What Do Dealers Really Want

WHAT DO DEALERS REALLY WANT?

A study on the factors that drive satisfaction and strong relationships

between a dealer and building material manufacturer in India

Agenda

1 2 3 4 5

Study Goals Study Findings

Methodology Key Learnings

What Next

Study Goals

This pan-India study is aimed

at unravelling the factors that

drive satisfaction and enablers

of strong relationship of the

dealers with the brands they

deal in

We set out to gather as much

information as possible on the

drivers of dealer performance

and whether promotional

trade incentives hold

significance with them, if so,

which schemes have a large

contribution

Dealers and Wholesalers have

a direct hold on demand and

supply of materials and are a

trusted source of business

enhancement for construction

and building material companies

alike.

In the melee of brand building

and end user satisfaction, often

the voice of the dealer is left

unheard.

Study Workflow

The Intent

• To understand the

drivers of satisfaction

and motivators of

relationship of

dealerships among

various brands

Methodology

• Face-To-Face Qualitative

and Quantitative

interviews

• Geographical coverage

of major cities across 4

regions

• 343 Dealers of Cement,

Plywood and Sanitary-

ware materials

Analytical Framework

• Satisfaction and

Relationship-depth

through• Factor & Regression analysis

• Bayesian Network Analysis

• Impact & Preference for

Trade schemes using

Max-Diff analysis

Demographic Facts

• Surveyed 343 dealers across 12 cities in India

Cement

30%

Plywood

30%

Sanitary

40%

Industry Segment Distribution

Cement Plywood Sanitary

North

33%

East

23%

West

22%

South

22%

Regional DistributionNorth East West South

Brands Covered

For complete access, please

send an email to

[email protected]

Framework of Analysis• We set out to discover the right attributes that improve satisfaction and drives deeper relationship between brands

and the dealers.

• To understand satisfaction and relationship depth, we conducted Factor Analysis to reduce the number of attributes

from 61 to 35 for satisfaction and 18, further organized into 5 major factors

• Each of these factors and their impact on the overall satisfaction was analyzed by Regression Analysis

• Further, Bayesian Network analysis helped us deduce the strength of relationship depth between the variables, for

each segment

Regression AnalysisFactor Analysis Bayesian Network Analysis

Inside the mind of a Dealer

Trust

Commitment

Positive Action

Satisfaction

with Brands

Depth of

Relationship

Correlation

Drivers Drivers

Order to Payment Cycle

POS Marketing Support

People Conduct

BD Support

Brand Efforts

Benchmarks for Satisfaction & PerformanceDealers care little for Brand building. Order Fulfilment, Training & Schemes above all else.

Peo

ple

Co

nd

uct

PO

S M

ark

eting

Busi

ness

Deve

lop

ment

Sup

po

rt

Ord

er

to P

aym

ent

Cyc

le

Bra

nd

Eff

ort

s

• Completeness of

Order

• Fairness of

Warranty policy

• Condition of

goods

• Brand Auracy of

delivery

• Terms &

condition of

Warranty policy

• Ease of

submitting

warranty claims

• Timeliness of

delivery

• Settlement of

warranty claims

• Invoicing

• Credit/Debit

notes

• Brand Aounts

adjustment

• Brand Aessibility to Area Manager

• Behaviour of Area Manager

• Brand Aessibility to Sales Officer

• Responsiveness of Sales Officer

• Support provided by Area Manager

• Frequency of visit by Sales Officer

• Behaviour of Sales Officer

• Market knowledge of Sales Officer

• Brand Aessibility of territory head

• Frequency of visits by Area Manager

• Support provided by Sales Officer

• Quality of training

• Frequency of training

• Timely launch of sales schemes

• Attractiveness of trade scheme

• Timely disbursement of rewards

• Attractiveness of sales schemes

• Business support in from of trade schemes

• Brand image in market

• Mass media Marketing activities

Decreasing order of Impact on Satisfaction

Dri

vers

of Satisf

act

ion

• Material quality of product literature

• Content quality of product literature

• Availability of product literature

Overall PerformanceSanitary segment most entrenched with its dealers. Plywood brands lag on most fronts

2.5

3.0

3.5

4.0

4.5

5.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

Order to payment cycle POS Marketing support People conduct BD Support Brand efforts

Satisfaction & Construction Materials Segment

Importance Cement Perf Plywood Perf Sanitary Perf

5 Factors of Satisfaction (decreasing

degree of importance)

