1. COMPREHENSIVE STUDY OF
THE WHOLESALE LOYALTY
PROGRAMS AND RETAIL
ENGAGEMENTS PROGRAM IN
DELHI NCR
SUBMITTED BY:
UMANG KAUSHIK
PGDM- MSRIM, BANGALORE
2. UNDERTAKING
I, UMANG KAUSHIK student of PGDM, MSRIM, Bangalore, do hereby solemnly
declare that the Research Project Report on “Comprehensive Study Of Wholesale Loyalty
Programs And Retail Engagement Programs In Delhi NCR Across A Set Of Competing
FMCG Companies” is the outcome of my own efforts and submitted by me in the partial
fulfillment for the award of Degree of Post-Graduation Diploma in Management (PGDM)
Session 2013-15.
The same has not been submitted to any other university or institute for the award of any degree
or diploma.
UMANG KAUSHIK
3. ACKNOWLEDGEMENT
A work is never a work of an individual. I owe a sense of gratitude to the intelligence and co-
operation of those people who had been so easy to let me understand what I needed from time to
time for completion of this exclusive project.
I would like to forward my sincere gratitude and grateful thanks to Mr.Sanjay Rawat who gave
me the opportunity to work on this project and stood by me and without whom I couldn’t have
envisaged the completion of this project.
I am also thankful to my project guide Mr.Saurabh Khurana for helping me to formulate this
project and guiding me in its analysis and implementation.
My grateful thanks to Mr. Sreevardhan, Mr. Anil Jadh, Ms. Rasagya Bagga who took time out to
hear, guide and keep me on the correct path.
Also, I would like to thank DABUR INDIA LTD. and its entire staff for allowing me to use
various resources and material during commencement of my internship in their office.
(UMANG KAUSHIK)
4. EXECUTIVE SUMMARY
The objective of the project is to carry out comprehensive study of wholesale loyalty programs
and Retail engagement programs in Delhi NCR across a set of competing FMCG companies.
The report contains a brief introduction of DABUR INDIA LIMITED and its various products.
Dabur India ltd. (DIL) is the largest player in the ayurvedic pharmaceuticals sector. The
company has interests in sectors like Healthcare, Personal care, Ayurvedic pharmaceuticals and
Food Products. At Dabur, Quality is a relentless commitment to continuous improvements in
product, process and systems to provide consistent quality products to meet our customer’s
requirement worldwide.
This report clearly mentions objectives of study and the research methodology utilized. Research
Design used in this project is Exploratory and the Sources of Information is both of Primary Data
and Secondary Data.
The report contains a detailed view of the tasks, which have been undertaken to analyze the
wholesale market of Dabur . Through observational techniques the attempt has been made to
know about the current market scenario with respect to the brand and its programs.
This project reveals one of the important finding like More and more displays of window hiring
can be given for the wholesale outlets as the window share of the competitive brands remain
wider than that of Dabur. More schemes like ‘Seasonal Schemes’ can be given to the
wholesalers. Through this project I understood practically the relevance of product life cycle in
the market.
The whole project has been a great learning for me to experience and understand the market
dynamics with respect to an FMGC product.
5. OBJECTIVES OF THE STUDY
All companies are having their own planning and business strategies but the company who is
having the best, is the most successful company among its competitors. So the company can get
success within its competitors by applying best and effective marketing strategies.
Primary objectives
1. To generate insights into retailers and wholesaler buying and selling behavior.
2. To list key decisions criteria for evaluation of attractiveness of wholesale loyalty and
retailer engagement programs.
Secondary objectives
1. What are the key factors which influence the retailer and wholesaler’s business
performance?
2. To list key decision criteria for evaluation of attractiveness of Programs
3. To study and evaluate existing retail engagement and wholesale loyalty programs on
attractiveness of above parameters.
(a) What are the parameters on which wholesalers and retailers judge the attractiveness
of an activation program?
(b) How are the current activation programs rated on these parameters?
(c) What are the key strengths, weaknesses of each program?
