Cdo Manual_updated May 6th_ 2013

2012

CDO MANUAL A ready reference for all job relevant information covered by the sessions during induction

Nikkita Dhawan Colgate-Palmolive

Preface This handbook is a collation of various policies and processes that you can refer to, at any given point in time. Please note that this is subject to revision and amendments as and when required. This handbook is the property of the company, and it is for internal use only. No part of this manual may be reproduced, stored in a retrievable system or transmitted in any form without prior written permission of Colgate Palmolive India Limited. Kindly ensure secrecy and return it to the branch in case of separation from the company.

1

From the Branch Manager’s Desk Dear Colleague, This Customer Development Officer Manual is an attempt to document / put together all the policies / procedure / processes available in the Colgate system which will equip you with all the knowledge required to fulfill your role and responsibilities effectively. This manual covers sales fundamentals and the sales standard operating procedures. I would urge you to fully familiarize yourself with the contents of this manual and refer to it whenever you need any guidance about the company’s processes and procedures. Wishing you all the best. Branch Manager (Mr./Ms.___________________) _____________ Branch

2

Customer Development Vision: Ensuring our products are present with the “ideal solution” (5Ps) at the shelf of every retail format that sells our categories

Our Goal: To be recognized by our customers as the leader in providing shopper-based solutions which deliver mutual profitable growth.

Our Purpose: SUSTAINABILITY in achieving our business goals by delivering superior value to Shoppers through a stronger Customer Development organization

Objective Develop a Competitive Edge by Capturing Consumer Demand Through the Trade

Customer development vision CP India Keeping the Shopper at the heart of everything we do….. Become the Best-in-class in In-store Execution, Build Effective Partnerships with Retailers, Stockists and Wholesalers to expand availability of our products, Provide an exciting environment for Team Colgate (including 3P) to…… …….Learn, grow and contribute.

3

CD STRATEGIES

4

Colgate’s Consumer Model

Consumer Consumer is at the heart of everything we do

Use Understand their needs and how to influence use of our brands

Endorse Strengthen our brands with professional endorsement

Choose Ensure shoppers choose our brands in the store

Buy

5

Customers must buy our brands and have them on shelf To ensure the transition from sales to customer development the following must be considered: •

Single minded focus on the shopper

•

Create value for our customers

•

Total business approach

•

Building trust

Sales to customer development

6

Organization Structure

7

South Branch Organization Structure

NK Santosh

Sarath Krishnan CDM – TN/Ker

PL Chidambaram CDM – AP/Kar

Uma Sankar Hyderabad

Vishal Mundhra SDM

Sweetha Ganapathy – AMSD Urban

K B RatishChennai

N Kaalinga

K Ganesh – Chennai Upc

R Prasanna Kumar-

Ramesh

Vijaywada

AMSD Rural

MN Suryakant - Coimbatore Nisha Ganapathy Madurai Jeyahar Devdas – Kerala

C Sowmya

Kavitha

MIS

Branch Secretary

Gopal Krishna Majety

Santosh Kumar

CLM

CFM

Solomon Joy Customer Logistics Officer

R Ravi

R Srikanth

Deepti Ravi

Pharma Mgr

DTM – TN/AP

DTM – Kar/Ker

CDO Pharma AP Seetharam Gupta

Chennai DT IM S Karthik

– Hyd Upc

PCN Babu – Vizag K Shankar – Bangalore GA Chandra– Mysore Srinivasa Rao - Hubli

Sankula

CDO Pharma TN

Hyderabad DT IM

Divya Dhall BHRM

S T Narhary – Bangalore DT CM Roopesh Shetty– Bangalore DT IM

Lokesh Chandrahas an – Hyd DT IM Niraj Kumar – Hyd DT CM

R Yuvaraj – Bangalore DT CM Sudhakar Poojary – Bangalore DT IM

Vijaywada DT CM

8

* The PSR and merchandisers are provided by 3rd party service providers and Stockist salesmen are on distributor’s payroll

CD DISTRIBUITON



As per the diagram, CP uses both Traditional as well as modern trade channels to reach the market.



Stockists are the service providers through which we are able to reach are indirect customers’ i.e. outlets (Retail, wholesale etc.).



The stockist is a contracted middleman who helps us reach our customers.



Wholesalers are also middlemen, the difference is they are not contracted but are independent middlemen.

9

Channel 

It is a logistical chain that gets the product from a manufacturer into a retail environment hence in terms of indirectly covered stores wholesale is a channel.



There are three channels through which we reach our customers.

Stockists Stockists directly service the retail stores.

Wholesale Cover those stores which are not serviced by our SSMs.

Direct Trade CP products are directly serviced to the customers through this channel.

10

Stockist & Superstockist Stockists being our Business Partners have been an integral part of Colgate’s success story and the company recognizes the critical role of stockists in growing our business. It is important to ensure that they must remain committed to excellence.

Stockists

The stockists are contracted service providers who receive supplies from the company against firm orders and arrange distribution of products amongst all outlets at required frequencies. They are responsible for providing customer service.

Superstockist

Superstockists are an additional link in distribution channel to increase rural penetration. The superstockist in turn supplies to Indirect Rural Stockist (IRSTK) who in turn service the retailers and feeder wholesalers ensuring market penetration and facilitating simplification for servicing rural markets.

11

Direct distribution



The universe here refers to all the stores in the market.



Category oral care refers to all the stores which store either colgate products or that of the competitor.



Indirect distribution of Colgate-Palmolive refers to all the stores where Colgate-Palmolive is present but which are not directly serviced by the SSM.



Direct distribution of Colgate-Palmolive refers to all the stores which are directly serviced by the SSM. We must attempt to increase our direct distribution. An increase in direct distribution will ultimately lead to a further increase in sales by increasing our indirect distribution as well.

12

Market segments Traditional Market Segmentation

CP 10: Top 10 Cities of the country based on socio-economic parameters and Market Potential Value are defined as CP10 cities and all Stockists who cover these towns are called CP10 Stockist.

CP100: Next 100 urban towns based on socio-economic parameters and Market Potential Value are defined as CP 100 towns and all stockists who cover these towns are called CP 100 stockist.

ROU (Rest of Urban): All balance urban towns with population greater than 1 lakh are defined as ROU towns.

Rural: All super stockist and direct stockist towns with population below 1 lakh are defined as rural towns. All stockists who cover these towns are called rural stockist

13

New market segmentation

The new market segmentation is based on the AC Neilson data. The four categories are:

Metro Middle India ROU Rural The various segments have been derived based on income levels, buying potential, etc. Though the number of categories in both traditional and new classification is same there exists a difference in the list of cities, towns or villages which fall under each category for instance there are a few CP 100 urban towns which may now fall under ROU.

14

Retail Environment (RE) RE is a group of points of purchase that satisfy the same consumer / shopper needs or requirements. Retail environments have been classified on the basis of assortment and size of the outlet. It is classified as:

Minimart (MM) A self-Service outlet where customer can touch, feel and see our products

Hypermarts (HM) A very large Minimart, with very large footfalls and which typically offers greater discounts to shoppers

General Stores (GS) It is a larger traditional trade retail outlet where a shopper would typically visit for monthly purchases

Wholesalers All those retail stores selling in bulk irrespective of whether they are located in main wholesale market. Wholesalers in Rural are also referred to as Feeder Wholesalers

Medical Stores (MS) All those outlets which deal with pharmaceutical drugs are classified as Medical stores. They may or may not deal in other FMCG products / Categories.

