The document provides an area sales approach for the Karnataka sales area. It identifies growth opportunities in key categories like toothpastes, shampoo, skin creams, and deodorants. Specific districts are prioritized for each category based on benchmarking. Gaps in current category plans are also highlighted, such as the need for improved distribution of skin creams and dental variants in rural areas. The document aims to develop action plans to realize the area's growth potential.

1. AREA SALES APPROACH
PLANNING SALES GROWTH
Steve Remedios
XIM
November 11-15, 2004
Bhubaneswar

2. Karnataka Sales Area
Area Sales Approach
An approach to identify
What should the Area grow at?
Why should the Area grow at a particular rate?
What will make this growth happen?
Where will this growth happen?
Who will make this growth happen?

3. ASA Road Map
Area Vision
Developing
Action Plans
Zeroing in on
Sales Challenges
Identifying
Growth drivers
Define Area
Potential

4. Benchmarking across PCs
2001 2002
Personal Products 179 160
Detergents 300 310
Beverages
Foods

5. Benchmarking across states
POPULATION 665.08 290.99 558.59 449.77
PER CAPITA SALES ANDHRA PRADESH KERALA TAMIL NADU KARNATAKA
COCONUT OILS 11.58 1.27 6.56 8.10
HAIR OILS 6.50 2.32 2.17 4.18
SHAMPOO 15.54 3.91 15.23 10.74
SHAVING CREAMS 0.17 0.51 0.06 0.14
SKIN CREAMS 13.39 10.35 8.49 17.33
TALCUM POWDERS 12.88 20.80 14.41 12.34
TOOTH BRUSH 6.20 8.14 5.25 6.75
TOOTH PASTES 31.54 44.43 22.77 35.76

6. Benchmarking across states
%MS by Value URBAN ANDHRA PRADESH KARNATAKA KERALA TAMIL NADU
HLL Coco Oil 21.14 18.91 1.39 1.49
HLL VA Oil 6.89 8.07 15.59 13.64
HLL Deo 60.49 40.12 58.60 49.47
HLL Shampoo 65.64 69.33 59.46 73.71
HLL Skin 55.51 51.35 45.10 52.54
HLL Talc 67.74 62.96 35.91 53.99
HLL Brushes 25.94 30.26 13.64 27.37
HLL Pastes 44.46 32.86 28.72 42.21

7. Benchmarking across states
%MS by Value RURAL ANDHRA PRADESH KARNATAKA KERALA TAMIL NADU
HLL Coco Oil 26.29 35.19 0.35 1.13
HLL VA Oil 9.13 8.45 9.18 24.12
HLL Shampoo 67.77 81.54 78.59 74.67
HLL Male T 3.52 2.75 11.55 0.00
HLL Skin 63.01 66.41 62.09 67.16
HLL Talc 66.98 76.87 37.69 59.59
HLL Brushes 31.94 27.17 16.72 38.98
HLL Pastes 37.23 20.67 32.36 54.10

8. Identifying Buckets of Growth:
Urban
COCONUT HAIR PERF/COLG/ SKIN TALCUM TOOTH TOOTH
URBAN
OILS OILS DEO SHAMPOO CREAMS POWDERS BRUSH PASTES
MARKET VOLUMES in Tonnes/KL 1881 623 59 798 743 1408 16 3919
MARKET VALUE in LACS 2349 1631 673 2815 5701 4087 2074 11052
% MS by Volume 24 10 54 68 49 68 33 32
HLL VOLUME in Tonnes/KL 447 59 32 541 361 956 5 1252
HLL VALUE in LACS 581 122 304 1847 2898 2654 679 3836
% MS by Value 25% 7% 45% 66% 51% 65% 33% 35%
Market Growth -3% -5% 42% 5% 3% -12% -31% 4%
Market Size (3 years hence) 2144 1398 1926 3259 6230 2785 681 12432
Market Share (3 years hence) 30% 15% 50% 75% 70% 70% 30% 50%
GAP (HLL Value in LACS) 62 88 659 597 1463 -704 -475 2380

