Brainstorming_concept_open_for_discussion

1. Concept Note
Real Time Tracking Of Tertiary Sales Data By ICT
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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
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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
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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
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5. Target Market FMCG
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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
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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
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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
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9. Target Market Agricultural Product
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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
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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
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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
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