Kirana Stores (KS) It is a traditional trade retail outlet where a shopper would typically visit for top up purchases.

Pan Kiosks These are outlets that typically dispense pan, tobacco products.

15

Price calculations MRP It is the maximum price at which the product is sold to the shopper

Mark – Up It is the concept where the MRP is arrived after including the Retailer’s margin E.g. TDR + Margin = MRP

Invoice Rate It is the rate without tax and stockist margin

Example

16

Kind of SKUs Pull SKUs SKUs with steady and predictable demand are known as pull SKUs. These are usually well established SKUs in the category and are usually supported with high level of advertisement. These SKUs need regular replenishment to service growing demand.

Push SKUs Push SKUs are the SKUs for which the shopper/demand exists but still retailer needs to be convinced to buy it. These SKUs have high growth rates but might have low ERCs.

17

Business practice principles •

All written communications to Stockists need to be approved by CDTL (BM)

•

No written communication from CP to IRSTK

•

All promotions to be run strictly as per promo circular from Branch office on 1st of every month

•

Any special promotions would need approvals from CDTL / SDM (BDM)

•

Submit your expense statements/ reports on-time as required by your Branch

•

Falsifying reports/ expenses can result in termination of your employment with CPIL

•

Get and read a copy of the CP Code of Conduct & CP Customer Development Competencies booklet

18

Making a sales call Why does a CDO need to know about how a sales call should be made? •

CDO’s fundamental responsibility is to train and develop salesman on how to make a sales call.

•

Therefore, you must know the basics & steps involved in making a sales call.

Before market working Check latest SRSS and closing stock (for non intellized check the stock physically) •

Benefits: •

Ensure that the reporting from the stockist level is right

•

Ascertain the investment level of the stockist, and thus ROI

•

Identify slow moving or obsolete stock

Quick review of sales, analyze the business of the current month by •

Brand

•

Channel

•

Salesmen

•

Route

•

Distribution efficiencies

Set your priorities •

Sales targets per salesmen

•

Focus products/ SKUs

•

Focus channels/ accounts

•

Distribution efficiencies

•

Ensure that the salesmen are aware of the targets and sales trends and well prepared to sell to the best of their ability

Ensure salesmen are well equipped with •

Necessary product knowledge

19

•

Samples of toothbrush and focus SKUs

•

Order book/palmtops

•

Latest product illustration folder

•

Calculator & pen

•

Month plan

During market working activities Focus on •

Retailing

•

Range selling and maximizing the output from each store

•

Ensuring appropriate market coverage and distribution

•

Contacting all key dealers

•

Handling objections and generating sales

•

Increasing width of distribution

•

Effective implementation and verification of the monthly promos

After market working activities •

Give and seek feedback to/from the stockist

•

Check the bill books and cash memos

•

Check if the orders booked the previous day have been delivered, look at cancellations, if any and seek explanations for the same with the delivery man

•

Report to area manager on any exceptions and special competitors’ activities

•

Review sales and plan for the balance of the month

•

Check if the book bills for non-intellized stockist with Promo Circular if it is in line with company’s input to trade

•

Checking the bill books of the stockist with the promo circular helps in : •

Curbs misuse of the company budgets

•

Helps reconcile damages

•

Checks the stockist cheque control format 20

•

Helps review the day’s sales

21

PASSION sales call steps 1.

Plan and prepare

2.

Acknowledge and greet

3.

Store check

4.

Secure mandated assortment

5.

Implement basic merchandizing

6.

Offer service and close

7.

Next step for success

Plan and prepare Techniques •

Review the mandated assortment for the specific RE type (specially for rural)

•

Check for the month plan for informed discussions with the retailer

•

Use handkerchief to wipe your face to appear fresh

•

Set your mobile on silent

Acknowledge and greet Technique •

Introduce self – both name and company

•

Wait for the right time to open the call – when the retailer is not occupied with the customers

•

Greet the retailer by name

•

Highlight the activities of the cycle and gain retailers’ interest in the call

•

Make genuine positive statements to enhance the self-esteem of the retailer

•

Ask for permission to do a store check of the available stock in the outlet

•

Reach outlet on time as per route

22

Store check Objective •

To determine right quantity and opportunities for assortment

•

Do store check as per mandated assortment and plan replenishment as per minimum quantity availability based on promotions – consumer and trade

Technique •

Check competition presence

•

Strive to achieve SOS

•

Make mental note of what order should be recommended for the day

Secure mandated assortment Objective •

To replenish as per mandated assortment

•

To do range selling

•

To sell for distribution expansion

•

To sell a trade promotion

•

To sell a consumer promotion

•

Share product benefits and features

Technique •

Make use of samples

•

Recommend an order

•

In order to secure mandated assortment the following need to be done: •

Objection handling

•

Securing mandated assortment in 4 scenarios

•

Closing the sale

Objection handling •

Thank the retailer for raising the objection

•

Mentally identify the category of the objection & acknowledge his concern appropriately by paraphrasing 23

Objection handling Closing the sale – 2 types

Direct close – use when: You are clear on the quantity you want to sell You are confident the quantity will be bought Most appropriate for new product launch/ consumer promo

Alternate close – use when: You have seen the closing signal but are not sure of the quantity

Selling in different scenarios Selling for distribution expansion Selling a consumer promotion Selling a trade scheme Share features and benefits during range selling

Selling for distribution expansion •

Explain features and products in detail whenever you expand distribution

•

Show sample

•

Use direct closing technique

Selling a consumer promotion •

Explain the consumer promotion to the retailer

•

Talk about advertising for the consumer promo

24

•

Determine order quantity based on projections

•

Use direct closing techniques

Selling a trade scheme •

Explain trade scheme

•

Reiterate main terms and conditions

•

Clarify queries if any

•

Look for opportunities to add quantity or do range selling through the trade scheme

Share features & benefits during range selling •

Use the detailer to sell each SKU

•

Mandated assortment by RE guides the range to be sold ( especially in rural)

•

Explain Key features and benefits of products for which you are doing range selling

Implement basic merchandizing Objective

•

•

To gain share of hotspots in outlet

•

To influence faster off take

•

Discuss how retailer can benefit through the use of POPs

Do basic merchandizing even if the call is not productive

Offer service and close Objective •

To fulfill commitments made

•

To align retailer expectations

•

Reinforce trade promotion process

•

Sort out things like expiry products before the retailer points it out

•

Small talk with retailer to get a more personal feeling

Next step for success

25

Objective •

To track target vs. achievement status

•

Maintain toothbrush focus

Review the following •

Target vs. achievement

•

Toothbrush target vs. achievement

•

Number of calls employed

•

Check number of outlets to be visited

26

5 Ps Achieving our sales objective The Right Products •

Are those which the shoppers in a store would want

The Right Place •

In the best-selling position in terms of visibility

The Right Manner •

Placed by convincing the retailer about the products

•

Products are supported by proper display

All the time •

Products are always available in the store

5 Ps     

Product Assortment Product Placement Point of Purchase (POP) Promotions Price

In order to keep up with the change in the environment we must impact the elements of the 5P’s which are within our reach. Product assortment, product placement and POP are the elements which can be impacted by our actions.