9. Identifying Buckets of Growth:
Rural
COCONUT SKIN TALCUM TOOTH TOOTH
RURAL
OILS HAIR OILS SHAMPOO CREAMS POWDERS BRUSH PASTES
MARKET VOLUMES in Tonnes/KL 1002 113 796 337 468 9 1804
MARKET VALUE in LACS 1292 251 2016 2092 1464 962 5030
% MS by Volume 34 18 77 59 78 34 23
HLL VOLUME in Tonnes/KL 339 20 610 199 365 3 409
HLL VALUE in LACS 461 34 1752 1407 1104 352 1211
% MS by Value 36 14 87 67 75 37 24
Market Growth -4% 31% 13% 4% -7% -21% 3%
Market Size (3 years hence) 1143 564 2909 2353 1178 474 5496
Market Share (3 years hence) 42% 30% 95% 75% 90% 70% 40%
GAP (HLL Value in LACS) 20 135 1011 358 -44 -20 987

10. Prioritizing Potential
High
Question Mark High Risk High Return
Low High
Ease of Exploitation[Internal]
X Low Lying Fruit
Competitive Context
Low

11. Prioritizing Potential
High
Pastes Shampoos
34 cr. 16 cr
Skin: 18 cr
Low Deos: 7 cr High
Ease of Exploitation
Factors governing Ease of Exploitation:
•Confidence on category
•Category Plans
•Category behaviour in the market place
Competitive Context
Low

12. SUMMARY OF AREA POTENTIAL
• 1 Pastes in NKNSA / Bangalore
• 2 Shampoo in Rural
• 3 Skin Cream in Urban
• 4 Deodorants in Bangalore Metro
Buckets Urban Rural Tot Market
In LACS
Deo 659 659
Shampoo 597 1011 1608
Skin Cream 1463 358 1821
Pastes 2380 987 3367
Total Gain 5099 2356 7455

13. ASA Road Map
Area Vision
Developing
Action Plans
Zeroing in on
Sales Challenges
Identifying
Growth drivers
Define Area
Potential

14. Identifying Growth Drivers

15. Business Benchmarking
Per Capita Sales Year 2001 PP
BANGALORE 10.95
CHITRADURGA 4.77
MYSORE 4.74 ­Market Development opportunity in
DAKSHIN KANNA 4.45
MERCARA 3.68 the following districts:
SHIMOGA 3.43
KARNATAKA 3.40 ­Gadag
BIJAPUR 3.19
BELLARY 3.01
CHIKMAGALUR 2.83
­Udupi
UTTAR KANNAD 2.62
RAICHUR 2.48 ­Bagalkot
TUMKUR 2.47
HASSAN 2.32 ­Bidar
KOLAR 2.04
BELGAUM 1.80 ­Davangere
MANDYA 1.71
GULBARGA 1.69
REST OF BANGAL 1.68 ­Chamrajnagar
GADAG 1.56
UDUPI 1.54 ­Koppal
BAGALKOT 1.07
BIDAR 0.88 ­Haveri
DAVANGERE 0.68
CHAMRAJNAGAR 0.36
KOPPAL 0.34
HAVERI 0.31

16. PP Priority Districts

17. Category Benchmarking
Per Capita Sales Year 2001 ORAL
BANGALORE 2.73 ­Shares in these districts very low
DAKSHIN KANNA 1.29
MYSORE 1.17 ­Need to drive consumption /
MERCARA 1.10
CHITRADURGA 1.08 distribution in the following districts:
SHIMOGA 0.86
KARNATAKA 0.83 ­Haveri
UTTAR KANNAD 0.76
CHIKMAGALUR 0.76 ­Koppal
BELLARY 0.74
BIJAPUR 0.65
RAICHUR 0.61
­Chamrajnagar
TUMKUR 0.60
HASSAN 0.54 ­Davangere
KOLAR 0.47
GULBARGA 0.41 ­Bidar
MANDYA 0.40
BELGAUM 0.38 ­Colgate very strong in these pockets
REST OF BANGAL 0.38
UDUPI 0.34
GADAG 0.30 ­Anchor also a growing threat
BAGALKOT 0.22
BIDAR 0.20
DAVANGERE 0.14
CHAMRAJNAGAR 0.08
KOPPAL 0.08
HAVERI 0.07

