Study of Wholesale Channel

for Britannia India Ltd., Mumbai

Submitted By

VINOD KORGAONKAR

A PROJECT SUBMITTED IN PART COMPLETION OF MMS TO

THE

Chetana’s R. K. Institute of Management & Research

Bandra (East), Mumbai 400 051

UNDER THE GUIDANCE OF

Prof. Sunita Srivastava

P a g e | 2

Study of Wholesale Channel

for Britannia India Ltd., Mumbai

June – July 2009

P a g e | 3

DECLARATION

This is to declare that the study presented by me to

Chetana’s R.K. Institute of Management and Research, in

part completion of the MMS under the title “WHOLESALE

ACTIVATION” had been done under the guidance of Mr.

SUHAS VAIDYA, Capability manager at Britannia India Ltd.

Mumbai.

Signature of Student

Vinod V. Korgaonkar

P a g e | 4

CERTIFICATE

This is to certify that the study presented by VINOD

KORGAONKAR to the Chetana’s R.K. Institute of

Management and Research, in part completion of the

MMS under the title “Wholesale Activation” has been

done under the guidance of Prof. SUNITA SRIVASTAVA.

The project is in the nature of original work that has not

so far been submitted for any program of Chetana’s R.K.

Institute of Management & Research or any other

University / Institute. References of work and related

sources of information have been given at the end of the

project.

(Project Guide) (I/C director)

Prof. Sunita Srivastava Prof. Pratibha Nadkarni

P a g e | 5

ACKNOWLEDGEMENT

This project was a great learning experience for me. During this project I have

interacted with many people to whom I should be always obliged, and thankful.

Though this project bears my name I would like to mention that it was a joint effort

of all the people who I am acknowledging.

First of all I would like to acknowledge my project guide Mr. Suhas Vaidya

(Capability manager of Britannia India Ltd.), who has been a helping hand for me

while making this project; he has helped me in every possible aspect.

Secondly I would like to appreciate my college and my guide Prof. Sunita

Srivastava for giving me an opportunity to make a project on such a wonderful

topic, which has added a lot to my knowledge.

Last but not the least I would like to thank Mr. Samarth Krishna (ASM) of

Britannia India Ltd. (BIL) for giving me the opportunity to work on this project.

P a g e | 6

TABLE OF CONTENTS

Sr. No.

Topic Page No.

Acknowledgment 5

Executive Summary 7

1 Chapter 1: Introduction 81.1 - Background of Britannia India Ltd. 91.2 - Objectives of the study 101.3 - Limitations 101.4 - Structure 10

2 Chapter 2: Literature Review 112.1 - Understanding of Wholesale & loyalty programs 122.2 - Research Methodology 13

3 Chapter 3: Data Analysis 153.1 - Need of Wholesale loyalty program 163.2 - Questionnaire for wholesale 173.3 - Essentials for any loyalty programs 203.4 - Analysis of important factors for loyalty program 213.5 - Glimpse at HUL- Vijeta 31

4 Current status of BIL Mumbai in wholesale 35

5 Key Findings and Recommendations 375.1 - Customer base of BIL Mumbai 395.2 - SKUs to take BIL wholesale forward 415.3 - Proposed Britannia Wholesale Ka Maharaja 43

P a g e | 7

6. Conclusion 547. Bibliography 55

Executive Summary

In today’s scenario of hyper-competition, the sustainability of firms is at stake. Firms have

realized that one of the crucial ways to sustain the business is retaining the existing customers.

Companies have experienced and understood that the cost of retaining a customer is ten times

cheaper than the cost incurred to acquire new customers. Wholesale being bulk purchases

business but volatile in nature, companies strive hard to retain their share in this channel. Loyalty

program, one of such important strategic component of continuity marketing of F.M.C.G

companies, aims at delivering distinct benefits to the wholesalers as an incentive to remain loyal

to the firms’ products.

The objective of the report is to understand the wholesale as a channel, BIL’s current status in

wholesale, its way forward, to analyze various loyalty programs by other companies in wholesale

and develop a wholesaler loyalty program for BIL Mumbai. Research over the various loyalty

programs in this report will provide insight into key essential parameters that are critical to

capture customer's loyalty and convert into revenue and profitability. Report also discusses the

strategies to classify wholesalers as per their business contribution to BIL and key SKU’s to be

focused in coming period and thus to activate the wholesale channel.

Most of the F.M.C.G companies use loyalty programs to keep their customers engaged and thus

attempts to get better grip on the wholesale business and to take it to newer heights with the help

of mutual efforts. Loyalty programs also serve as a strategy for companies to dictate the terms

partially, in terms of sale of focus SKUs, growth levels and so many. A well designed program,

with appropriate reward types and responsible execution, can make fortune because then your

customer distinguishes you as true business partner.

P a g e | 8

CHAPTER 1

INTRODUCTION

P a g e | 9

1.1 BACKGROUND BRITANNIA INDIA LTD.

Britannia, one of the premier food product companies in India. Britannia started as a small Biscuit

company in 1892 and has grown to a household name.

Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295.

From thereon, Britannia's business flourished acquiring a reputation for quality and value.

Britannia Industries Ltd. has a number of awards and accolades in its name like:

Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'.

The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Recently Britannia is rated as 9th most trusted brand

EAT HEALTHY THINK BETTER

From the tag line of Britannia we can know that it’s only for bakery products like biscuits. The products are like as we know;

Britannia owns popular brands like:

Britannia marie gold Tiger Goodday 50-50 Britannia Treat Milkbikis Nutrichoice Timepass Nice time and many more…….

Performance

Britannia Industries Ltd. (BIL), India’s leading Food Company, reported sales of Rs. 7,312 MM

for the quarter ended 30th June 2009, a growth of 5.5% and Net profit of Rs. 474 MM, an

increase of 17.5%.

Consolidated Revenue of Rs. 8,211 MM and Net Profit of Rs. 448 MM grew by 9% and 33%

respectively.

P a g e | 10

Organization

Britannia is headed by Mr. Nusli N Wadia, Chairman and Ms.Vinita Bali, Managing Director.

1.2 OBJECTIVES OF THE STUDY1. Understanding of wholesale across different levels of the value chain from retailers to the

sales team.

2. To understand the expectations of wholesale from BIL Mumbai.

3. To develop a wholesale loyalty program for BIL Mumbai.

Deliverables of the study:

1. Understand the loyalty program of various FMCG companies.

2. Way forward for wholesale.

3. Designing the loyalty program

4. Pilot the program

5. Identify the SKU’s to take wholesale forward.

1.3 LIMITATIONSI had limitation with respect to time as the duration of internship was only two months. I

completed data collection regarding various loyalty programs, wholesalers and other company

T.S.I, distributors’ inputs and BIL sales data. I could construct loyalty program for BIL Mumbai

but creative work and implementation of the program at pilot scale could not completed during

my tenure. However I had taken help from my mentor (Mr. Suhas Vaidya) who has guided me

throughout the project.