4. To suggest how can we leverage the existing Dabur Programs, modify or refresh to drive
greater throughput from the Channels.
5. To develop insights into various visibility tools and methods employed by different
companies at Point of Sale to showcase and drive sales of their brands.
6. OVERVIEW OF THE FMCG INDUSTRY
FMCG stands for Fast Moving Consumer Goods and India is a hub for FMCG
companies. Quite a number of people of India are dependent on the FMCG products for
their day today operations. FMCG products are of relatively low cost than any other
products and they offer a quick turnover to the manufacturer. The Rs.85,000 crore FMCG
market in India is growing at a fast pace despite of the economic downtrend. The
increasing disposable income and improved standard of living in most tier II and tire III
cities are spearheading the FMCG growth across the nation. The changing profile and mind
set of the consumers has shifted the thought to “Value for Money” from “Money for Value.
Over the years companies like HUL, ITC and Dabur have improved performance with
innovation and strong distribution channels. Their key categories have strengthened their
presence and outperformed peers in the FMCG sector. On the contrary, Colgate Palmolive
and Britannia Industries are strong in single product category i.e. tooth pastes and Biscuits.
In addition companies have been successful in reviving their presence in the semi-urban
and rural markets.
7. Typical Characteristics of FMCG products
1. Individual products are of small value. But, all FMCG products put together
account for a significant part of the consumer’s budget.
2. The consumer keeps limited inventory of these products and prefers to purchase
them frequently, as and when required.
3. Many of these products are perishable.
4. The consumer spends little time on the purchase decision. Rarely do he / she look
for technical specifications (in contrast to industrial goods).
5. Brand loyalties or recommendations of reliable retailer / dealer drive purchase
decision.
6. Trial of a new product i.e. brand switching is often induced by heavy
advertisement, recommendations of the retailer or neighbors / friends.
7. These products cater to necessities, comforts as well as luxuries.
8. They meet the demands of the entire cross section of population.
8. THE TOP FIVE TOP FMCG COMPANIES IN INDIA
1. Hindustan Unilever Ltd
Hindustan Unilever Limited was previously called as Hindustan Level Limited and it came into
existence in the year 1933 in the name of Lever Brothers India Limited. It has been found that
two out of every three Indian who are using food and beverages and home & personal care
products are making use of the products of Hindustan Unilever Limited.
2. Indian Tobacco Company
Indian Tobacco Company came into existence in the year 1910 with the name of Imperial
Tobacco Company of India. The company is famous for its employees' satisfaction policies and
the employees of the organization are happy with their employer. The company deals with
different FMCG products and it cannot be any more called as Tobacco Company.
3. Nestle India
The journey of Nestle India began in the year 1912 in the name of the Nestle Anglo-Swiss
Condensed Milk Export Company Limited and they are dealing with selling and importing
finished products in Indian market. The company is one among the top wealth creators of India.
The company is manufacturing Indian Consumer products with international standards.
4. GCMMF (Amul)
GCMMF stands for Gujarat Cooperative Milk Marketing Federation and the company aims at
offering good returns to the farmers and at fulfilling the requirements of consumers by offering
them quality products. Of the different products offered by GCMMF, Amul range of products is
the most famous and millions of people in India use Amul products. Some of the products of
Amul include Amulya, Amul Milk, Nutramul, Amul Ice Cream, Amul Shirkhand, Amul
Chocolates, Amul Cheese, Amul Spray, Amul Ghee, Amul Milk powder and Amul Butter.
9. 5. Dabur India
Dabur India deals with personal and health care products. The recent turnover of this company is
Rs. 1899 crores. The company has manufacturing units in different countries and some of their
popular brand products are Dabur lal dant manjan, dabur chyawanprash, dabur amla, hajmola,
anmol, vatika and Dabur red tooth paste.
10. COMPANY PROFILE
Company Name: Dabur India Limited (DIL)
Registered Office : 8/3, Asaf Ali Road, New Delhi-110 002, India
Tel: 011-23253488
Date of Incorporation: 16th
September, 1975
Name of the Bankers:
Punjab National Bank
Standard Chartered Bank
The Hongkong & Shanghai Banking Corporation Ltd.
