The document outlines recommendations for Tic Tac to become the category leader in the wholesale channel in South India. It discusses conducting market research through visiting 125 wholesale shops across 7 cities to understand product availability, visibility, sales and margins. Key findings suggest introducing smaller SKUs, separate flavor packs, transparent packaging and improved schemes for wholesalers and retailers including free units to boost sales. The recommendations aim to increase product visibility and penetration in the price-sensitive wholesale segment.

1. Tic Tac Project Objective – To provide the way-forward for Tic Tac to be the category leader in the wholesale channel Saurabh Gupta Kelley School of Business, Indiana University (Under the guidance of – Mr. Nikhil Singh)

2. Agenda

3. The Approach Summary 2 3 4 5 Understand the wholesale market Design a Questionnaire for the wholesalers Visit wholesale markets across south India Collate and analyze findings, recommend Design an approach for market research Step 1 Step 2 Step 3 Step 4 Step 5

4. The Approach Step 1 Visit the local wholesale market to understand the tricks of the trade

5. The Approach Step 2 Prepare a holistic approach comprising of multiple aspects to proceed

6. The Approach Step 3 Page 1 of 4 Design a questionnaire for market research Visible Reachable Visible Visible Reachable Reachable

7. The Approach Step 3 Page 2 of 4 Design a questionnaire for market research

8. The Approach Step 3 Page 3 of 4 Design a questionnaire for market research

9. The Approach Step 3 Page 4 of 4 Design a questionnaire for market research

11. The Approach Step 5 Recommend Collate and analyze findings; recommend the way forward..

12. Sample size : 125 wholesalers across 7 cities Wholesale Segmentation – The Universe Wholesale Categorization 1. Confectionery (predominantly) 2. Confectionery and Food Products 3. Confectionery and Other Products

13. Wholesale Segmentation – The Universe 1. Confectionery (predominantly) % of wholesale shops

14. Wholesale Segmentation – The Universe Other Products Sold Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 1. Confectionery (predominantly)

15. Wholesale Segmentation – The Universe 2. Confectionery and Food Products 3. Fake Products 2. Local Food Products 1. Popular Branded Food Products % of wholesale shops

16. Wholesale Segmentation – The Universe Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 Food Products – Distribution Distribution of ‘ Confectionery and Food Products’ 2. Confectionery and Food Products

17. Wholesale Segmentation – The Universe 3. Confectionery and Other Products 1. Personal Care 2. Cigarettes / Tobacco 3. Premium Products / Gift Items % of wholesale shops

18. Wholesale Segmentation – The Universe Other Products – Distribution Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 Distribution of ‘ Confectionery and Other Products’ 3. Confectionery and Other Products

19. Competitor Landscape – What’s Working For Them?

21. Polo Availability 77% overall availability – regardless of SKU Which SKU Sells More? Rs.5 Rs.2 Key take away: Half the shops that stock Polo prefer keeping ONLY Rs.2 Polo jars/packs! Shops that sell both SKUs sell Rs.2 SKU more SKU(s) Availability (% of the overall universe) Rs.5 48% Rs.2 73% Both 35% SKU(s) In the shops that stock Polo Only Rs.2 46% Only Rs.5 7%

22. Polo Visibility 62% of the shops that stock Polo have Facings of >2 boxes/jars Facings Category Visibility In the shops that stock Polo Good 23% Medium 57% Bad 20% Visible Reachable Visible Visible Reachable Reachable Good Medium Bad Visibility defined by –

24. Polo What’s Working?

26. Orbit Availability 56% overall availability – regardless of SKU Key take away: 97% of the shops that stock Orbit prefer only Rs.5 SKU Which SKU Sells More? Rs.30 Rs.5 Shops that sell both SKUs sell Rs.5 SKU more SKU(s) Availability % of the overall universe Rs.5 56% Rs.30 3% Both 3%

27. Orbit Visibility 87% shops that stock Orbit have facings of >2 Best in the category! Facings – In the shops that stock Orbit Key take away: Over 80% of >2 facings, driven entirely by the presence of multiple flavors Category Visibility In the shops that stock Orbit Good 33% Medium 51% Bad 16%

