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Kelloggs Summer Intern Presentation

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Kelloggs Summer Intern Presentation

  1. 1. SUMMER INTERNSHIP 2015 Transforming ISP Activities for Superior Results Sponsor Kenny Abraham Intern Sandeep Kumar JhaMentor Veenesh Priyadarshi Guide Bharat Sharma
  2. 2. • Benchmarking withother companies to understand the in store man power activation model • Scan leanings from any other country • Time Motion Studyof ISPs: Understand ways of working & off take data trend analysis • Understand and classifythe ISP roles as filler v/s active suggestive selling • Manning norms • Better usage of MT mobilitytool for tracking ISPs’ activities. • Build a ISP 2.0 plancovering all the parameters suchas ways of working, incentive plan, Success parameters for such a plan, including weeklytracking metrics Stage 1 • Roll out of ISP 2.0 Program as pilot in 5 stores • Tracking of results • Incorporating learnings for the Scale-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
  3. 3. Stage 1
  4. 4. 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
  5. 5. FMCG Statistics • 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
  6. 6. Modern Trade Vs General Trade Basics 1. BCG Retail 2020: Retrospect, Reinvent, Rewrite. 2.KPMG: Indian Retail, Thenext growth Story Modern Trade General Trade Number of Outlets 67100 (by2016)2 88 Lakhs Total Volume $60 billion $550-560 billion Growth Rate 20% per annum1 10% per annum Average Assortment Average 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 environment While 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
  7. 7. Plan-o-gram Basics 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
  8. 8. Modern Trade Statistics 400 2000 9500 10000 Cash & Carry Super Daily Store Numbers Spencers 26 Hyper 21 Super Reliance Fresh Big Baazar HyperCity D-Mart 89 Easy Day Metro Cash & Carry 16 Reliance C&C 32 Best Price C&C 20 Hyper
  9. 9. ISP Basics • 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 59 29 12 Percetage Buying Behaviour Plan Reminded Impulse
  10. 10. ISP 1.0 Data Analysis Man 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
  11. 11. ISP 1.0 Data Analysis Man 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
  12. 12. ISP 1.0 Data Analysis Man 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
  13. 13. ISP 1.0 Data Analysis Man 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-Mart BigBaazar HyperCity • 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
  14. 14. ISP 1.0 Data Analysis Man 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
  15. 15. ISP 1.0 Data Analysis Turnover In Lacs and Turnover per ISP per month (Big Bazaar) Vs Number of Bays 4 0.9 32 24 4 4.5 5 7 3 3 1 4 0.9 10.67 12 4 4.5 5 7 3 3 1 3 0.75 4 3 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 ISP Number of Bays
  16. 16. ISP 1.0 Data Analysis Turnover In Lacs and Turnover per ISP per month (HyperCity) Vs Number of Bays 14 4 65 48 35 27 7 4 16.25 16 17.5 27 7 2 6 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
  17. 17. ISP 1.0 Data Analysis Turnover In Lacs and Turnover per ISP per month (D-Mart) 8.5 12.5 90 50 12 8 12 15 1 8.5 12.5 18.00 16.67 12 8 12 15 13 3 5 6 1 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 ISP Number of Bays
  18. 18. ISP 1.0 Data Analysis Educational 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 SecA customers • Suggestive Selling coupled with filler roleboth • 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%
  19. 19. ISP 1.0 Data Analysis Time 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 17.86 19.76 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) Kelloggs HUL Coco Cola P&G PepsiCo Customer Interaction and Idle time are the major chunk of the days time utilized
  20. 20. ISP 1.0 Data Analysis Time Motion Study (D-Mart) 2.12 10.59 34.96 3.18 7.42 8.90 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 8.33 7.08 11.46 28.33 2.17 6.52 39.13 6.52 5.43 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) Kelloggs HUL Coco Cola P&G PepsiCo 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
  21. 21. ISP 1.0 Data Analysis Time Motion Study (Big Baazar) 2.08 12.50 13.54 3.13 18.13 13.96 23.13 3.13 15.63 23.96 4.17 13.54 9.38 30.21 1.19 19.05 20.24 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) Kelloggs HUL Coco Cola P&G PepsiCo In stores like Big Baazar, apart from the Idle time, the trend verifies that customer interaction time and refilling time are almost comparable
  22. 22. ISP 1.0 Data Analysis Salary Of ISPs 8500 8500 8600 10000 9000 12000 12000 12500 12000 9000 8500 11000 13000 8700 9000 8500 12000 8000 7000 8500 8000 1200012000 0 2000 4000 6000 8000 10000 12000 14000 HyperCity Big Baazar D-Mart Kelloggs Baggerys HUL PnG Pepsico Coco cola Cadbury Nestle Britannia Parle Saffola GSK Twinings Among the highest salary payers are P&G, HUL , Coca Cola and Twinings
  23. 23. ISP 1.0 Data Analysis Incentive Structure Basically of two types: 1. On the Achievement of monthly target (followed by Kelloggs, Baggerys, Saffola, Twinings 2. On the Share of Shelf (SoS) 1. Audits being conducted and ISPs are rated on the basis of product Availability, Visibility and Shelf space 2. Ratings are given in the Audits which in-turn is converted into incentives 3. 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 1000 500 2000 On the basis of Share of Shelf
  24. 24. ISP 1.0 Learning 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 •
  25. 25. ISP 1.0 Learning 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
  26. 26. Stage 1 In a Nutshell . . . .
