Cro
ssin
gs
Mar
kets
Off
ices
Ro
ad s
tret
ch
Rel
igio
us
pla
ces
Sch
oo
ls
Oth
er …
Res
ide
nti
al …
Park
s
Sales(In %age)
Sales(In %age)
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 21
• As far as push carts are concerned, the main competitors are ice cream vending
companies.
• Ice cream business in India is estimated to be worth 2500 Crores and is growing by 12-
15% per year. Of this about 1500 is in the organized sector which is growing by about
20-25%.
• Major players: Amul, Vadilal, Kwality Walls, Mother dairy, Cream Bell.
1200 1500
2000 2500
3500
0 500
1000 1500 2000 2500 3000 3500 4000
Average Push Cart Sale per Day (in Rupees)- For June
Average Push Cart Sale per Day (in Rupees)
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 22
Fruit Chill Amul Cream Bell Kwality
Walls
Mother
Dairy
SKU 9 80-90 90-100 80-90 80-90
Margin 35% 14% 15% 15% 15%
Average sales 1200 1500 2000 2500 3500
Salary 12000 10000 12000 12000 16000
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 23
Results
RECOMMENDED CHANGES
• Include an audio device in the cart which would produce a unique sound and would help
kids in colonies/ societies know about the Danone push cart presence.
It was noticed that while the push cart moved around the residential colonies, not many
children were aware of the push cart presence as they were inside their homes. To
make more children aware of the push cart presence near their homes, this
recommendation was made.
• Bi-monthly brand engagement sessions with the push cart vendors, distributors and rest
of the sales team.
As the company is relatively new in the Indian market and the general public including
the push cart vendors, distributors and rest of the sales team was not aware of the
company and its products, brand engagement sessions are important. The concerned
people were also much aware of the company processes and policies which directly
impact them hence increasing the importance of the brand engagement sessions
further.
• Light bulbs should be provided in the push carts.
Light bulbs are essential for a push cart operating in late evening or at night. Addition of
a light bulb makes the push cart visible from a distance and hence raises the potential
customer base.
• Possibility of changing push cart vending times from existing to 2-11 PM and to study
the impact on sales.
It was observed that most of the companies involved in push cart vending operate
during similar timings and generate higher revenue in these timings than in the morning
and afternoon. On a trial basis, certain push cart vendors were made to operate in these
timings for a day. The response was encouraging- they were able to achieve a sales
increase of 5-10% for each push cart. This result means much more as the consumers
were not aware that a Danone push cart would be present at that place, at that time of
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 24
the day. With time the regular clientele will increase for the said timings and the actual
results after a certain period of time would be much better than the said results.
• Increase interaction with the target audience directly, at schools, with the help of
promotions, sampling and other methods.
Most of the FMCG companies use promotions and sampling to increase their existing
customer base and to raise awareness about the company and the advantages of their
products. As the current customer base of Danone BOP is very small, such activities are
very important for the company.
• The cart vendors who keep their cart, clothes and themselves clean and presentable to
be given a monthly gift or bonus.
The carts which are kept clean are able to generate higher revenues than the carts
which are not kept clean. When a same push cart is sent one day in a dirty condition and
one day in clean condition, there is a difference in sales of 10% or more with clean carts
generating higher revenues.
This is one of the ways to implement this.
• The top 3 cart vendors who keep their cart, their clothes and themselves clean and most
presentable to be given a monthly gift or bonus.
The carts which are kept clean are able to generate higher revenues than the carts
which are not kept clean. When a same push cart is sent one day in a dirty condition and
one day in clean condition, there is a difference in sales of 10% or more with clean carts
generating higher revenues.
This is one of the ways to implement this.
• Fix the push cart route plan with focus on offices and frequented eateries around lunch
hours, societies and colonies in the early evening to target kids and markets, busy roads
in the night.
These changes were suggested after observing the footfalls in the respective areas at
different times of the day. The footfalls were observed to be higher in the said areas at
that point of the day. During the lunch hours in the heat of Gurgaon summer, not many
people venture out on streets but people are easy to find at or around frequented
eateries. Similarly, during early evening hours children tend to venture out of their
homes for recreational activities, hence the push carts should be positioned in and
around those areas at that time of the day. Similarly for the busy roads in the night.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 25
• Use of ERP and online marketing should be started.
• The conditions of the push carts should be of highest standards and if the minimum
quality standards are not met they should not be allowed to go to the market. Any
publicity is not good publicity. Any sale is not good sale.
Impact on sales when the push carts are sent to market:
Sales with canopy = 330
Sales without canopy = 90
• The number of products available for sale in the push carts needs to be increased. Wider
range of products will in turn lead to more choices for the customers and higher sales.
As the range of products available increases, many products would also be there which
would be of a higher price range and can provide higher profits per unit and can
increase the sales considerably even with a lower unit sales.
• To study the possibility of including GPS in the push carts for tracking and better cart
management. Estimated cost of GPS – Rs. 15000.
0
50
100
150
200
250
300
350
Without canopy With canopy
Sales(In Rs.)
Sales(In Rs.)
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 26
As the cost of installing a Global Positioning System is too high at this point of time
considering the average sales per push cart, it is best not to implement it at this point of
time.