18. Oral Priority Districts

19. Category Benchmarking
Per Capita Sales Year 2001 HAIR
BANGALORE 2.77 ­South Karnataka is the main Chik
MYSORE 1.17
CHITRADURGA 0.92 stronghold
BELLARY 0.79
BIJAPUR 0.78 ­Need to give superior support to Clinic
KARNATAKA 0.77
DAKSHIN KANNA 0.66
/ SS minis in the absence of Lux minis
TUMKUR 0.63
RAICHUR 0.54 ­Most sensitive districts are:
KOLAR 0.54
CHIKMAGALUR 0.53 ­Chamrajnagar
MERCARA 0.53
SHIMOGA 0.53 ­Hassan
REST OF BANGAL 0.49
MANDYA 0.49
HASSAN 0.44
­Mercara
GADAG 0.42
GULBARGA 0.35 ­Mandya
BELGAUM 0.32
UTTAR KANNAD 0.30 ­Davangere
UDUPI 0.27
BAGALKOT 0.27 ­Gulbarga
BIDAR 0.18
DAVANGERE 0.14
CHAMRAJNAGAR 0.09
KOPPAL 0.07
HAVERI 0.06

20. Hair Priority Districts

21. Category Benchmarking
Per Capita Sales Year 2001 SKIN
BANGALORE 1.93 ­Need to drive distribution in these
CHITRADURGA 1.27
MYSORE 1.10 districts
MERCARA 0.98
SHIMOGA 0.95 ­FAL Ayurvedic yet to pick up in KNSA
CHIKMAGALUR 0.77
DAKSHIN KANNA 0.77 ­Robust sachet activation plan needed to
HASSAN 0.73
KARNATAKA 0.72 counter recent gains from Fair Ever
BIJAPUR 0.67
BELLARY 0.66 ­Special focus in:
TUMKUR 0.64
UTTAR KANNAD 0.59 ­Gulbarga
KOLAR 0.51
RAICHUR 0.51
MANDYA 0.44
­Bagalkot
REST OF BANGAL 0.42
GULBARGA 0.39 ­Gadag
BELGAUM 0.39
GADAG 0.35 ­Bidar
UDUPI 0.31
BIDAR 0.22 ­Belgaum
BAGALKOT 0.21
DAVANGERE 0.18
CHAMRAJNAGAR 0.10
HAVERI 0.08
KOPPAL 0.06

22. Skin Priority Districts

23. Opportunity and Gaps in
Category Plans
Opportunity Objective TY Marketing Gaps in category
Description Triggers plans
Dental Share 3% share gain Seeking Advertising of the CP
Gain through in urban conversion from on local cable
CUP variants Colgate gel users channels
Incr. Value : 4 cr. and CDC users Sustaining rural
and Pep in
activation and
urban visibility plans
Dental Share 6% share gain in Containing Pep and Close Up 40
Gain in Rural rural Anchor and gms in Streamline
through Rs.10 Babool in rural and IDC
Incr. Value : 2 cr. through rural
Pepsodent
activation

24. Opportunity and Gaps in
Category Plans
Opportunity Objective TY Marketing Triggers Gaps in category
Description plans
Build Achieve 100% ECO Retain price value Need to re-launch
distribution equation FAL Ayurvedic in
and Incr. Coverage: 10% KNSA.
Sample ayurvedic in - sampling of
availability
Led by : rural FALuda with FAL
of skin FAL Soap
creams Build ayurvedic - strong plan to
across all Incr. Volume: 120 Tonnes association by repeat contain Fair Ever
outlet types CP with Ayush in Rural
Incr. Value : 3 Cr. - W/S activation to
drive penetration

25. Opportunity and Gaps in
Category Plans
O p p o r tu n ity O b je c tiv e T Y M a r k e tin g T r ig g e r s G a p s in
D e s c r ip tio n c a te g o r y p la n s
G a in s h a r e G a in 5 % S h a re E d u c a te u s e r s a b o u t N o lo c a l a c tiv a tio n
fro m g reys th e b e n e f its o f in B a n g a lo r e
in u r b a n b u y in g o r ig in a l N e e d to tie in w ith
AXE m u s ic c o n c e rts /
I n c r . V a lu e : 5 cro re B u ild th e M T p u b s to m a k e th e
F r a n c h is e in a b ra n d m o re
m a n n e r th a t m a k e s c o n te m p o r a ry
it a p p e a lin g to th e
y o u th
B u ild G a in 1 0 % S h a re S e e k in g to u p g r a d e L U P s a m p lin g /
d is tr ib u tio n lo o s e o il u s e r s to d ir e c t s e llin g
o f V a lu e I n c r . V a lu e : 1 cro re b r a n d e d C o c o n u t O ils
C r itic a ll y d e p e n d a n t o n
A d d e d O ils p la n s f o r C o c o C a re , a s
in r u r a l N ih a r h a s n o t m a d e a n
im p r e s s i o n d e s p ite
re p e a te d S a le s e f f o r ts

