Kelloggs Summer Intern Presentation

53
SUMMER INTERNSHIP 2015 Transforming ISP Activities for Superior Results Sponsor Kenny Abraham Intern Sandeep Kumar Jha Mentor Veenesh Priyadarshi Guide Bharat Sharma

Transcript of Kelloggs Summer Intern Presentation

Page 1: Kelloggs Summer Intern Presentation

SUMMER INTERNSHIP 2015

Transforming ISP Activities for Superior Results

SponsorKenny Abraham

InternSandeep Kumar JhaMentor

Veenesh PriyadarshiGuide

Bharat Sharma

Page 2: Kelloggs Summer Intern Presentation

• 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

Page 3: Kelloggs Summer Intern Presentation

Stage 1

Page 4: Kelloggs Summer Intern Presentation

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

Page 5: Kelloggs Summer Intern Presentation

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

Page 6: Kelloggs Summer Intern Presentation

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

Page 7: Kelloggs Summer Intern Presentation

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

Page 8: Kelloggs Summer Intern Presentation

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

Page 9: Kelloggs Summer Intern Presentation

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

Page 10: Kelloggs Summer Intern Presentation

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

Page 11: Kelloggs Summer Intern Presentation

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

Page 12: Kelloggs Summer Intern Presentation

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

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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

Page 14: Kelloggs Summer Intern Presentation

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

Page 15: Kelloggs Summer Intern Presentation

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

Page 16: Kelloggs Summer Intern Presentation

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

Page 17: Kelloggs Summer Intern Presentation

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

Page 18: Kelloggs Summer Intern Presentation

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%

Page 19: Kelloggs Summer Intern Presentation

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

Page 20: Kelloggs Summer Intern Presentation

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

Page 21: Kelloggs Summer Intern Presentation

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

Page 22: Kelloggs Summer Intern Presentation

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

Page 23: Kelloggs Summer Intern Presentation

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

Page 24: Kelloggs Summer Intern Presentation

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

Page 25: Kelloggs Summer Intern Presentation

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

Page 26: Kelloggs Summer Intern Presentation

Stage 1In a Nutshell . . . .

Page 27: Kelloggs Summer Intern Presentation

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

Page 28: Kelloggs Summer Intern Presentation

Stage 2

Page 29: Kelloggs Summer Intern Presentation

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

Page 30: Kelloggs Summer Intern Presentation

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

Page 31: Kelloggs Summer Intern Presentation

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

Page 32: Kelloggs Summer Intern Presentation

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

Page 33: Kelloggs Summer Intern Presentation

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

Page 34: Kelloggs Summer Intern Presentation

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

Page 35: Kelloggs Summer Intern Presentation

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

Page 36: Kelloggs Summer Intern Presentation

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

Page 37: Kelloggs Summer Intern Presentation

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

Page 38: Kelloggs Summer Intern Presentation

ISP 2.0 Performance Matrix

Page 39: Kelloggs Summer Intern Presentation

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

Page 40: Kelloggs Summer Intern Presentation

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

Page 41: Kelloggs Summer Intern Presentation

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

Page 42: Kelloggs Summer Intern Presentation

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

Page 43: Kelloggs Summer Intern Presentation

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

Page 44: Kelloggs Summer Intern Presentation

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

Page 45: Kelloggs Summer Intern Presentation

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

Page 46: Kelloggs Summer Intern Presentation

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

Page 47: Kelloggs Summer Intern Presentation

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

Page 48: Kelloggs Summer Intern Presentation

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

Page 49: Kelloggs Summer Intern Presentation

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

Page 50: Kelloggs Summer Intern Presentation

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 ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✔ ✖

Page 51: Kelloggs Summer Intern Presentation

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

Page 52: Kelloggs Summer Intern Presentation

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

Page 53: Kelloggs Summer Intern Presentation

Thank You