Kelloggs Summer Intern Presentation
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Transcript of Kelloggs Summer Intern Presentation
SUMMER INTERNSHIP 2015
Transforming ISP Activities for Superior Results
SponsorKenny Abraham
InternSandeep Kumar JhaMentor
Veenesh PriyadarshiGuide
Bharat Sharma
• Benchmarking with other companies to understand the in store man power activation model
• Scan leanings from any other country• Time Motion Study of ISPs: Understand ways of working & off take
data trend analysis • Understand and classify the ISP roles as filler v/s active suggestive
selling• Manning norms• Better usage of MT mobility tool for tracking ISPs’ activities.• Build a ISP 2.0 plan covering all the parameters such as ways of
working, incentive plan, Success parameters for such a plan , including weekly tracking metrics
Stage 1
• RolloutofISP2.0Programaspilotin5stores
• Trackingofresults• Incorporating learnings fortheScale-up
plan
Stage 2
PROJECT TIMELINE
Week 7-8
Week 5
Week 6-7
Week 1
Week 1
Week 2-3
Week 3
Week 4
Week 4
Week 3
Stage 1
FMCG
• Items that are quickest to leave the supermarket shelves• Limited Shelf Life• Usually low cost, high volume• Include product categories such as food and beverages, personal care, household and
cleaning products, apparel and footwear, tobacco and pet food• Major players in the world today are Nestle, P&G, Unilever, Mondelez, Kelloggs,
Coca-Cola, Pepsico among others
Basics
FMCGStatistics
• India’s GDP is $1.877 Trillion or Rs.112.62 lakh crores (2013)
• FMCG market worth is $47.3 billion (28.38 lakh crores)which is 2.51% of India’s current GDP
• In the FMCG Industry, food products account for 43% share i.e 12.20 lakh crores
Modern Trade Vs General TradeBasics
1. BCG Retail 2020: Retrospect, Reinvent, Rewrite. 2.KPMG: Indian Retail, The next growth Story
Modern Trade General TradeNumber of Outlets 67100 (by2016)2 88 LakhsTotal Volume $60 billion $550-560 billionGrowth Rate 20% per annum1 10% per annumAverage AssortmentAverage Sales/SKU
What’s the difference from the traditional ones? Newer Organised Structure, Better product range and , better shopping experience in terms of deals, range of products and an attractive shopping environmentWhile the traditional kirana stores are being visited by shoppers for topping up small and quick purchase, fresh product and cultural habits.
Hence, Modern Trade needs a differential treatment
Plan-o-gramBasics
A visual diagram, or drawing, providing details where every product in a retail store should be placed• Benefits:
• Assigned selling potential to every square foot of space• Satisfying customers with a better visual appeal• Tighter inventory control and reduction of out-of-stocks• Easier product replenishment for staff• Better related product positioning• Effective communication tool for staff-produced displays
Modern TradeStatistics
4002000
9500
10000
Cash & Carry Super Daily
Store NumbersSpencers 26 Hyper 21 SuperReliance FreshBig BaazarHyperCityD-Mart 89Easy DayMetro Cash & Carry 16Reliance C&C 32Best Price C&C 20
Hyper
ISPBasics
• In Store Promoters are the direct agents who interact with consumers in a Modern Retail Store• Importance: Point-of-Purchase Advertising Institute suggest that 70 percent of supermarket shoppers and 74 percent of mass-merchant shoppers make their
purchase decision inside the store• We have an spending of around 5 crores over 200 crores of modern trade business in the country
• Reaching the Store at the prescribed time• Use the MT mobility tool to mark the attendance• Wearing Kellogg uniform in no time• Greeting the store Team• Checking the product facing and bringing the product from the store inventory , filling the shelves • Arranging the packs as per FIFO and cleaning them• Follow the store Plan-o-gram• Giving the Stock information and old products information to the TSI• Try and negotiate with the store manager for more SOS (Share of Shelf) as well as additional display points
Instore Activity
5929
12
Percetage Buying Behaviour
Plan
Reminded
Impulse
ISP 1.0 Data AnalysisMan Power Behaviour Model (Working Hours)