27

Product Assortment Assortment - meaning It is the mix of all products that is sold by a particular outlet

Mandated assortment- meaning It is the minimum assortment that should be available in an outlet at all points in time

Why product assortment? It is the minimum assortment that should be available in an outlet at all points in time •

REs have space constraint - can stock only limited number of TP SKUs

•

If the added SKU not in line with Shopper’s requirement, could lead to replacement of our core SKUs

•

Out of Stock (OOS) could lead to loss of sales

•

Hence what not to sell into a RE is as important as what to sell

28

Product placement Product placement - meaning •

It is the space within the category where our products are presented

•

It deals with managing the store layout and shelf

Importance •

70% of purchase decisions are made in store

•

Placement drives shopper behavior

Elements Space Space in an outlet is defined as > 50% of facing vs. competition

Height Ensure eye level in shelf and for hangers 

Females are the most common shoppers



Average female height is 5 ft 5 inches



Eye level should be measured as a zone and not as a single level

Location Shelf 

Product should be placed along with the category

Hangers 

Hangers must be placed in a Hotspot

29

POP Purpose POPs are designed to be: 

Be Informative & Interactive



Capture the attention of shoppers by breaking clutter



Convert shoppers into buyers and thus drive category growth

Benefits Company •

Increase sales

•

Build brand loyalty

•

Enhance Image

Consumer •

Create awareness

•

Enable easy shopping

•

Provide information

Retailer •

Increase sales

•

Build brand loyalty

•

Add new customers

•

Reduces need to keep staff

30

Merchandizing Concept •

Merchandising is an activity which ensures that goods sold IN to the retailers into goods sold OUT to the consumers, through stimuli at the point of purchase

•

It is about placing the right products in the right place, in the right manner

Benefits Company •

Increased Sales/Profits/ Brand Loyalty & Image

Consumer /Shopper •

Increased awareness about the products and helps in easy and enjoyable shopping

Retailer/ Customer •

Increase in Sales/Profits, customer loyalty and helps in getting new customers

Principles of merchandizing Effectiveness of merchandising is not necessarily directly proportional to material used. It is a result of four step process

Attention •

It must capture the attention of the shopper

Interest •

It should generate and retain interest of the shopper

Desire •

It should create a desire in the shopper to want the product

Action •

It should lead them to positive action of buying the merchandised product

Ideal merchandizing rules 

Placement at cash counters/checkout counters 31



Create stable displays



POP display should be impactful



Ensure availability of products



Always display at the Hot location and at Shopper’s eye level



Plan-o-gram Sequence should be as per the traffic flow in the store



Ensure Category Adjacencies for all displays

Store-layout based placements

U Layout

D Layout

Cash Counter Cash Counter

Front View

Desired Location for the Planogram at eye level

L Layout

View

Cash Counter

Toothpaste planogram •

Toothpaste Planogram reflects benefit segmentation

•

Influences shoppers to trade-up to higher value toothpastes

•

Brand Adjacencies & Space allocation by brand given –

To be customized at store level

32

Toothbrush layout Vertical layout

Horizontal layout

33

Distribution Management System About DMS •

It is a Business Planning Information System Software

•

The software provides reports that assists stockists in generating standard reports to monitor business on a dayto-day basis

•

It helps in driving the distribution network through effective implementation of customer marketing plans

•

This software provides ample opportunities to identify strengths & areas of improvement to improve business

Benefits of DMS •

It helps in tracking business transactions

•

It helps in trend analysis, thus enabling to plan for growth

•

It helps in reviewing performance of key parameters •

Hero No.1

•

STEP achievement parameters

•

FOCUS SKU sales trend

•

It helps to analyze brand performance in various channels

•

It helps to track RE wise Sales Value Performance

•

Increased efficiency levels in – •

Weekly phasing

•

Commercial Hygiene

•

Reduced month end skewness

•

Desired ERC

Distribution management system This software is mainly used by stockist for their day to day operations like, 

Order booking to delivery 34



Inventory Management



Promotion circular and online claim process



Sales analysis by Customer/Route/Brand/SKU/Salesman etc.

Please go through the reports mentioned below and understand various ways to analyze it for enhancing the business when you are at the stock point Must See Reports

SRSS (Stock Receipt and Sales Statement) -This report helps to stay updated with the SKU wise sales for that particular stockist. -It also helps in tracking the closing stock for a particular stockist on a daily basis -The slow moving SKUs can also be tracked by tracking the SRSS on a regular basis -It also provides data in terms of the quantity and value of products sold to wholesale during a particular period Note: SRSS is the only report where value can be obtained as base value while in all other reports the value sales obtained is in terms of gross.

Bill wise summary Is an outlet wise data to understand the number of times the outlet has been billed and the value of each bill for a particular period. The various things captured through a bill-wise summary are: -Value of each bill -Track the date on which the outlet was billed (Processed sales) .This helps in

understanding if the outlet is

being serviced as planned on specific days and intervals in a month by the stockist -Track the confirmed date of sales which helps to know the date of supply of products Note: The confirmed sales date should be the next day of date of processed sales which ensures good servicing by stockist .If the gap between date of confirmed and processed sales is more than a day, the delivery issue needs to be addressed at the respective stock point

Date-wise Salesmen-wise route-wise report This report provides value of sales date wise for a particular salesmen or route. It provides the processed, confirmed and total gross sales value

Sales Trend by RE 35

-This report helps in analyzing the sales trend route-wise RE-wise for a particular year -This report also provides month-wise or gross sales by RE for a particular month -It also helps us infer the growth/degrowth in value terms route-wise and RE-wise

Sales Trend by Customer -It provides sales trend in gross value terms salesmen wise RE wise outlet wise for a particular year or for the current year till date -Look at outlets which are not growing, ascertain reasons and develop action plans for the same

Brand distribution custom period -

This report helps in analyzing the distribution of any product/brand/sub-brand for any specified period, salesmen wise and RE-wise

-

Also you can get combined distribution for 2 or more brand/sub-brand/product as required

Brand distribution by RE -This report provides distribution of Product/Brand/Sub-Brand distribution trend RE-wise

Brand distribution by SSM -This provides product/Brand/sub-brand distribution trend for all REs for particular salesmen or all salesmen

Product Exception Report -This report provides route-wise salesmen-wise purchased/Non-Purchase list of outlets for a particular brand /sub-brand/product or all of them for a particular period -Should be periodically provided to the salesmen for their respective routes

Purchase list provides the list of outlets that have purchased during that period. Non-purchase list provides the list of outlets that have not purchased the particular brand/subbrand or product during the specified period -This helps in analyzing, planning and prioritizing the sales for that route or salesmen.

Stockist Performance summary -This provides the effective route list coverage (outlets billed at least once a month) by stockist -It provides the productivity (scheduled calls in a month/productive calls) for a particular RE salesmen-wise as well as overall RE-wise productivity of the stockist -It also provides the average SKU sold in an RE overall as well as salesmen-wise average number of SKUs billed in that month 36

-It also provides the sales value for the month RE-wise salesmen wise as well as combined RE-wise sales value for a particular stockist

Numeric Distribution report -This report provides salesmen-wise sales quantity in dozens for a particular brand/sub - brand /product and value sales for a particular period

Bill-wise SKU-wise report -

This report provides the quantity of all products sold in pieces outlet-wise for a particular period

-

It also helps analyzing the billing of MAS for a particular outlet during a particular period by pivoting

37

Office Web space To access synced STT data for your respective zones on a regular basis you can access office web space http://cpinfo.co.in/stkcom/scripts/office/login.aspx This would help you track on a regular basis:

DMS Sales return 

This report provides the name of the stockist who has taken back saleable/damaged products outlet-wise product-wise and also provides the returned product value with the date. To get accurate data in this report, it is important to ensure that the stockist punches in the return goods entry

in a timely manner

Daily retailing trend -Based on daily synchronization of the stockist , this report gives CPS , processed sales ,confirmed sales, total STT and closing value for a particular stockist till date - Data of earlier months can also be obtained for analysis

Tracking circular (e.g. promo circulars, STEP circular) - This link provides all circulars stockist-wise as well as common circulars. - You can also see those stockists who have not downloaded the circular - The date of downloading the circulars for those who have opened it.

