Ashish Final Report

47
A PROJECT REPORT ON Building best practices in merchandising process& “Performance report of researcher as Field Officer” A detailed study done in GODREJ SARALEE LTD. Submitted in partial fulfillment of the requirement for the award of degree of Masters of Management Studies (MMS) under Mumbai University. Submitted by ASHISH .N.THUSE ROLL NO: 119 BATCH: 2009-2011 Under the guidance of MR, S.N SHETTY PROF. MONA SINHA (ASM, MUMBAI) (FACULTY, BVIMSR) Bharati Vidyapeeth’s Institute of Management Studies And Research Sector NO 8, CBD Belapur, Navi Mumbai - 400 614

Transcript of Ashish Final Report

Page 1: Ashish Final Report

A

PROJECT REPORT ON

“Building best practices in merchandising process” &

“Performance report of researcher as Field Officer”

A detailed study done in

GODREJ SARALEE LTD.

Submitted in partial fulfillment of the requirement for the award of degree of Masters of Management Studies (MMS) under Mumbai University.

Submitted by ASHISH .N.THUSE

ROLL NO: 119 BATCH: 2009-2011

Under the guidance of

MR, S.N SHETTY PROF. MONA SINHA

(ASM, MUMBAI) (FACULTY, BVIMSR)

Bharati Vidyapeeth’s Institute of Management Studies And Research

Sector NO 8, CBD Belapur, Navi Mumbai - 400 614

Page 2: Ashish Final Report

~ 1 ~

I would first like to thank Mr. S.N Shetty – (ASM – Mumbai) – the project guide for giving an opportunity to work on such an important project. He kept full faith and confidence in me that he could complete the project on time. Mr. Shetty continuously gave his guidance and shared his experiences and knowledge of the industry. He was also helpful to provide all the necessary information that was required to complete the project in time.

Secondly I would like to thank Mr. Sachin Khurana (GM – Sales – West) who was directly working with me on the project as he heads the sales for the region. He was kind and patient enough to give his time and energy in making me understand about the mosquito repellant industry right from scratch. He gave his valuable insights and constantly guided the researcher and gave him the right directions. I am also thankful to him as he involved me in making some of the key decision making process and considering the suggestions without any hesitations whatsoever. .

Last but not the least I would like to thank all the FO (FIELD OFFICER), DFS & all the office staff who have directly or indirectly helped the researcher to make his summer internship a success

Acknowledgements

Page 3: Ashish Final Report

~ 2 ~

Building best practices in merchandising process

EXECUTIVE SUMMARY

The researcher has done the project in Godrej Saralee head office located eastern express highway Vikhroli (w) Mumbai.

The project report contains two topics:

Performance report of researcher as a Field officer

The first topic is about merchandising which includes definitions, rules & concepts of FMCG merchandising the project also explains about the evolution of the mosquito repellent industry and contains overall current market share, category wise market share & segment wise market share. The research was carried on in different parts of Mumbai so as to study the merchandising practice followed by GSLL & other FMCG companies, the researcher has given a detailed merchandising practices followed by:

HUL

P&G

GSKCH

GSLL

By all observations and data analysis the researcher has suggested GSLL about some merchandising practice that they need to follow to upgrade its merchandising practice & strategy.

The second topic is on a performance report of researcher as a field officer, the researcher served as a field officer for one month, handling chembur based distributor M/s R.S Gupta having 4 DFS and handling Kurla(w).

The report tells about the role of a field officer in detail, the report also shows the researcher’s contribution as a field officer in terms of:

Sales

DFS training

New outlet opening

Increase visibility

The report also contains some suggestions which may help to increase the motivation level of DFS which intern leads to increase in efficiency of DFS.

Page 4: Ashish Final Report

~ 3 ~

Vision and Mission

They will

• Be among the largest two players in Asia (excluding Japan) in Household Insecticides category.

• Build a profitable Rs. 100 crore air care business in India

They shall achieve these objectives by :

• Accelerating the growth and capturing dominant share in Indian market • Actively pursuing overseas acquisition • Building operational excellence through the principles of Theory of Constraints • Nurturing a high – performance high – values culture

The Management Philosophy of GSLL can be expressed in a single word: "PRIDE"

Passion.

Respect for people.

Integrity.

Dedication.

Extraordinary Creativity.

Page 5: Ashish Final Report

~ 4 ~

About Godrej Group

Established in 1897, the Godrej group has grown in India from the days of the charkha to nights at the call centers. Its founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in the future. His inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s Godrej Empire. One of India’s most trusted brand, Godrej enjoys the patronage and trust of over 400 million Indians every single day. Their customers mean the world to us. People at Godrej are happy only when they see a delighted customer smile. With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances, furniture, security and agri care – to name a few – their turnover crosses 2.5 billion dollars. You think of Godrej as such an integral part of India – like the bhangara or the kurta – that you may be surprised to know that 20% of their business is done overseas. Their presence in more than 60 countries ensures that their customers are at home with Godrej no matter where they go. With brands you can believe in, service excellence you can count on and the promise of brighter living for every customer, Godrej knows what makes India tick today. Today, they are at a point in Godrej’s history when their amazing past is meeting up with its spectacular future head on. Godrej is learning and relishing being young again.

