GDFL 29th November 2010

8/8/2019 GDFL 29th November 2010

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Grameen Danone Foods Ltd.

Breaking through in the slums

1

An attempt to build a model to bring tolife in slums our social and health goals,in a sustainable way



Brief Brief

H ow to develop slum sales?

The size of the opportunity

Consumer demand : how toincrease it

Immediate next steps to getstarted



Agenda outline

Slum understandin g & key implications

Size of opportunity

Relevant offer

Route to market and demand creation

Financials

Unedited feedback



A great many slums with transient population

Need to target slums carefully Hard to build consumer loyalty

Recruitment & retention of ladies will be important

40% seasonal slum dwellers

90% < 2 years in slum

NGO provide free food in someslums

S ome no-go areas

slums

population

7 slums = 1 0% population

765 slums = 8 0% population

4 500 slums in Dhaka alone

S ource: www.cpc.unc.edu, 2 00 5

S ource: CU S 200 6



There is an extremely hi gh density of population inslums

S mall distances between households could allow higher call ratesP otential to create quick word of mouthNo space for mini-events in current format in many slums



Virtually all food in the slums is purchased, notVirtually all food in the slums is purchased, notfarmed, and consumes 75% of all household incomefarmed, and consumes 75% of all household income

P er monthEst. ave. h/hold disposable income: 6 000 TkO f which spend on

food 4 500 Tkeducation, rent, snacks etc. 15 00 Tk

% slum households eating each food type

S ource: Bangladesh slum report

S ource: Qualitative assessment, N ov 2 0 10

There is a genuine protein & nutrient deficiency in thediet

2 S hokti per week per child is an achievable 3 % of household food expenditure (5 Tk x twice per week x 3 children / 4 500 Tk)

E stimated income & expenditure



P acka ged consumer products are familiar and easilyavailable to people in slums via kiosks/shops

Expectations are relatively high, S hokti competeswith existing snacks

No role for CA RE portfolio approach Role for kiosk owner?



Ladies have varyin g levels of professionalism &motivation, sales assistant is a lo gisticadministrator

Learn from ownership, rigour and training of CA RE approach



Chilled supply chain is unreliable, costly andcomplicated

Ambient product & supply chain could be simpler and cheaper



Agenda outline


Size of opportunity

Relevant offer


Financials

Unedited feedback



# household 500,000

Av. # Kids / household 3.1Total Kids Population 1,550,000

The opportunity: Slums Market PotentialThe opportunity: Slums Market Potential

Scenario Penetration WeeklyConsumption

Taka (MR P)

L ow 10% 1 unit 40,300,000H igh 30% 2 units 241,800, 000

Scenario Penetration WeeklyConsumption

Taka (MR P)

L ow 10% 1 unit 64,480,000

H igh 30% 2 units 386, 880,000

Pouch (annual)

Cup (annual)

*Consumption target of kids from 3-10 is estimated at 50% of total kids population



12

Not all slums are equal

Size varies: 1-8500 householdsFlooding riskNGO coverage where food is offered for free; our presence notaccepted

Some slums with no schools



Criteria to select the slums

Size

L ocation

Safety

Spending power

Start with largest first

Proximity to factory/dcAvoid transient & temp

slums (flooding)

Permission of Maastaans?

NGO competing



First step: penetration of Mirpur district will

provide 10 % of Dhaka slums household covera ge

location acres hh

Kalabagan slum, P ora slum, Bauniabad tinshade colony,Block-ABCD E , Baonia Badh Bastee, P allabi

16 85 00

P aris R oad Bastee & Tejgoan N on Local R ilif camp, Lane-18,1 9 ,20 , S ectiuon- 1 0 , Mirpur, S ection-1 0 , Block-A, P allabi

10 .3 555 0

F ayzunnessa Waqf S tate,residential area, F ayzunnessasarak (doaripara main road), Doari P ara, P allabi

35 4000

Muktijoddah Abason Complex, Zoo R oad, Botanical G arden,

Mirpur

13 35 00

Arambagh bastee, R upnagor, P allabi 2 0 4 275

N orth Kalsi/ G hati para, Kalshi, P allabi 18.5 4000

Bhari bandh slum & adjacent with colony mosque, Begun BariTek, P allabi

16.116 2 940

Kallayanpur no. 4 P ora bostee, S hahid minar road,Darussalam, Mirpur

9 3000

5 N o. Bastee (Kawser Mia- er Bari), Madrsha R oad, Bhashan

Tek, Kafrul

9 27 00

Duaripara bastee, Duaripara main road, Doari P ara, P allabi 2 0 288 0

R upnagar tin shade, R upnagar road-1, R upnagor Tinshed,P allabi

15 285 0

S atter Mollah Bastee, S atter Mollah road (3), P allabi, P art-1,P allabi

12 27 00

Damal cott Bastee (bassthan Bastobaon S amity- er Chairman), Lalasharai R oad, Dhamal Kot, Kafrul

5.7 1 9 50

13 of the largest slums inMirpur equals 4 8 8 4 5 HH out of 5 00 000 total dhaka

slums ie 1 0%



Agenda outline


Size of opportunity

Relevant offer


Financials

Unedited feedback



The ri ght product, price andtar get

Product:healthy, tasty, easy to use

Price:affordvaluity

Target:Buyer mom

Consumer - kids



Feedback on pouch product

H ealthy

Tasty

Easy to use



5 Taka pouch

The Cup vs. P ouch Dilemma

Today Pouch formatbrings affordability

& long life at the expenseof perceived value, taste

& access to broader target(i.e. not for adults & very young kids).