1.4 STRUCTUREThe project report first explains about wholesale as a channel, loyalty program and its need for

any F.M.C.G company. It then expresses wholesaler’s preferences on the various key aspects of

the programs and compares with various companies’ opinions on the same.

Then the report discusses all the key parameters to be considered while designing program. At

the same time it gives insight of various existing loyalty programs of the competition and sets the

P a g e | 11

direction for right kind of construct for the prospective Britannia India Ltd. loyalty program for

the Mumbai city. Input plan for the proposed loyalty program of BIL along with its success

measurement criteria.

CHAPTER 2LITERATURE

REVIEW

P a g e | 12

2.1 UNDERSTANDING OF WHOLESALE AND LOYALTY PROGRAMS

Value chain in F.M.C.G market

Wholesale business operates on low margin and high turnover principle. As shown in above

figure, Wholesaler acts as important channel in between company and the retailers. Companies

wanted to improve reach to the end consumer, mainly focus on wholesale channel. Many

retailers cannot purchase from companies’ authorized distributor because of money /space

constraints or they are located at places where company distributor cannot reach. Wholesale

channel helps companies to reach to such untapped retailers effectively.

Company

Stockiest/Distributor

Retailers

Wholesaler

T.S.I

A.W.S.M

End Consumer

P a g e | 13

A wholesaler shop includes wide range of varieties like soaps, detergents, shampoos, food,

beverages and many. Companies try to stay above the crowd through loyalty programs.

Loyalty programs are the structured trade marketing efforts that reward, and therefore,

encourage loyal buying behaviour – behaviour which is potentially of benefit to the firm.

Wholesalers do have option of, from whom to buy and what to buy, their decisions can often be

influenced by who will reward them the best for their purchases.

2.2 BRIEF RESEARCH METHODOLOGY

Research Plan

Research Objectives:-

4. To understand the expectations of wholesale from loyalty program of Britannia Mumbai.

5. To develop a wholesale loyalty program of Britannia India Ltd. for Mumbai.

Exploratory Research:

It was exploratory research in nature and which was subjected to the basic information

required by research objectives. A preliminary study and findings can be further consolidated

after detailed conclusion study has been carried out.

Time for Completion

The time taken to complete the project was 20 days. 2 days for designing questionnaire, 13

days for market survey and filling questionnaire from the respondents, and 5 days for data

coding, analysis and compiling of report.

Sources of Data Collection:

Primary data – Primary data is collected from the T.S.I’s (territory sales incharge),

distributors, salespersons of BIL and other companies like H.U.L, Colgate, Dabur &

Perfetti through questionnaires, Short interviews, etc. A brief questionnaire focused to

collect the relevant information was prepared. The respondents were asked to fill up this

P a g e | 14

questionnaire followed by a short interview. The data gathered through these

questionnaires was analyzed to validate information collected across value chain

Secondary data – Through internet, magazines, news papers and various editorials etc. Also

the secondary data from the sales data at BIL’s distributor stock point , loyalty programs of other

companies collected from BIL office as well as from T.S.I’s of BIL and other companies.

Research is of survey research type & it is carried out with the help of 3 different

questionnaires for dealers, retailers & consumers.

Sample size & sample technique

Area Covered: Mumbai city, Thane and New Mumbai.

Wholesalers:

There are in total 500 wholesalers, recorded in BIL’s database of Mumbai, Thane and New

Mumbai regionwere. I planned for 50 wholesalers randomply for the interview which contributes

to 10% of the populatio.I divided the area into 3 strata from Vashi, Thane and Masjidbandar & in

each stratum I selected 15 wholesalers randomly.

So the sampling technique used was stratified random sampling.

Total wholesalers covered: 50

Other Company T.S.I’s covered: H.U.L, Colgate, Perfetti, ITC, Dabur, Coco Raj

P a g e | 15

CHAPTER 3

DATA ANALYSIS

P a g e | 16

3.1 NEED OF WHOLESALE LOYALTY PROGRAM FMCG companies continue to face intense competition in wholesale channel. Since wholesale

business is high volume business and contributes to considerable share of total business of any

company (10% to 45%), all small as well as big players from unorganized and organized sectors

strive to grab each other’s market share in this channel. Further, wholesale business shows least

inclination towards brand loyalty and better margins remains the key driver for the wholesaler’s

purchases from the FMCG Company. Thus risk of losing market share for any brand remains

higher in wholesale as compared to retail channel.

Companies started feeling the need of devising strategy

which can ensure:

1. To drive depth by increasing frequency & size of

purchase and recommend company brands to

Retailers.

2. Better recall for brands/company in this channel which is already overcrowded with

similar brands/products/companies.

3. Stability in the wholesale business.

4. Increase the revenue by increasing customer’s "share of wallet"

5. Reach up to untapped customers

6. To attract new customers.

7. Gather valuable customer data and insight

8. To drive long term commitment from the Channel members

A loyalty program, therefore, allows company to retain and grow the business in wholesale in

controlled manner. It helps companies to stay competitive with channel incentive solutions that

P a g e | 17

drive sales, build loyalty and engage the attention of the entire value chain that move and use

company products.

3.2 WHOLESALERS PREFERENCES ON KEY ASPECTS OF LOYALTY PROGRAMS

3.2.1 Following questionnaire was used to capture wholesalers input on loyalty

programs.

Wholesale Shop Name: Location:Age Group:

24 – 30 Years 31 – 35 Years 36 – 45 Years 41 – 50 Years 51 Years and above

Qualification1. Below S.S.C

2. S.S.C

3. H.S.C.

4. Bachelors Degree.

5. Master Degree

1. Do you Know about loyalty programs

a. Yes

b. No

2. Please mention the names of loyalty programs in which you have participated so far?

a. ____________________________________ d. ____________________________________

b. ____________________________________ e. ____________________________________

c. ____________________________________

3. As per you, which of the above mentioned program is/was successful?

____________________________________________

Please mention the reason:

_____________________________________________________________________________________________________

P a g e | 18

4. Do you feel Loyalty programs are beneficial to you?

StronglyAgree

AgreeSome-whatAgree

Some-whatDisagree

DisagreeStronglyDisagree

5. As per you, which are the benefits by any loyalty programs?

a. Increase in sales d. Increased customers

b. Fixed additional Margins e. Relationship building

c. Business with entertainment Any Other:_________________________

6. What Should be the ideal duration of any loyalty program

< 3months 3 months 6 months 1 Year

Specific reason, If any _____________________________________________________________________________

7. According to you, which of the following is best reward type by any loyalty program?a. Scratch cards d. Gifts g. Holiday Packagesb. Gold coins e. Kisan Vikas Patra h. free Productsc. Lucky draw prizes f. Cash

8. Do you think purchases are affected by power SKU’s in loyalty programs?a. Yes

b. No

9. Compare the following loyalty programs for the given parameters

Parameters Best ranker program Remark RecallThemeSimplicityEase of understandingReward TypesDuration

P a g e | 19

Thank YouQuestionnaire attempted to get wholesaler’s inputs on key parameters which are important while

constructing any loyalty program.

