ALLIANCES A PERSPECTIVE PRESENTATION FOR

By Romesh Advani

Mumbai – The Urban Agglomerate Includes districts of Mumbai, Greater Mumbai and parts of Thane Districts (Kalyan,Dombivili,Thane town, Panvel,Navi Mumbai)

Amchi Mumbai Population : 24.3 Mn. Area : 1426 sq km (Districts of Mumbai and Greater Mumbai, parts

of Thane) Sex Ratio of 750 females per 1000 males Literacy : 86% 40% of India’s foreign trade Highest GDP ,Wealthiest City Huge Migrant Population

Melting pot of communities

On the other hand

54% population lives in slums in sub human conditions

Dharavi is Asia’s second largest slum and the most densely populated slum in the world: but home to 15000 small one room mfring units

CONSUMPTION PATTERN

Food Products Biscuit packets - Parle, Britannia, ITC, Cadburys  Salty Snacks & Noodles etc etc- PepsiCo ,Maggi etc

Personal Care Products Toothpaste - Colgate Palmolive, HLL, P&G, Himalaya Skin Care- Face wash –Anti ageing, Under eye care use Hair Oil – Parachute, Dabur, Vatika, Shampoo- HLL, P&G . (Sachets driving penetration) Soaps: HLL, P&G, Godrej, Nirma Sanitary Napkins - Kimberly Clark (Kotex), Energizer (owns

Stayfree, Carefree),  P&G (Whisper) Detergent cakes & bars/powder for washing clothes -

HLL,P&G, Nirma, Rohit Surfacants (ghari detergent powder),  Razor blades for shaving - Topaz, 7’o Clock, Super Max,

Wilkinson

CONSUMPTION PATTERN

Edible Oils Dhara, Sweekar, Saffola, Gemini, Fortune, Dalda

Lighting category Light Bulb makers: Wipro, Osram, ECE, Havells, Philips, Eveready,

Transportation & Fuel Petrol, Diesel, LPG & CNG brands - BP, Indian Oil, HP, Essar, Shell

Beverages: that sell cool drinks for as low as 10rs

Coca Cola, Pepsi, Dukes, Parle, Tata, Tea ,Juices ,Health drinks The above not a Exhaustive List of

Category ,Brands ,Companies ,Detailed list need to be worked out this just a starting point of describing the consumption patterns of a customer(rural + urban)

TELECOM SERVICETelecom and Handset

Idea, Airtel, Reliance, Vodafone, Aircel,Uninor, Tata Docomo. Samsung, Nokia, Lava, Karbon, Micromax. Celkon, Xaomi etc

Telecom Service Users- India Population 1.25billion Mobile Users – 886 Crores ( 70% penetration) Prepaid – 95%, Postpaid – 5%, 3G (10%) Effort need to be Made to up the monthly recharge of the

customer by having a long term loyalty plan Telecom Program becomes very Popular because of the Sheer

Numbers & Visibility it garners for any organization & because of the relevance & utility value in bop space

Trade has a Special role to Play in the Scheme of Things for any program to be run

REACH (URBAN + RURAL)

Sham

poo

Bisc

uits

Toile

t Soa

ps

Was

hing

Pwdr

& Liq

Hair O

ils

Salty

Sna

cks

Toot

hPas

tes

Deter

gent

Cak

es &

Bar

s

Skin

Cre

ams

Toot

hbru

sh

0%

20%

40%

60%

80%79% 78% 75%

70% 68%64% 63%

59%54%

35%

Reach %Sept 2014 Nielsen Data -Base -88 Lacs store

SALES PITCH-1(Telecom Service Provider)

3 Simple Condition for customer to be part of the program., To fulfill any one

Condition 1-Become a Idea Prepaid customer, by buying a SUK + FRC

Condition 2-MNP to IDEA Condition 3- Existing customers automatically can enter Age on network for customer to claim reward at the end of the

program must be greater than 6 months. To be part of program Idea customer must send SMS SPACE

m.paani/outlet name TO 52525 immediately on fulfilling any Above Condition

Recharge Slabs & Benefits to be designed ,Logistics need to be worked out

Trader/Retail Benefit to be worked out ,Coverage Plan needs to be worked out

CUSTOMER REWARDS – PRE-REQUISITES

Recharg

e amount

(Rs)Duration

Amount

Reward points

Gifts

250 6 1500 1500 1 LED Light or 1.5 Litre Petrol 0r 60 Litres Safe Drinking Water

300 12 3600 3600Two months 2nd class monthly pass plus one free Doctor Consultation

400 12 4800 4800

Free MC-Donald meal for family of 4 + educational books for primary students

500 12 6000 6000Sanitary napkins OR shaving kit stock for the entire year

Terms & condition apply *

*Many More reward option will be worked ,This just a Representation*To claim reward customer must SMS m.paani reward to 52525 mentioning the reward item*Trader incentive program/ benefit need to be worked on program enrollment & execution

Sales Pitch(Continuation –Idea)

Apart from Traditional Retail create a “ Saarthi” channel similar to MLM which will include young ,women ,taxi drivers ,SHG who will propagate thru word of mouth for rewards & who will buy stock directly from distributor if required.

Saarthi channel program to be worked out in detail based on the area of focus.

Trade benefits to be worked to kick start the loyalty program .

Training , Promotion ,Propaganda ,Market Visibility plan needs to be worked out in details.

Sales Pitch 2(Target FMCG ) Consumption moving from Unbranded to Branded Consumption- EG Edible Oils Loyalty Programs have not succeeded much in Traditional retail ,need to have

a commercial angle ,not just a visibility or branding tool FMCG Majors Pushing entire range of the Products to garner shelf space Opportunity exist to push for a loyalty program in standalone product like

Shampoo or Food Products or hygiene products or build a loyalty program on a bundled kit(Soaps + Shampoos + Detergent Cakes +Creams etc) to start with

Need to Approach HLL OR PG OR COLGATE OR Godrej or Nestle all of them with the Idea

Once a Customer purchases a bundled kit he will SMS to a mobile no which will start tracking his purchases & total his point & send him SMS update on his points tally viz a viz the nearest slab

Post initial purchase of the bundled kit for every purchase worth a minimum amount he will get points which will be tracked via SMS mode

On reaching a slab he can redeem his gift by calling a no or sending a SMS and gift will be delivered to him

Slabs & Gift Structure need to be Made including Trader Benefit & Visibility plan ,One to Two Area to be selected for Program lets say Borivalli or Thane or Kalyan to start with as this program has the potential to build brand loyalty for a FMCG company

Final Thoughts

Customer Loyalty Programs in FMCG etc is a huge market specifically in the balance half of the market

Loyalty Programs are running in Organized/Modern Trade Retail and it is surprising that literally no one has tapped Traditional retail to run these program

Traditional retail will give serious competition to Organized Retail if these customer programs are run successfully and they will support to as they know the benefit for them in driving more customer walk-in to there outlet

We are sitting in the Tip of iceberg