Data Status Report -

This report provides processed sales, confirmed sales, CPS value and closing value on the particular day for any stockist post synchronization

This enables the CDO to track DMS date and synchronization date which helps understand whether the dates are same Also enables him to track overall STT of intellized stockists

PDS MIS This report gives the sales trend by SKU for wholesalers in the particular zone till the synchronization date for confirmed invoices. 38

Online Claim Processing This report provides the data for the stockist who have submitted the claims and those who haven’t.

39

Office web space for stockists 

Will have circulars or any communication to the stockist by the company



OCP and PDS enrollment link

How to use data 

Based on performance details ,conduct benchmarking activity and set goals



Review performance with the concerned stockist salesman every week- Hero No.1,STT targets, ERC, identification of weak areas in terms of market, infrastructure etc.



Monthly evaluation of objective

Benefits of good data management Increased efficiency level, as in 

Weekly phasing’s



Commercial Hygiene



Reduced month end skewness



Desired ERC



Meeting objectives

Responsibilities of Stockist with respect to DMS 

Ensure daily processing of the day’s order



Ensuring confirmation of sales the next day of processing it.



Ensure daily synchronization



Check that only DMS bills should be provided in the market



Ensure return goods if it is not in saleable condition

DISTRIBUTION EFFECTIVENESS PARAMETERS

40

Black book What is it? •

Black book is a link posted on Our Colgate Website

•

IT contains key information/reports of our zone

Features •

Integrated report •

•

With all key information at a glance

Easily available •

Access thru CD portal •

• •

Login to CD portal and click “ Internal Links” to access the Black book

Use your office web space login IDs

Populated at all levels •

Stockist / Zone / Area / Region / Branch

•

Field teams can download reports in PDF format for their respective areas

•

Fact based business discussions with stockists

Key reports CPS trend •

Revenue value and volumes trends for category, key brands & SKUs

•

Week wise CPS Skewness percentage

STT Trend •

Overall value & Closing

•

Toothbrush dozens per store for WS & NWS

RE Analysis •

RE wise performance

41

•

Program stores performance

•

Geographies / State specific Key brand & SKUs ERC trend

•

Stockist salesman productivity

ITT KPIs

42

Distribution effectiveness parameters ERC – effective route coverage Meaning It refers to the % of outlets in the Route List that have purchased our products AT LEAST ONCE in a particular month

Example

Ways to improve •

If Effective Coverage is lower than norms one should go into micro detail and analyze to understand the root cause of the problem

•

Track the non-purchase report on regular basis so that non-buyers are converted into buyers thereby resulting in increased Effective Route Coverage

Average stock keeping unit Meaning •

It is one of the Sales Efficiency parameter that is a tool in increasing the number of line items per order thereby ensuring range selling and resulting in increased sales

•

It refers to the average number of SKU’s sold in a particular month

•

Higher Avg. SKU’s backed by high effective coverage results in increased sales

•

It also ensures increased Cash Memo value per order resulting in sales growth

Example

43

Ways to improve •

Tracking Secondary Brands Distribution (Max Fresh, Active salt etc.), focus on small packs and the range of toothbrushes will result in higher Average SKU

•

Identify the SSM having low Avg. SKU from DMS , work with him & show him how to focus & sell the entire range of products with respect to MAS

Brand ERC Meaning •

The main objective is to ensure distribution of focus brands in a particular month

•

Brand Distribution refers to the % of outlets in the Route List who have purchased the said brand at least once in a month

Example

Ways to improve

44

•

To monitor the Brand Performance from Brand Distribution report every week & review with SSM and work out an action plan

•

To generate Exception Report from DMS Route wise & Monitor it on regularly and take corrective action

Active stores Meaning •

It ensures that the stores are buying at least once in a month

•

It refers to the stores in the Route List that have purchased at least once in a particular month

•

Active stores is an absolute measure where as effective coverage is a relative measure

Example

Ways to improve •

To generate the stockist performance report to gauge which Route has low active stores

•

To infer which salesmen’s route has low active stores

•

The next step would be to generate the list of Non-Purchasers from exception report

•

Track the Exception report on regular basis so that non-buyers are converted into buyers thereby leading to increase in active stores.

Productivity Meaning •

It is a sales efficiency parameter which is a litmus test of the working efficiencies of a distributor

•

High productivity ensures higher sales & thereby leading to growth

Example

45

Ways to improve •

To identify the SSM whose productivity is low which will be gauged by the stockist performance summary

•

Check the reason for SSM’s low productivity – •

•

Whether low productivity is because of SSM not visiting the Outlets according to Frequency norms (date wise bill wise summary)

Train the salesmen to improve the sales call effectiveness

Mandated assortment Meaning •

It is used to ensure that certain SKU’s which are considered MUST for a particular Retail Environment are actually sold to that particular RE thus helping achieve the company’s aim of “Right Product at Right Place”.

•

It refers to the predefined set of SKU’s that must be sold to a particular RE

Overall toothbrush ERC Meaning •

It ensures distribution of toothbrushes across all RE s

•

It also ensures that any one of the SKUs among the entire range of toothbrushes is sold at least once in a particular month to the outlets in the route list

Example

46

Ways to improve •

Focus on selling wide range of toothbrush

•

Focus on selling to all accounts at least one dozen of any brush

•

Effective merchandising in terms of visibility to increase sales

•

Focus on distribution of toothbrushes instead of pushing

•

Always have a goal in mind & focus on achieving it

Wholesale ERC Meaning •

It’s objective is to ensure that core brands are distributed to wholesale channel

•

Wholesale further ensures distribution to ICRE’s

•

Wholesale distribution means that the wholesaler has purchased atheist once a month as per the Mandated Assortment list

Ways to improve •

Generate the list of wholesalers who have not purchased the core brands for a particular geography from DMS report

•

Analyze SKU wise Brand wise distribution or product exception report

•

Get the SSM wise list of wholesalers & track down the sales

Route list expansion Meaning •

It’s main objective is to increase direct distribution of CP products by decreasing dependence on indirect channel for distribution

•

It helps in range selling 47

•

It ensures selling of secondary brands like toothbrushes

Ways to improve •

Identify the outlets in each route which are not covered

•

Identify the villages/areas which are not being covered

•

Plan coverage of uncovered geographies for increase in outlet

•

Add outlets into route list which are already existing or create new route list if the outlets are not covered by the existing route list

•

Review the sales at these new outlets with stockist regularly

Stockist Responsibilities w.r.t. Distribution Effectiveness 

Ensure higher ERC in relevant RE SKU wise each month



CDO should work on ensuring better brand ERC, productivity and average SKU per store



Locate new market and outlets and bring them under coverage on a regular basis



Ensure increase in ERC and right stock weights in each store



Ensure right RE (Retail Environment) classification of outlets

48

Requirements from a stockist & superstockist Investment •

The ratio of self-finance to credit for investment should not be less than 70:30

•

Total capital investment may range between 21 to 30 days of turnover expected by the stockist. It should in no circumstance exceed 30 days value of turnover.

•

The stockist should be prepared to invest when new products are launched and also on consumer promotions

•

Capital is primarily required for : o

Stock

o

Cash in the market and outstanding amount in the market

o

Asset requirement for business

o

Claims

Godown •

Should have a separate godown for CP with enough space to hold maximum 15 days stock.