Results and conclusions are discussed as below:

Wholesalers’ acceptance to loyalty program:

Learning: Majority of wholesalers were in favor of loyalty programs conducted by FMCG

companies. Findings state that loyalty program can be good strategy which majority of

wholesalers are interested in.

Benefits to the wholesalers:

P a g e | 20

55% of wholesaler feel fixed additional margin is the main driving force to participate in any

loyalty programs while 29% of wholesalers believe that loyalty program being target based

activity; it sets the direction for them to increase the sales and provides effective tracking. In

order to attract the wholesalers, above two attributes have to be highlighted. If business with

entertainment, Increase in customers and relationship building is the main objective then loyalty

program may not be the right activity.

3.3 ESSENTIALS FOR LOYALTY PROGRAM

Various loyalty programs like HUL Vijeta, Dabur Kings wholesale program, Sunfeast premier

league, Cocoraj Summer bonanza offer were analyzed. Following essential parameters are

shortlisted which were found as indispensible part of the program.

Above mentioned elements are critical to the success of a loyalty and rewards program. Detailed

explanation of each key element is discussed in following parts. For each element, a loyalty

program was taken as benchmark which is to be considered while designing BIL loyalty

program.

Parameters Benchmark

1. Objective HUL VIJETA

2. Duration ---------------------------------

3. Simplicity HUL VIJETA, COCO RAJ

4. Visibility DABUR

5. Reward Points offerings HUL VIJETA, DABUR

6. Communication HUL VIJETA

7. Tracking Mechanism HUL VIJETA

8. Reward Type & credibility HUL VIJETA, DABUR

9. Redemption process HUL -VIJETA

10. Sales force involvement HUL VIJETA, DABUR, SUNFEAST

11. Set up HUL VIJETA, DABUR

P a g e | 21

3.4 ANALYSIS OF IMPORTANT FACTORS OF LOYALTY PROGRAM:

1. Objective: Design and structure of loyalty program is decided by its objective. Objective

of program should be very simple and crystal clear. Based on the objectives, metrics and

parameters for success (called action standards) can be set beforehand. Performance of

the program can be evaluated against these action standards.

Objectives of various programs were as below:

HUL VIJETA & DABUR KINGS:

To increase depth and width for the company brands in wholesale.

To achieve sustained growth for the company in the wholesale channel.

SUNFEAST PREMIER LEAGUE:

To establish Sunfeast Glucose & Special & building presence in the wholesale

channel.

To make above brands available in the market which are not under direct

coverage.

COCORAJ:

To increase the sale of “Cocoraj Pure” by inducing wholesalers for higher

purchase.

Benchmark: HUL VIJETA & DABUR KINGS

Rationale: Like HUL & Dabur, Britannia is having good presence in the wholesale

channel. Britannia objective is to increase wholesale business by achieving driving sale

depth wise & widthwise to increase market share. Thus, HUL & Dabur Kings can be

considered as benchmark for the Britannia program.

P a g e | 22

2. Duration of the Program:

Loyalty programs helps in binding the loyalty of customer during the course of program.

While deciding on duration of the program, Wholesaler’s interest and company’s

operational and financial feasibilities should be taken into consideration.

Company Inputs:

Even companies do feel that binding customers for longer period like one year is very

difficult unless it is supported with enough flexibility factors in the program. While

running longer duration program, there is risk of competition coming up with program or

short duration activity which can give better pay backs and snatch away the business for

little period and can make the longer program mundane. Duration of the various

programs:

HUL VIJETA & DABUR KINGS: 1 Year.

SUNFEAST PREMIER LEAGUE: 3 Months

COCORAJ: 4 Months.

Benchmark: -------------------------

Rationale: Since all the above mentioned programs are of either of very long duration (1

year) or short duration (3 months), there is no benchmark set. Ideal duration for the

program would be of 6 months.

Wholesaler Input: Adjacent graph

explains that wholesalers like the program

of shorter duration. This is mainly because

they find longer duration programs are

rigid and very lengthy. Reward credibility

is another issue in longer duration

programs.

P a g e | 23

3. Simplicity of the program:

Benchmark: HUL – Vijeta & Cocoraj

Benchmark: HUL Vijeta & Cocoraj

Rationale: (as per ratings given by wholesalers)

4. Program give backs:

Since wholesale is business of ‘bulk’ purchases and huge volumes of business, the scale

of give-backs in a channel program can reach very attractive levels. It can be attractive to

the channel members and yet efficient for the wholesalers.

Typically, give-backs fall into two categories:

Benefits – that accrue based on tier and are independent of ongoing performance.

Points – that accrue based on performance criteria – that have been pre-set based

on action standards defined.

Benefits can be clearly differentiated between tiers and create high aspiration levels – for

e.g. only platinum members get scholarships for their children’s schooling; Only gold and

Platinum members get invited to specific exclusive events.

As per findings, more than 70% of wholesaler

populations are not graduates. So the loyalty

program should be in regional language. Too

many jargons are to be avoided. The goal of

the program should be clear. Customers need

to understand what is expected from them and

how they can benefit. Besides, the program

should be simple and easy to understand so

that it becomes easier for the salesperson to

easily explain in and outs of the program in a

way that is easily understood. .

P a g e | 24

This differentiation helps drive performance and creates higher chances of success.

Points are typically given for:

Base performance – volume or value.

Growth – y-o-y – as a bonus.

Specific product lines each seasons

This flexibility allows for tactical promotions to be built-in. Logistics are not an issue

since the base is finite and limited.

Various reward points offering styles were analyzed as below:

COCORAJ:

Base points – More purchase more base points and so more prizes.

SUNFEAST PREMIER LEAGUE:

Base points – More purchase more base points.

Focus Points – additional bonus points on purchase of focus products.

HUL & DABUR:

Base points – More purchase more base points.

Focus Points – additional bonus points on purchase of focus products.

Target achievements – Bonus incentives for target achievement.

Benchmark: HUL VIJETA & DABUR KINGS

Rationale: HUL & DABUR’s rewards points offering style is comprehensive enough to

induce higher purchase, increase width of brands and to drive the business as per the

targeted budget.