Page 6: Ashish Final Report

~ 5 ~

• HSBC Award: "Best Domestic Solution" award Cash Management from HSBC Bank.

About Godrej Saralee

Godrej Sara Lee is a joint venture company between the Godrej Group, India and Sara Lee Corporation, USA with a 49/51 shareholding respectively (With strong brands like Goodknight, HIT, Jet, Ambipur, Brylcreem and Kiwi). GSLL is the market leader in the Indian household insecticides category and has a dominant presence in the air care, shoe care and male hair care categories. Apart from India, it has also achieved substantial market leadership in Nepal, Fiji and Yemen.

On 8th August 1994, Transelektra Company (TDPL) and the Goodknight brand came into the Godrej fold. A year later, the company became a joint venture between the Godrej Group and Sara Lee Corporation. As one of India’s premier FMCG companies with a significant international presence GSLL combines the values and traditions of two renowned conglomerates, Godrej and Sara Lee, to offer world-class products and services to the Indian and global consumer.

GSLL’s workforce of nearly 750 committed employees work within a “High Values- High Performance” culture to preserve a strong track record of excellent performance. GSLL’s manufacturing foot print is spread across the country and its distribution network reaches more than 500,000 retail outlets nationwide. Its manufacturing facilities are located in Pondicherry, Chennai, Guwahati, Meghalaya, Jammu and Goa. GSLL exports to 51 countries with a significant proportion of its exports going to markets within the SAARC Countries and South-east Asian region. It also has full-fledged operations in Sri Lanka and Bangladesh.

The company has a state-of-art research center based in Vikhroli, Mumbai. Equipped with all the modern amenities, a team of scientist carries out extensive research in 5 major sectors. Amongst its significant achievements, Godrej Sara Lee bagged President’s Award from Sara Lee worldwide for its excellence in management and record performance for 3 times in a row from 2000 to 2003.

As now Godrej group have acquired 51% stake in Saralee corp USA, the group is now called Godrej Household Products Limited (GHPL).

Achievements

• Super Brand Award: Goodknight, Brylcreem. • Goodknight: No. 1 household care brand in “Brand Equity” survey. • Goodknight: Featured as the 14th most trusted brand in “Brand Equity” survey in

FMCG industry.

Page 7: Ashish Final Report

~ 6 ~

Brands

Goodknight is the only fully entrenched brand in HI with significant presence in all the formats. Goodknight grew from strength to strength launching Mats followed by Liquid Vaporizers, coils, lotions and aerosols. There is a stark difference between Goodknight and other brands in this category. Every other brand talks of killing mosquitoes; Goodknight feels it simply needs to state that it protects against them.

Goodknight

Goodknight Advanced – promises to give technologically advanced solutions overcoming the key format barriers with products like double power “Activ+ System” for Refill, Advanced “Low Smoke” alternative in coils and a “pleasant experience” aerosol.

Goodknight Naturals – Promises to tackle consumer concern of safety. It achieves this through the products which has a blend of active and exotic natural ingredients that lends reassurance of safety.

Goodknight base range – the above two platforms will add to the already existing “care” imagery of the brand.

Goodknight further created stronger consumer connect by humanizing the brand values through carefully chosen brand ambassadors. Actress Rani Mukherjee and now Vidya Balan were selected on the basis of the researched fact that they epitomized dynamism, warmth and caring – values that the modern Indian housewife empathized with and Goodknight stands for. This greatly helped the brand break through the clutter and give it a larger than life image.

Page 8: Ashish Final Report

~ 7 ~

1) HIT

With increasing awareness among consumers regarding the harmful effects of pests, particularly mosquitoes & cockroaches, their tolerance levels towards them in their houses have also fallen down significantly. With this, there is a rising need to not just repel them but kill them, instantly. And this when only one brand comes to mind, HIT, which is considered the most powerful & efficacious of pest solutions that kills pests instantly.

HIT was introduced in form of the first Do-it-Yourself Specialist Flying Insect & Crawling Insect Killer Spray in 1991, when consumers used the traditional route of spraying a mixture of kerosene & chemicals to kill household pests. Understanding the consumer’s needs, HIT was launched with a promise of eliminating pests in the best possible way and thereby introduced a wide range of products in the form of aerosols, chalks and baits.

Its powerful imagery and superior product solutions has helped HIT develop a strong consumer base and expand it relentlessly over the time. With a strong focus on consumer and relevant innovations, consumers have recognized HIT with the coveted ‘Reader’s Digest Trusted Brand Gold Award for 2009.’

Leader in cockroach solution

Unique Seek ‘n’ Kill applicator which kills hidden cockroaches

HIT CIK (Crawling Insect Killer)

HIT FIK (Flying Insect Killer)

The Most powerful mosquito solution – acts the fastest with visible drop dead action

Kills both flies & mosquitoes

Page 9: Ashish Final Report

~ 8 ~

Rats & Chalk

Kills all crawling insects.

Contact Poison

In a special pouch pack, requiring no touching with hands

3) JET Brand

Is the regional jewel for Godrej Sara Lee, with more around 80% Market Shares in coil in Andhra Pradesh. JET Brand has continued its dominance in Andhra Pradesh Market and shows a strong consumer choice for Mats, Refills and Other Sara Lee Formats. With the promise of fast action on tough mosquitoes JET has ruled over the consumer hearts for years. It has always contemporized itself with consumers with its newer identity and innovative products.