26. Opportunity and Barriers to
Growth
O p p o r tu n ity S a le s T r ig g e r s
D e s c r ip tio n
D e n ta l S h a r e In c re a s in g w id th o f d is trib u tio n
G a in th r o u g h
C U P v a r ia n ts I m p r o v in g v is ib ility a n d s a lie n c e th ro u g h o w n e r s h ip o f
ORAL CORNERS
and P ep
in u r b a n F o c u s s in g o n V a ria n ts
S c ie n tific S e llin g
D e n ta l S h a r e E n s u rin g 1 0 0 % E c o o n P e p 4 0
G a in in R u r a l
th r o u g h R s 1 0 D riv in g s a le s in W h o le s a le th ro u g h in n o v a tiv e O P S
P epsod en t
P re s s u re s e llin g to ta k e o v e r C D C s h e lf s p a c e in
NKNSA

27. Opportunity and Barriers to
Growth
O p p o r tu n ity S a l e s T r ig g e r s
D e s c r ip tio n
B u ild In c re a s in g w id th a n d p re s e n c e o f d is trib u tio n a c ro s s a ll
d is tr ib u tio n a n d o u tle t ty p e s
a v a ila b ility o f
U s e W h o le s a le a c tiv a tio n to in c re a s e p re s e n c e in
s k in c r e a m s
re m o te m a rk e ts
a c r o s s a ll o u tle t
ty p e s O p e ra tin g s c h e m e s o n th e p a c k w ith o u t a ffe c tin g th e
m a rk e t ra te s

28. Opportunity and Barriers to
Growth
O pportu n ity Sales T riggers
D escription
G ain share from Increase E C O on A xe especially in C hem ist / L ifestyle
greys in u rban stores
B uild salience at the PO P by quality m erchandising
B u ild Pressure selling to try and re establish N ihar in the
distribu tion of m arket
V alue A dded
Placem ent of at least tw o V A O Skus in every Parachute
O ils in rural
/ D abur outlet.

29. ASA Road Map
Area Vision
Developing
Action Plans
Zeroing in on
Sales Challenges
Identifying
Growth drivers
Define Area
Potential

30. Sales Challenges
• Improving extent and quality of outlet coverage
• Min 200 outlets / lac of population
• Killing sales threats
• Anchor / CDC in Oral, Chik in Hair / Fair Ever in Skin / KCLL in
Metro / Deo in Metro
• Rallying focus behind LUPs
• Shampoo Minis / Pep/C Up 40
• Attracting and retaining quality RSSM
• RSSM Training / Incentivization / Listing
• Implementing a quality merchandising template that
ensures the best visibility / salience at the POP
• 3 P Merchandising in Bangalore City
• Building RS/ RD involvement
• Driving RS 1-2-ka-4
• Deploying optimal infrastructure for growth by mutual
agreement with the RS
• HLL Way Norms to be strictly implemented

31. Improving extent and quality of outlet
coverage
• Identify Gap Towns based on Census
Information and suggesting a coverage plan
• Improving quality of coverage in current
towns
• Using TSI / SO time to ensure the universe of
outlets is visited at least once every two years

32. Action Points
• O/L Audit in 10L+ towns
• Construction of beat card
• Rationalize beat structure in line with HLL Way
• Begin Coverage Expansion
– Additional salesmen paid by 1-2-ka-4 to increase
coverage
• Monitor Coverage
• Incentivise Coverage
– Merchandiser / RSSM incentive of Rs.10 per new O/L
billed
• RS’s given 2 JC time till JC 9 to increase coverage else
an open market system for gap O/L
• SO given live project to empirically prove that 1
additional S/M gives the RS 10% growth

33. Killing Sales Threats
• ORAL Anchor and CDC in N
Karnataka
• HAIR Chik in South Karnataka
• SKIN Fair Ever in Rural / Urban
• DEO Greys in Bangalore