•

Should have designated place for POPs within the godowns.

•

Should follow the FIFO system of inventory management

•

Should follow the stacking norm of not more than 8 cases on top of one another

Manpower Superstockist •

Manpower to manage the office and warehouse

•

Manpower to cover the market

Stockist •

Should have good salesman who cover not more than 240 accounts with 40 accounts per day

•

Should employ salesmen with minimum 1 year of FMCG sales experience

•

Should employ salesmen who have the ability to use the handheld comfortably

49

•

Should have adequate manpower for delivery

Vehicles Superstockist •

Mechanized vehicle arrangement to deliver the stock to his customers

Stockist •

One mechanized vehicle for every 2 salesmen i.e. Supply of 2 routes per vehicle

Involvement Superstockist •

The owner should actively participate in the business

•

Actively engage with his customers

•

Actively involved in the PSR meeting

Stockist •

The owner should actively participate in the business

•

Should conducts/ actively participates in the weekly salesman meeting

•

Meet Key Retailers and Wholesalers and

•

Take daily feedback from his staff on the market

Reputation •

Should have good repute in the market – amongst all types of retail environments and across the geography

IT requirement •

Should have a Computer and an operator who is involved for the full time required for our operations

50

Stockist selection procedure •

CDO generates a list of all FMCG stockists in the area

•

Details of all stockists are checked with all types of Retail environments across the geography

•

Analysis of details is done by CDO to shortlist 5 stockists

•

Meetings are held with the 5 shortlisted stockists

•

Further shortlisting of 3 stockists out of the 5 is done on the basis of the meetings held

•

AM to meet the 3 shortlisted stockists to make recommendations to the CDM ( CDM may also be required to meet as per the guidelines)

51

Stockist appointment process Start •

The process can be started with the approval of the RM

•

AM or CDO to fill the stockist creation form on http://ourcolgate.win.colpal.com/

Attachments required •

Application letter from the new customer along with address proof (PAN No. and TIN No.)

•

Drug License Certificate, in case of POC customer

•

In case of partnership, a copy of partnership deed to be obtained

•

Duly signed stockist agreement / T & C agreement

•

In case of cheque stockist, Customer bank should be from the approved list of banks (along with last 3 months bank statement)

•

Identify & incorporate Bill/ Credit Limit for the new customer

•

Customer segment needs to be filled in for “24” “32” “58” “66” “95” etc. (24=Modern trade, 32=Super stockist, 58Echoupal stockist, 66=POC stockist & 95= Normal trade stockist)

•

In case this appointment is due to area bifurcation, the justification and RMCD concurrence should be appended to stockist creation form

•

In case of replacement, attach resignation letter of earlier customer or termination letter [ In the absence of these documents a note from AM will be required ]

•

In case of territory realignment, justification should be mentioned on the CMU form

Note •

The documents should be scanned & uploaded (records for future reference)

•

At each stage of approval, an email will be triggered to the next approval authority

Customer market update form – approval process •

Send all requisite documents to Branch Admin / Branch Secretary

•

Initiation of process by Branch Admin/Branch Secretary by login to http://vourcolgatect.win.colpal.com/AP/cpsites/WorkFlow.nsf 52

•

Branch Secretary incorporates the name of CFM,BLM & Warehouse (who are notified on the code activation)

•

Form submitted to RM – CD for online approval & review

•

Request goes to BLM / CSM for route code. BLM to review & mention route code in “comments field” & approve the form

•

Request submitted to CFM for review & approval

•

Form submission to CD Team Leader ( Direct/ Indirect) for review & approval

•

Form submission to VP – CD for approval & comments

•

Code activation by the Finance Manager for the approved form

•

Email notification to BLM & Warehouse

53

Replacement of a stockist •

Stockist replacement is not advisable and must be evaluated by BM and CDM

•

A proper correspondence should be initiated and maintained on the improvement area for the stockist

•

Stockist may be replaced only when all possible attempts to resolve issues go in vain and there is no improvement observed on the agreed improvement area

•

Possible issues : •

financial problems,

•

Attitude & Integrity issues,

•

Poor service to trade

Replacement process •

Take Resignation letter from existing Stockist with clean NDC & NOC for market working

•

Take back all CP stationary, Stocks and POP’s (procedure to take stock back – stock return note to be raised for CDM and BM approval. All stock taken back to warehouse – no stock transfer between stockists under any circumstance, the stock taken back has to be rebilled on the same day to another stockist/s)

•

Appoint a new Stockist as per the CP stockist appointment procedure

54

Billing terms Billing on demand draft This is not the preferred mode of payment. Only in exceptional circumstances with prior approval of RM, DD can be taken as payment. Warehouse will bill the stockist on the physical receipt of DD in warehouse In case the billing to be done without physical receipt of DD, the process will be as below: •

Stockist makes DD (payable at respective warehouse town location) and gives to CDO/AMCD

•

CDO/AMCD signs the copy of DD with the name of stockist and stating that this is in his possession and fax to warehouse

•

The warehouse gives the details of DD (DD No, Date, Amount & stockist name) to RMCD on e-mail

•

RMCD authorizes (on e-mail) the billing on fax of DD. BM / BFM need to authorize in absence of RMCD

•

The warehouse informs BM/RMCD/BA/BLM if DD is not physically received within 3 working days of billing.

•

No further billing till earlier DD is physically received

•

The physical DD to come along with covering letter on stockist letterhead with DD details and stockist stamp and sign

•

The warehouse files such covering letters.

•

The warehouse gives the monthly report of billing done on fax of DD and physical DD received without covering letters to BM/RMCD/BA/BLM

DD commission •

Stockist can claim DD commission along with the DD submitted

•

Original slip from bank is required

•

DD commission should not be claimed in claim top-sheet

RTGS – real time gross settlement RTGS is a centralized payment system in which, inter-bank payment instructions are processed and settled It is done transaction by transaction and continuously (online) throughout the day The transactions happen as and when the instructions are received and finally accepted by the system

55

Stockiest are supposed to remit payments by initiating fund transfers from their bank account to specified VAN / Bank Account Numbers communicated to them either prior or on the due date of payment against invoices billed to them

RTGS process

56

Benefits Since the funds transfer instructions are processed and settled in real time, the credit and liquidity risks are eliminated The seamless movement of funds from one end to another using the IT platform reduces the systematic risks in the settlement system 57

As the funds are received instantly online, in the RTGS system, the collecting banks and their customers can use the funds immediately without exposing themselves to settlement risk.

58

Delivery to stockist Point of delivery 

The transporter gives delivery to the stockist in whose name the invoice has been raised and at the address as mentioned on the invoice & take POD from the same



POD must have stockist stamp, date and signature (Any deviations to this to be shared by warehouse manager with BLM and BLM )

Storages/ damages 

In case of shortages/damages, the stockist will write on POD



The warehouse will debit the transporter and credit the stockist after receipt of POD with shortages/damages written over it



In case of shortages/damages in sealed cases found post-delivery, the stockist will put a request signed by CDO which will be approved by BM for replacement

After receipt of POD, the warehouse will enter delivery date in SAP as per POD and file the physical POD No claim of shortages/damages from the stockist will be entertained post acknowledgement of POD Open delivery should not be encouraged

59

Refusal of consignment Process •

In case of refusal by stockist, the transporter to bring back the entire consignment to warehouse -

No partial delivery allowed except prior authorization in writing from BM is obtained

•

The warehouse will make the return transaction in SAP once the stocks are received back

•

Inform BLM / BFM / RMCD/BM about the refusal

60

Audits Purpose •

Audits are conducted from time to time as per instructions of the branch/HO

•

It is to check if the Stockist are performing as per the norms of the company and following fair business practices in relation with company and Trade auditing is done of the following:

Stockist 

Godowns – whether physical stock is matching with SRSS



Whether reports are maintained at the stock point like Ullage file, SRSS file etc.