Jet Chandan 12 Hr Coil

Jet Chandan Coil – A coil with the goodness of Chandan, gives a Chandan experience to your home.

Jet JUMBO GOLD refill

The powerful refill with a promise of relief from tough mosquitoes, it has special formulation which gives quick relief from mosquitoes.

Jet Silver Mat

Jet silver Mat with the power of silver technology gives instant relief from mosquitoes. It’s the safest solution available and dominates the market with more than 90% market shares in Andhra Pradesh.

Page 10: Ashish Final Report

~ 9 ~

4) Ambipur

About Ambipur

Ambipur Car is India’s No. 1 brand of car fragrances available in 6 different variants and a sleek international AC vent diffuser device which has a provision to adjust the fragrance intensity.

Ambipur electrical air freshener for home

Ambipur air freshener spray

Aromatherapy Range

Aromatherapy fragrances are available in all three formats:

Car AC Vent, Electrical air fresheners and aerosol sprays.

Page 11: Ashish Final Report

~ 10 ~

5)

KIWI

Kiwi is the World’s No. 1 Shoe Care brand sold in over 200 countries around the world. From 1906, Kiwi products have been regarded as the best products to polish, shine, nourish and protect shoes across the globe.

Paste Shoe Polish - Kiwi wax-rich formula deeply penetrates leather to nourish it and make it supple, while giving it a long lasting KIWI Shine. It protects leather against water and stains and enhances the life of shoes.

Liquid Shoe Polish - Kiwi Instant Wax Shine is a superior, convenient-to-use liquid polish with a unique double sponge applicator. It contains the richness of Dysolwax Polish, which nourishes and protects shoes while giving them a fresh shine.

Express Shine Sponge - Kiwi Express Shine gives instant shine day after day. With a unique level-indicator and easy to grip design, Express Shine can be used on vinyl and rexin shoes and other leather accessories like bags, belt, briefcases etc.

Suede & Nubuck Renovator/Cleaner - Kiwi Suede & Nubuck range cleans and protects Suede & Nubuck shoes and accessories. It also nourishes and increases the life of the shoe by giving it a water resistant finish.

Shoe Shampoo - Kiwi Sports Shoe Shampoo contains special ingredients that removes dirt, duct and light grease marks. It brightens the colour and imparts freshness to the shoes.

Canvas Cleaner - Kiwi Shoe White contains a unique optical whitener to give shoes a pure white finish. The optical brightener imparts a bright white finish on drying.

Kiwi Shoe Care Kiwi Kleen

Page 12: Ashish Final Report

~ 11 ~

6) Brylcreem

(Pronounced brill-cream) is a men's hair grooming product created in 1928 by County Chemicals at the Chemico Works in Bradford Street, Birmingham, England. Brylcreem has been in India since the late sixties. It was the first brand to use a cricketer for endorsement: Farokh Engineer. The Brylcreem glass jar was a familiar prop in Hindi films and thus found its way into fashionable men's grooming repertoire.

Premium range of Hair Gels with most advanced and contemporary technologies in Hair styling, the first launch from this platform includes a unique combination of Wetlook and Styling Hold in one single product.

Brylcreem Hybridz

Brylcreem Gels

Wet look

Ultra strong Hold

Brylcreem creams

Protein plus Naturals

Dandruff Control

Page 13: Ashish Final Report

~ 12 ~

Overview of the Mosquito repellent Industry

THE EVOLUTION:

Coils were the first mosquito repellants to be introduced in the Indian market. The first brand of coils was Tortoise, launched by Bombay Chemicals Ltd. (BCL) in the 1970s. In the 1980s Good Knight was launched and mats used with electronic mosquito destroyers became extremely effective. In the mid 1990s Karamchand Appliances created a new segment of vaporizers with the launch of All Out. .This segment was almost completely dominated by KAPL. GSLL (Godrej Sara Lee Limited) could no longer ignore this growing segment and launched its own vaporizer under the Good Knight brand in 1996-97.

In the latter half of the 1990s, the market became much more competitive, with the entry of GSLL, Reckitt Benckiser and HLL. GSLL launched an array of brands (all coils) like Jet Fighter (1997), GoodKnight Jumbo (1999) and GoodKnight Instant one after the other The company's other brands included Banish (mats), Hit (aerosols), Hit Lines (chalks), Mosfree (lotion) and Hexit (spray).while Reckitt also launched its range of mats and coils. These new entrants resorted to heavy advertising and aggressive sales promotion tactics. Recently two new categories of personal sprays and gels have emerged.

MAJOR PLAYERS BRANDS GODREJ SARA LEE LTD GOODKNIGHT, HIT, JET

RECKITT BENCKISER MORTEIN

S.C JHONSON ALL OUT

JYOTHY LABORATORIES MAXO

Dabur Odomos Cream

Page 14: Ashish Final Report

~ 13 ~

The Mosquito Repellents market is valued at Rs 2200 crores and is growing at the compounded annual growth rate (CAGR) of 15%. This segment is characterized by low competition and high consumption. As people are aware of the diseases (like yellow fever, dengue hemorrhagic fever, and many forms of encephalitis) caused by mosquitoes, the demand will keep on increasing, which is a positive sign for the manufacturers, entrants as well as the existing players.