No. of Hours
8am-9am 9am-10am 10am-11am 11am-12am 12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm
Kelloggs 9
Pepsico 9
HUL 9
PnG 9
Cadbury 8
CocaCola 8
Parle 8
Britannia 8
Baggerys 9
D-Mart
• Majority of the companies have a 9 hour working model here• Companies like Parle and Britannia start early in D-Mart as they have a lot of smaller products to fill the shelves
ISP 1.0 Data AnalysisMan Power Behaviour Model (Working Hours)
No. of Hours
8am-9am
9am-10am 10am-11am
11am-12am
12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm 7pm-8pm 8pm-9pm
Kelloggs 9
Quaker 8
HUL 9
PnG 8
Cadbury 7
Nestle 8
Britannia 7
Parle 8
Saffola 7
Horlicks 8
Twinings 8
Big Baazar
ISP 1.0 Data AnalysisMan Power Behaviour Model (Working Hours)
No. of Hours
8am-9am
9am-10am 10am-11am
11am-12am
12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm 7pm-8pm 8pm-9pm
Kelloggs 9
Baggerys 9
HUL 9
PnG 8
PepsiCo 8
CocaCola 9
HyperCity
Since, during weekdays the concentration of shoppers is after 4 here, the ISPs start a little late here compared to other stores
ISP 1.0 Data AnalysisMan Power Behaviour Model (Experience In Months)
6
6
2
1
8
6
54
12
18
24
6
6
12
60
6
12
12
36
36
48
60
72
8
36
12
7
10
18
0 10 20 30 40 50 60 70 80
Kelloggs
PepsiCo
HUL
PnG
Coco Cola
Cadbury
Nestle
Britannia
Parle
Safolla
Horlics GSK
Twinings
Baggerys
D-MartBigBaazarHyperCity
• The average experience is on a higher side in D-Marts and on a lower side in HyperCity• As the education qualifications of an Average ISP in HyperCIty is more , they tend to leave their job for better career opportunities leading to low experience
ISP 1.0 Data AnalysisMan Power Behaviour Model (Number of ISPs by competitors)
2
4
3
1 1 1 1 1
2
1 1 11
3
2
1 1 1 1 1 1 1 1 11
6
4
2 2 2
1 1 1 1 1 1
0
1
2
3
4
5
6
7
Kelloggs HUL P&G Cadbury Britannia Parle Baggerys Coco Cola PepsiCo Saffola Horlicks Twinings
HyeprCity
Big Baazar
D-Mart
• Companies having more product categories have more number of ISPs as in HUL,P&G• Most companies have more ISPs in D-Mart as the frequency of product leaving shelves is high
ISP 1.0 Data AnalysisTurnover In Lacs and Turnover per ISP per month (Big Bazaar) Vs Number of Bays
4
0.9
32
24
4 4.5 57
3 31
4
0.9
10.6712
4 4.5 57
3 31
3
0.75
43
1 0.5 1 1 1 0.5 0.50
5
10
15
20
25
30
35
Kelloggs Quaker HUL PnG Cadbury Nestle Britannia Parle Safolla Horlics GSK
Twinings
Turnover (In lacs per month)Turnover Per ISPNumber of Bays
ISP 1.0 Data AnalysisTurnover In Lacs and Turnover per ISP per month (HyperCity) Vs Number of Bays
14
4
65
48
35
27
74
16.25 16 17.5
27
7
26 5 6 5
0
10
20
30
40
50
60
70
Kelloggs Baggerys HUL PnG Pepsico Coco cola
Turnover (In lacs per month)
Turnover Per ISP
Number of Bays
ISP 1.0 Data AnalysisTurnover In Lacs and Turnover per ISP per month (D-Mart)
8.512.5
90
50
128
1215
1
8.512.5
18.00 16.6712
812 15
13 3 5 61 4 1 1 0.50
10
20
30
40
50
60
70
80
90
100
Kelloggs Pepsico HUL PnG Cadbury coca cola parle britannia Baggerys
Turnover (In lacs per month)Turnover Per ISPNumber of Bays
ISP 1.0 Data AnalysisEducational qualification & Filler Vs Suggestive Selling
<12th 12th Pass Pursuing Graduatuion
D-Mart
<12th 12th Pass Pursuing Graduatuion
Big BazaarHypercity
<12th 12th Pass Pursuing Graduatuion
• Filler role and active suggestive selling for most of the customers
• Requires complete insight of the product• Decent communication Skills as mainly Sec A
customers
• Suggestive Selling coupled with filler role both• Communication skills required as mixture of
class A, B and C is there• Educational qualification mostly 12th pass
0%
40%60%
• Mainly filler roles coupled with promotional displays
• 40% of the time in shelf refilling almost• No need of good education as well as decent
communication skills• Product knowledge limitation
41%
47%
12%
0%
66%
34%
ISP 1.0 Data AnalysisTime Motion Study (HyperCity)
2.38
17.86
3.57
29.76
13.10
33.33
1.04
17.71
2.50
29.17
9.38
40.21
3.13
21.88
2.50
18.75
14.58
39.17
5.95
21.43
5.95
28.57
10.71
27.38
4.76
27.86
4.76
25.00
17.8619.76