Is HN1 payout being made to the salesmen – copy of the HN1 cheque and payment register



Whether claim files/ visibility files/ circular files are maintained



Whether urban Score card is being filled, etc.

Superstockist point 

Godowns – whether physical stock is matching with SRSS



Is daily Sales Report being prepared



Documents for rural Stockist appointment/Resignation



POP maintenance register



Invoices made to Rural Stockist, etc.

Market 

Are schemes circulated



DMS bills are raised or not



Is damaged stock is taken from the market



Are SSMs using handheld



Is the supply of the goods delivered the next day



Are displays / OCC payouts & PDS payouts passed in the market 61



Are consumer promos going in the right RE

62

ROI •

Return on investment is a measure of financial health of the Stockist

•

It is used to help make capital investment decisions

•

ROI is calculated by considering the annual benefit divided by Investment amount

•

It is used to determine whether a proposed investment is wise, and how well it will repay the investor

63

VENDOR MANAGED INVENTORY (VMI) VMI is a means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The manufacturer has access to the distributor’s inventory data and is responsible for generating purchase orders. To further define it, let’s look at two business models:

Under the typical business model: When a distributor needs a product, they place an order against a manufacturer. The distributor is in total control of the timing and size of the order being placed. The distributor maintains the inventory plan.

Under Vendor Managed Inventory model: The manufacturer receives electronic data (usually EDI or via the internet) that gives information on the distributors sales and stock levels. The manufacturer can view every item that the distributor carries as well as true point of sale data. The manufacturer is responsible for creating and maintaining the inventory plan. Under VMI, the manufacturer generates the order, not the distributor. It’s a process, which enables automatic replenishment of the stockist stock based on the averages and agreed inventory norms. So in Vendor Managed Inventory, order generation happens based upon the retailing and stocks available on hand and Billing entirely depends upon retailing done.

How does it work? The stockist transfers the ITT data to CP by uploading the file to the VMI site. The data is received by CP and based on the SKU-wise averages and norms set for the stockist, the order is generated. The order generated is invoiced at the warehouse and shipped to the stockist. The stockist again uploads the data onto the site and the cycle continues.

VMI Process

64

Basis of VMI order Generation: Order Quantity = Norm quantity – On hand stock at stock point Norm Quantity = Norm days – Average Sales (Norm Days are fixed based on the brand and market segment Average sales is the average of the last 3 months STT)

Active and Overlay SKUs Overlay SKUs are those which are not included as part of VMI order generation. These are mainly -Promo SKUs

65

-New Launches/products -Seasonal Products For overlay SKUs orders are placed manually post order generation by VMI before RTGS. Active SKUs- Other than overlay SKUs, all SKUs for which VMI order is getting generated are called Active SKUs

Benefits of VMI 

Both parties are interested in giving better service to the end customer. Having the right SKU in stock, throughout the chain when the end customer needs it, benefits all the parties involved.



A true partnership is formed between the Manufacturer and the Distributor. They work closer together and strengthen their ties.



Stabilizes the timing of order generation – orders are now generated on a predefined basis.



Data entry errors are reduced due to “computer to computer” communication, no manual intervention. Speed of processing is also improved.



There is control over inventory levels as CPS is triggered by STT

Stockist Benefits 

The goal to have an improvement in Fill rates from the manufacturer and to the end customer. Also, a decrease in stock out and a maintain inventory levels as per norms



Planning and ordering cost will decrease due to the responsibility being shifted to the manufacturer



The overall service level is improved by having the right product at the right time in the right quantity



The manufacturer is more focused than ever in providing great service. Quality of inventory (SKU mix) improves.

CDO Benefits 

Less time spent with the stockist on discussing orders since it’s automated.



Time spent fruitfully on how to increase STT and hence business

Responsibilities 66

Stockist 

Ensure data transfer happens as per the schedule



Ensure data is transmitted before 8pm on the scheduled day.



Ensure that the correct file (updated for the day) is sent during data transmission.

Field Force 

Refreshing the VMI averages every quarter in consultation with the stockist

Stock replenishment cycle of stockist

VMI based stock norms The order generation based on fixed day dispatch schedule happens based on VMI norms for stockists

Day 1 Data Synchronization by stockist

Day 2 Order Generation & RTGS

Day 3 Fixed Day Dispatch (FDD) Billing at warehouse

67

Online claim processing Diagrammatic Representation of steps involved in Online Claim Processing

68

Intellized Stockist – Online Claim Processing

Stages in Centralized Claim Processing

Following stages are involved in claim processing:

A.

Upload of Promo Circular

B.

Customer Registration

C.

Claim submission by Stockists

D. Centralized Claim Processing E.

Changes/up-gradation in DMS

Detailed process followed under each stage and control points are given below.

A. Upload of Promo Circular Process: 

Monthly Promo Circular and Schemes are issued at Branch Level by SDM.



These schemes are to be defined in the DMS by Branch IT coordinator based at respective branches.



Defined schemes are then verified and approved by SDM, which is then automatically released to customers in DMS / OCP.

B. Customer Registration Process: 

One

time

customer

registration

needs

to

be

done

on

the

URL

:

www.cpinfo.co.in/ocp/ 

On registration customer is provided with a login ID & password which is used for online claim submission.



During registration customer has to input at least two invoices billed to him, based on this customer name and code is mapped.

C. Claim submission by stockist 69

Process: 

Customer transmits monthly retailing data to company.



IT at Head Office processes and puts the claims data on the OCP site.



Stockist is required to generate claim top sheet in DMS and save on its system. This is saved *.wmf format.



Stockist will explicitly submit line item wise monthly claim in OCP and upload the above saved file in OCP.



System will not allow the stockist to submit the claim for a M0 month Claim in M2 month or later month. In all such cases, stockist will have to submit the manual claims to the company.



Stockist can view the status as “Submitted” on OCP for all such claims.



Unique login ID (six digit stockist code) and password is required for submitting claims.



Claims file generated cannot be modified.



e Top sheet can only be generated through DMS activated system.



Claims cannot be submitted without an E-Top sheet attachment in OCP.



System is configured to ensure that stockist can submit E-Top Sheet of current month only.

D. Centralized Claim Processing Post this, claims are processed in HO by the Central claims processing team and credit notes are passed to each stockist

Manual claims All schemes which have not been defined in the DMS should come in as a top sheet claim duly verified by the CDO/AM with proper supporting to the branch office once a month and post processing the remittances will get adjusted and post processing the remittances will get adjusted in subsequent bills

Credit Notes The Branch Finance team on a monthly basis circulates the list of credit note cleared and also mentions the information of the invoice in which the credit notes have been adjusted. The information of the unadjusted Credit notes is also circulated to the AMs .CDO should collect this information from the AM and check for clearance of all stockist claims.