P a g e | 25

5. Rewards types to be offered:

Company inputs: Companies avoid giving cash prizes and gold coins as it leads to

‘undercutting’. Normally, bigger wholesalers purchase in higher quantities and get higher

cash prize as a reward. As mentioned earlier, wholesale business works on the principle

of earning margins, these wholesalers if rewarded with cash prizes, sale the company

products at comparatively lower values than the average market value and earn money on

the same. This phenomenon leads to price cutting and it leads to lower down the revenue

and profits for the company. So companies prefer to give gift items or any other types to

avoid undercutting.

Winning reward items include lifestyle/kitchen/home items followed by personal

accessories and entertainment. Vouchers and gift certificates work well in metros/mini

metros. The idea is to provide items with high perceived value. ‘experience-driven’

rewards are now on the rise and some channel programs are actively trying to

differentiate themselves by promoting these – for e.g. a weekend at Ananda Spa in the

Himalayas. A winning move is also to involve the family in the rewards – for e.g Higher

education for the children.

The trick is to keep the rewards evolving with program life as member needs evolve year

after year. It is possible – and also advisable - to actively force redemptions using the

sales force and communication so that tangible benefits of program membership are seen.

Wholesaler Input:

Wholesalers responded to Cash and

gold coins as preferred reward items.

Tours and trips are least preferred as

most entrepreneurs are unable to

leave their businesses for prolonged

periods of time.

P a g e | 26

6. Reward credibility & fulfillment:

F.M.C.G companies are facing tough time to convince customers for loyalty program

because of poor reward credibility aroused from past bitter experiences. Most of the

programs even after getting satisfying cooperation from the wholesalers failed to reward

them on the time because of lack of budget or operational issues in the organization.

Many times rewards received are of substandard quality and are totally different from

what is committed earlier by companies. These malpractices lead to high dissatisfaction

among the customers.

The rewards of any customer loyalty program must be obtainable. The structure of

offering points and rewards system should be established in a tiered fashion in order to

provide program members with an opportunity to receive the perks and rewards

associated with membership in the loyalty program. Random instant rewards drive the

excitement, interest and momentum in the program.

Various companies tried to solve these issues by having tie- ups with branded companies:

SUNFEAST PREMIER LEAGUE:

HUL:

DABUR:

P a g e | 27

Reward choices:

With a finite audience, it is easier to control rewards and redemptions by setting clear

milestones and also having a pre-fixed cycle of redemptions. Instead of year-round

redemptions, most channel programs arrive at a quarterly or half-yearly redemption

cycle.

With milestones and time-lines fixed, inventory control is much easier. In some cases,

redemption ‘melas’ are held in key cities to actively drive redemptions with minimal

logistic issues.

Features of various loyalty programs are as below:

COCORAJ:

Redemption period: 4 months

SUNFEAST PREMIER LEAGUE:

Redemption period: after 3 months.

HUL & DABUR:

Redemption period: every three months in a year.

Multiple redemption points: Website vijeta.net, Mela, Regular redemptions.

Multiple choices of rewards.

Benchmark: HUL VIJETA & DABUR KINGS

As every person’s likings are different,

it is very difficult to make everybody

happy with the same reward for

particular value. It is advisable to keep

variety of choices of reward items of

the nearly same value.

P a g e | 28

Rationale: HUL & Dabur being more than 2 years old in running the loyalty programs in

this channel have evolved with very well organized rewards and their fulfillments

strategies. These strategies proven to be successful enough in keeping customers

satisfying in terms of getting right choices of reward items ease of redeeming and

flexibility in timelines to redeem.

7. Communication:

If data is the program engine, communication is the fuel that it runs on! Communication

is the mainstay of the program and crucial for its success. Channel programs have the

overwhelming advantage of knowing each other audience member intimately and

communication need to leverage this. It is possible to intelligently segment communicatin

based on the member interests. Additionally, since the performance is tracked on a

continuous basis, performance driven communication recognizes and louds high

performance, goes a long way in keeping the member motivated.

Use of language has been proven to be highly effective – a combination of English/Hindi

and one regional dialect works wonders.

A communication calendar would comprise:

STANDARD COMMUNICATION – points statements, upgrade/downgrade

notification, special offers.

RELATIONSHIP COMMUNICATION – birthday/ anniversary/festive greetings,

greetings on personal milestones, program milestones, program newsletter,

invitation to events etc.

REDEMPTION COMMUNICATION – Catalogue of rewards, redemption

notifications.

As part of program communication, a Member Service Centre helps in handling all

program related queries – enrolment, points status, upgrade/downgrade, redemptions etc.

– as and when members raise them. Typically a MSC would consist of a telephone

helpdesk and an online service.

P a g e | 29

8. Tracking  and Measurement

Too much cannot be said about the importance of tracking and measurement in a loyalty

program.

With metrics clearly in place and an MIS already in operation, it requires the program

software to be integrated with the MIS to churn out performance dashboards that help

track the program.

Action-oriented dashboards work:

Total business performance vs program performance on key metrics.

Growth in member base; number of enrolments.

Member performance m-o-m, y-o-y.

Tier movements.

Redemption statistics.

Promotional campaign statistics.

Points Liabilities.

Qualitative aspects – satisfaction/dissatisfaction areas etc.

The advantage is that data is readily available – all it takes is some practicality and some

imaginations to arrive at hardworking dashboards that help keep the program on track.

Various companies used following tools to facilitate better tracking:

COCORAJ: T.S.I visits.

SUNFEAST PREMIER LEAGUE: T.S.I visits.

P a g e | 30

HUL & DABUR: TSI visits + website + Points on Bills + MOC (Monthly operating

cycle) statements.

Benchmark: HUL VIJETA & DABUR KINGS

Rationale: As the HUL & DABUR have multiple points tracking options.

9. Going Online:

Channel programs are increasingly leveraging the unlimited power of the web by going

online. While the offline version would still exist, the online one is often more popular

amongst members.

An online version enables program members to check their point’s status any time, look

up rewards any time, and also redeem online any time. Members can also choose to

receive their communication by e-mail instead of paper communication – thereby

considerably easing the logistics at the program manager’s end while doing their bit for

the environment!

A growing medium that will add power to the web will be mobile (SMS) communication

which can very effectively work in tandem with the web and serve as an effective

reminder medium.

Benchmark: HUL VIJETA & DABUR KINGS

Rationale: Loyalty programs of HUL and Dabur are supported with their websites

www.vijeta.net & www.dabur.net respectively.