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Morning Greeting Getting shelf Facing Shelf Refilling Customer Interaction Evening Updating and close Idle time (Non-Productive Work)
KelloggsHULCoco ColaP&GPepsiCo
Customer Interaction and Idle time are the major chunk of the days time utilized
ISP 1.0 Data AnalysisTime Motion Study (D-Mart)
2.12
10.59
34.96
3.18
7.428.90
32.84
1.04
9.38
40.63
5.21 5.21
10.42
28.13
2.38
15.48
33.33
8.33
11.90
7.14
21.43
3.13
6.25
35.42
8.337.08
11.46
28.33
2.17
6.52
39.13
6.525.43
8.70
31.52
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Morning Greeting Getting shelf Facing Shelf Refilling Noting Down Stock Customer Interaction Evening Updating and close
Idle time (Non-Productive Work)
KelloggsHULCoco ColaP&GPepsiCo
While customer Interaction just accounts for 7.42% of the days time, the idle time is 32% and shelf refilling is 34.96 percent of the days time
ISP 1.0 Data AnalysisTime Motion Study (Big Baazar)
2.08
12.5013.54
3.13
18.13
13.96
23.13
3.13
15.63
23.96
4.17
13.54
9.38
30.21
1.19
19.0520.24
3.57
14.29
9.52
32.14
3.10
14.29
17.86
4.29
17.86
7.14
35.48
2.62
14.29
0.00
5.95
16.67
13.10
47.38
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Morning Greeting Getting shelf filled morning
Refills MT App usage/Noting down
Customer Interaction Evening Updating and close
Idle time (Non-Productive Work)
KelloggsHULCoco ColaP&GPepsiCo
In stores like Big Baazar, apart from the Idle time, the trend verifies that customer interaction time and refilling time are almost comparable
ISP 1.0 Data AnalysisSalary Of ISPs
8500 8500 8600
10000
9000
12000 1200012500
12000
90008500
11000
13000
87009000
8500
12000
8000
7000
85008000
1200012000
0
2000
4000
6000
8000
10000
12000
14000
HyperCity Big Baazar D-Mart
KelloggsBaggerysHULPnGPepsicoCoco colaCadburyNestleBritanniaParleSaffolaGSKTwinings
Among the highest salary payers are P&G, HUL , Coca Cola and Twinings
ISP 1.0 Data AnalysisIncentive Structure
Basically of two types:1. On the Achievement of monthly target (followed by Kelloggs, Baggerys, Saffola, Twinings2. On the Share of Shelf (SoS)
1. Audits being conducted and ISPs are rated on the basis of product Availability, Visibility and Shelf space2. Ratings are given in the Audits which in-turn is converted into incentives3. Companies Include HUL, P&G, PepsiCo and Coca Cola
3. There are other companies which have no incentive structure viz Parle, Cadbury
Kelloggs Baggerys Coco Cola Saffola Twinings
1200-1500 1200-1500
3000
1000
1800
On the basis of monthly Sales Target
HUL PNG Pepsico Britannia Nestle
1500 1500 1000500
2000
On the basis of Share of Shelf
ISP 1.0Learning from other Companies
Magnum (HUL)
• They put a large 3D ice-cream at the top of the shelf of HperCity Malad for everyone’s view• Large banners covered the background of the entire shelf space, eye catchy colors• They put Ice cream boxes near the cash counters for end of shopping impulse buying• ISPs were wearing Magnum Tshirts and detailing the cutomers about the quality of Belgium chocolate, and
how Magnum is made from selected ingredients
Lays (Pepsico)
• Converted the space between the aisles into a pitch with advertisings on top to emulate a match like ambience
• Facing products were all the bigger Rs 30 packs in that particular aisle• ISPs were standing on the very verge of the entry and asking customers to get in and enjoy the
match like experience
•
ISP 1.0Learning from other Compaines
Lipton Ice Tea
• Creative ways of secondary displays as shown
• Promoters wearing bright yellow T-shirts screaming Ice Tea just for the particular product
• Bottle of Ice tea made at store only from the ice tea packs making a eye catchy display
• ISPs were engaging the customers by telling them the benefits of an Ice Tea over a aerated drink and giving sample for tasting
L’oreal (Paris)
• Groomed Store Merchandisers• Giving free product sample experience
making customers engaged with the product
• ISPs or merchandisers trained with courses of soft skills and presentation skills
• Merchandisers need to be complete thorough with the product manual
Stage 1In a Nutshell . . . .