The Royal Bank of Scotland
Citibank NA
HDFC Bank Ltd.
IDBI Bank Ltd.
Name of the Auditors:
M/s G. Basu &Co.
Chartered Accountants
11. DABUR: VISION AND CORE VALUES.
Vision is to dedicate to the health and well being of every household.
Core
values
Ownership
Passion for
winning
People
Development
Consumer
Focus
Team work
Innovation
Integrity
12. GEOGRAPHICAL COVERAGE OF DABUR
Today, there is growing global awareness on alternative medicine, nature-based and
holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of
popularizing this alternative way of life, marketing its products in more than 60
countries all over the world. Over the years, Dabur's overseas business has successfully
transformed from being a small operation into a multi-location business spreading
through the Middle East, North Africa, West Africa and South Asia. With a basket
including personal care, health care and food products, Dabur India Limited has set up
subsidiary Group Companies across the world that can manage its businesses more
efficiently. Given the vast range of products, sourcing, production and marketing have
been divested to the group companies that conduct their operations independently.
13. MANUFACTURING PRESENCE OF THE COMPANY
Dabur India Ltd's manufacturing activities spanning various consumer products categories are
carried out in 17 factories spread across India and abroad.
Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi
(Himachal Pradesh) and Pantnagar (Uttaranchal).
14. DABUR: STRONG PRESENCE IN FMCG INDUSTRY
Category Position Market Share Key Brands
Hair Care 3 12%
Dabur Amla hair oil,
Vatika hair oil &
Vatika shampoos.
Oral Care 3 13%
Red toothpaste,
Babool, Meswak, Red
toothpowder.
Skin Care 3 7%
Dabur Gulabari, Fem,
Dabur Uveda.
Ayurvedic Tonics 1 67% Dabur Chyawanprash.
Digestives 1 56% Hajmola
Fruit Juices 1 52% Real Fruit Juices, Real
Activ
Honey 1 50% Dabur Honey
Glucose 2 25% Dabur Glucose.
15. BUSINESS STRUCTURE
Dabur operates through three focused Strategic Business Units (SBU).
68%
22%
8%
Business Structure
Customer care division
International business division
Consumer Health Division
16. CONSUMER CARE DIVISION OVERVIEW
CCD=Family product division+ Health Care products division + Balsara + Fem + Foods
division.
Master Brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Réal - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey.
Strategic positioning of Honey as food product, leading to market
leadership (over 75%) in branded honey market
28%
17%
15%
6%
20%
6%
Share of CCD sales
Hair care
Oral care
Foods
Home care
Health supplements
Skin care
17. Dabur Chyawanprash the largest selling Ayurvedic medicine with over
65% market share.
Vatika Shampoo has been the fastest selling shampoo brand in India for
three years in a row.
Hajmola tablets in command with 60% market share of digestive tablets
category. About 2.5 crore Hajmola tablets are consumed in India every day.
Leader in herbal digestives with 90% market share.
CONSUMER HEALTH DIVISION
Dabur to expand its presence in Healthcare sector by launching new products.
Acquired the energizer brand, Thirty Plus from Ajanta Pharma in May 2011.
Has more than 300 products sold through prescriptions as well as over the counter.
Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
Division also works for promotion of Ayurvedic through organized community of traditional
practitioners.
18. INTERNATIONAL BUSINESS DIVISION
Dabur’s overseas business contributes 22% to consolidated sales led by CAGR of
32 in last 6 years.
Markets that Dabur focused on are:
o Egypt
o Nigeria
o Turkey
o Bangladesh
o Nepal
o U.S.
Dabur India Limited (DIL) is the world’s largest ayurvedic and natural health care company and
one of the India’s leading personal and heath care companies. The company’s brand portfolio
comprises of over 350 products positioned across the herbal and natural space.