P a g e | 31

3.5. GLIMPSE AT HUL –VIJETA

HULVIJETA 2009

New Vijeta's Powerful Features

1. Now Vijeta members can easily Earn, Accumulate and Redeem points. 2. All Points are visible in your Bill. 3. Customised Special Wholesale activities to grow business. 4. Multiple redemption options- Vijeta website, Rewards mela, Regular redemptions.

Enrolment

The Eligibility criteria for enrollment into the Vijeta program is as follows:Member must be a wholesaler with the minimum monthly turnover of:

Rs. Product Category

30,000 One HUL (U1 + FOODS)

15,000Exclusive Foods (North,West & Eastern Regions)

20,000Exclusive Foods (South Region)

10,000 Exclusive U2 (Quarterly T/O)

1. Simple 2. Powerful 3. Win-Win 4. Vijeta Program – A Platform for Wholesaler & HUL to Grow Business

& Relationship

P a g e | 32

A wholesaler can enroll as a Vijeta member for all three divisions or any of the divisions based on the above criteria.

Discontinuation of Membership:Your membership to the programme may be discontinued if:

1. Your best of 3 quarter average < minimum eligibility turnover. 2. You voluntarily decide to opt out/resign from the Program.

Tiers in Vijeta 2009 :Based on your performance in 2008, you will become a Platinum, Gold or Silver tier Member in Vijeta 2009. You will enjoy membership and special privileges as per your tier. If you improve your performance during the year, you will be upgraded to a higher tier accordingly.

The criteria for being allocated a particular tier are as follows for North,East and West:

Tiers One HUL (U1 + FOODS) Exclusive Foods Exclusive U2

Platinum Rs.350,000+ Rs.100,000+ Rs.100,000+

Gold Rs.175,000 to 350,000 Rs.50,000 to 100,000 Rs.50,000 to 100,000

Silver Below Rs.175,000 Below Rs.50,000 Below Rs.50,000

The criteria for being allocated a particular tier are as follows for South:

Tiers One HUL (U1 + FOODS) Exclusive Foods Exclusive U2

Platinum Rs.325,000+ Rs.100,000+ Rs.100,000+

Gold Rs.150,000 to 325,000 Rs.50,000 to 100,000 Rs.50,000 to 100,000

Silver Below Rs.150,000 Below Rs.50,000 Below Rs.50,000

Dynamic Tier up gradation will take place based on the last 3 quarters (n-1).

There are tier specific activities planned and you will be intimated about the same by the TSI.

Tier Validity

You will continue to enjoy the benefits of your tier for FH and revised tier in SH.

PointsAs a Vijeta member, you can earn three types of points; Base points, Power Points and Growth Bonus points

P a g e | 33

Base points: 1. As a Vijeta member, in 2009 you will earn 1 point on purchase of every Rs 250/- (of bill

amount at TUR level)

POWER SKU points: 1. Power SKU Points are Special promotion points on select SKUs. These will be awarded

to the members on purchase of every CLD (Dozen for U2 and Foods) from the POWER SKU list.

2. The list of Power SKUs and points will be circulated to the branches before the MOC starts.

3. Power SKUs are applicable for a MOC. Details will be given by your TSO/RSSM. 4. The earnings of the Power SKU points will be added to the total earnings of the

wholesaler along with base points.

Growth Bonus Points: You will be rewarded with Growth Bonus points for delivering growth! You can earn growth points on achieving your quarterly targets.

For Growth Bonus Points, separate targets will be given for HPC, Foods and U2 Members are awarded Growth Bonus points on achieving Quarterly Targets*. On achieving Quarterly Targets members will earn Bonus points. Growth bonus points are awarded only on the base points. Base points will be awarded to members irrespective of achieving their targets.

Points earning Illustrations :Click Here For Points Earning Illustrations.

You will accumolate Vijeta points on your every purchase from your HUL Re-distribution Stockist.

1. You will begin to earn points only from the MOC in which you enroll. 2. Every bill* generated at the RS point will reflect your total Vijeta Points, which can be

redeemed against rewards. 3. MOC reports of earnings will be provided by your RS. 4. Please check your points carefolly to ensure that all your valid purchases are reflected. In

case of any discrepancy, submit a signed request to your TSI and we assure you it will be corrected in the subsequent Bill.

P a g e | 34

Tracking of Points :

1. Every bill* generated at your RS point will reflect your Points. This will inform you of your points earned on this bill and cumolative points.Your RS will provide MOC reports of earnings.

2. Please communicate any clarifications or changes to your TSI through a signed written request within a month of generating the bill else we will consider it as approved by you.Points on bill* - Under development.

Points Expiry :

Targets : 1. At the beginning of every quarter, your TSI will communicate your Quarter Value

Targets. 2. In case you are a member for U1, U2 & Foods, then you will have separate targets

for Detergents, Personal Products, U2 and Foods businesses. 3. Your targets are also mentioned in the MOC wise Point statement to facilitate

tracking.You will be awarded with bonus points for achieving the quarter targets.

P a g e | 35

CURRENT STATUS OF

(BIL) MUMBAI IN

WHOLESALE

P a g e | 36

BIL Mumbai has divided the Mumbai & its suburbs in to two regions i.e South Mumbai and

North Mumbai. BIL has segmented the entire market into Wholesale, KAT (key accounts),

General Trade, Kiosk and Modern trade.

In all, BIL deals with more than 500 wholesalers across Mumbai city and its suburbs which are

served by 40 distributors. Good Day and Marrie remains the popular brand in wholesale

contributing 40% and 30% respectively to total wholesale business of Britannia.

Wholesale contributes to 15% of the total

business of BIL in Mumbai and its suburbs.

Masjidbandar, Thane and Vashi are the key

wholesale markets. Earlier general trades and

wholesale business at BIL were managed by

same territory sales in charge but of late BIL

cleverly allocated focused T.S.Is for wholesale

to improve focus at wholesale business, better

touch & take the lead in activities at wholesale.

Britannia has 122 unique lines in its

portfolio. No of lines sold at wholesale

varies from market to market e,g 3-4 lines

(e.g Bhiwandi area) , 8- 10 lines Mulund,

Bhandup, Sion & more than 20 at big

wholesale markets like Masjidbandar,

Thane, etc. P.P’s (personal packs are more

preferred over F.P’s (family packs) in

wholesale. Biscuit market is mainly divided

into two categories i.e, Glucose and special.

P a g e | 37

Parle enjoys the leadership in glucose category while BIL has better grip over special categories.

Categories like Marie and Bourbon are successful innovations from BIL which lasted sound

impact over consumers mind so that competition had no other option but to launch similar

variants under same name like Marie and Bourbon. Next to Parle, Priyagold, Sobesco and

Sunfeast (ITC) are also very active in this market. Priyagold has got good recall in the wholesale

segment because of its low price products and promotional programs.