Imp

ort

ance

Bra

nd

Perf

orm

ance

Evaluating Cement Segment PerformanceHeavyweight Cement Brands like Brand B & Brand A outperform on OPC & People Conduct

Key Observations:

• Strong brand like Brand B, outperforms its

peers in OPC and Brand efforts. Only Brand

B and Brand A perform above industry

average

• Brand Efforts, in comparison to all other

factors, has lowest importance Brand

Aorded to it

• Brand A has a slight edge over its peers

when it comes to providing training support

and beneficial schemes

• Brand C Cement has a bright spot in the

form high BD support that they provide,

but these efforts are eroded when it comes

to OPC where they are comparable to

Regional players

4.12

3.863.91

3.63

4.14

3.86

3.31

3.54

3.14

3.62

4.35

4.16

4.05

3.74

4.57

4.27

4.10 4.10

3.75

4.12

2.5

3.0

3.5

4.0

4.5

5.0

Order to payment cycle POS Marketing support People conduct BD Support Brand efforts

PER

FOR

MA

NC

E

IMPORTANCE

Cement Segment

Decreasing Order of Importance

4.09

3.903.85

3.53

4.314.31

4.033.95

4.01 4.02

4.17

3.35

3.57

2.59

3.39

2.5

3.0

3.5

4.0

4.5

5.0

Order to payment

cycle

POS Marketing

support

People conduct BD Support Brand efforts

PER

FOR

MA

NC

E

IMPORTANCE

Plywood

Evaluating Plywood Segment PerformanceBrand E seems to beat its peers on OPC, Training and People Conduct

Key Observations:

• Brand E seems to have cracked the code of

satisfaction by showing exceedingly high

performance on OPC, BD support and People

Conduct

• Brand F Ply focuses more on Brand efforts, but

pays for it with a sub-par performance on OPC,

BD Support and Point of Sale Marketing support

• Brand G is seen to be outperforming Brand E on

POS Marketing support and Brand efforts

• Interestingly, in a largely unorganized market,

Regional plywood players perform above their

weight on Order Fulfilment

• Reflection of dominant position of regional

brands in this category


4.27

4.093.99

3.68

4.294.23

3.933.99

3.68

4.314.23

4.124.02

3.66

4.364.39

4.19 4.15

3.81

4.54

4.15

3.943.88

3.64

4.204.28

4.15

3.85

3.68

4.334.36

4.19

4.04

3.63

4.00

2.5

3.0

3.5

4.0

4.5

5.0

Order to payment

cycle

POS Marketing

support

People conduct BD Support Brand efforts

PER

FOR

MA

NC

E

IMPORTANCE

Sanitary

Evaluating Sanitary Segment PerformanceAll brands focused on building brand equity. Low importance given to BD support

Key Observations:

• Brand X is a shining star of the segment where it

scores over its peers on 4 out of 5 factors

• Brand X only brand to supplement brand

building with OPC, BD Support and People

conduct

• The only Construction materials segment where

Regional players seem to be performing as well

as established brands

• Telling of the dissonance in the segment

• ROCA and Brand Y are close competitors to

Brand X’s dominance


Overall PerformanceSanitary segment leads on Trust and Positive action. Plywood lags in deriving Commitment

5 Factors of Satisfaction

Imp

ort

ance

Bra

nd

Perf

orm

ance

3.10

3.20

3.30

3.40

3.50

3.60

3.70

3.80

3.90

4.00

4.10

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Trust Commitment Positive Action

Relationship-depth & Construction Material Brands

Importance Cement Plywood Sanitary

4.06

3.80

4.12

3.71

3.44

3.87

4.14

3.65

4.19

3.44

3.17

3.52

2.5

3.0

3.5

4.0

4.5

5.0


PER

FOR

MA

NC

E

IMPORTANCE

Industry Segment: Cement

Cement Segment & Relationship-depthHeavyweight Cement Brands like Brand B & Brand A outperform on OPC & People Conduct

Key Observations:

• Brand B continues to elicit most amount of

Trust and Commitment from their dealers

• Brand A outshines its peers in generating

commitment

• Brand C loses out on all fronts and lies

between the established and regional brands


4.04

3.67

4.10

3.98

3.61

4.00

3.77

3.58

3.80

3.59

2.87

3.54

2.50

3.00

3.50

4.00

4.50

5.00


PER

FOR

MA

NC

E

IMPORTANCE

Industry Segment: Plywood

Plywood Segment & Relationship-depthBrand G outclasses its peers on all factors. Brand E is a laggard in Trust and Commitment