OVERALL CURRENT MARKET SHARE

Page 15: Ashish Final Report

~ 14 ~

The category-wise market shares:

Coils command nearly 50 per cent of the market share, vaporizer refills at 20 per cent, with mats at 10 per cent followed by aerosols at 9 per cent and the rest 11 per cent shared by creams, heating devices and other products.

Page 16: Ashish Final Report

~ 15 ~

COMPANY’S SHARE SEGMENT WISE

Mosquito coil marketMarket leader: Mortein (29%) from Reckitt Benckiser India Ltd

Market Challenger: Good Knight with a share of 26%

Market Follower: Maxo from Jyothy Laboratories..

:

Vaporizer refill market

Market leader: All Out brand from S C Johnson.

Market Challenger: Good Knight and Jet from Godrej Sara Lee Ltd.

Together account for 36% of the vaporizer segment.

Market Follower: Mortein Vaporizer by Reckitt Benckiser.

:

Page 17: Ashish Final Report

~ 16 ~

MatsMarket leader: Godrej Sara Lee leads the market with its brands Goodknight Silver mat, but there is a de growth in this segment.

Market Follower: Mortein’ & Caspre together make 16%.

:

Market leader: Godrej saralee holding a strong position in this segment with HIT & goodknight.

Market Challenger: Mortein stands at 2

Aerosol

nd

position with 22%.

Market Follower: Baygon.

Page 18: Ashish Final Report

~ 17 ~

1)

MERCHANDISING

DEFINITIONS:

Activities aimed at quick retail sale of goods using bundling, display techniques, free samples, on-the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods. According to American Marketing Association, merchandising encompasses "planning involved in marketing the right merchandise or service at the right place, at the right time, in the right quantities, and at the right price."

2) To ensure sales, companies go to great lengths to make sure that their products are visible in stores and are presented in an appealing, 'sellable' way. This is called merchandising, which includes product packaging, placement, promotions and pricing to appeal to the target market.

3) Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity

in the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.

Page 19: Ashish Final Report

~ 18 ~

RULES OF MERCHANDISING

Eye Level Rule

says that whatever is in the eye level and slightly below is at the reach of the hand. Whatever is at the reach of the hand is likely to be grabbed. People like easy and effortless shopping, without stretching up or leaning down. This is why you should avoid too low or to high positioning in the sale outlet.

Page 20: Ashish Final Report

~ 19 ~

Quadrant Rule

:

Says that product positioning is recommended in all zones of sale outlet, but their strength from entrance to the cashier is in decreasing trend. Simply, at the entrance of the sales outlet the shopper's basket is empty while wallet is full, shopper is eager to shop. While moving to the exit of the sale outlet the basket becomes full, money already allocated and the shopper is less enthusiastic, since he is starting to think about the rest of a day, rather than about shopping. Therefore early positioning in the sale outlet is important for impulse purchase based products.

Triangle Rule

:

Says that the best positioning in the small sale outlet is capturing the golden triangle - hot spots: entrance, the most frequent area and the cashier. This is obvious, since, whoever comes to the outlets is coming through all mentioned spots, and therefore purchasing possibility is the highest from perspective of horizontal positioning.

Page 21: Ashish Final Report

~ 20 ~

X-Merchandising

X-Merchandising of FMCG product (or Cross-Merchandising of FMCG) is positioning the product next to the other product in the sale outlet that is complementary to your products. Examples: soft drinks next to snacks, or spices next to the meat.

Positioning before Competition

Positioning before Competition in sale outlet is very important. Who is the winner on 100 m race? That is the one who first gets to the finish, even if the second one is only 0.01 sec behind. This is why is important to have position before competition.

Multiple Shopping Points

Impulse for purchase can be triggered by clever positioning and merchandising of product within the shopping area of the sale outlet. There are several basic rules for successful positioning in the sales outlet that will initiate the shopping need of consumers, even when they didn't even thought about buying some item, therefore providing continuous growth of sales.

:

More selling points in the sale outlet mean more shopping opportunities for continuous growth. For small size sale outlet we apply triangle rule, while for the large sale outlets quadrant rule is more applicable.

FMCG products are subject of planned purchase, but are very often subject of impulse purchase.

Impulse purchase is the shopping that is not previously planned by the Shopper, but is initiated by visual input of well positioned product or advertisement in sale outlet. Impulse purchase is a phenomenon that can bring significant sales increase of FMCG if fully explore positioning opportunities.

Page 22: Ashish Final Report

~ 21 ~

Corporate Block

Corporate Block is the section on shelf or separate rack in sale outlet that is dedicated for product of one manufacturer or brands owner. Corporate block gives strength from brands synergy; it creates visual impact and increase brands value. Shopper is more likely to be attracted by impressive, well arranged section dedicated to one producer, than by the bunch of products scattered around on different shelve.

Corporate Block in Sale Outlet

GOOD VISIBILITY COMPRISES OF

Page 23: Ashish Final Report

~ 22 ~

Merchandising Practice followed by HUL

HUL provides displays to its retail outlets and wholesale outlets and those could be paid or unpaid. It gives display schemes accordingly, so that their customers are happy and its products are also known to the customer.

