Next Leap of Distribution
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Transcript of Next Leap of Distribution
It’s all about rotations!
3-4% Gross Margin
Loss Leadership brands. Negligible margins
Focus on selling the whole stack
RoI = Income = Net Margins x Rotations Investment
Disruption needs rethinking the whole mix!
Wheel today: Rs. 2,000 Crore Brand.
“Operation STING” Critical Success Factors: Relevant consumer insight, optimum supply chain & wide distribution reach
Outsourced manufacturing & distribution
Sustained growth driver for the company
“HUL profit rises 18% on home, personal product segments” Jul 2011
Distribution Initiatives: Bifurcation, Key Account Network, Diamond Model
Field Sales measured on “Quality of Contribution (QOC)”
Assurance of Quality & Reliability
Consumers insist on Intel processor
~70% of assemblers use an Intel motherboard too! 30-40% more expensive
Tata = Trust!
Changing a watch battery, every so often
Titan batteries are ~60-80% premium
Customers insist on brand, even outside the company stores
Key Learnings
The New Way of Distribution
People will forget what you said, people will forget what you did but people will never forget how you
made them feel !
Maya Angelou
Embrace technology… there is no getting away!
Invest in the next wave and harness full benefits
Compute, connect & collaborate