Key Observations:

• Brand G is unquestionably the leader when it

comes to stimulating Trust, Confidence and

Positive Action

• A show of high score on Positive action is a

testimonial to its constant innovation in the

market place

• Brand E, the brand that outperforms on

Satisfaction attributes, struggles to generate

enough Trust. It is however able to generate

Commitment from the dealers at levels

comparable with the peers

• Regional brands perform above par in

generating Trust and Positive Action


3.74

3.47

3.773.64

3.00

3.71

2.5

3.0

3.5

4.0

4.5

5.0


PER

FOR

MA

NC

E

IMPORTANCE

Industry Segment: Sanitary-ware

Sanitary Segment & Relationship-depthBrand X stimulates maximum Trust, Brand Y – Commitment and Brand Z –Positive Action

Key Observations:

• Brand X is seen as the most trustworthy brand,

closely followed by Brand Y

• Brand Y leads all the brands, substantially in

generating commitment from the dealers

• Regional brands surprisingly, generate Positive

Action, similar to other established brands like

Roca.

• Brand Z, gets mediocre scores for Trust and

Commitment, but is a distinct leader in

generating Positive Action


The Chemistry between Satisfaction and Relationship

How does Bayesian network analysis define the connection between

relationship depth and satisfaction

Correlating Satisfaction with RelationshipTrade Schemes have maximum impact on driving Commitment

Order to Payment

Cycle (OPC)

POS Marketing

SupportPeople Conduct Brand Efforts BD Support

Positive Action 57% 28% 50% 50% 34%

Trust 57% 42% 52% 47% 38%

Commitment 40% 33% 43% 35% 45%

Dealer

Expectations

Relationship-

depthSatisfaction

CORRELATION

• Correlating factors of Satisfaction

with factors of Relationship-depth

shows high overall correlation

• OPC generates a considerable

amount of Positive Action and

Trust

• People Conduct also helps

considerably in generating Trust

• Brand Efforts largely lead to

Positive Action

• Business Development Support

influences Commitment the most• This strongly indicates that Training

& Trade Schemes are essential to

drive commitment among dealers

For complete access, please send an email to

[email protected]

Bayesian Network Analysis of Relationship Depth

Key Observations:Bayesian Network analysis unravels the

blueprint of how relationship deepens

satisfaction of a dealer with the brand.

The primary factor that a dealer considers

while judging a brand is whether its “fair in

doing business” – this is further

strengthened by “good communication”

practices.

The second most important factor therefore

is whether the brand focuses on “profit

maximization” while “supporting the dealers

business growth”

Dealer’s understanding of whether brands’

“ability to change with time” further

influences his/her faith in the brand to

provide “product innovation” and further

“maximize market share”

For complete Brand Aess, please send an email to [email protected]

Choosing incentives that motivate Commitment

Which Trade schemes drive maximum consideration and

commitment?

Assessing Incentive SchemesHow we tested the various schemes and arrived at the most preferred set of options

Promotional

Preferences

• Intended to determine the preference

between and Best and Worst choice of

schemes for the dealers

Redemption

Choices

• Build a hierarchical Top 3 order of

choices that the dealers could redeem

based on a sample set of points

Our test on Trade schemes and incentives was two pronged

Analyzed using Max-Diff technique

on 10 sets of cards with 4 items each

Analyzed using Weighted average

method and Raking Ratio Method to

determine Top 3 Choices

Overall Preference OrderGold and Gold related incentives find the maximum takers across all segments

Schemes Score Cement

Gold Coin from a reputed Bank or Mint 28.53 1

Volume linked extra margin 17.35 2

Foreign trip for Family 11.76 3

Extra Material / product from Company 8.97 4

Appliances & Gadgets such as LCD TV, Fridge, Washing Machine, AC, Laptop,

Smart Phone, Printer4.67 5

Extra Marketing support in your territory 4.66 6

Child education Scholarship 3.68 7

Life or Medical Insurance cover for your family

3.51 8

Personalized birthday gift from company CEO/MD

3.34 9

Complete Health checkup for family 3.12 10

Best Dealer award to recognize your performance

3.07 11

Membership to reputed Industry Association

2.96 12

Business Skills training at reputed Institute

2.66 13

Donation in your name to a reputed NGO 1.73 14

Schemes Score Plywood






Appliances & Gadgets such as LCD TV, Fridge, Washing Machine, AC, Laptop, Smart

Phone, Printer4.18 6


3.23 7

Business Skills training at reputed Institute 3.21 8


3.12 9


3.11 10


Membership to reputed Industry Association 2.97 12



Schemes Score Sanitary






Appliances & Gadgets such as LCD TV, Fridge, Washing Machine, AC, Laptop,

Smart Phone, Printer4.05 6

Business Skills training at reputed Institute 3.41 7


3.04 8


2.96 9



2.83 11

Membership to reputed Industry Association

2.48 12



• Remarkably, dealers from all segments have the same preference order till the first four options