ISP 1.0What we did.
• Understood the current ISP model of Kelloggs as well as of other companies in the market.
• Compared the timings and working hours of ISPs of Kellogg’s against other companies
• Tried to find the ideal ISP per store by comparing Turnover/ISP and No. of Bays/ISP• Benchmarking the number of ISPs by companies and understanding the number of
ISPs /• Evaluated the roles of ISPs by store type and understanding the educational
qualifications required by each store type• Benchmarked the salary and incentive structure against the other company standards
in the market• Conducted time motion studies of the ISPs of different stores to understand their
working pattern and most time taking activities• Suggested changes to be implemented in the MT tool for ISPs for making it more
effective
Stage 2
ISP 2.0Stores Selected for Implementation
1. HyperCity Malad1. Class A consumers account for 80%2. 2 store promoters3. Requires throughout product understanding4. Suited for a Product category as ours
2. D-Mart Malad west1. Accounts for most volume in accounts for Kelloggs2. Completely different demographics compared to Hypercity3. ISP mostly acting as a filler
3. Big Baazar, R city Mall1. The demography is a mix of both with 66% from Sec A , 22% from Sec B and 12% from Sec C,D,E2. ISP has an experience of 4.5 years
4. Metro Cash & Carry ,Bhandup1. Cash & Carry format 2. Different set of skills required for selling in B2B format
5. Big Bazaar-Mumbai Central1. Needed two stores as it has a mixed demography of customers
ISP 2.0The Team
Age: 26Experience:3 year 8 monthsEdu Qualifications:TYB.com
Suchita Raza Jay Sheetal Anjum ShobhaAge:24Experience:4.8 yearsEdu Qualifications:12th Pass
Age: 23Experience:16 monthsEdu Qualifications:12th, Pursuing Graduation 3rd year
Age: 24Experience:3 yrsEdu Qualifications: 12th
Age: 25Experience:3 yearsEdu Qualifications: B com
Age: 36Experience:2 years 3 monthsEdu Qualifications:12th pass
ISP 2.0Issues Understood
• Lack of Motivation• Hardly any proactive selling
understood• Seen huddled together with even
competitors • Lots of Idle time• Less informed about the company
products• Untrained on how to approach and
talk to customers
ISP 2.0 ConstructManning Norms
Qualifications1.For Hyper, 12th Pass or Pursuing Graduation2. For Super, 12th Pass is preferable3. For Daily, Can manage with 10th pass too4.Cash and carry also doesn't need to have much qualified ISP, 10th pass would do4. When more than 1, 2 ISP model is followed
The 2 ISP model• 1st Suggestive seller,
under the grade category, well
educated• 2nd filler and on
contract, minimal pay , 10th pass
Size1. For stores having sales more than 16.67lakhs a
month, 1 ISP is enough2. Extra ISP is needed for Pringles in Hyper Stores3. Even for stores having sales around 1lpm, but
having Class A crowd like some Reliance fresh, we should give an ISP which will interact and increase the sales
Timing1.For Hypercity or Stores having more crowd after 4, ISP should start late and end late i.e 11 am to 7 pm2. For D-Mart, the ideal time is between 10am to 6 pm as they don’t allow ISPs to be in the late evenings3.For all day Supers like Big Bazaar, the timing of 10am-7pm is suitable as it takes care of majority of crowd
ISP 2.0 ConstructSpecial Teatment to Pringles