  27. 27. ISP 1.0 What 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
  28. 28. Stage 2
  29. 29. ISP 2.0 Stores Selected for Implementation 1. HyperCity Malad 1. Class A consumers account for 80% 2. 2 store promoters 3. Requires throughout product understanding 4. Suited for a Product category as ours 2. D-Mart Malad west 1. Accounts for most volume in accounts for Kelloggs 2. Completely different demographics compared to Hypercity 3. ISPmostly acting as a filler 3. Big Baazar, R city Mall 1. The demography is a mix of both with 66% from Sec A , 22% from Sec B and 12% from Sec C,D,E 2. ISPhas an experience of 4.5 years 4. Metro Cash & Carry ,Bhandup 1. Cash & Carry format 2. Different set of skills required for selling in B2B format 5. Big Bazaar-Mumbai Central 1. Needed two stores as it has a mixed demography of customers
  30. 30. ISP 2.0 The Team Age: 26 Experience:3 year 8 months Edu Qualifications:TYB.com Suchita Raza Jay Sheetal Anjum Shobha Age:24 Experience:4.8 years Edu Qualifications:12th Pass Age: 23 Experience:16 months Edu Qualifications:12th, Pursuing Graduation 3rd year Age: 24 Experience:3 yrs Edu Qualifications: 12th Age: 25 Experience:3 years Edu Qualifications: B com Age: 36 Experience:2 years 3 months Edu Qualifications:12th pass
  31. 31. ISP 2.0 Issues Understood • Lack of Motivation • Hardly any proactive selling understood • Seen huddled together with even competitors • Lots of Idle time • Less informed aboutthe company products • Untrained on how to approach and talk to customers
  32. 32. ISP 2.0 Construct Manning Norms Qualifications 1.For Hyper, 12th Pass or Pursuing Graduation 2. For Super, 12th Pass is preferable 3. For Daily, Can manage with 10th pass too 4.Cash and carry also doesn't need to have much qualified ISP, 10th pass would do 4. 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 Size 1. For stores having sales more than 16.67lakhs a month, 1 ISP is enough 2. Extra ISP is needed for Pringles in Hyper Stores 3. 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 Timing 1.For Hypercity or Stores having more crowd after 4, ISP should start late and end late i.e 11 am to 7 pm 2. For D-Mart, the ideal time is between 10am to 6 pm as they don’t allow ISPs to be in the late evenings 3.For all day Supers like Big Bazaar, the timing of 10am-7pm is suitable as it takes care of majority of crowd
  33. 33. ISP 2.0 Construct Special 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 pringles can 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
  34. 34. ISP Job Description 0-2 hours Greeting, 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 day Non regularised lunch hour leads to waste of time as they wait to huddle together Lunch Break 0-2 hours Greeting, Inventory Management and Shelf Facing 7-8 hours Filling the shelves entirely Updating closing inventory Asking store guy to fill in for him 4-5 Lunch break 2-4 hours Suggestive selling and putting up secondary display Going through the catalogue in the Idle time 5-7 hours Refilling the shelves for the hour last Going through the catalogue and suggestive selling
  35. 35. 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
  36. 36. ISP 2.0 Capability Matrix Knowledge Process Skills Attitude Suchita Raza Jay Anjum Sheetal Shobha Big Baazar (R-City) (D-Mart malad) Hypercity Malad Hypercity Malad Metro Cash & Carry Big Baazar Product Knowledge 5 4 4 3 4 4 Competitors Product Knowledge 4 5 3 4 4 2 Facing And Shelfing Tasks 4 4 4 3 3 3 Refilling 4 5 3 4 4 3 Approaching a Customer 3 4 3 4 2 3 Communication Skills 5 4 4 3 2 4 English Understanding Skiils 2 3 3 3 2 Hygeine 4 3 4 3 5 4 Properness 5 3 3 3 4 4 Total (45) 36 35 31 30 30 29 Points Explanations 5 Excellent 4 Good 3 Above average 2 Satisfactory 1 Below Average