19. The company markets its products in more than 60 countries across the world. Dabur India’s
FMCG portfolio includes five flagship brands with distinct brand identities:
A trusted name in Natural healthcare for the past 125+
years.
Known for providing products based on the principles
of ayurveda.
Premium hair-care and a leader in its category.
Offers a whole range of nature-based solutions.
It is a market leader with 60% share of the digestive
tablets segment in India.
Réal has been awarded ‘India’s Most Trusted
Brand’ status for four years in a row.
Réal has a range of 14 exciting variants
20. A relatively new member in the family of Dabur’s
brands.
Fem offers a range of fairness bleaches and hair
removing solutions.
21. ACCOLADES
World’s largest in Ayurveda and natural healthcare.
Revenues of Rs.41.1 billion and profits of Rs. 5.7 billion in FY2010-2011.
11 Brands with sales of over Rs.1 billion each.
Wide distribution network covering 2.8 million retailers across the country.
Strong overseas presence with 22% contribution to consolidated sales.
Dabur ranked no.2 Indian Green Brand by Green Brands Global Survey.
22. Amalgamation of FEM CARE PHARMA LTD with the
company
During the year, amalgamation of Fem care Pharma LTD. (FEM) with the company was
completed on 18th
June, 2010. The appointed date of merger was 1st
April, 2009.
Overseas acquisition
During the year, the Company acquired Turkey’s leading personal care products maker
Hobi Kosmetik Group through Dabur International Limited, a wholly owned subsidiary
of the Company for a total consideration of US $ 69 million completed on October
7,2010.
This acquisition provided an entry into another attractive emerging market and a good platform
to leverage across this region.
The second overseas acquisition of the year was of Namaste Group of US, a leading
ethnic hair care group based in Chicago with operations in US, Europe and Africa.
The company acquired 100% stake in Namaste Laboratories for $ 100 million on January 1,
2011.
This acquisition enabled entry into ethnic hair care products market and tap into market
opportunity in the fast growing, hugely populated yet highly underpenetrated consumer markets
of Sub Saharan Africa.
24. STUDYING AND DEVELOPING INSIGHTS
Besides understanding the company, it is needed to understand how market has perceived the
brand over years. Though the perennial products of the brand have been able to make a mark in
the market, the seasonal products may or may not take the toll. To swipe off the market with the
best possible techniques it is needed to study the present structure for suggestive improvements
in the brand and its functioning.
The market path can be understood by the following chain:
The above diagram shows that brand distributes through 2 networks: Wholesalers and Retailers
who further take it to the end consumers.
Dabur
Wholesalers
Retailers Consumers
Retailers
Consumers
25. For every business organization, it is required to meet the demands of their key customers i.e,
wholesalers and retailers who take the product further to the consumers. The brand has to make
sure that the wholesalers and retailers are buying from tem on a continuous basis which will help
them mark their presence in the market.
Besides this there are certain factors which influence the performance of retailers and
wholesalers on a whole. Not just the product but also a few other things that come along with it
drives the business performance.
The key factors which influence the retailer and wholesaler’s business performance:
Sales & Promotion: Sales and Promotional are those factors by which a retailer or wholesaler
gets the information about the product. This is done by Stockiest Sales Man commonly known as
Sales Man or Sales Boy or SSM. SSM are appointed by Stockiest and his/her work to take order
from retailers and wholesalers, they also help in giving information to the customer about the
products and the schemes which are launched by the company. SSM plays important role in
Sales activities because they only ask the customer to purchase the products and also they help in
promoting the products by giving full specification of the products.
Customer expects good service from organization so that they can sell more and more products.
Good services can be given by giving best possible sales service and promotional activities.
Offers for The Retailers & Wholesalers: Offers influences each and every human being on this
planet. Retailer’s point of view is that the company should give some offers to them on the
orders placed by them it can be Margin, Launching Schemes, Merchandising, Festive Offers,
Loyalty Schemes, etc. Retailers want that they should get maximum profit by investing less
amount of money for the stock. Whereas wholesaler’s needs are totally different they don’t want
any display offers they just want high margin on the products purchased by them and also they
want they should get some extra profit because they purchase products in a bulk form they
expect cash discount on their total bills.
