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SUMMER INTERNSHIP FINAL REVIEW

PROJECT TITLE

Develop Retail Engagement Program for Platinum, Gold and


Model Outlets

GUIDE : Anant Swarup MENTOR : Avinash Deoskar


Project Objective
DESIGN LONG-TERM RETAIL ENGAGEMENT PROGRAM
WITH KEY RETAILERS TO INCREASE 5% P&A MARKET
SHARE

Project Deliverables

Research FMCG/FMCD companies for their retail engagement program and identify
best practices

End to end solutions for a Retail Engagement Program


Benchmarking
Premium Stores
Over 50 lacs per month Turn over

Presidential Club
Premium Services and
Rewards for Retailor

Priority Services
• Store Repairs and Renovations
• Product Integrations
• Store Development

Premium Rewards
• Exclusive access to lounges and
clubs
• Chauffeur driven services
Prestige Xclusive Stores
Premium Retail Development and
Engagement Program

Average Turnover 50lac- 1Crore

15% profit margins

2
Company paid Promotionals and
Marketing
Newspaper , pamphlet and media

Store Development
Bandhan Program, Events in
Housing Societies, Training Staff,

Annual Incentives
Incentive for Staff as well as owners
which include annual trips abroad
Need of Engagement Program
There is no long term channel association program run by any company for
01 retailers

02 Currently all schemes prioritize volume over value.

High value or priority retailers have no exclusive


03
engagement or services

04 Absence of any structured format that provides both rewards and services
to the retailor creating a win-win situation for both.
Pillars of Engagement
01 Focus on Value  LONG TERM
CHANNEL
PROGRAM
Weightage on Delta
02
Market Share

03 Increase Profitability Retail


Engagement

04 Enhance Revenue SERVICE


REWARDS
BENEFITS

05 Provide Incentives
Cases Sold
Each case sold provides retailor
How It
with a certain point depending
on the brand being sold
Works

Points
Each Point has a monetary
value associated with it which
the retailor earns. We return that
value in two paths.

Service Reward
How to Earn Points?
BRAND CATEGORY POINTS ( P ) NO. OF CASES TOTAL

LOWER PRESTIGE
5 N1 N1 X 5
MID PRESTIGE
10 N2 N2 X 10
UPPER PRESTIGE
15 N3 N3 X 15
BII
20 N4 N4 X 20
BIO 30 N5 N5 X 30
GRAND TOTAL ( GT ) = Σ NixPi
Multiplier and
DELTA MARKET SHARE MULTIPLIER ( M )
Final Score
DECREASE IN SHARE X 0.7
FINAL SCORE = M X GT
> = 0 AND < 3 X 1.0
> = 3 AND < 5 X 1.2
> = 5 AND <  8 X 1.3 60% of FINAL SCORE = SERVICE POINTS
40% of FINAL SCORE = REWARD POINTS
>=8 X 1.4
• Redeem 300 points to get Rs. 1500 for every
01 PROCUREMENT trip from Depot to Store.
COST • Redeem max 8 times per store per month.

• Redeems points to get claims settled 30


Avail Services 02 PRIORITY CLAIM days in advance of other retailors.( in
SETTLEMENT only 15 days )
• Starting at 200 coins  per 1lac claim

• Redeem Rs 50 using 10 points for each


03
HOME DELIVERY home-delivery of Rs 1000 worth of
Diageo Brands.

Using 04
• Setup dedicated call desk for multiple outlets
at 7200 points per quarter.
SETUP CALL DESK
Points • Individual rates start at 1000 points for 10
calls a day per quarter
IPhone 11 Pro

Get 38000 pts


Apple Watch

Annual Series 5

Rewards
30000 pts

IPhone 11

25000 pts
Using
Points
12000 pts
Min. Reward
Point Criteria
ANNUAL TOP PERFORMERS

1ST
Couple trip to Scotland
2ND Johnnie Walker Experience

3RD
4TH IPL Box Tickets Match at Bangalore
5TH Flight tickets and stay in Bangalore
Interaction with Senior Leadership
6TH

7TH 8TH IPL Box Tickets at Eden Gardens


9TH  Stay in Kolkata
10TH
Interaction with RPC East Leadership
TOP 50 15.76% 18.07%
TOUCHPOINTS

CONTRIBUTION CONTRIBUTION
TO OFF TRADE TO USL OFF
INDUSTRY TRADE

5% MARKET SHARE INCREASE


IN TOP 50 TOUCH POINTS LEAD IN USL OFF TRADE
TO INCREASE IN MARKET 0.8%
SHARE BY :
( P&A )
Benefit
94,989
Current Sales in Q3 Current Revenue in Q3 Rs. 56.99 Crore
Cases

1,07,087
If 5% Target is Achieved Revenue if 5% Target Met Rs. 64.25 Crore
Cases
12,098
Incremental Sales Incremental Revenue Rs. 7.26 Crore
Cases
(Considering Average Rs.6000 Revenue per Case)
COST TO
COST OF 1 POINT RS 5 COMPANY
TOUCHPOINTS
CONSIDERED 50

PROJECTED SALES IN 107087C COST OF POINTS PER


Rs. 49.15 Lakhs
QUARTER 3 QUARTER
ases
PROJECTED TOTAL POINTS 983022 ESTIMATED COST OF APP
( D & M ) PER QUARTER Rs. 75,000
Points

TOTAL COST PER QUARTER


Rs. 49.90 Lakhs

COST PER CASE Rs. 46.60