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Interim Summer Project Review

HUL-Vijeta: The Wholesale loyalty program

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Objective

To study the HUL-Vijeta Program forTo study the HUL-Vijeta Program for

wholesalerswholesalers & recommend a wholesalerloyalty program for ITC.

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Why Vijeta?

Wholesale channel contributing almost45% of the overall HUL sale (Baroda)

The most successful loyalty program inFMCG running for the past 6 yrs.

Well executedAt a very mature stage

Completely integrated into the HUL ERP

systemSimilarity of product categories between

ITC and HUL

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STUDY Schedule

Gathering information about Vijeta

Gain insight at various levels

HUL TSI/TSOs

HUL distributors

HUL salesmen

HUL Vijeta Wholesalers

Study other similar programs for betterunderstanding of loyalty programs

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How: The Methodology

Personal Interviews for HUL

Sales beat with HUL salesman

Research Methodology

Exploratory Research

Secondary Data Collection

Questionnaire Design

Data Collection & Analysis

Presentation

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HUL Vijeta: Overview

A target based incentive program forthe wholesale channel

Purpose

Drive growth through higher circulation

Substitution of competition

Wholesaler earns points on every purchaseand redeems them for rewards

Vijeta Presentation:

Microsoft Office

PowerPoint 97-2003 Pres

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Exploratory Research

The exploratory questionnaire revealedthe following factors for study

Level of understanding of the program

Benefits Actual V/s Perceived

Evaluation of Rewards

Impact of program

Target related information

Program specific activities Mela

Power SKUs Microsoft OfficePowerPoint 97-2003 Pres

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Secondary Data

Standard evaluation criteria for loyaltyprograms

Medium & Large size wholesalers of ITCwhich would be Vijeta members

Vijeta targets for current MOC Baroda

List of Power SKUs

Other company program details MOC = Monthly Operating Cycle

Sources:

Internet, HUL Target Sheet Baroda, Vijeta Print Material

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Questionnaire: Demographics

Average age of a Vijeta outlet owner is around 36 years36 years (Young &

Enterprising)

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Membership

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Sales/Target Average

Level Particular Amount

Platinum Average of Dets+PP 8,49,000

Average of Foods 2,00,000

Average of Lakme 2,11,667

Gold Average of Dets+PP 2,12,273

Average of Foods 87,500

Average of Lakme 63,750

Silver Average of Dets+PP 1,07,818Average of Foods 40,000

Average of Lakme 65,000

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Target Achievement

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Brand Preference

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Rewards

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Letters / Pamphlets

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Outlet Profile

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Other Observations

94%94% of the outlets redeem their points annually. They do

so in the annual redemption Mela organized by HUL.

62%62% of the Vijeta members surveyed believe that they are

earning fixed additional margin over other non-vijeta

outlets.

82%82% of the outlets prefer hanging sachet strips over

display window as a part of the Vijeta display requirement.

Most preferred reward is Money On Card with 72%72%

respondents liking it. 2nd most preferred reward is Gold with

22%22% of respondents liking it.

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SWOT

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Thank You