Key Account Management

By: Kuldeep Nagpal

Introduction
Barter System

The Indian retail industry is the fifth largest industry in the world. It accounts for 14 to 15 percent of its GDP The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. one of the fastest growing retail market in the world Retail has two forms organized and unorganized.

Introduction

Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian population). Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. India has about 11 shop outlets for every 1000 people

Growth History
Before !997 1997 to 2010 2011 Onwards

WHAT IS KAM???

Business Objectives It is about managing the future. It is business wide management process. It is a means to gain competitive advantage. It is a means to key supplier status. It is not a short term sales drive.

Managing The Future

Business Resources Market Opportunity

'Why do we have such incredibly huge costs for employees, development, service and marketing? Because of the customers, that's why! There's only one way to drop the costs: let's get rid of the customers!'

Key Account Management 10 Step Process

Step 1. Know your Objectives 2. Understand your Resources 3. Assemble the Selection Team 4. Map the Real Opportunity

5. Market Segmentation
6. Key Account Selection Matrix 7. Identify Customer Attractiveness Factors 8. Know Your Relative Strength 9. Classification, Selection & Communication 10. Customer Distinction Strategies

Key Account Identification & Selection Matrix

Key Development Accounts
X

Key Accounts
High
1. B 2. C 3. M 4. H 5. E 6. F

Key Development Account

Key Account

Customer Attractiveness
Low Low

Opportunistic Accounts 1. Z 2. O 3. N 4. P 5. Q 6. R

Opportunistic Maintenance Account Account

Maintenance Accounts 1. 2. 3. 4. 5. I J Y D G

Relative Strength

High

Where Accounts fall??

High
Key Development Key Account

B,C

Customer Attractiveness
R

M E, H F X N Z O Y G Q
Opportunistic Maintenance

I J D

Low Low

Relative Strength

High

The Perfect Investment Portfolio

Low High

Expectation of Returns
High

High

Customer Attractiveness

Allocation of Resources

Key Development Account

Key Account

Opportunistic Maintenance Account Account

Low

Low Low

Relative Strength

High

Identification of Key Accounts 10 Step Process

Step 1. Know your Objectives 2. Understand your Resources 3. Assemble the Selection Team 4. Map the Real Opportunity

5. Market Segmentation
6. Key Account Selection Matrix 7. Identify Customer Attractiveness Factors 8. Know Your Relative Strength 9. Classification, Selection & Communication 10. Customer Distinction Strategies

Approach ????
High

Hunting
Key Development Account

Farming Customer Attractiveness

Key Account

Milk Round
Opportunistic Account Maintenance Account

Low Low

Relative Strength

High

The three golden rules of partnering

work with a long-term perspective; seek out the winwin solutions;

recognize that trust is more important than money.

Always Remember
..its a model that works, its a model that sounds logicalits not rocket science