Godrej Interio

Franchising Model

Group 9
Big concept

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Contents

• Company Overview 1
• Structure of Distribution- COCO/DOCO 2
• Training and after sales service 3
• Order Placement and Delivery mechanism 4
• Payment cycle and Margins 5
• References 6
Company Overview
 Godrej Interio is one of the 14 divisions of Godrej &
Boyce Mfg. Ltd.
 18 branches across India
 It is the most profitable division of the organization
followed by Locking solutions and Security Solutions
 Has 120 COCO Stores across India. Largest and most
comprehensive store is in Vikhroli, Mumbai
 Over 300+ DOCO Stores and services 1500 retailers
across the continent
 Major player in providing B2B services across various
Government institutions
 B2C segment for Godrej Interio is growing at a rate of
15% YoY through its store sales
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 Structure of Godrej

Hello!
Mother-Hub
Distribution of Godrej (Bhiwandi)

Interio
B2C Structure Regional
Branch

Authorised
COCO Store
Dealer

DOCO Store Small

Retailer Institutional
Orders

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Company Owned Company Operated
(COCO) Store

▣ Store is owned and directly under the control

of the organisation
▣ Complete store layout and product displays
are designed by the Interio Team at branch
level
▣ Full-time dedicated store employees are kept.
These employees are on company payroll.
▣ Each employee has a sales target attached to
him which is based on store location and its
performance capabilities

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Store Structure
Store Manager

Manager
Manager
(Kitchen and
(Home
Dining
Furnishings)
furnishings)

Sales Executive Sales Executive Sales Executive

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Dealer owned Company operated
(DOCO) Store

▣ Store is under the ownership of the Dealer. The

operational and design aspects of the showroom
are under the purview of the company.
▣ Dealer as to ensure that structural set-up of the
store is done. Design and stock set-up is completely
done by Interio on an FOC (Free of Cost) Basis.
▣ Manpower is employed by the Dealer; however,
Costs are spilt between Interio and the Dealer based
on a sharing ratio decided at the time of signing the
contract.
▣ Dealer gets a separate target for running the store.

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▣ Dealer must be a long-term and Pre-requisites
profitable associate of the organisation. for a obtaining
(DOCO dealerships are usually given to
second-generation dealers)
the rights of a
DOCO Store

▣ Should be financially sound

▣ Dealer should be able to take up

additional targets

▣ Store location and size needs to be as

per the demand and potential in a
respective market (usually determined
by the amount of billing the dealer
does along with the general demand
from the respective market)

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 ▣ Dealer should be ready to make the initial

‘’
investment and take up the responsibility
of maintaining well-trained manpower at
all times

▣ Minimum stock levels to always be

maintained at the store. The inventory to
be stocked will be decided between the
dealer and the branch team

▣ Dealer must be willing to partake in all

DOCO marketing activities planned out
throughout the FY

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Training and After-sales service
COCO Store
▣ On-roll employees are giving
proper training during their
induction period.
▣ Training is provided on various
aspects of product information,
customer handling, sales and
service provisions
▣ Yearly training is provided at
the time of the Annual
Business Meet in April of
every year
▣ After-sales service such as
installations and repairs are
directly provided by the
service team at branch level
DOCO Store
▣ Training teams (usually a part of
the service team) are set up at
the branch level to regularly visit
the respective stores and ensure
that service quality is maintained
▣ As attrition levels are higher at
dealer outlets, training is usually
done on a quarterly basis
▣ After-sales service is usually
provided by an Authorised
service provider (ASP) who is
trained to adhere to quality
standards (Usually under the
purview of the service team at
branch level)
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Order placement and delivery
mechanism
COCO Store
▣ Stores usually do not carry
inventory in order to save on
carrying costs
▣ Orders are placed via an
online ordering mechanism
which gives real time data on
stock levels at the branch.
▣ Delivery to customer is directly
done from the branch
warehouse
▣ Automated service set-up is
done for any product sold from
a COCO Store
DOCO Store
▣ A minimum stock level
always must be maintained
at the DOCO store
▣ In case of stock out, Dealer
has to place an order with
the branch
▣ Delivery to the customer is
under the purview of the
Dealer
▣ Installation booking also has
to be done by the DOCO
store salesman
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Payment Cycle
DOCO Store

▣ Dealer always has to maintain 4

black cheques with Interio accounts
department
▣ All order booked and billing to
dealer for store inventory and sales
are deducted as per the designated
billing cycles
▣ Billing Cycle: 15th day of a month
and 1st day of the consecutive
month
▣ Billing cycle are strictly adhered to,
however the Regional Manager of
the branch has discretionary power
to not bill the dealer and extend
credit for “x” days.

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Margins
COCO Store
▣ Stores only have leeway to
provide up to 7% discount
on non-offer products.
▣ Cannot process intuitional
orders. Such orders are
directed to the B2B team.
▣ No credit provisions
DOCO Store
▣ 15% - 18% margin provided on
Retail Price.
▣ To also maintain 7% discount
range in order to maintain MOP,
however additional discount of 10%
is sometimes based on a case to
case basis, on the approval of the
branch team.
▣ Credit provision is possible,
however it will be at the risk of the
dealer
▣ Can execute small institutional
orders, however they must inform
the B2B team who will handle the
order and pass 4% commission to
the dealer for generating the lead.
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Thank You!
Any questions?

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