Shelf Life: Retailers also influenced by the time period their shelf is going to be acquired
whether it is for a long period or it just for a short period of time. Short period may lose their
26. sincerity towards the program because other companies can offer a better duration which will
ensure the retailer that for a certain period of time this much amount is fixed.
Product on Display: Retailers also influenced by the type of product they want complete
information that the display of the product will be beneficiary for them or not. They want to
know under which category the product lies in is it a major product of the company or the
moderate product whether the display will increase the demand of the product and the display
will influence the consumers to purchase the product or not.
Returns & Exchanges: Retailers and wholesalers are also influenced by the exchange and
return policies of the company like what kind of replacements are their like whether they take the
damaged products, they take the expired products, exchange of rat bites are there or not and what
they charged while returning the product is it on MRP or they deduct some percentage of
amount. Return and exchange is very high in FMCG companies because they products have a
life duration in which if it’s not consumed it is taken as expired product for that reasons
companies have to make certain rules which are followed by the retailers as well as wholesalers.
Replenishment: Replenishment means to fill the products if it is out of stock or less in number
inside the shop. This also influenced a lot to the retailers and wholesalers because once the
product is not available the consumer will shift to outlet which is not a good sign for retailer and
wholesaler. In that case they also checks in how many days SSM is visiting them to collect order
and in how many days it will be delivered to them after placing the order. They also want a
procedure where in case of emergency they can order the product through phones before the visit
of SSM.
27. The programs offered by the brand has certain characteristics that attract the retailers and
wholesalers towards itself. These programs that are offered by the brand may or may not be a hit
in the retailers’/wholesalers’ market, depending upon the sales growth.
Key decision criteria for evaluation of attractiveness of Programs:
Criteria for evaluation of attractiveness of Program contains the following points:
1. Benefits to the retailers: Retailers think before taking any program that what benefits they
are going to get and what will be the policies of the program. From retailers point of view
these are the following which should be considered:
a) Offers: What kind of offers company is going to provide to the retailers so that they
can earn profit from it. Like what amount of cash discount company will give to
acquire a shelf inside the shop and the amount paid to retailers is beneficiary for them
or not.
b) Reward Schemes: Retailers also consider that what kind of reward Scheme Company
is providing to him and what are the other aspects of it.
c) Sales Target: Sales Target is the most important point that are considered by the
retailers. Sales Target are given to retailers to enter into any program by some
companies in this retailers have to think whether they will be able to complete the
target or not and what if they doesn’t able to complete than is there anything they
have to pay as a fine.
After checking all the points a retailers takes any program which can be beneficiary for
them.
2. Benefits to the Wholesaler: Before entering into any program wholesalers have to think
certain points because programs for wholesalers are totally different as compare to
retailers. Following are the points which wholesalers keep in mind before entering into
any activation program:
a) Offers: What kind of offers company is going to provide to the wholesalers so that
they can earn profit from it because they don’t have display to sale off they want
offers which can help them in buying the products in bulk.
28. b) Reward Schemes: What are the reward schemes company is giving to them and what
are the parameters of that schemes. They consider whether the scheme is of cash
discounts, gift vouchers, redeemable points, etc.
c) Sales Target: Although sales of wholesalers is very high as compare to retailers but in
that case the sales target is also high for them. They have to consider the fact whether
they will be able to complete the target or not, whether the product of the company is
in demand or not.
Based upon the market visits, the following data was incurred about the retailers business with
Dabur.
Evaluation Criteria Home & Personal Care Health Care Food & Beverages
Window Price 250-300 250-300 250-300
Offers Name Parivar Parivar Parivar
Sales Target Minimum 15000 rupees Minimum 15000 rupees Minimum 20000 rupees
Similar to what the retailers previewed, the wholesalers also had their own perspective about the
brand and its offerings:
Evaluation Criteria Home & Personal Care Health Care Food & Beverages
Discount Rate .8% & 2.5% for Kings and
Star respectively
.8% & 2.5% for Kings
and Star respectively
1.5%
Offers Name Kings & Star Kings & Star Khazana
Sales Target Minimum 30000 rupees Minimum 30000 rupees Minimum 40000 rupees
What does attractive program mean to retailers?
