Project Framework

Aim: Re-fresh The SAMT Channel

Program
Project
Scope
1) Understanding the market
& building region level
understanding of SAMT
2) Market research to bring
outside-in perspective of
other FMCG programs
3) Meeting retailers, FMCG
players & regional sales
team
4) Reworking on the channel
program Umang
5) Test implementation/Pilot
in Bangalore of the new
program

Methodolog
y
Step 2:SAMT
Validation of
Key Points about

Step 1:
Understanding
Market +
Benchmarking

Insights

Posed as different FMCGs

employee in front of retailers
Visited BIL
&
Talked
to 200+ competitor
Met
retailers distributor
FMCG
s
&
salesme shopper
Shadowe n to
s
d BIL
extract
salesme info
n for 20
Step 3:
days

Audited on-paper vs. in-store

execution of FMCG programs
Obtained visual proof of
compliance/non-compliance

Designing New
Umang

Created
new
slabs
using
PAT
sheets

ToT
iteration
&
validatio
n

Short
listing
final
paramet
ers

Final
design
checked
with
ASMs

Closing
by
senior
leadersh
ip

Project Framework
Approach Plan
Tasks / Week
Understanding The
Market & Perceptions of
Retailers & Shoppers
Understanding The
Project Objectives
FMCG Benchmarking For
SAMT
Collation & Analysis Of
Research Data
Validation Of Key
Insights/On-field
Execution Of FMCG
Programs
SAMT Re-Classification &
Designing New Umang
Slabs
Formulation Of Different
ToTs & Market Validation
Designing New Umang
ToT & Validation With
ASMs & In Market
CPMS Integration & Test

What is SAMT?
5

SAMT Standalone Modern

Trade, includes stores with:
Aisle Stocking

1 Shopper
Basket/Trolley

Floor Area > 2000 sq

2 ft

Electronic Billing
3

Key points about

SAMT

20% of MT business in
Britannia
35% MT stores are SAMT
Flexible & better control as
compared to
National/Regional Chains
Distribution on a store to
store basis
Britannias business program

What Does The Market Say?

RETAILER: Key
Expectations
In-store
Branding

On-time Order
Capture &
Delivery

Consistent
Performance
Bonus

On-time
Payout Of
Incentives

COMPANY: Key
Expectations
Communicati
on Of The
Program

Expectation

Communicati
on Of Targets

Thorough understanding of
Terms of Trade by the
retailers

Do not know their slab. Not

aware of break-up & just track
final payout

Regular communication of
targets to retailers

Targets informed verbally in

2nd-3rd week of the month

Retailers keep track of target

to consciously achieve it

Very few retailers consciously

work towards tracking &
achieving value
targets
Only taken care of by
company merchandisers
& promoters

SHOPPER: Key
Expectations
Ease Of
Shopping

Conducive
Atmosphere In
Store

In-store
Browsing
Experience

Sales, Bulk
Pricing & Price
Points

Product
Placement &
Ease Of
Picking Up
Products

Cross
Category
Placement &
Secondary
Visibility

The laid down visibility assets

maintained by
the store & kept in good
condition

Reality

So, How Are Other FMCGs In SAMT?

Why Compare

Outlets not being extracted from optimally

Companies
Selected

Retailers do not have knowledge of the

program

RB

Mondelz

HUL

Nestle

ITC

Colgate

P&G

Dabur

Reasons For Their

Selection

Inefficient target communication

To understand how other major FMCGs
operate

Largest FMCG companies in the country

Imbibe the positives from their programs

Most well defined business program

Parameters for Benchmarking

Store Type

Under
MT/GT

Store Type
Criteria

Retailers say most rewarding companies to

work for

Visibility &
Value
Targets

Visibility &
Value
Margins

Payout
System

Britannia

RB

P&G

Nestle

ITC

Cadbury

Colgate

Dabur

HUL

Loyalty
Program

Umang

Vision Store

Ultimate Store

Club One

Loyalty Program

Field Activity Plan

No Specific Name

No Specific Name

No Specific Name

Store Type

Stand Alone
Modern Trade

Self Service Retail

Mini-Markets

Nestle Premium
Outlets

First Club

Stand Alone Stores

Mini-Marts

Open Format
Outlet

New Modern Trade

Falls under
MT/GT

MT

GT

GT

GT

GT

MT

MT

MT

MT

Monthly sales >

50k
Floor area>1500
sq ft
3+ billing
counters
Monthly 30 lac+
business

Monthly sales >

50k
Floor area >1000
sq ft

Floor area >1000

sq ft
2+ billing
counters

Floor area> 2000

sq ft
2+ billing
counters

One FSU
Tooth Brush
Stand
SoS & Shelf
Strips

2 SiS
Required SoS

Bronze:
Planogram, SoS, 1
Endcap, 2
Parasites
Silver: QP, SoS, 2
Endcaps, Bay
Branding
Gold: QP, SoS, 2
endcaps, Bay
Branding