34. Killing Sales Threats - ORAL
Market in LACS URBAN RURAL GROWTH
KARNATAKA 2001YR 2002YR 2001YR 2002YR URBAN RURAL
TOOTH PASTES 11052.2 8520.0 5029.8 3875.0 2.79% 2.72%
ANCHOR HEALTH 434.6 613.6 276.5 383.9 88.27% 85.11%
ANCHOR 369.1 569.9 248.8 352.3 105.86% 88.83%
ANCHOR 5/97 WHITE 50 G 134.2 166.2 114.5 157.2 65.05% 82.94%
ANCHOR GEL 65.5 43.7 27.7 31.6 -10.92% 51.73%
COLGATE-PALMOLIVE 5541.2 4261.6 3233.1 2548.4 2.54% 5.10%
COLGATE DENTALCREAM 4083.4 3250.2 2778.8 2263.8 6.13% 8.62%
COLGATEDENTALCREAM 7/78 50 GM 1459.2 1229.9 1670.4 1473.1 12.38% 17.59%
PEPSODENT 1343.2 1043.6 465.2 430.3 3.59% 23.34%
PEPSODENT 11/91 50 G 388.2 115.8 212.3 86.4 -60.22% -45.75%
CLOSE-UP NEW 0.0 374.8 0.0 83.9 NA NA
CLOSE-UPNEW03/02TNGLY RED 50G 0.0 70.1 0.0 27.6 NA NA
CLOSE-UPNEW07/02TNGLY RED 40G 0.0 4.9 0.0 2.0 NA NA
• Chalks growing ahead of Gel in KN
• Anchor growing well ahead of the market
• Growth driven by 50gm pack
• Colgate also growing ahead of market
• Growth driven by 50gm pack
• Pep Brand growth driven by value packs
• Clear opportunity to dominate 40 / 50 gm segment

35. Killing Sales Threats - ORAL
%Dealer (Category) URBAN RURAL
KARNATAKA 2001YR 2002YR 2001YR 2002YR
TOOTH PASTES 100 100 100 100
ANCHOR HEALTH 52.56 46.21 35.76 32.69
ANCHOR 49.25 43.46 34.29 32.69
ANCHOR 5/97 WHITE 50 G 33.66 29.78 24.37 21.81
ANCHOR GEL 24.39 11.54 10.67 4.42
COLGATE-PALMOLIVE 90.00 91.73 91.37 88.47
COLGATE DENTALCREAM 90.00 89.08 86.73 82.48
COLGATEDENTALCREAM 7/78 50 GM 85.50 85.40 82.01 81.35
PEPSODENT 67.41 65.56 36.86 47.58
PEPSODENT 11/91 50 G 52.75 19.22 19.88 5.94
CLOSE-UP NEW 0.00 47.84 0.00 23.86
CLOSE-UPNEW03/02TNGLY RED 50G 0.00 27.19 0.00 7.34
CLOSE-UPNEW07/02TNGLY RED 40G 0.00 9.65 0.00 4.78
• Anchor growth despite lower % dealer
stocking
• Clearly driving growth through the wholesale channel
• Pepsodent stocking improved considerably
• CDC still miles ahead
• Importantly the trend is a declining one
• This is a good time to go for the kill

36. Killing Sales Threats - ORAL
%MS by Value (Category) URBAN RURAL
KARNATAKA 2001YR 2002YR 2001YR 2002YR
TOOTH PASTES 100.00 100.00 100.00 100.00
ANCHOR HEALTH 3.93 7.20 5.50 9.91
ANCHOR 3.34 6.69 4.95 9.09
ANCHOR 5/97 WHITE 50 G 1.21 1.95 2.28 4.06
ANCHOR GEL 0.59 0.51 0.55 0.81
COLGATE-PALMOLIVE 50.14 50.02 64.28 65.76
COLGATE DENTALCREAM 36.95 38.15 55.25 58.42
COLGATEDENTALCREAM 7/78 50 GM 13.20 14.44 33.21 38.02
PEPSODENT 12.15 12.25 9.25 11.11
PEPSODENT 11/91 50 G 3.51 1.36 4.22 2.23
CLOSE-UP NEW 0.00 4.40 0.00 2.17
CLOSE-UPNEW03/02TNGLY RED 50G 0.00 0.82 0.00 0.71
CLOSE-UPNEW07/02TNGLY RED 40G 0.00 0.06 0.00 0.05
• Anchor share gain in rural is startling (4.41%)
– growth driven by 50gm pack
• Pepsodent gaining too
– 40gm not captured / 50 gm declining
• MUST REVERSE THIS TREND