The company sends its merchandiser who actually represents the company in retail stores. By seeing the store layout, they make sure the product is located in an obvious and visible location, also known as product placement.

It is divided in three parts:

Page 24: Ashish Final Report

~ 23 ~

Category displays:

These are unpaid displays where the retailers have to give space for the company’s products as most of the products are of HUL, in this kind of display HUL pays the retailer according to its turnover. Company sends its merchandiser who maintains the shelves and space provided to him to keep its products in orderly fashion. The company provides them with stickers, wallpapers etc. the merchandiser has to see to it that it is maintained properly by visiting the outlet on weekly basis. Category display also states that all the products should be organized as in there should be only shampoos and its variants in one section which includes Sunsilk, Dove, Clinic All Clear, etc. same goes with toothpastes, detergents and soaps.

Window displays:

These are mostly smart and paid activities given by the company for a specific product launch or existing product advertisement. The retailers and the wholesalers are paid for each and every display or window they provide. These are a kind of extra schemes provided by the company which increases its margin giving capacity which means company currently giving 8% margin on its products with paid up displays it shoots up to 10% to 12%. The company gives the money on quarterly basis. All the accessories like poster, banners, danglers and shelf strips are provided to the merchandiser by the company. In a window display depending upon the size of the window limited amount of quantity of the product is kept. In soaps section quantity of 10 soaps are limited they should be stacked one upon another forming a pyramid. In detergents they should be kept in such a way so that they are visible in three directions i.e. north, east and west.

• Lakme

Fancy displays:

Fancy displays are mostly done to promote cosmetics like Lakme, Dove and Pond’s. These are mostly huge displays which require huge posters, banners, and area as well. The participating brands & categories includes:

• Sunsilk • Pond’s • Dove • Vaseline • Axe/Denim/Rexona

Page 25: Ashish Final Report

~ 24 ~

Merchandising Practice followed by GSKCH

GSKCH follows a very unique way merchandising, there is no special merchandiser for managing displays in the market; this work is done by the DFS & the distributor.

They allow the DFS to use his own creativity to create a window display, under the proper guidance of the SO (sales officer), mostly the window display are created by using florescent paper, cut outs in different shapes & to convey the message to consumer they have hand written slogans& other signs, they also use the local languages to convey the message, this creates more impact on the people who do not know English.

Another way of merchandising is they have window display contest.

This contest period is for 1 month where the DFS & even the retailer both create a window display where they are free to use their creativity; every retailer tries to create a good window display in order to win the display contest.

GSKCH runs this contest for a limited number of shops, approximately 100 to 150 shops where they have 1st, 2nd, 3rd prize and a fixed consolation prize for all remaining outlets, the prize amount varies from 1000 to 5000 rs. Winners of the contest are decided by the SO (sales officer)

GSKCH gives very good support of merchandise like posters, banners, danglers & shelf strips & display spread sheets.

Focus products: Boost & Horlicks

Average spending of GSKCH on window display is rs 750

Page 26: Ashish Final Report

~ 25 ~

Merchandising Practice followed by P&G

P&G has an excellent merchandising practice; their window displays in the retail outlet are very eye caching and very neatly done. The merchandiser visits the retail outlet on a regular basis in order to ensure that their products are neatly kept in the windows.

P&G merchandiser cleans the window, cleans the product, replace or repairs the background if it has come out or faded.

P&G renews the paid display contract with the retailer every 3 months & the payment is given every 3 months, the amount is discounted on purchase invoice of the retailer

P&G has paid window for almost all their products e.g.: pampers, whisper, panteen and head & shoulders.

They give a strong support for merchandising in terms of posters, danglers and banners and the most important they provide excellent stands for their products .they make sure that their products should look the best in any given retail outlet.

They use……………

Merchandising tool Product/Brand

Stands Shampoo/head & shoulder

Window display Detergents/Tide & Ariel

Hangers Shampoo sachets /Panteen & H&S

All these merchandising tools are used in a proper so that all products should get maximum visibility in a retail outlet.

Page 27: Ashish Final Report

~ 26 ~

Some window display of P&G

Page 28: Ashish Final Report

~ 27 ~

Merchandising Practice followed by Godrej saralee

Working of PGT outlet

Godrej Saralee’s merchandising practice is done only on PGT outlets i.e. (Premium general trade), PGT Outlets are those top 15 outlets of a particular beat which are selected on the basis of purchases made by them.

There is one particular DFS under a distributor who looks after the PGT outlets; he covers 15 PGT outlets on a daily basis.

Every PGT outlet is given a fixed monthly target, say for example Rs. 15000, if a particular outlet completes his target, and he will get a 2% discount on his next purchase.

Merchandising is done in the form of paid display window, where the merchandiser negotiates with the retailer for the window size, location & monthly fixed window charges.

For every 2 DFS 1 merchandiser is allotted.

Focus product of GSLL is GOODKNIGHT

GSLL pays Rs.

200

300

500

For the window display according to the size, location of window & location of the outlet.