As we know retailers purchase stock in a limited manner they don’t buy products in bulk, so for
retailers attractive program means that they can get maximum returns or rewards from a program
by investing a small amount of money or we can say attractive program means that they should
not be compelled by the company to purchase a huge amount of stock and in which they can sell
29. their Display Window without investing a lot. Retailers thinks that attractive programs are those
programs in which they are not bound by the company and in which they can get a good
response by the consumers about the products.
What does attractive program mean to Wholesaler?
Unlikely how the retailers perceive the brand’s program, the wholesalers’ hold a different
perspective to it. The perspective is more driven towards the discounts they can obtain. The idea
that revolves in the wholesalers’ mind is to make the best use of available offers and earn at each
channel possible.
Based upon the views of the retailers and wholesalers, a small evaluation was done to know
where the brand actually stands. At a point where he other brands play a competitive edge to
make sure that their business rate is higher, it is significant to know how will Dabur be able to
sustain in the longer run.
The following ratings are on a scale of 1- 5 where 5 being the highest and 1 being the lowest.
Program Name Reatailers Wholesalers Self-Evaluation
Parivar 2 - 2
Kings 3 4 4
Star - 4 4
Khazana - 5 5
Keeping in mind the above ratings, a study on the key strengths and weakness of each program
was listed which is as follows:
Program name Strengths/Opportunities Weakness/Threats
Parivar Popular amongst retailers and
better display techniques for
the customers
Other companies pay more
even without a target like
Lakme
Kings Cash discounts on purchase of High target to buy
30. higher quantity
Star Highest cash discount
amongst all programs
Not very popular amongst the
wholesalers
Khazana Display area for merchandise Other companies place their
products without a
target/credit
SIGNIFICANT CONTRIBUTIONS
Beyond the regular chores of the project, it was important to contribute to the brand on an
individual basis. Since the project was market driven, the main idea was to aware the
market/retailers/wholesalers about how better can they optimize the sales keeping the brand
image in mind.
1. Convinced five outlets to purchase Dabur Real Juice from our deal not from market in
Dallupur and New Koundli market and informed that Sales Officer to visit to the outlet.
2. Solved the problem of Display Payment on three outlets Bhudh Vihar market by
collecting the information from Sales Officer, SSM and Retailer.
3. Asked salesman to promote newly launched products of Dabur.
4. Convinced retailers to put the Real Juice Display Rack in front so that people can see it.
5. Helped the merchandiser to guide him where to paste and where to tie the posters and
flags.
6. Explained SSM the meaning of Drinking Yogurt. How it is different from Lassi and other
yogurts that are available in the market.
31. FINDINGS
Undoubtedly the brand has a presence in the market for several decades. It has always had that
competitive advantage in the market which has been adding to its glory for years now. Certainly
the market expansion has led to an era where the competitive moves of the other brands makes
the market a stiff place to be.
The following are findings separated in 2 categories: Retailers and Wholesalers.
For Retailers:
Targets are given by the company to selected customers, which depends on the area or
the outlet it may be more where the sale is high and it may be less where the sale is less.
Some companies engages the retailer without any target for example Lakme & Britania.
Sale of the product totally depends on the nature of business as these days chemists also
keep cosmetic products but they don’t order in bulk they just order in less quantity just to
fulfill the requirement of customers. But if we take grocery they buy cosmetic product in
large quantity because consumer approaches more to grocery store as compare to
chemists to buy cosmetic products.
For engaging the retailers every company have their own criteria like as follows
(a) P&G gives 4% of the total sales to the retailers to acquire the shelf.
(b) Racket gives 3.5% of the total sale with a minimum target of 18000 rupees to acquire
the shelf.
