xim 4 - area sales approach

AREA SALES APPROACH

PLANNING SALES GROWTHPLANNING SALES GROWTHPLANNING SALES GROWTHPLANNING SALES GROWTH

Steve Remedios

XIM

November 11-15, 2004

Bhubaneswar

Karnataka Sales AreaArea Sales Approach

An approach to identify

What should the Area grow at?

Why should the Area grow at a particular rate?

What will make this growth happen?

Where will this growth happen?

Who will make this growth happen?

ASA Road Map

Developing

Action Plans

Area Vision

Define Area

Potential

Identifying

Growth drivers

Zeroing in on

Sales Challenges

Benchmarking across PCs

2001 2002

Personal Products 179 160

Detergents 300 310

Beverages

Foods

Benchmarking across states

POPULATION 665.08 290.99 558.59 449.77

PER CAPITA SALES ANDHRA PRADESH KERALA TAMIL NADU KARNATAKA

COCONUT OILS 11.58 1.27 6.56 8.10

HAIR OILS 6.50 2.32 2.17 4.18

SHAMPOO 15.54 3.91 15.23 10.74

SHAVING CREAMS 0.17 0.51 0.06 0.14

SKIN CREAMS 13.39 10.35 8.49 17.33

TALCUM POWDERS 12.88 20.80 14.41 12.34

TOOTH BRUSH 6.20 8.14 5.25 6.75

TOOTH PASTES 31.54 44.43 22.77 35.76


%MS by Value URBAN ANDHRA PRADESH KARNATAKA KERALA TAMIL NADU

HLL Coco Oil 21.14 18.91 1.39 1.49

HLL VA Oil 6.89 8.07 15.59 13.64

HLL Deo 60.49 40.12 58.60 49.47

HLL Shampoo 65.64 69.33 59.46 73.71HLL Shampoo 65.64 69.33 59.46 73.71

HLL Skin 55.51 51.35 45.10 52.54

HLL Talc 67.74 62.96 35.91 53.99

HLL Brushes 25.94 30.26 13.64 27.37

HLL Pastes 44.46 32.86 28.72 42.21


%MS by Value RURAL ANDHRA PRADESH KARNATAKA KERALA TAMIL NADU

HLL Coco Oil 26.29 35.19 0.35 1.13

HLL VA Oil 9.13 8.45 9.18 24.12

HLL Shampoo 67.77 81.54 78.59 74.67

HLL Male T 3.52 2.75 11.55 0.00HLL Male T 3.52 2.75 11.55 0.00

HLL Skin 63.01 66.41 62.09 67.16

HLL Talc 66.98 76.87 37.69 59.59

HLL Brushes 31.94 27.17 16.72 38.98

HLL Pastes 37.23 20.67 32.36 54.10

Identifying Buckets of Growth: Urban

URBANCOCONUT

OILS

HAIR

OILS

PERF/COLG/

DEO SHAMPOO

SKIN

CREAMS

TALCUM

POWDERS

TOOTH

BRUSH

TOOTH

PASTES

MARKET VOLUMES in Tonnes/KL 1881 623 59 798 743 1408 16 3919

MARKET VALUE in LACS 2349 1631 673 2815 5701 4087 2074 11052

% MS by Volume 24 10 54 68 49 68 33 32

HLL VOLUME in Tonnes/KL 447 59 32 541 361 956 5 1252

HLL VALUE in LACS 581 122 304 1847 2898 2654 679 3836

% MS by Value 25% 7% 45% 66% 51% 65% 33% 35%

Market Growth -3% -5% 42% 5% 3% -12% -31% 4%

Market Size (3 years hence) 2144 1398 1926 3259 6230 2785 681 12432

Market Share (3 years hence) 30% 15% 50% 75% 70% 70% 30% 50%

GAP (HLL Value in LACS) 62 88 659 597 1463 -704 -475 2380

Identifying Buckets of Growth: Rural

RURALCOCONUT

OILS HAIR OILS SHAMPOO

SKIN

CREAMS

TALCUM

POWDERS

TOOTH

BRUSH

TOOTH

PASTES

MARKET VOLUMES in Tonnes/KL 1002 113 796 337 468 9 1804

MARKET VALUE in LACS 1292 251 2016 2092 1464 962 5030

% MS by Volume 34 18 77 59 78 34 23

HLL VOLUME in Tonnes/KL 339 20 610 199 365 3 409

HLL VALUE in LACS 461 34 1752 1407 1104 352 1211

% MS by Value 36 14 87 67 75 37 24% MS by Value 36 14 87 67 75 37 24

Market Growth -4% 31% 13% 4% -7% -21% 3%

Market Size (3 years hence) 1143 564 2909 2353 1178 474 5496

Market Share (3 years hence) 42% 30% 95% 75% 90% 70% 40%

GAP (HLL Value in LACS) 20 135 1011 358 -44 -20 987

Prioritizing PotentialHigh

High

High Risk High ReturnQuestion Mark

Ease of Exploitation[Internal]

Competitive Context

Low

Low

High

Low Lying FruitX

Prioritizing PotentialHigh

HighDeos: 7 cr

Shampoos

16 cr

Pastes

34 cr.