Page 29: Ashish Final Report

~ 28 ~

GSLL way of window display

GSLL uses background containing the picture of the product, and uses florescent paper as the flooring of the window display & uses the shelf strip which contains the name of the product and small picture of the product at all four sides of the window display.

Negotiate on price & location

Clean the window

Fix the background of window

Paste the shelf strip

Place the product in an attractive manner

Page 30: Ashish Final Report

~ 29 ~

G.K NATURALS WINDOW DISPLAY

Page 31: Ashish Final Report

~ 30 ~

DATA ANALYSIS

Average spending by different companies overall MUMBAI

AREA WISE AVARAGE SPENDING OF OTHER COMPANIES

Page 32: Ashish Final Report

~ 31 ~

SWOT ANALYSIS

THREATS

• Huge payments by other FMCGs may lead to removal of our displays.

WEAKNESS

• Less creativity.

STRENHTHS

• 90 % of displays on eye level

• Good displays

OPPORTUNITIES

• Huge scope of improvement

• More attractive displays

Page 33: Ashish Final Report

~ 32 ~

Key issues in merchandising in GSLL

• Lack of creativity on the part of the Merchandisers.

• Lack of a proper training and induction of the Merchandisers which is clearly reflected in the market e.g. Window cleanliness, inadequate Merchandizing kit.

• High rate of attrition in case of Merchandisers.

• Untimely support from the organization in terms of display kits for POP.

• Lack of an incentive program for merchandisers.

Page 34: Ashish Final Report

~ 33 ~

Suggestions

• The organization need to have an proper training given to the current & newly joined merchandisers and they need to set a strict parameters on window display as to have good looking window display such as:

1) Window location i.e. at the eye level, nothing above head and below waist

2) Cleanliness of the window

3) Shelf spacing

4) Window size

• Start using local languages in window display (HAND WRITTEN) to convey our message to the local people who are biased towards their regional languages, this helps to create more impact on Indian consumer & it is low on cost.

For e.g.:

Urdu in Kurla region as it is a Muslim dominated area.

Gujarati in Ghatkoper & residing areas where we have Gujarati dominated people.

Marathi in Dadar & residing areas.

• To have a display contest amongst merchandisers, ASM or FO will have check on the display and announce the winning merchandiser, who will get some incentive. This will keep the merchandisers motivated. Which results into having good displays in the market & we can see increase in product visibility & off take.

• Merchandisers or DFS need to maintain the background posters & side strips of window display on weekly basis so as to keep it neat & clean because display has to look fresh all the time.

• There should be more use of florescent sheets& cutouts so as to make the window display attractive and eye catching. They are low on cost & effective.

• To have a display contest amongst the retailers for a particular area or region so as to increase visibility and off take.

• Allow the merchandiser to create window display using his own creativity.

• We need a strong POP backup for increasing visibility & to increase the product knowledge amongst customers.

Page 35: Ashish Final Report

~ 34 ~

Conclusion

The researcher would like to conclude this project by saying that the present merchandising strategy followed by GSLL is good, but there is a huge scope for improving the merchandising practice.

The project report has the detailed explanation about FMCG merchandising which would help the reader to understand FMCG merchandising in a better way.

According to the researcher’s observation over 90% of front window display are occupied by the major FMCG giants like HUL and P&G who spend huge amount of money on merchandising, apart all this GSLL has managed to get good window display in the front portion of the retail outlet more than 80% of window displays are located at the eye level as shown in the figure in rules of merchandising.

The researcher hopes that the data which has been collected will be useful for the reader to understand better about merchandising practice followed by different FMCG companies in Mumbai.

After all the observation and data analysis the researcher has come to the conclusion that the Best practice in merchandising process is followed by P&G, the researcher also believes that the suggestions which have been given to GSLL will help the organization to improve more in its merchandising practice.

Page 36: Ashish Final Report

~ 35 ~

PROJECT # 2

“Performance report of researcher as Field Officer”

Page 37: Ashish Final Report

~ 36 ~

ROLE OF A FIELD OFFICER

• Field officer needs to draw a tour plan for whichever market he is working with the help of ASM, he must have a clear plan that what he is suppose to do for next one month.

• The FO needs to ask for category wise targets for himself and the distributors from the ASM (both primary & Secondary targets)

• At the beginning of the month the FO needs to have a meeting with all the distributor & DFS to discuss about the month plan.

• FO needs to ask the distributor for last year secondary figures so as to compare with the current month secondary sales.

• While going in the market FO needs to make sure that the DFS are properly dressed & make sure the DFS carries all the necessary things with him,

Palm top

Collection bills

Product Folder

Product samples

Dusting cloth

Other stationary items

• Once the market is finished the field officer needs to calculate for total orders booked v/s Target achieved for the day, FO should ask questions to DFS as why he have achieved more or less target

• FO also needs to discuss with the distributor about Distributor stock requirement, which is automatically generated form Indigo Software

• While working in retail market FO should focus on

Visibility

New outlet opening

TLSD

Productive calls/day

Merchandising

Availability of posters

Page 38: Ashish Final Report

~ 37 ~

• FO needs to ask the DFS about any issues or requirement in the market while having Breakfast or lunch

• Daily report: FO should send a brief report to ASM on

Total TLSD

Product calls

Value of order booked for the day

Feedback on compotators activity in market

These are the roles and duties that a field officer should follow in order to achieve the given target and overall growth