  37. 37. ISP 2.0 PerformanceMatrix Incentive Structure Changes (Tried as a pilot run in 5 stores) Raza Suchita Anjum Jay Shobha Sheetal (D-Mart malad) Big Baazar (R-City) Hypercity Malad Hypercity Malad Big Baazar 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 10 Incentive % 100% 90% 90% 90% 80% 80% Grade Measure 5 Near Perfection 4 Good efforts 3 Average 2 Laggardness 1 Unsatisfactory Performance
  38. 38. ISP 2.0 PerformanceMatrix
  39. 39. ISP 2.0 Customer Lens Some 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 6 times • 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
  40. 40. ISP 2.0 Customer Lens Survey 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
  41. 41. ISP 2.0 Customer Lens Survey 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
  42. 42. ISP 2.0 Customer Lens Survey 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
  43. 43. ISP 2.0 Customer Lens Survey 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
  44. 44. ISP 2.0 Customer Lens Survey Results (Overall) 0 10 20 30 40 50 60 ISP Qualities 51 45 42 39 36 31 18 14 12 Offers and discounts knowledge Product details Knowledge about competitors product Communication Skills Way of approach towards a customer Knowing product whereabouts Looks and properness Clean Unifrom English communication Greeting & Smile
  45. 45. ISP 2.0 Training Inputs Basic 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
  46. 46. ISP 2.0 Incentive Structure Grade Ratings K1 K2 K3 K4 Value Incentive Focused SKU Value Incentive Focused SKU Value Incentive Focused SKU Value Incentive Focused SKU A+ 850 500 893 525 937 551 984 579 A 800 400 840 420 882 441 926 463 B 700 350 735 368 772 386 810 405 C 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
  47. 47. ISP Rewards and Recognitions Two 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 month 2. Will earn a badge of honor (A+) which will be evaluated for future grade change 3. 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 sales 1. Current incentive structure shows nil increment after 105%+, demotivating to go beyong that 2. Cash bonus of 500 and a grade award of A 3. Badge to to worn throughout the month
  48. 48. ISP Grading Matrix Four 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 Criteria A+ 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 target C ----------------------- 7 90-100% of monthly target
  49. 49. ISP Grading Effects Calculations Earlier No. of ISPs 400 Average Salary/month 8000 Average Incentive Achievers 300 Average Incentive Per month 1000 Total Spend on ISPs/month 3500000 After Implementation Grade Number Salary Incentive Grade K1 200 7000 1100 Grade K2 125 8500 1155 Grade K3 50 10000 1212.75 Grade K4 25 11500 1273.39 Total 400 3706847 Tentative Impact on Sales No. of ISPs 400 400 Target per month per ISP P P Number of ISP achieving 80-90% 150 25 Number of ISP achieving 90-100% 200 100 Number of ISP achieving 100-110% 50 200 Number of ISP achieving 110-120% 0 75 Total Sales 370p 412P Difference 11.3% increase
  50. 50. ISP 1.0 Data Analysis MT 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) Company Daily Reports Other Reports MIS Latest Updates My Opinion Help Desk Monthly Target Achieved Catergory Wise Sales Promotion Tracker Visitor Details Kelloggs ✔ ✔ ✔ ✔ ✔ ✔ ✖ ✖ ✖ ✖ HUL ✔ ✔ ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✔ P&G ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✖ Saffola ✔ ✖ ✔ ✖ ✖ ✔ ✔ ✖ ✔ ✔ Pepsi ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✔ ✖
  51. 51. 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
  52. 52. 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
  53. 53. Thank You

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