5. KEY FINDINGS AND RECOMMENDATIONS:

1. Undercutting: Many wholesalers have stopped or reduced purchase from the BIL’s

authorized distributors and shifted to other sources to get the same brands at lesser rates.

Masjid Bandar & Vashi wholesale market was found tremendously affected with this

issue.

Recommendation: One of such action can be to identify big wholesalers who have

stopped or reduced the purchases and convert them in to Key Account Trade. If these

outlets are offered terms of trade (T.O.T) of K.A.T then it can counter or minimize the

undercutting effect and diverted incentives can achieve other objectives like display and

branding activities at these important outlets.

2. Poor penetration of activities: It was found that there is serious need of devising

communication strategy at BIL. Activity like 5 Ka Punch could have done much better

provided it reaches the distributor, salesperson and then final customer at the right time

and in the systematic manner. Many salespersons and wholesalers were found unaware of

this activity program till the end.

Recommendation: Salesperson spends 20% to 30% of time in front of computers to fill

the booking data. Company can best utilize its website for updating about activity

programs which can be accessed by salespersons as and when as per their convenience.

At every distributor site a person is to be made responsible for uniform and instant

training on activities and programs.

3. Delays in gifts: Activity programs are losing their sheen in the wholesale channel

because of poor gift credibility, unless payouts are in the form of quick cash discounts.

P a g e | 38

Almost every company has got poor image over this issue and very high levels of

frustrations were observed among the wholesalers during the survey. Now companies are

finding it difficult to approach and explain about their new programs to the wholesalers.

Even BIL is rated low by wholesalers on the aspect of gift credibility.

Recommendation: Tie ups with local gift item outlets which are near key wholesale

market can solve the issue to significant extent. A reward item like gold is to be avoided

if it is not operationally feasible (approvals for bulk purchase of gold) at the company

end. HUL-Vijeta has taken serious steps to gain the customer trust over this issue

4. Conflicts in tracking of points: During the sales beat with BIL salesperson, conflict

over accumulated points against actual purchase was a frequent experience.

Recommendation: Cumulative accumulated points and target points are to be printed on

the bills (either manually or digitally). This method is successful for many companies to

bring better transparency in tracking points.

5. Handling key wholesalers: Since only two T.S.I’s are currently responsible for more

than 500 wholesalers, there are limitations in reaching these outlets.

Recommendation: Company can use Pareto’s principle to classify these wholesalers as per their Contribution to BIL’s wholesale business. Wholesalers contributing heavily to BIL‘s business should deserve better frequency of T.S.I‘s visits, service and rewards. This is further explained in next topic (“5.1 Wholesaler database of BIL Mimbai”) .

6. Preference to Rs. 5 and Rs. 10 SKU’s: Mini wholesalers, semi wholesalers were found

reluctant to some of the SKU’s (Rs 3, Rs 6 and Rs. 12) because of uneasiness in further

transactions ( i.e, ‘change’ problem) While Rs.5 and Rs.10 SKUs were preferred as

transactions are easier.

Recommendation: Convenient price points like Rs 5, Rs 10 and Rs, 15 etc. would attract

better response.

7. Demand for Tiger 1 Kg packs: Few wholesalers insisted to introduce Tiger 1 Kg packs.

At the same time they shown dissatisfaction toward half Kg packs because of loose

packing.

Recommendation: New improved Tiger is already gaining good acceptance from

customers. Glucose being considered as category to be stocked in sufficient quantities in

house hold, 1 Kg packs should be introduced.

P a g e | 39

8. SKU’s to take wholesale forward: Wholesalers prefer to sell more quantities of power

brands and then undercut the price. So effectively, BIL should always aim at increasing

business by pushing more and more number of lines or SKU’s than pushing more for hit

products like good day and Marie. It is observed that SKU consumption pattern by

different sets of wholesaler in same region or same category (business size) is different.

Recommendation: SKUS consumption pattern to be analyzed across wholesalers of

similar categories. After analysis SKUs to be shortlisted and can be focused to other

wholesalers of same business size. Note: (S.K.U shortlisted are mentioned in next chapter

(5.2 ‘SKU’s to take wholesale forward’)

5.1. WHOLESALER DATABASE OF BIL MUMBAI:

Above graph explains the distribution pattern of wholesalers of North Mumbai and south Mumbai as per their avg. monthly purchases from BIL.

As per the observations, it is understood that wholesalers can be categorized as below:

Class Avg. Monthly Purchase

Size (Numbers) Contribution to BIL’s total wholesale business

Contribution (Value)

P a g e | 40

Platinum 1 Lakh above Top 5% = top 30 35% of business 65 Lakhs

Gold 50000 to 1 lakh 15%= 70 no. 25 % of business 45 Lakhs

Silver 15000 to 50000 45%= 232 no. 35% of business 65 Lakhs

Not Eligible 15000 below Bottom 35% = Bottom 197

5% of the business 10 Lakhs

Above customer base data can be utilized for identifying target audience for the loyalty program.

Avg. monthly purchase distribution pattern of wholesaler is very important as it makes easier to

classify them into different tiers based on their monthly purchase value and size of the tier they

belong to.

Typically, programs launched with 3 tiers are easier to manage and are able to drive performance

up the tiers effectively. Pareto’s 80:20 rule applies more to channel members than any other

audience segment.

The top tier – ‘platinum’ level – usually accounts for 5-6% of the base and 25-30% of value. The

middle tier accounts for 20-30% of the base and a corresponding 30-35% of value. The balance

of wholesalers falls into the lower tier. By keeping tier structures flexible and realistic, it is

possible to actively drive movements up the tiers. Such a distribution across industries is clearly

amenable to structuring a program with well-defined tiers and clearly differentiating benefits

between tiers.

As per the wholesaler sales data of BIL Mumbai, It makes sense to focus on only top 65% of the

wholesalers which accounts for 90% of the wholesale business. Considerable time and

manpower can be saved by ignoring bottom 35% (nearly about 200) of wholesalers which

accounts to only 10% of the wholesale business. Further, with the help of clearly defined tiers,

frequency of T.S.I visits to each tier can be decided to ensure appropriate focus on each tier.

By looking at the fact that at BIL Mumbai there are 2 T.S.Is are allocated for wholesale business,

suggested visit pattern is as followed:

P a g e | 41

Class Size (Numbers) Contribution to BIL’s total wholesale business

Contribution (Value) T.S.I visits

Platinum Top 5% = top 30 35% of business 65 LakhsBiweekly

Gold 15%= 70 no. 25 % of business 45 LakhsWeekly

Silver 45%= 232 no. 35% of business 65 LakhsFortnightly

5.2. SKU’S TO TAKE BIL WHLESALE FORWARD:

Any company expects growth in two ways:

1. Depth wise growth: To influence wholesaler for increase in volume purchases of existing

SKUs at his end.