• A completely different category and comparatively less penetrated in the country
• Need special merchandisers and aggressive suggestive selling
• Merchandisers should be well versed with its peculiar benefits against competition like Lays, Uncle Chips etc
• Eye catchy in-store promotions with Pringles t-shirt for ISPs
• 70 ISPs approximately needed for all major stores having sales of Pringles ≥3 lakh a month
• Creative Marketing Ideas as in creative uses for pringlescan as in Cupcake Liner Holder, Candle Maker, Pen and Pencil holder, Lamp, Flower Vase
• For Eg, HUL has their ISPs and still they have one special for Magnum
• Lipton has ISPs of their own and still have special merchandiser which only promotes Ice Tea
ISP Job Description
0-2 hoursGreeting, Inventory Management and
Shelf Facing �
• From ISP 1 studies , it was around 150 minutes across all the stores
•With mandatory 3 times/day of catalogue viewing and a secondary display a week, it will get reduced to around 70 minutes
a day
Idle TIme
It requies 3 hours to put up a 3 layered secondary display
I had asked for 2 extra displays per months, eAtleast 1 should be made compulsary
Secondary Displays
Should be fixed as the 5th hour of the dayNon regularised lunch hour leads to waste of
time as they wait to huddle together
Lunch Break
0-2 hoursGreeting, Inventory Management and
Shelf Facing
7-8 hoursFilling the shelves entirelyUpdating closing inventory
Asking store guy to fill in for him
4-5Lunch break
2-4 hoursSuggestive selling and putting
up secondary displayGoing through the catalogue
in the Idle time
5-7 hoursRefilling the shelves for the
hour lastGoing through the catalogue
and suggestive selling
ISP 2.0 Sharing in Complimentary company in small stores
• Pringles could tag along with a beverage brand as both are usually bought together
• Pepsi is our competitor and thus coke would be a safer bet• Could capitalize on the market penetration of Coke which
would help tremendously in sales• Have been done previously in 2001 also• Cost of additional 70 ISPs per months is around Rs.6.3
lakhs• Value saving will be around Rs. 3 lakh if this is done
ISP 2.0 Capability Matrix
Knowledge
Process
Skills
Attitude
Suchita Raza Jay Anjum Sheetal ShobhaBig Baazar(R-City)
(D-Mart malad)
HypercityMalad
HypercityMalad
Metro Cash & Carry
Big Baazar
Product Knowledge 5 4 4 3 4 4Competitors Product Knowledge
4 5 3 4 4 2
Facing And Shelfing Tasks
4 4 4 3 3 3
Refilling 4 5 3 4 4 3Approaching a Customer
3 4 3 4 2 3
Communication Skills
5 4 4 3 2 4
EnglishUnderstanding Skiils
2 3 3 3 2
Hygeine 4 3 4 3 5 4Properness 5 3 3 3 4 4Total (45) 36 35 31 30 30 29
Points Explanations5 Excellent4 Good3 Above average2 Satisfactory1 Below Average
ISP 2.0 Performance MatrixIncentive Structure Changes (Tried as a pilot run in 5 stores)
Raza Suchita Anjum Jay Shobha Sheetal(D-Mart malad)
Big Baazar(R-City)
HypercityMalad
HypercityMalad
BigBaazar
Metro Cash & Carry
Share of Shelf as compared to competitor brands
3 3 3 3 3 3
Availability of the product all throughout the day
5 4 4 4 3 3
Visibility of the product
4 3 3 3 3 3
Additional promotional activities
3 4 3 3 2 1
Total (20) 15 14 13 13 11 10Incentive % 100% 90% 90% 90% 80% 80%
Grade Measure5 Near Perfection
4 Good efforts3 Average2 Laggardness1 Unsatisfactory
Performance
ISP 2.0 Performance Matrix
