Marico: A Study of In-Store Activities

Section A | Group 3
Ayushi Baranawal PGP34260
Jaidip Palit PGP34155
Prafulla Das PGP34076
Ritesh Bhakre PGP34058
Shaswati Sagarika PGP34181
About the company
• Marico Limited is an Indian consumer goods company providing consumer products and services
in the areas of Health and Beauty based in Mumbai

• Marico India’s revenue for FY18 was INR 6,417.7 of which 11% was contributed by Modern Trade

• Marico has 8 factories in India

• Major Brands – Hair&Care, Livon, Mediker, Nihar, Parachute, Revive, Saffola Oats, Saffola
Oil, Set Wet
 Sales Structure
Sales Director

Alternate
GT Head Division Head
Channel head

Finance Category Supply E-Commerce Regional

KAMs CSD Manager MT ASM
Planner Planner Planner Manager Head

MT Sales
Officer
Current GT Practices: POSITIVE

Marico DSR on store visit

Observations
Although the mentioned activities are the planned
supposed job deliverables of a DSR, but 2 separate
individuals are involved in the same for GT stores:

• Merchandiser: visits high performing GT store on a

weekly basis and does the merchandising (organizing
items according to planogram)

• DSR: All other activities

• PDA: DSR is prompted with targeted sales at a store level

which is set on the basis of company’s expectations
without any past sales data to back it up
Challenges
Problem of acquiring new retailers as they don’t lend credit to
them because of lack of any credibility to back up their
reputation.
Problem of logistics as the market areas are congested and
they don’t have access of vans. Currently, rickshaws are being
used for transportation.
Problem of edible items, particularly Saffola, getting damaged
during transportation and big retailers face the brunt of it as
100% checking is not possible.
Problem faced with small scale retailers is that they have
erratic working timings resulting in return of deliveries to the
distribution translating into overall loss in sales.
Suggestions
Distribution Expansion:
Direct Reach and
Wholesale in tier 2 &
3 cities. Look for B2B
online marketplaces
to acquire new
credible retailers & Leverage IT &
wholesalers Data
Analytics:
Packaging Innovations:
New-Age & PDA, ISRO, RETINA
Tamper-proof lids, tight vacuum
cost-to-serve
Specialty Channels : efficiencies packaging, shrink wraps etc. for
Specialty GT, Modern Trade through route transportation instead of single layer
& E-commerce optimisation sachet packaging for items like Saffola &
Parachute
 Proposed GT Improvements

STORE CHECK MERCHANDISING STOCK TAKE ORDER TAKE INFO/BASKETS

• Merge Activities of Merchandiser and DSR

• Addition of Stock Take: Regular recording of exact sales at the store level on weekly basis can provide us with
on-ground data, which can be leveraged to improve our forecasting as well match bridge the gap between the
proposed quantity of DSR and the actual quantity ordered by the retailer, and improve assortment.
Proposed GT Improvements

1. Merchandise before taking order:

Store owners prefer that the DSR leave
after taking the order.
2. Stock Take: GT stores keep few
variants, stock take would enable to
push stocked out variants, improving
assortment.
3. Merge activities: Each DSR services
few top stores and a lot of average
stores, merging would enable
prioritise stores.
MT PDA – Competitor Analysis

P&G HUL ITC

MT PDA - Suggestions
• Sales are lost because of
difference between time in
order placement and order
requirement

• This can be easily mitigated by

establishment of MBQ using
daily stock take

• Daily stock take also helps in

determining ROI and offtake
Rate

Marico stock update option only in binary 0 or

*MBQ: Minimum Base Quantity
1 which does not give much insights into sales
THANK YOU!