2. Width wise growth: To influence wholesaler for purchasing more number of unique SKU

lines in addition to existing ones.

Any good loyalty program should give enough emphasis on width wise growth as this growth is

more stable in nature than former one and results in long term business by way of better

penetration of focus SKUs.

Careful identification and selection of focus SKUs is necessary. Better approach can be to

identify SKUs which are already running successfully in top tiers and to promote them in lower

tiers. A survey to find out SKU’s potential can be handy.

Sample size of 50 wholesalers was chosen which included mix of wholesaler from all the tiers. SKU consumption pattern was analyzed across the sample.

P a g e | 42

Note: above table is mentioned to give fair idea about purchase pattern across different groups.

Following SKUs were shortlisted which can be considered as Focus SKUs for the BIL loyalty program:

Tiger

Tiger 38 gm

Tiger 90 gm

Tiger Orange cream 74 gm

Tiger Orange cream 80 gm

Tiger Orange cream 170 gm

Tiger Elaichi cream 85 gm

Tiger Butterscotch cream 80 gm

Tiger choco cream 74 gm

Treat

Treat Mango Cream 80 gm

Treat Elaichi Cream 80 gm

Treat Orange Cream 70 gm

Tiger Orange Cream 100 gm

Tiger Orange Cream 200 gm

Good Day

Goodday butter series

Goodday Pistabadam

Goodday Choconut

Bourbon

Bourbon Jar 45 gm

N.Choice

N.Choice 169 gm

N.Choice 100 gm

Milkbikies

Milkbikies 67 gm

Milkbikies 170 gm

50 - 50

50-50 45 gm Jar

50-50 Maska chaska 66 gm

P a g e | 43

PROPOSED LOYALTY PROGRAM

FOR BIL MUMBAI

Timepass

Timepass classis salted 114 gm

P a g e | 44

BRITANNIAWHOLESALE KA

MAHARAJA

5.3. BRITANNIA – WHOLESALE KA MAHARAJA

O B J E C T I V E O F T H E P R O G R A M :

1. To drive depth, induce higher purchase and thus increase Britannia’s market share in the wholesale channel.

2. To establish Tiger Glucose and other Britannia focus brands in this channel and make WS to recommend these brands to retailers.

3. To ensure desired growth in wholesale business by influencing and supporting the WS to achieve targets set by BIL.

4. To drive excitement in the wholesale channel & increase WS interest in Britannia brands.

Assumptions:1. WS Contribution to overall volumes has been assumed as 15 % for tiger

glucose and other focus brands together while Good day, Marrie, bourbon & 50-50 accounts for 85% of wholesale business.

2. Share of Britannia Glucose + Special t an All India level.

P a g e | 45

M E C H A N I C S O F P R O G R A M :

1. The Britannia Wholesale ka Maharaja is open to WS across Mumbai & Thane city.

2. WS having average monthly purchase of Rs. 15000 & above, are eligible for the program.

3. TSI to share an initial list of eligible WS by the September 15th 2009. The mobile numbers of WS and birthdates to be collected & sent in the initial list. (Please use the format in Appendix 1 for the same).

4. The Input would encompass the following:

a. Redemption (points) at the end of the program:

1. Invitation points:

As per the tier type

Rationale: These points are for the interest shown & future active participation of wholesalers.

2. Base points: (irrespective of achieving targets)

For every purchase of BIL brands worth Rs 250, 1 point will be offered.

Rationale: This discount is given for the redistribution role played by the WS and the fact that competition also operates in a similar manner.

3. Focus / power points

Focus points will be decided on selected SKUs for every month. On achievement of focus target (i.e. focus target will be 20% of total target of particular wholesaler), bonus points equivalent to 0.75% of total purchase will be rewarded.

Focus points will be redeemed immediately after every month.

Rationale: To drive width & recommend our Focus/ power brands to retailers.

Immediate redemption on focus SKUs is expected to keep wholesalers actively interested in getting updates on monthly focus SKUs and their respective points.

4. Slab based quarterly target achievement points

P a g e | 46

Rationale: These are incentives offered, to drive depth, induce higher purchase and sustained growth for period of every three .

All points accumulated from Invitation points, base points, Focus/Power points & target achievement points to be added together and to be considered for gift redemption at the end of the program.

5. Growth level based Incentives:

Rationale: These are special incentives given for the business growth achieved, by considering seasonal demand impact on the market. These incentives will be given immediately to ensure reward credibility and WS passion to grow business.

6. Points earned by WS will be communicated by salesperson on his every visit, MOC statement & on the purchase bills.

7. Gift articles can be redeemed at the WS gathering organized by Britannia after the end of the program.

T H E R U L E S O F T H E P R O G R A M

The Britannia Wholesale ka Maharaja is a six month program which starts on Oct 01, 09. All eligible WS are invited to be a part of the Maharaja. Each WS will stand an opportunity to earn prizes of equivalent to 1% to 1.8% of entire purchase value, based on his performance. The rules of the program are fixed and are as detailed below.The program is of duration of 6 months.

ENROLLMENT IN SCHEME

Every WS wishing to participate in the Maharaja will need to enroll into the program by filling a form.

P a g e | 47

INVITATION POINTS

We welcome WS in “Britannia – Wholesale ka Maharaja” program. Each WS will receive invitation bonus points based on the class he belongs to. These points are given to set the initial momentum for the program.

BASE POINTS

On every purchase of Rs. 250 of Britannia biscuits, the WS will earn 1 point.

FOCUS / POWER POINTS

Every month few SKUs will be selected as Focus brands. E.g., for a given month, Tiger Glucose will be a focus brand. TSI should update the focus/power brands to the WS at the start of every MOC.Points will be awarded on every Rs 250 purchase of focus brands.E.g.

Category Purchase Value Points earnedTreat, Timepass Rs 250 1.5 pointsTiger Glucose Rs 250 3 pointsRegular Rs 250 1 point

SLAB BASED TARGET ACHIEVEMENT BONUS POINTS

We appreciate wholesaler’s efforts in achieving the targets set by BIL. On achievement of targets, BIL will reward them with special bonus points (as per the slab). With the help of these points each WS can move up to the higher class to avail higher benefits.

