IIM Lucknow

AdvantAge Elders Case Study

A Case Study on Getting Active at 60+
Team Bright Sparks
Rahul Khandelwal
Arun Ginjala
Problem Statement


Helpage India started Advantage
Centers
Like-Minded Groups formed
Initial investment provided and than
self-sufficiency reached


AdvantAge Ageing Centers


Replicate the business model across
Geographies
Sources for Initial funding to setup
Advantage Centers
How to make Centers self-sustaining
The Problem
High Performance
Sales
New Centers Initial Funding
Self-Sustaining Other Solutions
Old Family house
Government
Collaboration
Charity Houses Corporate
Family members Charity
Government Sources Bank/Coporate Loans
AdvantAge India
Marketing Services Human Touch
Experience Consulting
Hiring Consultants
Metrics & Tracking
Executive Summary
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutions Conclusion

Understanding needs of the aged - Mostly highly skilled and willing to work
Areas of influence - Metros are high vs Non-metros (Majorly cited reason of need of
nuclear family in case of metros)
Charity willingness (Willing given high amount of work)


The Company
Research Design Exploratory Research
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutions Conclusion
Urban Distribution Strategy
Using old Family houses to start the AdvantAge Centers

Government Collaboration to find the new houses at subsidized rate or using old public places

Charity Houses can be leveraged to start AdvantAge Centers

Collaborating with Corporate to provide places
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutions Conclusion
Urban Distribution Strategy
Vicinity: Should be located in center of city

Marketing of the AdvantAge Centers by using cheaper sources of marketing like online portals, using family contacts

Field trips to surrounding places to create more awareness about the Centers

Collaborating with other NGOs and helping them conduct activities at AdvantAge Center may be source for funding also
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutions Conclusion
Comparing with Competition
HUL
Manufacturing (2000 suppliers, 40 plants)
Carrying & Forwarding Agents (35)
Redistribution Stockists
Wholesalers
Retailers
(6.3 million)
Supermarket
Channel
HUL provides tailor made services to each of its channel
partners. It has developed customer management and supply
chain capabilities for partnering emerging self service stores and
super markets
Consumers
Selection
Distributor is selected on basis of infrastructure, delivery
van, computer, warehouse, sales force
Population based (1 Distributor per 20-25 thousand)
Control
Uses coercive power
To deal in cigarettes it is important to deal with other
products
Order
Distributors weekly
Retailers twice a week
Paanwalas daily
Online order is placed by distributor
The periodical order from wholesaler, retailer,
paanwalas, is called by DSR
Hub
Exclusive
Distributor
Wholesaler
Retailer
Malls
PanDabbas
Retailer
HUL ITC
Summary Research Design New Centers Initial Funding Self-Sustaining Other Solutions Conclusion


Other than the hair serum category where Maricos Hair &
Care Silk n Shine had the second highest market share,
Marico had little or no experience in the other categories.

Traditionally, Maricos strength lay in hair oils and edible
oils category which reflected in the type of outlets that it
serviced.

Since Marico enjoyed market leadership in these
categories, the way Marico played in these markets was
very different- these were not competition intense
categories and hence Marico played a huge role in shaping
the terms of trade.
Can Marico use VMI for Paras Brands??
Vendor Managed Inventory
Vendor Managed Inventory
VMI reduces stock-outs and reduces inventory in the supply chain:
Shortening of the supply chain
Centralized forecasting
Frequent communication of inventory, stock-outs, and planned
promotions.
No manufacturer promotions
Relationship with downstream distribution channels
Result: Inventory reduction and stock-out reduction
Marico has been using IT systems for Sales & Operations since
2002
Rolled out VMI in 2008-09 after an overhaul of the IT support
system, reducing the inventory turnover time to 10 days
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
VMI is dependent on big business. If you have customers who order infrequently from you and even when they do order,
they dont actually order that much, then a VMI system is probably not going to work successfully. For a VMI system to
be effective and cost effective then the customers have to be ordering frequently and in bulk
Partially yes (We have the value share values, and category growth
Data analytics should make it possible for us to predict demand

Typically for deodorants, frequency is 1 SKU (100g/ 150 mL)

~ 1 bottle

For VMI to operate effectively it needs to be built on trust and that is something that will only grow with time, it cannot
be bought or acquired; it has to be earned. This means that VMI can take some time to become effective