Pending claims On review of the claims by Branch Finance, if there are instances of shortfalls in the claims submitted, the said claim will be withheld from processing. The major reasons for withholding the claims would be, 

If the claims would have not contained the required attachments or the relevant attachments 70



If the scheme operated is not in line with the Customer Marketing circular issued

In these cases the Branch Finance would circulate the list of pending claims to the Area Manager. CDO must work closely with the AM to resolve pending claims within a month’s time

Balance Confirmations A letter explaining process of Balance Confirmation shall be sent to all Stockists and acknowledgement must be obtained. Thereafter, statement of accounts would be generated on a yearly basis by the CFM and mailed directly to the Stockists and confirmation should be obtained. The standard template in this context is attached as Annexure 1. The qualified confirmations, if any would be reconciled and communicated to the Stockists.

71

Training SSM/Merchandiser Selling Stories Selling stories are the fact based stories of our brands/SKUs useful in converting stated and unstated store requirements into sales. Basis of selling stories are: •

Product knowledge / Features

•

Benefit to the retailer / shopper

•

Prices/Margin – Benefit to the WS / Retailer / Shopper

•

Competitive edge – Advantages v/s key competitors

•

Support plans – Media, Promotions , POP, Activities etc.

•

Statistics / USP

•

Local language / references

On the Job Training (SSM/Merchandiser) 

Observe the routine activities done during the day -Before leaving for the market -During the market work -After coming back from the market



Reinforce selling stories/basic selling skills /merchandising skills and product knowledge while on the job in the market



FCLC-First Call Last Call to understand SSM better 72



O 5 D 5 –Observe 5 calls Demonstrate 5 calls -First 5 calls you have to observe how salesman takes orders /behaves in the outlet i.e





Whether the SSM books the order with order book and check availability while booking



Whether the SSM use selling stories to gain attention of the retailer and create a Win-Win situation



Whether the SSM effectively use Product detailers and samples while booking the orders



Whether the SSM covers the range of SKUs pertaining to that RE

Whether the SSM knows and effectively explains the prices and trade margin of all SKUs -Next 5 calls CDOs should demonstrate the right practice



After demonstrating CDO should observe how the salesman is doing the remaining calls



After doing calls in a few shops or after the last call the salesman should be appreciated for the good points you have observed (positive reinforcement) and then the areas of improvement should be discussed with him and steps to be suggested to overcome the lapses. This is a continuous process.



We should track his working on a regular basis and document it for future visits



Formats of sales records that need to be filled by them should be clearly explained to them so that they do not have any difficulty in filling it.



Post market working all positive aspects of the salesman should be appreciated in front of stockist

On the job training –Behavioral (SSM/Merchandisers) 

Create a bonding with (SSM/PSR/Merchandisers)



Understand their personal and professional issues



A systematic approach should be adopted to enhance his effectiveness by addressing his issues/concerns



Gain a first-hand knowledge of market realities and provide practical solutions

What should be your approach? 

Devote time to the individual while working the market



Be a part of all the routine undergone by him through the day

73



Do some of the routine job yourself and thereby teaching him the right way of doing things



Guidance to be provided



Work with as many individuals once in a quarter



Ensure that Hero No. 1 is tracked to enhance SSM/PSR earnings

Observation of the individual’s working 

Routine activities done during the day -Before leaving for the market -During the market work -After coming back from the market



Effectiveness of his working



Activities and behavior inside the shop



Effectiveness of customer marketing activities implemented in the field



Knows and follows all the must do things of the day in a systematic way



Maintains a checklist on the must do things and track it

Your role Understanding of the individual 

Know him closely



Listen to him with an open mind



Address his concerns



Suggest him alternatives



Check the satisfaction levels

Understanding the market 

Service provided to dealers by our stockist and their salesman

74



Service provided by competitors



Market issues/concerns faced by the dealers



Contact with all key outlets and various channels to know him better



Feedback from key outlets on the support provided by the company and by competitors



Monitoring and tracking competitive brands



Tracking of market rates from W/S and other accounts in various markets



Opportunities available in the market

Coaching 

Demonstrate the right way of doing things



Train them on all aspects where he needs improvement



Make him do the way you demonstrated



Tapping opportunities



Inculcate positive attitude/approach in them



Give and seek feedback

Counseling 

Share best practices followed elsewhere



Make him look at things from different perspective



Make him aware of the benefits he can gain



Scope for opportunities-business/growth



Work towards a developmental plan with timelines



Motivate them to take on new challenges

75

MEETINGS •

•

•

•

Activation Meeting 

Communicate reasons for key changes



Priorities for the Quarter



Some of AM’s/CDOs present on key learning's



Use this forum to Recognize & Reward individuals

Area Meeting 

For the In-store and CM CDOs



Stockists performance



Monthly review of In-store performance /Activities



Set timelines on implementation

CD Team Meetings 

Discuss & Address customer / field issues



Align teams on imp things in the Branch

Stockists Salesmen & Merchandisers weekly Meetings 

Discuss key priorities of the week



Track Hero No. 1



Address store wise issues & find resolution

76

77

78

Ullage Market hygiene Replacement of damaged stocks from the market (Through DMS)

Ullage through DMS •

Ullage = .25%

•

Replacing damaged stocks through credit note is Ullage done through credit note

•

Bill value= actual value-damage value(RE)

It is our responsibility to maintain market hygiene by removing all damaged stock from the market Stockist and SSM should be aligned to maintain market hygiene. The damaged stock should be destroyed at regular intervals by accounting for the same

79

Hero number 1 Details The payout is based on certain parameters with certain weights on a monthly basis.

Sample parameters •

Overall Retailing Value

•

Toothbrush STT Value/ ERC

•

2 Focus Brand Dist./Volume

80

STEP Requirements •

It is an incentive program for all Direct Intellized Stockists. Stockist should be live on INTEL.

•

Stockists should be on VMI.

Objective •

Align stockists to the priorities which have been identifies for the respective geographies/zones

Details •

The stockists are rewarded on achievement of parameters set on a monthly basis

•

It is at the discretion of the company to roll –out STEP for a particular stockist

•

The parameters & payout vary among region & segments

Sample

81

82

OCC • • • • •

An initiative to improve visibility and increase shelf space A toothbrush display stand and POP’s should be put up at vantage points Maintained by our Merchandisers Retailers is given % on all purchases made from the stockist The payout and POP elements vary across RE

83

PSR incentive PSR Incentive is a quarterly incentive program. There are four parameters to be achieved:

Sample parameters Retailing Value Target Focus Brand Toothbrush Dozens Visibilities

84

First among equals First Among Equals is a recognition programme which aims to recognize the best performers at CDO, AM, Region and Branch level based on their performance on specified parameters on a yearly basis. The parameters are changed based on requirements through the year. A quarterly update of FAE scores is provided. E.g. of FAE parameters and construct is as follows:

Sample

85

Permanent Journey Plan •

A PJP shows the CDO’s town wise/route wise / SSM/WS wise working plan for a month.

•

The plan needs to be approved by your Area Manager.

•

The itinerary is prepared and sent to AM AND BRANCH Office, 1st copy to Area Manager and 2nd copy needs to be available with you.

86

Direct Trade-Understanding CDTL (at Branch)

Brief Description of DT Operations 

“Focus Self Service” (FSS) customers are classified as ‘Direct’ or ‘Indirect’ based on whether they are supplied stocks directly from the Colgate C&FA or Colgate’s authorized stockist.



There are 2 broad business formats of FSS customers: Mini-Marts (MM) & Hyper-Marts (HM). Mini-marts are typically small convenience stores while Hyper-marts are large multi-category super-stores. A single customer could operate in multiple formats.