Class Avg. monthly purchase

Invitation points

Base points on total purchase

Focus/Power points

Quarterly Target achievement bonus points100% achievement

110%achievement

(0.4%) (0.75%) (0.2 % – 0.4%)

(0.3% - 0.5%)

P a g e | 48

Platinum > 1 Lac above

101 1 Point 100% bonus 125% bonus

Gold > 50,000 to 1 Lac

51 1 Point 75% bonus 100% bonus

Silver > 15,000 to

21 1 Point 50% bonus 75% bonus

Note: Above mentioned points are based on every purchase of Rs. 250 of Britannia brands

GROWTH LEVEL BASED INCENTIVES

This provision is made to counter against seasonality (seasonal ups and down in demand) in this industry. Considering seasonal impact, growth level is to be decided for every month. For better understanding refer the following example chart:

Month Growth levelFor month with seasonal or unexpected rise in demand

Growth level: 130% of the target

For ordinary month Growth level: 120% of the target

For month with seasonal or unexpected fall in demand

Growth level: 90% of the target

On achievement of growth level: 0.3% bonus point of total base points will be offered.

Many a times, unforeseen rise or fall in demand disturbs entire loyalty program. In cases, where for a particular month demand for product category is very low, targets given to wholesalers are no more realistic and results into wholesalers paying no attention towards the program itself thereafter. Sometimes demand for the product category rises suddenly for a month and everybody easily reaches target for the month. In such cases, growth level bar to be raised even more to make wholesalers to push the brands to even more extent.

As per Britannia Monthly Newsletter

P a g e | 49

D S I N C E N T I V E

The Britannia rewards its distributor salesperson as well & it incentivizes them to carry out the entire program in the correct way... Every salesperson will be given his uniform for the program – 1. Britannia Maharaja T-shirt & a CapThere will be an enrollment bonus for the DS for every WS it enrolls in the scheme –2. for every wholesaler, the DS enrolls* he gets Rs.20*Criteria for the Enrollment to be valid:

All fields in the enrollment form to be correctly filled & validated Clear understanding of the scheme by the WS– Periodic Checks will be

done to ensure the same. Program Kit to be given to the WS at the time of enrollment.

3. Incentive on Every point Scored

The total points earned by all the WS serviced by a particular DS will be points by the DS.

i.e. DS points = ∑ WS points (serviced by the DS)On every 100 points Scored by a WS, He will win Rs.10 i.e. 100 DS points= Rs.10

--- The End---

P a g e | 50

S C H E M E C O M M U N I C A T I O N

1) Communication of scheme to trade to be completed three weeks before the commencement of scheme at all distributor points

2) A trade meet to be conducted at the branch for the communication of the scheme one week before the commencement of schemea. Branch to get budget sanctioned from the brand team before any go

ahead on trade meets along with the cost break up.3) Special pamphlets (Scorecards) designed for communication & tracking of

scheme to be used by WD DS.a. DS has to carry

i. Scheme flyers (Scorecards)for WS which will communicate the scheme details (one copy each to be given to every WS and a copy for DS)

ii. Scorecard tracker (to be signed by WS and DS during visits) will be on the back side of the same.

P a g e | 51

BRITANNIA WHOLESALE KA MAHARAJA PURCHASE Tracker(To be filled by Britannia salesperson on each visit)

WS Code: ______________________

WS

Name:______________________

Market Name: __________________

Stockiest

Name:_________________

Town: _________________________

Oct Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Call 3

Call 4

call 5

Nov Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Call 3

Call 4

Purchase (Rs.) Quarter Performance

LQ Average Plan Actua

l

Club Plan Actua

l

CQ Month 1 Plan Actua

l

Plan Actua

l

CQ Month 2 Plan Actua

l

Growth % Plan Actua

l

CQ Month 3 Plan Actua

l

Growth Slab Plan Actua

l

CQ Average Plan Actua

l

Plan Actua

l

P a g e | 52

call 5

Dec Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Call 3

Call 4

BRITANNIA WHOLESALE KA MAHARAJA PURCHASE Tracker(To be filled by Britannia salesperson on each visit)WS Code: ______________________

WS

Name:______________________

Market Name:__________________

Stockist

Name:__________________

Town:_________________________

Jan Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Purchase (Rs.) Quarter Performance

LQ Average Plan Actua

l

Club Plan Actua

l

CQ Month 1 Plan Actua

l

Plan Actua

l

CQ Month 2 Plan Actua

l

Growth % Plan Actua

l

CQ Month 3 Plan Actua

l

Growth Slab Plan Actua

l

CQ Average Plan Actua

l

Plan Actua

l

P a g e | 53

Call 3

Call 4

call 5

Feb Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Call 3

Call 4

call 5

Mar Purchase Value (Rs.)Regular brands Tiger Focus Cum WS

Sign

SP

Sign

Call

no.

Date Bill No. Value Points Value Points Value Points Points

Call 1

Call 2

Call 3

Call 4

M E A S U R E M E N T C R I T E R I O N

a) Sales by WS to be shared on a weekly basis (Refer Appendix 2 for format of tracker)

The tracker would be shared by branches for a period of 9 months (6 months during and 3 months post for evaluation of scheme)

b) Performance of input to be evaluated w.r.t:o Volume Growth for Basic (Glucose + Special

Range) & Value Added Segments separately (month on month)

o Value Growth for Basic (Glucose + Special Range) & Value Added Segments separately (month on month)

o Pre Scheme – Post Scheme Market Shareo Pre Scheme – Post Scheme Numeric

Distribution

P a g e | 54

o Pre Scheme – Post Scheme Weighted Distribution

6. CONCLUSIONThe competition for customers has never been so furious. Costumers

have more and more choices every day, and customer loyalty program

has the power to make or break the business.

It’s common knowledge that acquiring customers costs more than

keeping them.

Right customer loyalty program for wholesale offers threefold benefits;

it can improve recall for your brands and better penetration, controlled

and multidirectional growth for relatively longer period, and create a

customer base that’s invested in your brand and ready to share

information about your offerings.

To create customer loyalty programs that satisfy company’s and

customer’s needs, one must begin with knowledge and understanding

of key essential parameters of loyalty programs. As we delve deeply

into the attributes of highly valued customers, exploring demographics,

behaviors and attitudes, we’ll gain genuine insight into what they

value, enabling you to deliver rewards that genuinely resonate with

your specific customers.

BIL Mumbai has good presence in wholesale segment but growth so

far in this segment was inconsistent. Wholesale segment certainly

deserves better focus and care than it was offered till now. There is still

huge scope of business growth. This potential can be leveraged by

having customized strategies for every tier and identifying focus SKUs

which can further generate revenues by recommending them across the

wholesalers. Focused sales force and customized loyalty program for

the wholesale are steps of BIL taken in this direction.

BIBLIOGRAPHY

A. Loyalty program cards

1. HUL Vijeta

2. DABUR KINGS wholesale program

3. Sunfeast premier league.

B. Britannia MIS sytem

C. On – Line resources

1. www.vijeta.net

2. www.dabur.net

3. www.britanniaindia.com