(c) Colgate Palmolive gives 6% of the total sale to acquire the shelf.
(d) Hindustan Unilever gives 1.5% for soaps & surfs and 3% for oral and health care. If
sales goes beyond the target than 1.5% extra is rewarded to the retailers.
(e) Himalaya Drugs gives 4% of the total sales
(f) Lakme gives 500 rupees for display without any target.
(g) Nestle gives 500 rupees for display to chemist outlets and 2.5% of total sales to
grocery outlets, there should at least a sale of 15000 rupees to get the discount and it
is given to selected retailers named as Star Counters.
(h) ITC gives redeemable points which is almost equal to 3% of the total sale.
32. Dabur uses some different strategies to engage the retailers they have divided the retailers
in three form.
a) Parivar: It is a retail program in which a target is given to selected retailer to acquire a
shelf and in return he gets amount of 250-300 rupees. This program is evaluated in
every 3 months. Target totally depends on the area and the size of the outlet.
b) Khazana: It is a retail program for Dabur Real Juices. In this program 1% of the total
sale is given to the retailer by setting a certain target for selected outlets.
c) Kings: It is a program for big outlets to acquire the shelf. In this program higher target
is given to the retailers and in return they get amount of 500 rupees.
Cadbury had a unique retail program called Milan Cadbury. In this program you get a
redeemable reward points by which you can collect gift hampers, movie tickets, dinner
etc.
Companies like Revlon, Onjus, Sunshine Orchid, Mankind and many other companies
which have less products in market spends a lot on acquiring shelf and engaging retailer
by giving them schemes without any target.
Dabur Retailers
Parivar
Khazana
Kings
33. For Wholesalers:
In wholesaler programs are totally different. Companies don’t acquire shelf they just
want that the wholesaler should buy more. In this certain cash discounts are given to the
wholesaler and every company has its own criteria which is as follows:
a) Hindustan Unilever used to have a program named as Vijetha. This program was
subdivided into Super Vijetha & Vijetha Chemists. In Vijetha Chemists 1.5% cash
discount and 2% redeemable points of the total sale are given to the wholesaler after
the completion of the fixed target. Super Vijetha is subdivided into three classes
named as Silver, Gold, & Platinum. In Silver 1.5% cash discount and .6%
redeemable point of the total sale are given to the wholesaler, In Gold 1.5% cash
discount and .8% redeemable points are given to the wholesaler, In Platinum 1.5%
cash discount and 1% redeemable points are given to the wholesaler.
b) P&G gives redeemable points which is almost equal to 1% of the total sale of the
wholesaler.
c) ITC gives redeemable points which is almost equal to 3% of the total sale of the
wholesaler.
d) Schemes of Tropicana depends on season they give around 1.5% in of season &
around 3% of the total sale in season.
Small companies which have less number of product spend a lot on activation program to
increase the sale of their product.
In wholesale market the wholesaler just want cash discount as the investment is more in
wholesale market as compared to the retail sector. The wholesale market is driven by the idea of
more cash and more discounts. They believe in engaging into the purchase activities of the
company only if the discounts they receive is more than any other brand.
34. SUGGESTIONS
Though the brand has tried making mark in all the nook and corner possible, but there are certain
aspects which needs to be looked upon for an efficient working of the company. If the brand
looks upon the following aspects, it is sure to drive in sales and customers for the brand.
1. The SSM should be given proper training about the new products that are launched by
Dabur.
2. SSM should be asked to try placing all the products so that not only major products but
also other products get a market position.
3. The Parivar scheme should me in percent form rather than fixed price because percentage
seems more to the retailers as compare to fixed price.
4. Some other procedure should be there rather than PDA for SSM visiting wholesalers
because it consumes more time.
5. Merchandiser should visit Parivar Outlet to arrange the shelf because retailers don’t take
care of that window and also they start keeping other companies’ producta in the shelf.
6. Display amount should be credit on a monthly basis because it attracts the customer to
stay with the program.