37. Killing Sales Threats - HAIR
URBAN RURAL
2001YR 2002YR 2001YR 2002YR
SHAMPOO (1/72) 2815.3 2176.7 2016.2 1703.8
CAVINKARE 174.1 123.6 233.0 278.8
CHIK DBLE CONDITRS 4.7 22.5 60.9 259.9
CHIK DBLE CONDITRS 6/01 BLACK PPH 1.2 6.2 25.1 90.4
CHIK DBLE CONDITRS 6/01 JASMINE PP 0.6 2.7 11.6 37.5
NYLE-HERBAL 127.8 79.8 0.9 1.5
HINDUSTAN LEVER 1847.0 1509.1 1752.2 1389.3
CLINIC ALL CLEAR 426.9 385.6 304.0 215.5
CLINIC MINI PLUS 77.3 93.6 184.5 258.9
CLINIC PLUS 662.7 501.5 941.7 673.0
LUX NEW SUPER RICH 57.6 83.0 91.5 121.1
SUNSILK 314.2 51.6 101.8 14.9
SUNSILK NEW 181.0 337.3 23.2 71.9
HEAD & SHLDR NEW 167.6 133.5 2.1 10.1
HEAD & SHOULDERS 91.3 26.2 2.6 0.5
PANTENE PRO-V NEW 129.3 95.2 1.9 2.4
– Chik Double Conditioners a growing threat
– P&G Contained

38. Killing Sales Threats - HAIR
%Dealer (Category) URBAN RURAL
KARNATAKA 2001YR 2002YR 2001YR 2002YR
SHAMPOO (1/72) 100.00 100.00 100.00 100.00
CAVINKARE 44.02 46.17 50.19 50.38
CHIK DBLE CONDITRS 19.87 31.00 41.77 44.08
CHIK DBLE CONDITRS 6/01 BLACK PPH 13.32 15.36 28.92 39.15
CHIK DBLE CONDITRS 6/01 JASMINE PP 4.72 8.83 20.45 16.94
NYLE-HERBAL 18.26 14.82 0.31 1.45
HINDUSTAN LEVER 94.23 96.52 98.58 97.61
CLINIC ALL CLEAR 70.48 69.09 30.89 32.32
CLINIC MINI PLUS 42.21 55.52 40.76 55.82
CLINIC PLUS 85.88 83.26 81.22 77.28
LUX NEW SUPER RICH 56.51 47.47 53.46 46.70
SUNSILK 30.04 21.36 17.10 2.43
SUNSILK NEW 51.84 52.95 18.93 23.15
HEAD & SHLDR NEW 27.09 26.65 6.48 0.78
HEAD & SHOULDERS 12.79 6.07 0.25 0.37
PANTENE PRO-V NEW 23.92 20.93 1.93 3.10
• Need to get distribution act on C+ right
• Despite % dealers remaining flat Chik has
taken huge share in rural
• Focussed wholesale activation

39. Killing Sales Threats - HAIR
%MS by Value (Category) URBAN RURAL
KARNATAKA 2001YR 2002YR 2001YR 2002YR
SHAMPOO (1/72) 100.00 100.00 100.00 100.00
CAVINKARE 6.19 5.68 11.56 16.36
CHIK DBLE CONDITRS 0.17 1.03 3.02 15.26
CHIK DBLE CONDITRS 6/01 BLACK PPH 0.04 0.28 1.25 5.31
CHIK DBLE CONDITRS 6/01 JASMINE PP 0.02 0.12 0.58 2.20
NYLE-HERBAL 4.54 3.67 0.04 0.09
HINDUSTAN LEVER 65.61 69.33 86.91 81.54
CLINIC ALL CLEAR 15.16 17.71 15.08 12.65
CLINIC MINI PLUS 2.74 4.30 9.15 15.20
CLINIC PLUS 23.54 23.04 46.71 39.50
LUX NEW SUPER RICH 2.04 3.81 4.54 7.11
SUNSILK 11.16 2.37 5.05 0.87
SUNSILK NEW 6.43 15.50 1.15 4.22
HEAD & SHLDR NEW 5.95 6.13 0.11 0.59
HEAD & SHOULDERS 3.24 1.21 0.13 0.03
PANTENE PRO-V NEW 4.59 4.37 0.10 0.14
• Huge share gain in Rural for Chik (5%)
• Entire gain at the cost of SS and All Clear
• Have to build SS by focussing on Low Cost in W/S
• Need to enlist W/S to build SS in rural urgently