• Donations and Family health-checkup are not seen with a lot of favorability. However, extra marketing support is a keen expectation

For complete access, please send an email to [email protected]

Top 10

RankedSchemes

East West North South

Score Rank Score Rank Score Rank Score Rank

1 Gold Coin from a Reputed Bank or Mint 36.68 1 39.52 1 23.74 1 21.08 1

2 Volume Linked Extra Margin 22.60 2 19.68 2 17.18 2 13.45 2

3 Foreign Trip for Family 10.48 3 14.13 3 11.87 3 10.95 3

4 Extra Material / Product from Company 9.27 4 5.24 4 11.07 4 7.29 4

5Appliances & Gadgets such as LCD TV, Fridge, Washing

Machine, AC, Laptop, Smart Phone, Printer3.08 5 3.19 5 5.41 6 4.96 7

6 Personalized Birthday Gift from Company CEO/MD 2.96 6 2.19 9 3.25 9 4.20 12

7 Child Education Scholarship 2.60 7 2.80 7 3.16 10 4.18 13

8 Best Dealer Award to Recognize your Performance 2.50 8 2.29 8 3.01 12 4.45 9

9 Business Skills Training at Reputed Institute 2.33 9 1.48 13 3.66 7 4.85 8

10 Life or Medical Insurance Cover for your Family 2.29 10 1.88 11 3.03 11 5.59 6

Regional Preference OrderGold based incentives and Volume linked margin, which enables further profit-making are key

• Southern market prefers Insurance cover over Appliances or Awards, while the converse is true for the Eastern market which prefers

recognition over Insurance

• Interestingly, Northern market seems to be more interested in receiving Skill training than an Insurance cover

For complete access, please send an email to [email protected]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gold Coins Vehicle &

Accessories

Travel Offers Jewellery Appliances Office

Accessories

Insurance Gadgets Magazine

Membership

Scholarship Health &

Fitness

Gift Voucher Retail Voucher Furniture Entertainment Kids

Accessories

0

200

400

600

800

1000

1200

1400

1600

1800

Frequency Cumulative

Redemption ChoicesGold & Asset based redemption choices are high in preference order

• When combined, across point system; incentives that are in the form of assets such as Gold Coins, Vehicle & Brand Aessories, Jewelry and Appliances see

high preference

• Interestingly, Travel offers are also among the top 3. This suggests an aspirational bent towards international travel

• Offers that are familial and low in terms of materialistic value see little to no preference

How did the Dealers Rate

Regional understanding of Dealers on Relationship and Satisfaction

ratings

Low High

Low

High

Satisfaction

Relationship

Scale (Low-1,2,3 & High-4,5)

68

42

75

42

0 20 40 60 80 100

North

East

West

South

17

23

1

8

0 20 40 60 80 100

North

East

West

South

3

8

0

15

0 20 40 60 80 100

North

East

West

South

26 227

41 49

Overall (343 Sample)

25

6

1

9

0 20 40 60 80 100

North

East

West

South

Overall:

If we observe the overall

performance on satisfaction &

relationship 66% dealers are highly

Satisfied & maintain a good

relationship Within this category ,Western

region is performing well

Whereas 12% dealers rated

themselves low in satisfaction as well

as relationship depth If we observe closely , Northern

region needs improvement.

For complete access, please send an

email to [email protected]

LearningsHygiene First

Improve focus on Value Chain

Ensure transparency in Brand Aounting

Warranties are important too

Training is Appreciated

Dealers look at training as enablers

Helps in improving sales efforts

Regular interaction with credible company resources improve Trust

Schemes help Commitment

Schemes help in ensuring mutuality of business

Motivates Dealers to be more committed to a brand

Gold & Assets rule

High preference for incentives that appreciate

Schemes of aspirational nature are important

Thank You

For More Information Email: [email protected]

Call: +91-9899860345

Visit us at: http://relationshipsurplus.com

Follow us on Twitter: @RelationshipSurplus

mailto:[email protected]

http://relationshipsurplus.com/

What Do Dealers Really Want

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