Page 39: Ashish Final Report

~ 38 ~

Work done by the Researcher as Field Officer

The researcher was in the role of acting field officer for month of JUNE handling Chembur based distributor named M/s R.S Gupta covering Kurla (W)

Sales

Comparison of sales for May & June

TOTAL HI BUSINESS: MAY-- 3.50

JUNE-- 4.61

TOTAL CAR CARE BUSINESS: MAY-- 0.34

JUNE-- 0.57

Page 40: Ashish Final Report

~ 39 ~

TOTAL SURFACE CARE BUSINESS: MAY-- 0.10

JUNE-- 0.22

TOTAL SHOE CAR BUSINESS: MAY--0.10

JUNE--0.22

Page 41: Ashish Final Report

~ 40 ~

TOTAL HAIR CARE BUSINESS: MAY--0.26

JUNE--0.33

Page 42: Ashish Final Report

~ 41 ~

NEW OUTLETS

As a field officer one of my main focuses was to increase new outlets in the given territory, during one month of field work the researcher has successfully opened 6 new outlets 3 are still in pipeline.

• 4 -- car accessories shops

• 2-- Kirana & general store

DFS TRAINING

DFS training is the most important thing for an FO; he needs to ensure that the DFS is well aware about the market, retailers & basic communication skills which are required to work in the market.

As a field officer I have continuously given on-field training to all DFS, during the process Researcher told them about basic communication skills for e.g. greeting them with “NAMESTE” or “SALAM WALE KUM”& try speaking to the retailer in their regional language.

The training consisted of,

• Skills for pulling an order.

• Being aggressive in the market.

• Convincing for display window.

• Sales language (way of speaking with retailers)

• Increase visibility

VISIBILITY

During one month of field work the researcher has given great importance towards the visibility of the products in the retail outlet which is helpful for impulse purchase. As the part of the DFS training the researcher have demonstrated to the DFS that how to increase the visibility.

Page 43: Ashish Final Report

~ 42 ~

Suggestions

• Every month there needs to be proper DFS meeting along with all the FOs in the head office (for Mumbai & Thane region)

• Additional incentives should be given to DFS as to keep them motivated.

• The organization needs to revise the structure of institutional selling, or increase the minimum quantity of purchase of products of GSLL e.g. Ambipur.

• GSLL also needs to have distributor meeting at least on quarterly basis so as to discuss the issues & suggestions of distributors, which will help the organization to understand from a distributor point of view.

• The seal of Ambipur should me made a bit strong because often retailer tends to press the nozzle and it breaks easily.

Suggested hangers design for Brylcreem gel

According to the researchers observation brylcreem tubes and sachets are not properly placed in the retail outlets, so the researcher has designed the stands for brylcreem gel to get good visibility of the product

• GSLL also needs to increase the font size to 36 of the name BRYLCREEM GEL, according to the observation the customer cannot read the name of Brylcreem from a certain distance.

Page 44: Ashish Final Report

~ 43 ~

Annexure

List of outlets where the research was carried out

Sr no Name of the outlet Type of Outlet Area

1 Bhart medical PGT Mulund [W] 2 Life care chemist PGT Mulund [W] 3 Nidhi medical PGT Mulund [W] 4 Vohra medical PGT Mulund [W] 5 Om sai medical PGT Mulund [W] 6 Balaji super market PGT Mulund [W] 7 Shree ganesh medical PGT Mulund [W] 8 Kakka medical PGT Mulund [W] 9 Apna gahr gen store PGT Mulund [W]

10 Jeevanrekha medical PGT Mulund [W] 11 Sun medical PGT Mulund [W] 12 Shree ganesh medical PGT Mulund [E] 13 Sajal medical PGT Mulund [E] 14 Sahyog gen store PGT Mulund [E] 15 Shiva Traders MGT Mulund [E] 16 Gala medical MGT Mulund [E] 17 Apollo Pharamacy MGT Mulund [E] 18 Welcome gen store PGT Bhandup 19 R ramesh medical PGT Bhandup 20 Laxmi medical PGT Bhandup 21 Doshi brothers medical PGT Bhandup 22 Bhart medical PGT Kanjurmarg 23 Vithit medical PGT Kanjurmarg 24 Paras chemist PGT Kanjurmarg 25 Gupta oil depot PGT Kanjurmarg 26 shreeji medical PGT Ghatkoper 27 Chetan medical PGT Ghatkoper 28 Siddhivinak medical PGT Ghatkoper 29 Bijal medical store PGT Ghatkoper 30 Goyal medical PGT Vile-Parle 31 Parlekar super market PGT Vile-Parle 32 Shastri medical PGT Vile-Parle 33 Shastri chemist PGT Vile-Parle 34 Kamath medical PGT Vile-Parle 35 Suman medical PGT Vile-Parle 36 Choudary medical PGT Vile-Parle 37 Mahavir medical PGT Vile-Parle 38 Nutan medical PGT Bandra [E] 39 Pandurang medical PGT Bandra [E] 40 Balaji medical PGT Bandra [E] 41 Thorat bazzar PGT Bandra [E] 42 Shivakrupa medical PGT Andheri[W] 43 Aurn store PGT Andher[W] 44 Neelkamal medical PGT Andheri[W]