ISP 2.0 Customer LensSome Observed Statistics
70% of shopper purchase decisions are made in store
1 in 10 will switch brands inside the store, given how many different brands exists in different category
Even if they have decided which category they’ll buy from, the decision on which brand to buy is made 28% time inside the store
Some Observed Behavior Pattern
• Typically, shoppers position themselves in the center of one aisle and begin reviewing a 4’x6’ section at slightly below eye level, close to the product that has the greatest visual contrast
• Pictures and Sign multiply the power of a price reduction by 6times
• The Boomerang rate determines the capture rate
• POP is the most critical component of any successful marketing campaign, at no other place, money, people and products are together
ISP 2.0 Customer LensSurvey Results (Hyper city)
Surveyed 15 consumers each at the stores over 5 days on what qualities they appreciate in a GREAT ISP
77%
64%
54%
47%
Most likeable qualities
Product Details
Conversation Skills
Clean Uniform
Greeting and Smile
27%
18%
17%
10%
Least likeable qualities
Looks and hygeine
Offers and discounts knowledge
Knowledge about competitors product
Knowing product whereabouts
ISP 2.0 Customer LensSurvey Results (D-Mart)
Surveyed 15 consumers each at the stores over 5 days on what qualities they appreciate in a GREAT ISP
93%
80%80%
67%
Most likeable qualities
Offers and discounts knowledge
Knowledge about competitors product
Knowing product whereabouts
Product details
40%
33%
27%
13%
Least likeable qualities
Way of approach towards a customer
Looks and properness
Clean Unifrom
English communication
ISP 2.0 Customer LensSurvey Results (Bazaar)
Surveyed 15 consumers each at the stores over 5 days on what qualities they appreciate in a GREAT ISP
87%
80%
73%
60%
Most likeable qualities
Communication Skills
Offers and discounts knowledge
Product details
Knowledge about competitors product
27%
20%20%
20%
Least likeable qualities
Knowing product whereabouts
English communication
Clean Unifrom
Looks and properness
ISP 2.0 Customer LensSurvey Results (Metro Bhandup)
Surveyed 15 consumers each at the stores over 5 days on what qualities they appreciate in a GREAT ISP
85%
70%70%
67%
Most likeable qualities
Offers and discounts knowledge
Knowledge about competitors product
Way of approach towards a customer
Communication Skills
40%
33%
27%
27%
Least likeable qualities
Looks and properness
English communication
Clean Unifrom
Greeting & Smile
ISP 2.0 Customer LensSurvey Results (Overall)
0
10
20
30
40
50
60
ISP Qualities
51
45
42
39
36
31
18
1412
Offers and discounts knowledgeProduct details
Knowledge about competitors productCommunication Skills
Way of approach towards a customerKnowing product whereabouts
Looks and properness
Clean Unifrom
English communication
Greeting & Smile
ISP 2.0 Training InputsBasic Behaviour
ISPs should be trained on : 1. Basic Hygiene
• Dress, clean and ironed• Shoes and Socks, Shiny and polished• Hair and Shave, neatly done and tied back• Mouth and Body, • Nails, clean and trimmed
2. Response towards customers of varying mood type• Actively walk towards them • Smile• Greet & welcome the customer with confidence [Good morning (before 12), Good afternoon (12-4pm), Good evening (After 4pm)• Ask the customer “How may I help you Sir/Madam?”