30% Quarterly
Growth

PCP + F&B Target

Base Target
(100% Or 110%)
On Basis Of Last
Months Sales

Criteria for
Store Type

Floor area> 2000

sq ft
Aisle stocking
Shopping basket
Electronic billing

Target Visibil Classic: 4

GoodDay + 3
s
ity

Premium Cream
Shelves Or 1 SiS
Silver: Same
Gold: Same
Platinum:
Additional Bin / 3
SiS

Value Based On Last

Quarter Sales,
Desired Growth %
& Company
Activities

Margin Visibil Classic: 0.5%

Silver: 0.5%
s
ity
Gold: 0.5%
(Above
Platinum: 1.0%
Base
Margin
)
Value Classic: 1.0%

Silver: 1.5%
Gold: 2.0%
Platinum: 2.0%

Monthly Sales >

50k

Quarterly Sales >

120k
Floor area >1500
sq ft
2+ billing
counters

Monthly Sales >

150k
Floor area>2000
sq ft
3+ billing
counters

Among Top 35%

Outlets In District
At least 4 Bills In
Last 6 Months

One Dedicated
FSU
Shelf Branding
Required SoS

Shelf As You Shop

Win On Shelf
Win With
Initiatives

Varies Each
Month
Focus On New
Initiatives

Variable # Of
2 SiS Displays
Displays & SoS For SoS
Each Club
Visi-coolers
Focus SKU
Promos

Quarterly 18%
Growth
Must Stock RB
Products

Brand Targets
Monthly Target

Based On Last
Quarter Sales

Based On Last
Months Sales.
Silver: <=
15k/Month
Gold: 15k-50k
Platinum: >= 50k

2500 pm On
Visibility
Compliance

5% :
Shelf As You
Shop (1%)
Win On Shelf
(2%)
Win With
Initiatives (2%)

No Fixed Visibility
Incentives

1% Quarterly
Target Bonus
0.5% Quarterly
MSL Bonus

3%

95%-100% : 0.5% 1.5% Of Foods

1%
100%-105%: 2%
Turnover
105%+: 3%
(Excluding Popular
Atta) For All 3

Min 11% Growth

No Value Target
Rate, Based On
Last Months Sales
&
Last Years Sales
For Same Month

Silver: Fixed
4%
Payout
Gold: 3% Of
Foods
Platinum: 3.5% Of
Foods

A Class: >1 Lac

B Class: 50k-1lac
C Class: <50k

6%:
One FSU (3%)
Tooth Brush
Stand (1.5%)
Share Of Shelf
(1.5%)

Flat 14% Margin

Bronze: 2%
Silver: 2.7%
Gold: 2.9%

No Target Linked
Margin

Flat 14% Margin

Bronze: 1.5%
Silver: 1.5%
Gold: 1.7%

Overview of a Few Excellent Loyalty Programs

Shelf
As You
Shop
(1%)

Brand Block
Eye Level Display
Claim on Shelf
Share on Shelf

Win On
Shelf
(2%)

Products displayed category

wise, such as Hair Care,
Laundry etc

Win
An initiative brand FSU needs
With
Initiativ
with 3 shelves
e (2%)

Visibility Incentive (6%)

One FSU (Oral Care Center) 3%
1 Toothbrush Stand or 2
Toothbrush Hot Spot 1.5%
Category Share of Shelf, Shelf
Strips, Header Cards 1.5%

One dedicated FSU (At aisle end

or near the entrance or at the
billing counter)
Shelf branding for top brands
Some must stock RB products

Now, Redefining The SAMT Channel Program

Gap Areas

Criteria For A
SAMT Store

Umang Club
Slabs

Existing:
Minimal engagement with
retailers, low top of the mind
recall
Inefficient target
communication, informed
verbally in 2nd-3rd week
Low visibility extraction vis-vis competitors
No dairy product targets,
unlike other companies with
category based targets
On-invoice payout. Even non
performing outlets get the
advantage. Not done by any
other FMCG

Aisle stocking

Existing
:

Classic
Monthly sales < 50K

Shopper
basket/trolley

Silver

Electronic billing

Gold

Floor area > 2000 sq

ft

Platinum

50K < Sales < 1 lac

1 lac < Sales < 2 lacs
2 lacs and above

Proposed:

Monthly Britannia sales >

50K

Proposed:
Classic
50K < Sales < 75K

Aisle stocking

Silver

Shopper basket/trolley

Gold

Electronic billing

1.25 lacs < Sales < 2.25

lacs
Platinum

75K < Sales < 1.25 lacs

2.25 lacs and above

Effect on SAMT Outlets

Outlets Enrolled in Umang

SAMT

-->

76
2

KATs (From Metros) 21

7

KATs

--> SAMT

30
5

Metro

Non-Metro

451

311

(-) 100

292

13

643

324

451 Metro Outlets

311 Non-Metro Outlets

Outlets with sales <

45k being moved to
KATs
128 outlets have sales <
45k

100 Umang Enrolled

117 Non-Enrolled
292 - Metro Outlets
13 Non-Metro Outlets

= 967 Outlets
> 762 Outlets

Sales > 50k

Remaining 128/967 (13%)

outlets with a L3M sales of
25.3k need to be upgraded to
a min of 50k per month

Trying Out Different ToTs

Monthly Target

Classic

Silver

Gold

Platinum

1.5

2
1.5

1.25

Classic

Silver

Gold

Platinum

Monthly Target

1.5

Monthly Focus
Brand* Target (No.
of units)

0.25

0.25

0.25

0.25

Consistent
performance
Quarterly bonus

0.5

0.75

1.25

Quarterly
Target
(Separate Cake,
Rusk, Dairy &
Biscuit Targets)

0.75

Visibility Target

0.75

1.25

1.5

Visibility Target

0.75

1.25

1.5

Total Payout

2.5%

3.0%

4.0%

5.0%

Total Payout

2.5%

3.0%

4.0%

5.0%

Classic

Silver

Gold

Platinum

Monthly Target
(On Total Value)

1.5

Monthly Power Brands*

Target
(If met for 3 or more brands)

0.25

0.5

0.75

Quarterly Must Stock

Products

0.5

0.5

0.5

0.5

Visibility Target

0.75

1.25

1.5

Total Payout

2.5%

3.0%

4.0%

5.0%

Inputs From The ASMs on the ToTs

Munesh (N)

Manish (E)

Nisha (W1)

Anand (W2)

Conclusion

Monthly Target
(BCRD/BCR+D)

BCR+D

BCR+D

BCRD

BCRD

BCR+D With
Dairy Ambient
Products (DW,
Ghee, UHT) For
Non-chiller
Outlets

Visibility

Ask For Countertop/Parasite In

Platinum. Bin Is Too
Much At 1%.

Ask For A Separate

Sis For The Focus
Brand At Defined
Locations

Remove Sis. Not

Effective. Instead
Floor Stack. Cannot
Ask For More At
0.5%-1%

Good Enough
Visibility
Requirements At
Current Margins

Can Only Do
Incremental
Changes In
Visibility

Focus Brand
Targets (BCR+D)

Only 1 (Flexible)

Both

Both, Important

Only BCR

2 Focus Brands

Consistent
Performance
Quarterly Bonus

Good, Important.
More For Outlets
With Sales > 4lacs

Can Be
Implemented, Might
Motivate Them To
Meet Monthly
Targets

Good, Important

Implementable

Good Idea,
Should Be
Included

Quarterly Must
Stock Products

Not Required

Instead Min No. Of

Lines Per Bill/Per
Month

Include Within Oninvoice

Implementable

Implementable,
But Not Very
Important

On-invoice Margin

Cannot Remove For

Gold & Platinum

If Removed, Might
Create Problems

Cannot Remove,
Reduce &
Channelize

Some Retailers Might

Not Like It

Cannot Be
Removed
Completely

Finally, The New Channel Program: Umang

Parameters
Target BCR : Monthly
Target Dairy : Monthly

BEFORE

AFTER

Innovation Brand Target: Monthly

On-Invoice

Halved

Consistent Performance BCRD :

Quarterly

Significant
Portion

Target

Only BCR

BCR + Dairy

Visibility

Low Extraction

Optimum
Extraction

Innovation
Brand Target

NO

YES

Consistent
Performance
Bonus

NO

YES

Visibility : Either A or B
A) 2 SiS For Focus Brand + Category Header
+ Bin
B) 2 SiS For Focus Brand + Category Header
+ Visibility on Counter/Pillar/Beam
On Invoice - 50% SoS With Shelf Strips &
Planogram Adherence

Desired
Outcomes

Potential
Backlash

Scale Up Plan