45 poorinma medical PGT Andheri[W] 46 Vijay medical PGT Vileparle[W]

Page 45: Ashish Final Report

~ 44 ~

47 Dimond chemist PGT Vileparle[W] 48 Karnik Chemist PGT Vileparle[W] 49 Amar medical PGT Vileparle[W] 50 kumar gen store PGT JUHU 51 Regal gen store PGT JUHU 52 Shivashakti medical PGT Chembur 53 Nice super market PGT Chembur 54 Sadguru medical PGT Chembur 55 Tirupati medical PGT Chembur 56 Kani dept store PGT Chembur 57 Gurukrupa medical PGT Chembur 58 K.K medical PGT Chembur 59 Shreeram medical PGT Chembur 60 Hari OM medical PGT Chembur 61 Jaiswal medical PGT Chembur 62 Hira medical PGT Chembur 63 Kashlaya Medical PGT Chembur 64 Popular medical PGT Chembur 65 Kaldighar medical PGT Chembur 66 Prakash medical PGT Chembur 67 Siddhivnak medical PGT Chembur 68 Champion gen store PGT Chembur 69 Laxmi Provision store PGT Chembur 70 Sai pharma PGT Chembur 71 Amrut grain store PGT Chembur 72 Tirupati medical PGT Chembur 73 girish medical PGT Chembur 74 Anand medical PGT Chembur 75 Sai nath medical PGT Chembur 76 Laxmi stores PGT Chembur 77 guru krupa medical PGT Chembur 78 Natoinal medical PGT Chembur 79 Maruti medical PGT Chembur 80 Bharav Medical PGT Chembur 81 guru medical PGT Chembur 82 Satkar medical PGT Kandavali 83 Sundram super market PGT Kandavali 84 Komal super market PGT Kandavali 85 Seara Medical PGT Kandavali 86 Shanti medical PGT Kandavali 87 Barat medical PGT Kandavali 88 Sangam medical PGT Kandavali 89 Ashapura S .M PGT Kandavali 90 sidhart medical PGT Kandavali 91 Gala Traders PGT Andheri 92 Lucky Medical PGT Andheri 93 APANA GHAR PGT Mulund [W] 94 BALAJI SUPER MARKET PGT Mulund [W] 95 BHARAT MEDICAL PGT Mulund [W] 96 DEEPAK MEDICAL[MU] PGT Mulund [W] 97 JEEVAN REKHA MEDICAL PGT Mulund [W] 98 KAKKA MEDICAL PGT Mulund [W]

Page 46: Ashish Final Report

~ 45 ~

99 Life Care Chemist 2 PGT Mulund [W] 100 Nidhi Medical PGT Mulund [W] 101 Shiv Maya Med PGT Mulund [W] 102 SHIVAANI PHARMACY PGT Mulund [W] 103 SHREE GANESH MEDICAL PGT Mulund [W] 104 Vora Chemist & Gen Store PGT Mulund [W] 105 DURGA PHARAMCY PGT Mulund {E] 106 LIBERTY STORE PGT Mulund {E] 107 MARUTI MEDICAL PGT Mulund {E] 108 PATEL MEDICAL PGT Mulund {E]

109 SAHAKAR DHANYA BHANDAR PGT Mulund {E]

110 SANJIVANI MEDICAL & GEN PGT Mulund {E] 111 Shree Gayatri Medical PGT Mulund {E] 112 SHREE MEDICAL PGT Mulund {E] 113 SHREE SAI MEDICAL& GEN PGT Mulund {E] 114 SWASTIK MEDICAL PGT Mulund {E] 115 SIDDHI VINAK MEDICAL PGT L-PAREL 116 Life Care Chemist PGT DADAR 117 JAKRIA MEDICAL PGT MAHIM 118 LABELA MEDICAL PGT MAHIM 119 OM SAI MEDICAL PGT Mulund [W] 120 NANDU OIL DEPO PGT Mulund {E] 121 COLONY CHEMIST PGT MAHIM 122 MAMA MEDICAL PGT MAHIM 123 SITADAVI MEDICAL PGT MAHIM 124 SADGURU MEDICAL PGT MAHIM 125 PRASAD MEDICAL PGT MAHIM 126 KAMDENU MEDICAL PGT MULUND 127 BHARAT MEDICAL PGT MATUNGA 128 PALLAVI MEDICAL PGT MATUNGA 129 PARTH MEDICAL PGT MATUNGA 130 RUBY MEDICAL PGT MATUNGA 131 MAHAVIR MEDICAL PGT MATUNGA 132 SORATIYA OIL DEPOT PGT MATUNGA 133 CHEDA MEDICAL PGT MATUNGA 134 PADMAVATI MEDICAL PGT MATUNGA 135 MAHAVIR MEDICAL PGT DADAR 136 SHREE SWAMY KRUPA PGT DADAR 137 SARVODAYA SUPER MARKET PGT DADAR 138 RAM & SONS MEDICAL PGT DADAR

Page 47: Ashish Final Report

~ 46 ~

Bibliography

• www.godrejsaralee.com

• www.wikipedia.org

• Economic Times

• Plilip Kotler