Next Leap of Distribution

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Keynote at a leading Auto-maker's National Sales Conference.

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Next Leap of Distribution

  1. 1. 3-4% Gross MarginLoss Leadership brands. Negligible marginsFocus on selling the whole stackRoI = Income = Net Margins x Rotations Investment It’s all about rotations!
  2. 2. Wheel today: Rs. 2,000 Crore Brand.“Operation STING” Critical Success Factors:Relevant consumer insight, optimum supply chain & wide distribution reachOutsourced manufacturing & distribution Disruption needs rethinking the whole mix!
  3. 3. “HUL profit rises 18% on home, personal product segments” Jul 2011Distribution Initiatives: Bifurcation, Key Account Network, Diamond ModelField Sales measured on “Quality of Contribution (QOC)” Sustained growth driver for the company
  4. 4. Consumers insist on Intel processor~70% of assemblers use an Intel motherboard too! 30-40% moreexpensive Assurance of Quality & Reliability
  5. 5. Changing a watch battery, every so oftenTitan batteries are ~60-80% premiumCustomers insist on brand, even outside the company stores Tata = Trust!
  6. 6. Key LearningsThe New Way of Distribution
  7. 7. People will forget what you said,people will forget what you did but people will never forget how you made them feel ! Maya Angelou
  8. 8. Embrace technology… there is no getting away!Invest in the next wave and harness full benefitsCompute, connect & collaborate

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