3. Company Catalogue with every ISP, consisting of• Entire product range in separate pages with detailed ingredients • Its should state the advantages each product has over their competitors against price, components and size• In Idle time, ISP should go through this always till they mug this up, as currently many are lacking this
ISP 2.0 Incentive Structure
Grade
RatingsK1 K2 K3 K4
ValueIncentive
Focused SKU
ValueIncentive
Focused SKU
ValueIncentive
Focused SKU
ValueIncentive
Focused SKU
A+ 850 500 893 525 937 551 984 579A 800 400 840 420 882 441 926 463B 700 350 735 368 772 386 810 405C 650 300 683 315 717 331 752 347
• After talking to around 70+ ISPs over 3 months, I figured out the incentives are the biggest motivating factor• After 105%, there were no additional cash benefits for additional sales, which was demotivating• Grade wise increment of 5% would attract them to achieve better grades and thus better sales achievement
ISP Rewards and RecognitionsTwo stages of rewards
1. ISP of the month (Highest percentage of sales target achiever)1. Cash award of Rs 1000, highly motivating as they wait mainly for their incentive for
their entire month2. Will earn a badge of honor (A+) which will be evaluated for future grade change3. Badge of the honor of a feel good factor and the consumer response
2. Achievers of the month (upto 5 ISPs), 110-115% of the sales1. Current incentive structure shows nil increment after 105%+, demotivating
to go beyong that2. Cash bonus of 500 and a grade award of A 3. Badge to to worn throughout the month
ISP Grading MatrixFour Stages of Grading
Grade/ Shift Criteria Experience wise Points Criteria
Salary After Changes
K1 0-2 years 150 7000
K2 2-3.5 years 150 8500, or 1500 extra for promotion
K3 3.5-5 years 150 10000, or 1500 extra for promotion
K4 5+ 150 11500 or 1500 extra for promotion
Ratings Honor Points Target CriteriaA+ ISP of the month 20 Overall highest in the zone concerned
A Achiever of the month 15 105-110% of monthly target
B ----------------------- 12 100-105% of monthly targetC ----------------------- 7 90-100% of monthly target
ISP Grading EffectsCalculations
EarlierNo. of ISPs 400Average Salary/month 8000Average Incentive Achievers 300Average Incentive Per month 1000Total Spend on ISPs/month 3500000
After Implementation
Grade Number Salary IncentiveGrade K1 200 7000 1100Grade K2 125 8500 1155Grade K3 50 10000 1212.75Grade K4 25 11500 1273.39Total 400 3706847
TentativeImpactonSalesNo.ofISPs 400 400
TargetpermonthperISP P P
NumberofISPachieving80-90% 150 25
NumberofISPachieving90-100% 200 100
NumberofISPachieving100-110% 50 200
NumberofISPachieving110-120% 0 75TotalSales 370p 412PDifference 11.3%increase
ISP 1.0 Data AnalysisMT Tool Analysis
• New and innovative approach to Inventory management and reporting• Followed by fewer companies only, Pencil and paper reporting still the dominated format• Cant be followed in D-Mart as mobile phones are not allowed inside• In my course of visit, I found it present in Kelloggs, HUL, PnG, ITC, Cadbury, Saffolla and Pillsbury• Rest all had the procedure of noting down the data on a sheet and giving orders on that
Features (with any differences)
CompanyDaily Reports Other Reports MIS
Latest Updates My Opinion Help Desk
Monthly Target Achieved
CatergoryWise Sales
PromotionTracker
Visitor Details
Kelloggs ✔ ✔ ✔ ✔ ✔ ✔ ✖ ✖ ✖ ✖
HUL ✔ ✔ ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✔
P&G ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✖
Saffola ✔ ✖ ✔ ✖ ✖ ✔ ✔ ✖ ✔ ✔
Pepsi ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✔ ✖
ISP 2.0 Recommendations
• “Centre of the ISLE” is the new big thing, rather than focusing on capturing more end caps, we should also focus on getting our product in the middle
• Training programme is a must. A new ISP should at least be guided for 7 days for making their behavior shopper friendly
• The concern area is knowledge about their own products as well as competition product. Consumer lens shows these are the most loved traits for an ISP. Hugely effective in boosting sales
• As any other human, ISPs also get motivated the most by monetary rewards. Explaining them effectively the monetary benefits against increase in sales would drive them like nothing else
ISP 2.0 Way Forward
• Implementation of the inputs in MT tool analysis as already discussed with Mr. Bharat
• Getting catalogues printed having an exhaustive product information and every details of edge over competitor product in a simpler language to equip the ISPs
• Categorizing the entire ISP of the country under the Grades K1, K2 , K3 and K4 on the basis of their past performance and experience in company
• ASMs should make them understand the new Reward Rules and Incentive Structure in a way that they are motivated to achieve those rewards and thus better sales
• Recruitment of ISPs for Pringles in K1 grade and providing them with aggressive training and promotional tools
Thank You