-> Since 80% of distribution channel of Marico vis--vis Paras is the same, building trust shouldnt be a concern

A VMI system often requires the vendor to make more deliveries of goods, especially if the customer prefers to keep
stocks quite low and this can be problematic


Disadvantages of Vendor Management Inventory
Vendor Managed Inventory
Is the demand of the new products predictable?
Are these products purchased frequently?
If they are purchased, are they purchased in bulk?
Launching 23 SKUs and all at once may be an area of concern
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy




Provide DSRs with Smartphones
A company App to record the stock levels
The App transfers the data to the cloud
storage
Based on the input, the order is finalized
and the information is passed on to all the
stakeholders


The DSRs can take calls till 5 pm
With 50% efforts focused on getting new retailers,
increase in coverage - 30%
Provides ability to persuade retailers and push in more
SKUs [16% increase]
Better traceability and distribution of incentives
Leveraging IT to Increasing Efficiency


A DSR (Distributor Sales Representative) covers between
15-25 retail outlets in a day to take orders
Reaches the first outlet at 10 in the morning
Finishes his/her beat (set of outlets for the
day) by 3 pm
Goes back to the distributor point to enter
his orders in the distributor software
for the next day deliveries
The order taking process or the call
-consists of the DSR explaining each
brand and its benefits to the retailer,
-the margins and discounts,
checking the stock levels of each SKU and
-then finalizing the order
Typically, a call can take from 20 min for
large outlets to 5 min for smaller outlets
The Current Status
Time Spent on Calls = 5 Hrs Time Spent on Calls = 8 Hrs
Proposed Solution
Use of Handhelds/Smartphones
Expected Results
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Kirana Outlets
Ration Shops mom &
pop stores, help in
meeting daily needs.
Set Wet Gel
Suggested SKUs: End-to-
end can feature all
products.
For sub-urban areas, focus
only on smaller size SKUs
For stores located in urban
areas, focus on larger sizes
SKUs
Chemist Outlets
Pre-dominantly sell
medicines
Suggested SKUs:
Livon Hair Gain, Livon
Silky Potion
Outlet Comparison
URBAN SETTING
General Outlets
Small space
General line of
merchandise
Main shop of
community
Suggested SKUs: Set
Wet Gel (10g, 50g);

Cosmetic Outlets
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Sales Force Deployment
Agenda of Sales Force Deployment
Optimal sizing of a sales force

Optimal allocation of sales call effort to increase sales
or profit response from customers and prospects (often
referred to as workload allocation), and

Optimal alignment of sales territories to balance
workload and minimize travel.

Adjustments to the sales force deployment plan in
response to multiple product lines, product life cycles,
and dynamic changes over time.

Optimising Sales force
Size
A technique often used to
determine the optimal size
of a sales force is called
workload buildup

The first step is to
determine the total
number of sales calls to be
made by the entire selling
organization in a year.

No. of additional sales calls
to be required

Calculating Work-load
Build-up
Total number of accounts to
call x No. of times each
account should be called on
in a year

Sales force size = Total calls
needed / Average no. of
calls a rep can make in a
year

Workload measure: Selling
Time as a workload measure


Calculations follow on the next slide
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Sales Force Deployment
Recommend Case 3
No focus on increasing sales
No focus on New Retail Outlets
Too much expenditure on new hires
Optimum Efficiency of DSR
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Issues with Distributors and their Infrastructure
M
a
n
u
a
l

A
p
p
r
o
a
c
h

Potential problems with Distributors
Warehouse space The new SKUs will require additional space which can lead
to potential space conflict
Vehicles Vehicle Routing problem is a common problem with increased SKUs
Delivery Boys Additional Delivery boys will be needed to be employed and
trained with additional SKUs
Tracking of many SKUs Advanced tracking system would be required for SKUs to establish
Inventory loss Higher volume of expired inventory as new products have best before dates of less than 24 months
Greater Forecasting With increased SKUs there is an additional forecasting associated which brings more chances of
mismanagement



Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Ensuring focus by the Marico frontline Sales team (DSR,TSO and ASM)
ASM Objectives:
GIS would help enable real time
tracking of sales territories coverage
The order taking process or the call handle the
increased SKU times
Explaining each brand and its benefits to the retailer
The margins and discounts explanation
Checking the stock levels of each SKU at the retail outlet
and then finalizing the order
Sales Territory expansion to drive sales in growth
categories
Understand specific market, competition, especially in
high competition categories like deodorants, and gels
Develop territory, market penetration and sales
execution strategies in the above mentioned
environment
TSO Objectives: DSR Objectives:
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Sales & Promotion Strategy
The Call of cool
campaign by Taproot
India (March, 2013)