Bring Value

Be Accessible

Value

formoney

Affordable

7 takacup



The ri ght product, price andtar get

Product:Ambient product, new formula

Price:7 taka cup vs 5 taka pouch Target:

Buyer momConsumer - kids

Newformula



TestNew formula pouch(5 taka)

New formula ambient cup(7 taka)

The way forwardThe way forwardmeetin g the expectations of our consumersmeetin g the expectations of our consumers



Agenda outline


Size of opportunity

Relevant offer


Financials

Unedited feedback



Executin g the strate gyExecutin g the strate gy

3 b b to step successfully in selected slums

Winning approachto b oost awareness

cost-efficiently&

fast

More efficientRoute To Market

inspiredb y the

CARE Model

Step changing lady¶simpact b oth

in demand creation&

sales generation

1 2 3



An almost fully exploitable source of inspiration: The CARE model

A wider a portfolio which meanshigher household penetration andopportunity for cross-sell

Care L adies service almostindispensable where small shopsare not easy to be reached

Independent hub owner who takesresponsibility for efficientlymanaging the business whenrecruiting, training, settingcoverage

Strong training and recruitment of hub owners

Chance for partnering with otherproducts in slums to be considered

Slum ladies potentially incompetition with local small shops

L everage on the potentialmotivation of H UB owner whoshould behave entrepreneurially

Copy and paste the training /

recruitment / motivational model

Key finding Implication in the slum



Grl i s

cr t

Hub ge rresp sibl e f rrecruit en t,

ed uc ti n, gt

& tr ining P r f essi na lise & anage

perf r an ce,red ucestur no ver

P roxi ity &kno wledge

of th e slu sis critic al

100% Focus on100% Focus onsellingselling ShoktiShokti- -

DoiDoi

WellWellrespected &respected &connectedconnected

ladiesladies

Managemen t of Grameen Danonelad ies: Key Fact ors of succ ess

Outsource management of ladiesto

A) Kiosk managerB) Specialized hub managerC) Change sales asst role to

incentivised hub manager



The sales force: a model to help calculatethe number of sales ladies required

Sales ladies needed analysisSample Slum: 13 Subslums in Mirpur (10% of the total

slum households)

Total P opulation 2 9 3, 0 70

Average # of P xH ousehold 6

# of F amilies to be contacted 4 8,8 4 5

# of F amilies contactable per hour by avg GL 30

# of FIEL D working hours per day by an avg GL 5

# of FIEL D working day per Month by an avg GL 20

# of feasible contacts per Month by an avg GL 3, 000

# of ideal contact per family on a Monthly basis 8

# of contacts needed to secure optimal coverage 3 90 ,76 0

# of sales ladies needed to secure optimal coverage130



.and the income they could possiblyearn

Sales lady and hu b onwer income analysis b ased onmarket potential

Sample Slum: 13 Subslums in Mirpur (10% of the total slumhouseholds)

Average kids per HH 3. 1

Total Kids population projected 151 420

P enetration option 1 0% 10% 20% 20%

Weekly consumption frequency 1 2 1 2

The potential sales of pouch at weekly 5tk 75,71 0 151, 4 20 151, 4 20 30 2,83 9

Weekly income projection for sales lady 1 40 28 0 28 0 55 9

Sales lady income monthly 559 1,118 1,118 2,236

Hub owner income monthly 3,494 6,989 6,989 13,977

* H ub owner income monthly based on 3 0 GL



Factory

H ub Owner

L ady

We can reduce lo gistics costs by optimisin g the supply chain

Dhaka Chillerwarehouse

Mirpur RetailWarehouse

Today Tomorrow

Factory

Future

L ady

Mirpur RetailWarehouse

L ady H ousestock

DH AKAFactory

H ub Owner

L ady

SA Door to doordelivery

10 Tk/kglogistics savings



Spinnin g the wheel of demandSpinnin g the wheel of demandcreationcreation

Launch DayBlitz commando of M gt,

Ladies, & lionsL oud speakers, Audio jingle +Shakti songMass-SamplingBlitz Sales with max HH coverage

Drive TO M & make Shakti-Doi partof repertoire

Wall Painting at slum entranceControl L adies call plan + Shokti doi

uniformRegular education events in schools+ postersCaps and TS for inspiring kids

opinion leaders Blitz Sales withmax HH coverage

Repeat Blitz 2/3 times per year todrive frequency further



Bring 2nd big ban g after 3 month to drive frequency further

Next steps in slumsNext steps in slums

1 Select and recruit Hub O wner

2 Select and recruit ladies in line with expected covera ge & train them

3Big ban g blitz launch to DRI VE awareness quicklyBuild Top of Mind:

On-going ladies call plan to ensure sufficient consumers contacts

Regular Sales Events @ School + permanent visibility (posters)

4



Agenda outline


Size of opportunity

Relevant offer


Financials

Unedited feedback



Summary

1. Slums identified and prioritised

2. Independent, commission-based, local H ub

owner running operation with sales ladies

3. Ambient cup or pouch

4. Simpler supply chain

5. An affordable and focused communications plan



Match to mission

30,000 more children getat least 30% of daily

nutrient requirement in2011*

R educepoverty

R educemalnutrition

130 sales ladies employed in2011 earning eg. 2236

Tk/month

* 20% penetration on total child population, frequency 2x/week, 1 0% of total Dhaka slum households

GDFL 29th November 2010

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Transcript of GDFL 29th November 2010