29. Orbit What’s Working?

30. Orbit Wrigley’s Display Contest – Pune, Hyderabad

32. Mentos Availability All shops with Rs.5 SKU stock 50 paisa SKU too! Which SKU Sells More? 50 paisa Rs.5 70% overall availability – regardless of SKU Key take away: Again, 40% shops that stock Mentos prefer keeping ONLY a 50 paisa SKU SKU(s) Availability % of the overall universe 50 paisa 70% Rs.5 25% Both 24% SKU(s) In the shops that stock Mentos Only 50 paisa 40% Only Rs.5 2%

33. Mentos Visibility Facings – In the shops that stock Mentos 73% shops that stock Mentos have facings of >2 Key take away: Over 70% of >2 facings, driven entirely by separate jars for every flavor Category Visibility (% of shops that stocked Mentos) Good 26% Medium 52% Bad 22%

35. Mentos What’s Working?

37. Happydent Availability Availability of all SKUs is Poor, especially that of Rs.10 Which SKU Sells More? Re.1 Rs.5 44% overall availability – regardless of SKU SKU(s) Availability % of the overall universe Re.1 40% Rs.5 24% Rs.10 3% Both Re.1 and Rs.5 20% SKU(s) In the shops that stock Happydent Only Re.1 18% Only Rs.5 6%

38. Happydent Visibility Highest ‘Bad’ visibility among the competitors Visibility = Poor! Facings – In the shops that stock Happydent Key take away: 60% shops have facings >2, but sample size is too small to conclude anything Category Visibility In the shops that stocked Happydent Good 23% Medium 52% Bad 25%

40. Happydent What’s Working?

41. Tic Tac – Where It Stands

42. Tic Tac – Where It Stands 60% of Tic Tac monthly sales of >Rs.5000 driven by ‘Confectionery and Food Products’ shops Sample Size: 75 wholesale shops across 6 cities Sales (monthly) by Wholesale Type 57% of the universe 22% of the universe 21% of the universe Confectionery (predominantly) Confectionery and Food Products Confectionery and Other Products

43. Tic Tac – Where It Stands Availability In the shops that stock Tic Tac – regardless of the SKU Which SKU Sells More? Key take away: 78% shops that sell both Intro and T12 sell more Intro because of low price Based on wholesalers’ responses T12 Availability – In Perspective Key take away: Confectionery products’ availability decreasing with increase in unit price % of the universe SKU Availability In the shops that stock Tic Tac Only Intro 58% Only T12 8% Both 38%

44. Tic Tac – Where It Stands Visibility Intro’s visibility (92%) slightly better than that of T12 (85%) Facings T12 Intro Key take away: Intro driving Tic Tac’s visibility. T12 visibility (>2 packs) not impressive enough 65% facings of >2 Packs 91% facings of >2 Jars Category Visibility Intro Visibility T12 Good 41% 30% Medium 51% 55% Bad 8% 15%

45. Tic Tac – Where It Stands Visibility (Good / Medium) – In Perspective Key take away: Tic Tac’s visibility in general is good, but there is room for improvement Visibility in % Brand

46. Tic Tac – Where It Stands Key take away: Sales increase with an increase in visibility, and especially, facings! Effect of Visibility on Sales >Rs.20001 Rs.10000-Rs.20000 Rs.5001-Rs.10000 Intro sales – by facings T12 sales – by facings >3 Jars 2-3 Jars 1 Jar >5 Packs 2-5 Packs 1 Pack

47. Margins Margins – In Perspective * Average Across Regions Distributor Price Retailer Price MRP Tic Tac – Intro Tic Tac – T12 Tic Tac – Where It Stands Wholesaler Retailer Key take away: Tic Tac’s retailer margin is among the best in the category Tic Tac’s wholesaler margin among the worst in category Intro Margin* Wholesaler 3% Retailer 18% T12 Margin Wholesaler 2% Retailer 20%

48. Recommendations

50. Recommendations A SKU of Rs.180 is good, but another smaller SKU will assist in more trade penetration Average Jar Price (MRP) in wholesale Average Number of Units/Jar Price – Jar

51. Recommendations Price – Jar Another advantage of a smaller SKU – gets more visibility!

62. Questions?