Idea: survival of the
coolest

It's a fun, lighthearted
piece of communication

In this case the core idea
is mating rituals in the
animal kingdom and the
survival of the coolest
SET WET
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Sales & Promotion Strategy
Livon Hair Gain Tonic
It's logic, not magic.
Livon Hair Gain Tonic is a solution addresses hair fall problems
Helps in accelerating healthy hair growth.


Confidence is the key to
success and to be heard
depends on your attitu-
de... not how loud you
speak! Zatak embodies
this sense of surety and
confidence

Because your fragrance is not a pheromone. It's your
statement

Zatak brings you fragrances that underline everything
you stand for and put every naysayer in their rightful
place; in four distinct variants:
Gambler, Striker, Avenger & Challenger!

Zatak
Livon Silky Potion

I love my hair
Livon Silky Potion puts an end
to tangled, dry and unmanag-
eable hair. It promises protect-
tion of cuticle with its unique
cutisoft Formula

Enriched with Vitamin E, Livon Silky potion smoothens and
softens your hair so you can let your hair
down anytime and anywhere
Livon Silky Potion
Livon Hair Gain Tonic
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Perspective of e-influence
Per se difficult to induce people to try
cosmetic products. Customers are usually
brand loyal

A click-and-mortar approach has its own ace
to playthe power and reach of omni-
channel interaction

Consumers still cant touch, hold, try on, or
taste a product online

Pinterest boards, QR code walls, show-
rooming, mobile couponing, pop-up shops,
mobile apps, Tweet Mirror, Facebook walls,
digital circulars, augmented reality, flash sales

E-Influence
Current Sales Promotion Strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
E-Influence
Pinterest boards, QR code walls,
show-rooming, mobile couponing,
pop-up shops, mobile apps, Tweet
Mirror, Facebook walls, digital
circulars, augmented reality, flash
sales

Looking beyond Facebook
Walls
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Increasing the spend on the promotional campaign
since highly competitive market
Digital Ads : Utilizing social media to engage more
customers and on a timely manner which can be
synchronised by the purchasing pattern
Print Media: Creating awareness by designing Ads
which are targeted and eye catching
Radio Strategy: To gather interest in brand by building
connect with potential customers



E-Influence
It is very tempting to embrace every new platform
that a consumer embraces
Back up by sound economics, competitive
differentiation derived out of the marketing and
financial perspectives
Can offer premium brands online to announce
category membership; Point-of-Parity with MNCs
Way Ahead: consumer-facing apps & experiences
Succeeding in the Digital Jungle
Ad strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Promotional Strategy
Promotional strategy should be designed in accordance with
the types of retailers
Type of Store Promotional Strategy
Kirana Coupons, Point-of-Purchase displays
Cosmetic Coupons, Point-of-Purchase displays, Samples
General Coupons, Point-of-Purchase displays, Samples
Chemist Samples, Premiums
Promotional Strategy
Shifting from Percent of sales method to Competitive parity method
Disadvantages include the inability of this method to accurately predict future financial health, as there are many other
factors to consider
Biased targeting of various stores with high share vis a vis low share which may have high potential for growth
Competitive parity method would lead to better allocation since it is a highly competitive market. Thus allocation on
basis of market share associated with various brands would be the right strategy
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
Retail Channel
Promotion and Rollout
Packaging Production


Website update
Product finished goods in inventory
ROI Calculator
RFP Guide
Price Sheets

Reviewers Guide
Competitive analysis Final
Customer Promotion
Analyst and Customer Reference Database
New Features and Technology overview
Distributor SKU request
Pricing determination
Introductory Pricing/Giveaways
Advertising Placements
Product Development
2 months
1 month
3 weeks
1 week
The Way Ahead
Summary Company Profile Distribution Leveraging IT Outlet Comparison Sales Force Deployment A&P Strategy
The Way Ahead
The report leverages data from various online sources including the Companys Annual Report,
The Case Pre-Read and a few Third Party Data Analysis Services. We are thankful to all of them.
THANK YOU