40. Killing Sales Threats - SKIN
GROWTH 02
URBAN RURAL
SKIN CREAMS -8.51% 9.91%
* PETROLEUM JELLY 12.37% -16.96%
** ANTISEPTIC CREAMS 15.29% 11.77%
** BLEACH CREAMS 12.44% 1194.17%
** CLEANSING MILK -31.19% 8.82%
** COLD CREAMS -13.50% -21.19%
** OTHER FACE CREAMS -8.06% 14.95%
** OTHERS 3.68% -24.34%
** VANI.CREAMS/SNOWS -26.58% -33.81%
***MOIST. LTN/CREAM -13.62% 78.59%
• Must counter Bioline / Fakes in WPJ Urban
• Must capture share and new customer in Fairness Rural
• Moisturizers in LUP for Rural is a huge opportunity

41. Killing Sales Threats - SKIN
%MS by Value (Sub Category) TOTAL-MARKET(FROMURBAN(FROM JAN2001)
JAN2001) RURAL(FROM JAN2001)
• Competition falling
KARNATAKA 2001YR 2002YR 2001YR 2002YR 2001YR 2002YR
** OTHER FACE CREAMS 100 100 100 100 100 100 apart
CAVINKARE 19.23 20.22 18.23 19.09 21.32 22.55 – Emami (-1.5%)
FAIREVER 16.51 4.00 16.03 4.92 17.52 2.09
FAIREVR NEW IMPRVD 2.72 16.22 2.20 14.17 3.80 20.46 – Godrej (-1.1%)
EMAMI 4.22 2.67 5.75 3.52 1.00 0.91 • Some new entrants
EMAMI NAT FAIR PERL 1.24 2.00 1.72 2.67 0.21 0.63
NATUR-FAIR 2.98 0.67 4.03 0.86 0.78 0.28
learning the hard
GODREJ CONSUMER PROD 2.17 1.07 2.96 1.42 0.51 0.35 way
FAIRGLW FAIRNES CR 2.17 1.07 2.96 1.42 0.51 0.35 – Himalaya
HIMALAYA DRUG 0.01 0.12 0.01 0.18 0.00 0.00
AYURVDIC CNCPTS FRNS 0.00 0.10 0.00 0.15 0.00 0.00 – Paras
AYURVEDIC CONCEPTS 0.01 0.02 0.01 0.03 0.00 0.00 • Emerging threats
HINDUSTAN LEVER 70.67 69.91 68.12 67.59 76.04 74.71
FAIR & LOVELY ADV.F 5.41 7.21 7.38 8.85 1.29 3.82 – No Marks
FAIR & LOVELY NTRCH 63.87 56.62 59.05 52.38 73.99 65.40 (1.3%)
FR & LVL AYV FRNS CR 0.00 5.44 0.00 5.55 0.00 5.19
FR & LVL BDY FARNS 0.11 0.07 0.17 0.10 0.00 0.00
– Eraser (0.4%)
FR & LVLY DK CIRCL 0.01 0.12 0.01 0.16 0.00 0.03 • Only Fairever
OZONE 0.00 1.31 0.00 1.79 0.00 0.30
remains a threat
NO MARKS 0.00 1.31 0.00 1.79 0.00 0.30
PARAS PHARMA 0.25 0.17 0.30 0.19 0.13 0.13 – share gain in
FRESHIA 0.25 0.17 0.30 0.19 0.13 0.13 rural and urban
ERASER 0.00 0.34 0.00 0.50 0.00 0.00

42. Rallying Focus behind LUPs
• LUP to be consistently focussed on every JC
– RSSM Swingers 1 LUP per JC
– TSI Focus LUP every alternate JC
• Lines growth through LUP focus
– All O/L to be billed LUP once every JC to
ensure 100% ECO on all LUP
– Special additional lines incentive to be
given by the RS on this bill provided:
• It has all LUP
• It has more than 50 linews
• It is a retail bill
• TSI Report Card
– Separate monitoring of performance on LUP

