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ICT_Tertiary_Sales

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ICT_Tertiary_Sales

  1. 1. Concept Note Real Time Tracking Of Tertiary Sales Data By ICT conceptbyabjuly2016
  2. 2. Tracking of Tertiary Sales data thus essential to 1.Gauge The difference at each level in sales which is directly proportional to amount of inventory left in the warehouse or stores 2.Pull effect of consumers can easily be analysed based on demand generated for respective products 3.Evaluating distribution strategies for channel effectiveness Tertiary Sales Data: A goldmine to GTM Primary Sales Secondary Sales Tertiary Sales Output Sales Inventory Sample Study Insight, i.e. “ PULL” theory of demand induces manufacturers to produce MORE Channel management thumb rule, i.e. “ PUSH” theory of excess SUPPLY No equilibrium in demand and supply and dead sales accounted conceptbyabjuly2016
  3. 3. Consumer Journey and Real Time Data Tracking Govt. Body to regulate rate and publish Doorstep Supply By Store Operators Production Information Received Consumer to track and post requirement Real Time PULL PUSH Data for Govt. to regulate price and supply Govt. Body to ensure supply at chain stores Real Time Sales Data @ Convenience Store Surplus product movement across channel Track competition & build strategy Low Trade Spend in Incentives & Promotion Better Logistic to actual users at a less cost Track customer loyalty Schemes to Actual Users Real Time Consumer Purchase Data Govt. Private Manufacturer conceptbyabjuly2016
  4. 4. I. Daily households buy from chosen favorite stores within location II. Receive daily effective rates III. Receive Coupons, Discount, Refunds and Loyalty bonus IV. Option for payment to retailers like COD or MONTHLY or ONLINE V. Doorstep supply of commodities Solution is to move Towards a digital collaborative platform……….. I. Handheld information about daily demand of local consumers II. Only procure stocks that has demand within location III. Can take more financial obligation for secured supply by channel partners IV. Working as logistic agents between manufacturers & customers @profit I. Enumerated demand by locations and category of product II. Stock management by rotations among channels III. More regulation than spend on promotion IV. Less credit to partners as cash flow is regular V. Better interaction with end customers to test schemes and variants conceptbyabjuly2016
  5. 5. Target Market FMCG conceptbyabjuly2016
  6. 6. 16.25 23.75 53.75 31.25 Rural Tier 2,3,4 Tier 1 Megacity Expected Spent by Locations in USD BLN Indian FMCG Consumer Market by 2020 Source: BCG & CII Reports 650 150 75 Pop. In Million Internet Users Internet Users FMCG Buyer FMCG Online Purchasers 18% 32% 50% 24% 26% 50% Food & Beverages Health Care Personal & Household Market Share Revenue Share Category Share 35% of the population will buy Online conceptbyabjuly2016
  7. 7. Challenges for Go To Market : Private Manufacturers At least 30% Trade Spends are not Planned or Effective at all Channel Partners are either not economically capable or NOT WILLING Average 20% annual attrition from retailers base largely influenced due to conflict with emerging channels like MTF I. More Incentives to Employee and Partners II. High ATL promotion including social media III. High spend for POS display I. Rural Coverage means vast geographical coverage II. Growth trends are volatile due to less awareness III. Stock piled for return I. ROI on promotion is less compared to MTF II. Convention credit giving policy to customers clotting regular flow of cash III. Only food & spices are widely sold whereas MTF & online caters all FMCG conceptbyabjuly2016
  8. 8. 4.9 2.9 2.2 2.13 2.16 1.97 1.64 1.23 Biscuits Refined Oil Non Refined Oil Salty Snacks Toilet Soaps Washing Powder Chocolates Packaged Atta Secured Sales @ Doorstep: Tertiary Sales by Convenience Store In 2015 FMCG sales in unorganized retails was USD~ 19 BLN 25 Million Convenience Store 17.7 Million Convenience store Cater to Food, Grocery & Wellness Only Only Mumbai, Delhi & Kolkata have ~4 million store in these category with per day sales of INR 1000 All convenience stores suffer from limited demands and return stocks due to EXPIRY valued AT LEAST INR 20 Per day per shop At least USD 2.5 BLN worth product may be piled for stock return accountable for 2020 FY only At least USD 77 BLN market exist in Tier 1,2,3,4 cities where 62 % consumers will reside by the end of 2020 At least USD 17 BLN market of health care FMCG already influenced by Mobile Sales by end of 2014 BY PHARMACEUTICAL RETAIL GIANTS conceptbyabjuly2016
  9. 9. Target Market Agricultural Product conceptbyabjuly2016
  10. 10. 1332 Million Source: Agri Ministry Eco & Stat Dept. & Nabard Indian Agri Consumer Market by 2020 2477 Principal Regulated Markets 4843 Sub Regulated Markets 1,47,000 Farmers’ Club Markets Regulated Supply 4.8 2.9 3.3 Inflation Rate Producer Prices Change Food Inflation 158 119 Consumer Price Index CPI CPI Transportation Need for Location based Mandi to curb transportation cost & fair pricing for estimated production of 280.6 MT of agri products conceptbyabjuly2016
  11. 11. Challenges for Go To Market Principal Regulated Market Sub Regulated Market Farmers’ Club & Individual Farmers I. A market exist per 114 Sqkm compared to a regulated market exist per 462 Sqkm II. 24% of traders know MSP of product whereas 19% knows the procurement agencies III. Only 9.9% sell to agencies I. At least 57% traders prefer local private traders and 45% of total quantity normally sold by private traders still II. The regulation in sub market are as stringent as principal market whereas objective is known by a few III. There is less of PPP initiative or collective farming hence lower than MSP obsrved I. Less availability of institutional credit II. Less awareness of ICT based techniques and benefits of regulated market III. High amount of perishable crops in stock result to lower sale even at much lower price than MSP conceptbyabjuly2016
  12. 12. West Bengal WBECSC has launched in July’16 exclusive agricultural retail outlet “Roudra Brishti”. The FCI lab facilities integrated State agricultural & horticultural department have introduced fair price vegetable shop from June’16. India Govt. has launched Mkisan portal in 2013 and complete web based system accessible by feature and smartphone, mainly caters to Farmers and institutional buyers Case Study: Agricultural Marketing Mission •Farmers get a premium price and rational share in CPI •Allow consumers to pay competitive price for food, vegetables and essential commodities Producers’ Benefits •13 FPOs initiated with 275 farmers to start producers supply mart •356 individual farmers who are not part of the FPO, are daily interacting to Singur Hub only •Initiation of logistics support and buyer seller interaction Consumers’ Benefits •Fresh fruit and vegetables at a competitive cost least 10% less than MOP •All essential food products under one roof •Choose locations to shop conceptbyabjuly2016

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