Best Practices in Consumer and Channel Management

Winning in Indonesias Consumer

Goods Market
Group 8:
Trisha Anand UM15120
Varanasi Arjun UM15121
Vineet Thakur UM15122
Yasasvi Santosh UM15123
Basudev Basak UM15136
Siddharth Sharma
UM15174

Customer and Channel

Management

4
Pricing

2
1

Trade and
Promotion

Advanced Analytics

Tailored Approaches

Route
to
Market

Use advanced analytical techniques to inform their pricepackaging,

and on
promotions
to their key
Tailored assortments,
Evaluate distributors
based
performance.
setting
strategy.
accounts.
Analyze
events
at least
monthly,
using more
Collect promotional
and process data
from
a variety
of sources
when
Tailor their route-to-market
models
to
each
channel
.
advanced
metrics.
making trade/promotion decisions

Sales
Strategy
Performance Management.

Introduction

Framework

Discussion

Key Learnings

Sales Strategy

Tailor
Assortment and
Promotions to
key accounts in
modern trade
Collaborate
with key
accounts.

In fragmented
trade, prioritize
resources.

Route to Market

Tailor the RTM

model to the
channel

Manage
distributor
performance
rigorously

Trade and
Promotions

Pricing

Use analytics to
set and execute
pricing strategy

Review and
change process
more
frequently

Keep a close
watch on instore execution

Use more
granular data
to differentiate
trade rates
Analyse the
impact of
promotions
more often and
re-plan them
accordingly
Invest in trade
promotion
optimization
tools

Build scale
capabilities.

Introduction

Framework

Discussion

Key Learnings

Introduction

Framework

Discussion

Key Learnings

Sales Strategy
Factor

No
1

Others

Tailor Assortment and Promotions to key accounts in modern trade

Custom promotions

25%

50%

<33%

>50%

Rely on only 1 variable

75% rely on economic and

strategic variables

Work with key accounts to develop space strategies

(end cap/in-aisle/out of aisle)

33%

100%

Willingness to collaborate as the main criteria

50%

75%

44%

100%

66%

100%

Tailored products / packaging for modern trade

Sophisticated metrics
2

Collaborate with key accounts

In fragmented trade, prioritize resources

Prioritize resources- invest in high volume
accounts

Winners

Build scale capabilities

Invest in in-house training

Twice as likely than "others"

& use CUSTOMIZED CRM

Use CRM

Introduction

Framework

Discussion

Key Learnings

Sales Strategy

Introduction

Framework

Discussion

Key Learnings

Route to Market
Factor

Others

Winners

80%/20%

45%/55%

No

Yes

Assess distributor on financial performance

(ROI)

50%

100%

Assess distributor on sales performance (ROI)

83%

100%

Focus on actively expanding outlet coverage

33%

100%

Improve efficiency and quzlity of deliveries

50%

75%

Control over individual SKUs

33%

75%

Replenishing out-of-stocks

33%

100%

No
1

Tailor the RTM model to the channel

Serve Modern Trade accounts through
distributors/direct sales
Differential treatment of retail customers

Manage distributor performance rigorously

Keep a close watch on in-store execution

Introduction

Framework

Discussion

Key Learnings

Introduction

Framework

Discussion

Key Learnings

Pricing
Factor

No
1

Winners

20%

100%

Basic- Net revenue per

unit/MS

Advanced- conjoint analysis/

evryday shelf prices

Half yearly

Quarterly

50%

75%

Use analytics to set and execute pricing strategy

Pricing excellence as top priority
Pricing tools and metrics

Others

Review and change process more frequently

Pricing reviews
Cross functional reviews
Manage price gaps

1.5 times more likely

Able to enforce desired price 80% of the time in

the market

Introduction

Framework

<50%

Almost

Discussion

Key Learnings

Introduction

Framework

Discussion

Key Learnings

Trade and Promotions

Factor

Others

Winners

Activity based factors to differentiate trade

rates

86%

100%

Getting data from partner retailers

43%

100%

0%

50%

<50%

75%

No
1

Use more granular data to differentiate trade rates

Collect data from field using mobile technology

and IT tools
Have SKU level data on sell through rates
2

Analyze the impact of promotions more often and re-plan them accordingly
Event level post promotion analysis atleast
once a month
Promotional effectiveness evaluation metrics

33%

67%

Basic (Sale, Vol. impact, total Advanced (Incremental ROI

sales)
for company)

Invest in trade promotion optimization tools

33%

Use of TPO tools

Introduction

Framework

50%

Discussion

Key Learnings

Introduction

Framework

Discussion

Key Learnings

Conclusion
Guidelines
- Sales

Containment
Strategies

Dedicated
eCommerce
Team

Introduction

Discussion

Success
Factors

Advanced
Analytics

Single
Centre of
Excellence

Framework

Conclusion

Clear Guidelines
for Field Sales
Team

Better in-store execution

Guidelines cover all activities like in-store activities, promotions & no. of SKUs
No Indonesian company provide such granular details
On-shelf execution standards should be based on

Greater use of
Advanced
Analytics & new
technologies

Economic data
Shopper Insights
Development Priorities

Advanced Analytics help improve

Use of smartphones will help Sales teams capture in-store data, receive
real time updates and in route planning

Single Centre of
Excellence to
oversee Pricing
& Trade

Introduction

In-store execution
Trade performance Optimization
Innovation

Pricing teams are separate from Trade teams and are distributed
Combine Pricing team with Trade team in a single center of excellence
Single unit present at Business Unit or Corporate level
Results in higher sales growth

Discussion

Framework

Conclusion

Dedicated
e-Commerce
Team

Purchase habits of consumer goods similar to China

Considerable rise in usage of internet and smartphones to purchase consumer goods
Investment required in Online marketing, trade promotions and mobile initiatives
Dedicated resources required in

Key account management

Trade and Customer Marketing
Sales Planning

Containment
Strategies for
Channel
conflicts

Conflicts occur because channels serve both modern and traditional

retailers
E-Commerce channel an addition to the existing channels
Quantify containment strategies such as

Coordinated promotional calendars

Differentiated Packaging for different channels

Refining the strategies as and when needed

Introduction

Discussion

Framework

Conclusion

Introduction

Discussion

Framework

Conclusion

Thanks!!!