s and d - group 7
TRANSCRIPT
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ROI CALCULATIONS OF ROLLICK ICE CREAMS
Group 7
Srikanth Bizza M014/13
G Dilleswar Rao M017/13
G Sagar M020/13
Hemanth Kumar M022/13
K Vamsi Krishna M028/13
Nand Kishore Bagde M040/13
Syed Areef M069/13
Vinay Banda M099/13
Sudheer Peram M126/13
Rajshekar V M157/13
Ujjwal Chowdhury M160/13
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ABOUT ROLLICK
Registered under the name of Prestige Ice Cream Pvt. Ltd.(H.O: Kolkata)
Established in 1983.Supplier and manufacturer of rollick ice cream.
3 Directors/Partners
One of them is Natasha Agarwal, who also owns Mama Mia ( Ice
Cream Parlour)Market share of 15% in Kolkata ( 3rdplace)
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ICE CREAM INDUSTRY
Frozen Desserts and Ice Creams form the Ice Cream Industry in India.
Barring Amul ,Mother Dairy, Hatsun Agro Food Ltd. All others serve frozen desserts.
Amul, the category leader in ice creams with 40% market share
Baskin Robbins is a market leader in the premium category of ice-creams
The Rs. 2,500-crore frozen dessert market in India is growing at an average of 15 per centand is still dominated by regional players
the per capita consumption of ice creams in India is about 300ml per annum, 1.4% of that inUS, and 13% of the world average
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There are two types of distributors
1. Vending Distributors2. Marketing Distributors
Vending Distributors:
Distribute to Push-cartsDaily sales target of 700 RsRequired infrastructure is Deep
freezers and push carts provided by thecompany at subsidized price of 25K
Marketing Distributors:
Distribute to the retailersHave quarterly targetsRequired infrastructure is Deep
freezers, A4Ws and Mini-trucks
Procedure followed to issue distributorship of Rollick
The company representative (Sales Manager) selects a retailer who is doing goodamount of business(Volumes) consistently. They look at his financial background and his ability to invest Then they will groom him by allocating the area for distribution and companysupports him in terms of infra structure needed etc.
ABOUT DISTRIBUTORS
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This is the oldest distributors of Rollick among the 20 distributors they have
A deeper look into SHRI OM Distributors
Infrastructure:
10 Deep freezers each of capacity 500 litres, Cost is 25K, Monthly expense: 600 Rs 6 Mini-trucks of cost 2 Lakhs each, Monthly expense: 3640 Rs 6 A4Ws surmounted on the mini-trucks each can accommodate 100 bricks + 125 Boxes,Monthly Expense: 20002500 Rs 1 Bike of cost 50KOwn Store
Human Resource:10 Staff Members (4 Drivers, 4 Salesmen, 1 Helper and 1 Accountant)
Coverage: 250 Retail stores
Name of the proprietor: Sunitha Agarwal,
Contact nos: +(91)-651-2202242, 9431101017, 8051036164Address: Main Road, Lalji Hirji Road, Ranchi
SHRI OM DISTRIBUTORS
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Route 1 (Main
Road) Lake Road
Gandhi Chowk
Pinnacle Tower Kutchery Road Main Road Church Road Main Road Hazaribagh Road Lake Road
Route 2 Harmu
Road)
Lake road
New Market
Harmu road
Ashok Nagar Patel Chowk
Nizam nagar
Lake road
Route 3 Ratu
Road)
Lake road
Radium road
Nagratouli
Circular road Lalpur
Katatoli
Kokar
Lake road
The beat plan isthe same for thewhole week i.e. 6days
One driverand onesalesman
per tempo
Route Map
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SEASONAL VARIATION
Peak season Off peak season
6 months (Mid Feb - Aug) 6 months (Sep Mid Feb)
40 retailers/tempo 20 retailers/tempo
4 tempos 2 tempos
30-35k per day/tempo 10-15k per day/tempo
10 deep freezers used 6 deep freezers used
- Focus is more on party orders
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EXPENSES
Expenditure Off peak season Peak Season
Utilities
Deep FreezerElectricity Bill
6*600 3600 6000
A4W Electricity
Bill2*2500 5000 10000
Phone 2000 2000
S
alaries
Driver 4*6000 24000 24000
Salesmen 4*7000 28000 28000
Helper 1*5000 5000 5000
Account 1*8000 8000 8000
Other
Stationary 2000 2000
Fuel 2*2*70*26 7280 14560
Vehicle
Maintenance
2*9000/12
1500
3000
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ROI CALCULATIONS
Credit AnalysisOff season Sale 10L 30L/Quarter
Peak season Sale
20 L
60L/Quarter
Credit of 1 Month from Distributor
Off season Sale 6 L
Peak season Sale 11 L
Market interest 10%
Per week interest rate 0.0019231
Credit by supplier
for 1 Week
1*.0019231*100000 1923.1 Off Season
1*.0019231*200000 3846.2 Peak Season
Credit by distributor
4*.0019231*600000 4615.44 Off Season
4*.0019231*1100000 8461.64 Peak Season
Effective Credit byDistributor
4615.44 -1923.1
2692.34
Off Season
4615.44 Peak Season
ROI Calculations
Total Expense89072.34 Off Season
107175.44 Peak Season
ROI
10%*10L/6L 0.01821276Off Season
10%*20L/11L 0.08438596Peak
Season
EffectiveROI For the
year
6*off seasonROI +6* Peak
season ROI0.61559238 61.56 %
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One of the main reasons of high ROI because he is in a matured phasewhere there is no depreciation
Investing in new vehicles would be a better end of the bargain tocomparing depreciation to maintenance cost of new vehicles
Negotiating with suppliers for increasing credit
ROI of the Shri Om distributor is high compared to its competitors inRanchi, the suppliers can identify distributors that are not efficientperformers. Shri Om distributor can be given other routes and makehim to invest more.
RECOMMENDATIONS
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APPENDIX
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APPENDIX
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Questions?
THANK YOU