Another classification of FSS customers could be stand-alones (single store) or chains (many stores located in one / different cities)



While the Customer Development Manager (CDM) / Direct Trade Manager (DTM) manage HO-to-HO strategic alignment & business planning with the customers, the Customer Development Officers play a vital role of 87

cascading that alignment within their geographies. Often times, this entails another round of alignment with the customers’ local or regional teams. 

To help create shopper preference for Colgate brands & to win the battles inside stores, CDOs are entrusted with the crucial responsibility of driving excellence in in-store execution while leading their team of merchandisers.

88

R&R CDO CM Accountability

Related Activities

Distribution Management



 In-store management



Market Updates



Data based working and communication



Developing and training  

 Meetings



Trade management - Identify new markets/accounts and bring them under direct coverage on a regular basis - Ensure addition of specialty wholesalers - Ensure stores in route list are classified according to the correct RE - Ensure that SSM efforts are directed to reduce number of nonpurchasers - Ensure optimum usage of activations to drive sales Ensure sales call efficiency - Selling stories range selling, handling objections, etc. Priorities accounts for maximum impact through visibilities (ensure coverage of top 2 outlets in every route) Secure and draw insights from any competitive information available in public domain regarding: - New products - Activities - Schemes - Any other developments Utilize data to drive overall business performance - Setting objectives for market visits - Reviewing salesmen and PSR performance against plan - Reviewing stockist performance against plan Train and develop salesmen through required mode of training ( e.g. new products, toothbrush assortment, focus on medical stores i.e. PASSION understanding) Coach and motivate salesmen to perform well by ensuring that CP benefits are availed by SSMs - Medical benefit - PPF - 80% of HN1 earnings, etc. Acknowledge any issues faced by salesmen in the field and provide support to resolve it Conduct effective monthly and weekly salesmen meetings - Updates on route wise overall STT - Toothbrush STT - Route wise ERC and productivity - Brand wise ERC - Visibility booking - HN1 tracking 89

Reporting



Relationship Building



- Best practices sharing and mock calls Compile reports and information as per requirements communicated by AM Maintain trust and understanding in working with stockist and trade in general, especially partner with key wholesalers to drive business - Share success stories - Communicate program to build off-takes - Mutually work towards category growth - Resolve issues, etc.

CDO IM Accountability

Related Activities

In store management

      

Distribution management

 

Market Update



Data based working and communication

 

Developing and training



Meetings



Ensure compliance to 3Ps (Product Assortment/ Placement/ POP) Ensure that all visibilities are planned (right store, right location and agreement on prescribed terms) are booked Ensure efficient implementation of various visibilities inside stores through compliance to T&C Prevent dislocation and damage of the POPs and ensure that they are well maintained Ensure POPs are implemented by RE Observe & share feedback for all in-store executions - POP placement - Planogram, etc. Take initiatives to drive conversions in the wholesale channel for better ICRE conversions Ensure proper billing of POPs through DMS Ensure tracking of right assortment and stock weight by RE Secure and draw insights from any competitive information available in public domain regarding: - New products - Activities - Schemes - Any other developments Access IMRB scores for assessing job effectiveness Utilize data to drive overall business performance - Setting objectives for market visits - Reviewing merchandizer performance Ensures that all Merchandisers are trained well to perform their job - POP execution - Planogram management - Follow FIFO Conduct monthly and weekly SSM/ Merchandizer meetings to address store wise issues and review performance against set 90

Reporting



Relationship Building



parameters Compile reports and information as per requirements communicated by AM Maintain trust and understanding in working with trade in general to drive business - Share success stories - Communicate program to build off-takes - Mutually work towards category growth - Resolve issues, etc.

AM Accountability

Related Activities

Distribution management





In-store Management

   

Market



Data based working and communication

 

Stockist management - Provide recommendations to stockist for improving ROI, infrastructure and coverage - Ensure availability of optimum stocks at stockist point through VMI or standard order booking Trade management - Ensure the following through his team - Identification of new markets/accounts and bringing them under direct coverage on a regular basis - Addition of specialty wholesalers - Classification of stores in route list according to the correct RE - Reduction in number of non-purchasers - Optimum usage of activations to drive sales Coordinate with local in-store team to ensure development of effective POP solutions Take initiatives to drive conversions in the wholesale channel for better ICRE conversions Ensure efficient implementation of various visibilities inside stores through compliance to T&C Maximize new product launches /promos (on time sell-ins , effective in-store execution and clear communication on shelves) Secure and draw insights from any competitive information available in public domain regarding: - New products - Activities - Schemes - Any other developments Analyze market share and brand wise performance of IDT in the area handled Manage key performance matrices like growth in focus brands, ERC, etc. 91



Developing and training 



Utilize data to drive overall business performance - Setting objectives for market visits - Reviewing CDO performance against plan - Reviewing stockist performance against plan Ensure that all CDOs in his team are trained (e.g. classroom & on the job training) well to perform their job - Ensuring sales call efficiency - Trade management - Stockist management - DT management - In-store management - Data based planned working, etc. Use PM&D tools effectively for driving performance for the CDOs - Setting smart objectives - Self-assessment - Mid-year review - Final review Conduct monthly/quarterly meetings with CDOs and PSRs - Stockist wise STT - Toothbrush STT - ERC by stockist and brand - Key activity updates - Next month activity planning Compile reports and information as per requirements communicated by RM Maintain trust and understanding in working with stockist and trade in general, especially partner with key wholesalers to drive business - Share success stories - Communicate program to build off-takes - Mutually work towards category growth - Resolve issues, etc.

Meetings



Reporting



Relationship Building



Accountability

Related Activities

Distribution Management



SSM

Trade management - Ensure market hygiene (no expiry stock, etc.) - Identify new markets/accounts and bring them under direct coverage on a regular basis - Take non-purchaser list from the stock point and cover those outlets - Use activations and receipt books effectively and consult CDO for any clarification 92



In-store management



Market Updates

 

Data based working and communication



Reporting



Relationship Building



Ensure sales call efficiency - Make effective sales call ( well dressed, should carry calculator, pen, order booking sheet, handheld, detailer, sample of key SKUs and activity grid) by following the PASSION sales steps - Use selling stories effectively for new SKUs and push products - Ensure range selling for better sales - Update activity sheet for the day Observe & share feedback for all in-store executions (i.e. POP placement, planogram etc.) Ensure compliance to 3Ps (Product Assortment/ Placement/ POP) Secure and draw insights from any competitive information available in public domain regarding: - New products - Activities - Schemes - Any other developments Derive daily targets from the communicated weekly goals

Compile reports and information (hard copy) as per requirements communicated by CDO CM Maintain trust and understanding in working with stockist and trade in general, especially partner with key wholesalers to drive business - Share success stories - Communicate program to build off-takes - Mutually work towards category growth - Resolve issues, etc.

Merchandizer Accountability

Related Activities

In store management

  

Distribution management



Market Update



Ensure compliance to 3Ps (Product Assortment/ Placement/ POP) Prevent dislocations and damage of the POPs and ensures they are well maintained Observe & share feedback for all in-store executions (i.e. POP placement, planogram etc.) Trade management - Ensure market hygiene (no expiry stock, etc.) - Ensure tracking of right assortment and stock weight by RE - Update activity sheet for the day Secure and draw insights from any competitive information available in public domain regarding: - New products - Activities 93

Reporting



Relationship Building



- Schemes - Any other developments Compile reports and information as per requirements communicated by AM Maintain trust and understanding in working with trade in general to drive business - Share success stories - Communicate program to build off-takes - Mutually work towards category growth - Resolve issues, etc.

94