• POSM needs to be increased in such a way that it also educates the customer about the
products of our company and how to consume them in the best possible manner.
Most of the consumers that come to the push carts are not aware of the product that is
being sold by Danone as the advertising in not present right now. To counter this, the
point of sales marketing needs to be done in such a way that all the information about
the company and the products is conveyed in a simple yet effective manner.
• On the FDP packaging it should be mentioned from where to open the packaging.
As could be seen from the below mentioned figure about the existing packing, it is not
mentioned from where the packaging could be opened which is a standard followed by
all the companies which have an easy to open similar packaging. Many of the customer
spend some time trying to find the point from which it would be easiest to open the
packaging.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 27
• Salary mechanism for push cart vendors to be made highly target based and if possible,
should be given daily. On target achievement a high value gift or considerable bonus
amount should be given.
A daily salary structure will make the push cart vendors push themselves for higher sales
every day. With a monthly target structure, most of the push cart vendors tend to lose
focus of the tagets given and assigned to them and hence this could impact the sales
figures considerably.
• Company and the products to be advertised specifically in the areas that it has been
launched to increase consumer awareness with the help of print media, online media,
roadshows, nukkad nataks and other relevant mechanisms.
As it is not in the best interests of the company to go for the mass marketing activities,
activities specifically targeting the areas in which the company products have been
launched make much more business sense.
• The push cart vendors should be given a company ID card which should have their
photograph, name, contact number, blood group and other details on the front. On the
back side of the ID card the hotspots that the push cart vendor is assigned to cover
should be mentioned.
This particular activity will make tracking the push cart vendor, identifying him and help
keep a tab on if he is sticking to the given route plan/ hotspot or not.
• Product and company information pamphlets must be carried in the carts and given to
every customer who asks about the company or its products.
This will help in educating the customer about the company, the products and the
benefits that the products have for them and also help in promoting the brand among
the consumers.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 28
CHANGES ACCEPTED AND TAKEN FORWARD
• A list of hotspots where the product sales should be high was prepared and marked on
the Google maps.
• The hotspot planning was done after talking to a lot of competitors’ push cart vendors
and other roadside vendors, analyzing the potential customer base and other factors
such as distance from vending point and schools. The vendor- hotspot mapping must be
checked regularly by the concerned person.
• The salary mechanism of the employees has been made highly target based and is based
on the daily performance of the push cart vendors.
The push cart vendors should be paid the daily performance bonus on a day to day basis
to motivate them to perform well daily.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 29
• Conceptualized and initiated a daily meeting to be held with the push cart vendors
where they are told about the company in brief and about the products in detail and
also how they should sell the products- from why they should stick to the fixed hotspots
to how to reply to the customers when they ask specific questions.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 30
• Some push cart vendors were sent during the evening timings on an experimental basis
to study its impact as during the harsh summer conditions in Gurgaon, not many people
like to venture out during the day and brave the sun.
On average, the sales rose by 5-10%. The sales will rise further once the customer
psychology is aligned with the change in timings. The resultant change could be 15-20%.
• The cost of adding light bulbs or tubes was studied and the best alternative was found
to use an inverter with a tube light. The entire setup would cost Rs 450(approx) per push
cart.
An inverter that was found to be the best fit costs about Rs 400 per piece when taken in
bulk.
• The push cart vendors were made to realize the importance of wearing the company t-
shirt and cap and how it assists in getting higher sales in the short as well as long run.
• The push cart vendors were also made to realize the importance of cleanliness with
respect to their appearance, clothes and their push cart.
• The point that the push cart is a second home and is the agent that is helping them earn
their bread and butter was driven across to the cart vendors so that they get a strong
association with their carts and thus manage and care it in a much better way.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 31
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 32
• Cost of installing a GPS system was found to be around Rs. 15000 per push cart and is
not feasible at this point of time.
• Many push carts had POSM missing or the entire set of POSM was not available. All the
cart vendors were educated about the importance of POSM and POSM was personally
added in many carts to drive the point home.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 33
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 34
• A push cart routine checklist was prepared which is to be taken care of by the push cart
vendors in a day.
Must leave the vending point by 10:15 AM.
Must wear the T-shirt and cap given by the company.
Must follow the route plan and the hotspot guidelines.
Must park the cart at the assigned charging point only.
Must wash the T-shirt in the evening so that it can be worn the next day.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 35
• The concept of VALL- the vending wall is introduced whereby the following should be
present on the VALL at the vending point:
Name and photograph of the highest seller of last month.
Company and product information.
A set of questions asked frequently by the customers and how to respond to them.
Push cart vendor- hotspot mapping.
Latest happenings in the company.
• Assisted some cart vendors in selling the products to customers to help them
understand how to communicate with the customers in the best possible manner.
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 36
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 37
THE RESULTS
The push cart vendors that I was working with have been achieving average daily sales
of about Rs 450 while the daily average sales of all the other push cart vendors in
Gurgaon area is about Rs 250(approx).
450
250
0
100
200
300
400
500
Push carts I worked with
Other Push Carts
Sales per Push cart
Sales per Push cart
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 38
References
1. http://danone.com
2. http://finance.danone.com
3. http://danone11.danone.com
Danone Foods & Beverages India Pvt. Ltd.
Vinod Gupta School of Management , IIT Kharagpur | 39
Certificate
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