43. Attracting and Retaining quality
RSSM
• RSSM Listing once every quarter
– 1-2-ka-4 Awards
– Certificates from the ASM
• RSSM Dinners with the ASM in key markets to
improve motivation / buy in to company
requirements
• RSSM Workshop / Meetings once a year to
inform / rally support to the sales mission for
the year
• Career planning for Listed RSSM
– RSSM / CASM / TSI / SO / ASM

44. Implementing A Merchandising
Template
• All FF to carry posters to the market
• One market day to be used solely to audit the
quality of merchandising
• ASM / RSM to put up at least 20 posters in the
market on every working day
• Third party to be responsible for
merchandising in Bangalore Metro
• Merchandiser to accompany salesman on all
key account beats

45. Building RS Commitment
• RS Quality Circle Meetings in Bangalore every
third Saturday of the Month
• Opening a personal dialogue with the RS
• greetings on personal occasions
• mementos on achieving are landmarks
• recognition of the growth agenda on a continual basis
• Leveraging IT to communicate with all the RS
more often through RS Net
• Implementing CRS in word and spirit
• Training RSSM to help the RS achieve his
growth ambition

46. Deploying optimal infrastructure
• Infrastructure inadequacy to be communicated
as a grounds for RS termination
• HLL Way Outlet Coverage norms as a pre
condition for RS to get 1-2-ka-4 money
• Failure to meet HLL Way norms will lead to exclusion
from 1-2-ka-4 incentives
• HLL Way Certification
• Carrot to drive compliance across the area
• HLL Way news letter on a quarterly basis
• Will highlight exceptional growth performances by RS
• Will capture details of the best selling stories
• Will help share best practice across the area

47. People Challenges
• Energizing the team
• Yellow jersey for the top 3 TSI’s from JC 1
• The rest to chase the top three
• Clear differentiator
• Motivating the team
• Celebration of success in a big way
• Landmarks to be clearly maintained
• SO Tracking Sheet to make it competitive
• Career Planning
• Participate in their dreams
• Coach consciously at every JC Meeting (Development
Segment already implemented)
• Balancing Sales Pressures
• ‘Know’ the families
• Surprise them

48. Mission
Deliver 200 Crore in Year
2003
Area Vision
To be a 250 Crore Area by Year
2005
Train
3 TSI’s and 2 SO’s
For Higher Responsibility

49. Summary
• Key Thrusts
– Improving extent and quality of outlet coverage
– Killing sales threats
– Rallying focus behind LUPs
– Attracting and retaining quality RSSM
– Implementing a quality merchandising template that
ensures the best visibility / salience at the POP
– Building RS/ RD involvement
– Deploying optimal infrastructure for growth by mutual
agreement with the RS
• Key Opportunities
– Dental in rural
– Skin Creams
– Shampoos in rural
– Deodorants in Bangalore Metro

50. THE GAP / OPPORTUNITY : 2005
AC Incremental over 2002 : 90 crores
Buckets Urban Rural Tot Market
In LACS
Deo 659 659
Shampoo 597 1011 1608
Skin Cream 1463 358 1821
Pastes 2380 987 3367
Total Gain 5099 2356 7455

51. Sales Challenges : 2003
• Improving extent and quality of direct coverage in 10L+
towns
• Dental , Skin Creams, Ayush , KCLL
• Building a town by town approach for key thrusts
• Anti Chik : South KN
• Brushes : Selling pieces
• KCLL : Medical O/l coverage
• Anti Fair Ever : North KN
• Anti Anchor : North KN
• Driving HLL Way and 1-2-ka-4
• Avg RSSM Earning from 1-2-ka-4 > 1200 Rs. / JC

52. HOME WORK
ONE PAGE
Bring a One Page Concept Note on a
Product you would like to launch.

53. Rules of Thumb – Concepts
• You should be able to read the concept in
30 secs or less
• Brand name should be evident and prominent
• Use consumer language, not technical mumbo
jumbo
• Headline should be principal selling message
• State all sizes in which it will be available
• State exact retail price
• Restage concepts – cue new
• Intrigue elements are not needed at this stage

54. Thank You