Skin: 18 cr

Ease of Exploitation

Competitive Context

Low

Low

High

Factors governing Ease of Exploitation:Factors governing Ease of Exploitation:

••Confidence on categoryConfidence on category

••Category PlansCategory Plans

••Category behaviour in the market placeCategory behaviour in the market place

Deos: 7 cr

SUMMARY OF AREA POTENTIAL

• 1 Pastes in NKNSA / Bangalore

• 2 Shampoo in Rural

• 3 Skin Cream in Urban

• 4 Deodorants in Bangalore Metro

Buckets Urban Rural Tot Market

In LACS

Deo 659 659

Shampoo 597 1011 1608

Skin Cream 1463 358 1821

Pastes 2380 987 3367

Total Gain 5099 2356 7455

ASA Road Map

Developing

Action Plans

Area Vision

Define Area

Potential

Identifying

Growth drivers

Zeroing in on

Sales Challenges

Identifying Growth Drivers

Business Benchmarking

âMarket Development opportunity in

the following districts:

âGadag

âUdupi

âBagalkot

Per Capita Sales Year 2001 PP

BANGALORE 10.95

CHITRADURGA 4.77

MYSORE 4.74

DAKSHIN KANNA 4.45

MERCARA 3.68

SHIMOGA 3.43

KARNATAKA 3.40

BIJAPUR 3.19

BELLARY 3.01

CHIKMAGALUR 2.83

UTTAR KANNAD 2.62âBagalkot

âBidar

âDavangere

âChamrajnagar

âKoppal

âHaveri

UTTAR KANNAD 2.62

RAICHUR 2.48

TUMKUR 2.47

HASSAN 2.32

KOLAR 2.04

BELGAUM 1.80

MANDYA 1.71

GULBARGA 1.69

REST OF BANGAL 1.68

GADAG 1.56

UDUPI 1.54

BAGALKOT 1.07

BIDAR 0.88

DAVANGERE 0.68

CHAMRAJNAGAR 0.36

KOPPAL 0.34

HAVERI 0.31

PP Priority Districts

Category Benchmarking

âShares in these districts very low

âNeed to drive consumption /

distribution in the following districts:

âHaveri

âKoppal

âChamrajnagar

Per Capita Sales Year 2001 ORAL

BANGALORE 2.73

DAKSHIN KANNA 1.29

MYSORE 1.17

MERCARA 1.10

CHITRADURGA 1.08

SHIMOGA 0.86

KARNATAKA 0.83

UTTAR KANNAD 0.76

CHIKMAGALUR 0.76

BELLARY 0.74

BIJAPUR 0.65âChamrajnagar

âDavangere

âBidar

âColgate very strong in these pockets

âAnchor also a growing threat

BIJAPUR 0.65

RAICHUR 0.61

TUMKUR 0.60

HASSAN 0.54

KOLAR 0.47

GULBARGA 0.41

MANDYA 0.40

BELGAUM 0.38

REST OF BANGAL 0.38

UDUPI 0.34

GADAG 0.30

BAGALKOT 0.22

BIDAR 0.20

DAVANGERE 0.14

CHAMRAJNAGAR 0.08

KOPPAL 0.08

HAVERI 0.07

Oral Priority Districts


âSouth Karnataka is the main Chik

stronghold

âNeed to give superior support to Clinic

/ SS minis in the absence of Lux minis

âMost sensitive districts are:

âChamrajnagar

Per Capita Sales Year 2001 HAIR

BANGALORE 2.77

MYSORE 1.17

CHITRADURGA 0.92

BELLARY 0.79

BIJAPUR 0.78

KARNATAKA 0.77

DAKSHIN KANNA 0.66

TUMKUR 0.63

RAICHUR 0.54

KOLAR 0.54

CHIKMAGALUR 0.53 âChamrajnagar

âHassan

âMercara

âMandya

âDavangere

âGulbarga

CHIKMAGALUR 0.53

MERCARA 0.53

SHIMOGA 0.53

REST OF BANGAL 0.49

MANDYA 0.49

HASSAN 0.44

GADAG 0.42

GULBARGA 0.35

BELGAUM 0.32

UTTAR KANNAD 0.30

UDUPI 0.27

BAGALKOT 0.27

BIDAR 0.18

DAVANGERE 0.14

CHAMRAJNAGAR 0.09

KOPPAL 0.07

HAVERI 0.06

Hair Priority Districts


âNeed to drive distribution in these

districts

âFAL Ayurvedic yet to pick up in KNSA

âRobust sachet activation plan needed to

counter recent gains from Fair Ever

âSpecial focus in:

Per Capita Sales Year 2001 SKIN

BANGALORE 1.93

CHITRADURGA 1.27

MYSORE 1.10

MERCARA 0.98

SHIMOGA 0.95

CHIKMAGALUR 0.77

DAKSHIN KANNA 0.77

HASSAN 0.73

KARNATAKA 0.72

BIJAPUR 0.67

BELLARY 0.66 âSpecial focus in:

âGulbarga

âBagalkot

âGadag

âBidar

âBelgaum

BELLARY 0.66

TUMKUR 0.64

UTTAR KANNAD 0.59

KOLAR 0.51

RAICHUR 0.51

MANDYA 0.44

REST OF BANGAL 0.42

GULBARGA 0.39

BELGAUM 0.39

GADAG 0.35

UDUPI 0.31

BIDAR 0.22

BAGALKOT 0.21

DAVANGERE 0.18

CHAMRAJNAGAR 0.10

HAVERI 0.08

KOPPAL 0.06

Skin Priority Districts

Opportunity and Gaps in Category Plans

Opportunity

Description

Objective TY Marketing

Triggers

Gaps in category

plans

Dental Share

Gain through

CUP variants

and Pep in

urban

3% share gain

in urban

Incr. Value : 4 cr.

Seeking

conversion from

Colgate gel users

and CDC users

Advertising of the CP

on local cable

channels

Sustaining rural

activation and

visibility plansurban

visibility plans

Dental Share

Gain in Rural

through Rs.10

Pepsodent

6% share gain in

rural

Incr. Value : 2 cr.

Containing

Anchor and

Babool in rural

through rural

activation

Pep and Close Up 40

gms in Streamline

and IDC


Opportunity

Description

Objective TY Marketing Triggers Gaps in category

plans

Build

distribution

and

availability

of skin

creams

Achieve 100% ECO

Incr. Coverage: 10%

Led by :

FAL

Retain price value

equation

Sample ayurvedic in

rural

Build ayurvedic

Need to re-launch

FAL Ayurvedic in

KNSA.

- sampling of

FALuda with FAL

Soap

- strong plan tocreams

across all

outlet typesIncr. Volume: 120 Tonnes

Incr. Value : 3 Cr.

Build ayurvedic

association by repeat

CP with Ayush

- strong plan to

contain Fair Ever

in Rural

- W/S activation to

drive penetration


O p p o r tu n ity

D e s c r ip tio n

O b je c tiv e T Y M a r k e tin g T r ig g e rs G a p s in

c a te g o r y p la n s

G a in s h a re

fro m g r e y s

in u r b a n

G a in 5 % S h a re

In c r . V a lu e : 5 c ro re

� E d u c a te u s e rs a b o u t

th e b e n e f its o f

b u y in g o r ig in a l

A X E

� B u ild th e M T

F ra n c h ise in a

m a n n e r th a t m a k e s

it a p p e a lin g to th e

N o lo c a l a c tiv a tio n

in B a n g a lo re

N e e d to tie in w ith

m u s ic c o n c e rts /

p u b s to m a k e th e

b ra n d m o re

c o n te m p o ra ry

it a p p e a lin g to th e

y o u th

B u ild

d is tr ib u tio n

o f V a lu e

A d d e d O ils

in ru ra l

G a in 1 0 % S h a re

In c r . V a lu e : 1 c ro re

S e e k in g to u p g ra d e

lo o s e o i l u s e rs to

b ra n d e d C o c o n u t O ils� C ritic a lly d e p e n d a n t o n

p la n s fo r C o c o C a re , a s

N ih a r h a s n o t m a d e a n

im p re s s io n d e sp ite

re p e a te d S a le s e f fo r ts

L U P sa m p lin g /

d ire c t s e llin g

Opportunity and Barriers to Growth

O p p o r tu n i ty

D e s c r ip t io n

S a le s T r ig g e r s

D e n ta l S h a r e

G a in th r o u g h

C U P v a r ia n ts

a n d P e p

in u r b a n

I n c r e a s in g w id th o f d i s t r i b u t io n

I m p r o v in g v i s ib i l i ty a n d s a l ie n c e th r o u g h o w n e r s h ip o f

O R A L C O R N E R S

F o c u s s in g o n V a r ia n ts

S c ie n t i f i c S e l l i n g

D e n ta l S h a r e

G a in in R u r a l

th r o u g h R s 1 0

P e p s o d e n t

E n s u r in g 1 0 0 % E c o o n P e p 4 0

D r iv in g s a le s in W h o le s a le th r o u g h in n o v a t iv e O P S

P r e s s u r e s e l l i n g to t a k e o v e r C D C s h e l f s p a c e in

N K N S A


O p p o r tu n i ty

D e s c r ip t io n

S a le s T r ig g e r s

B u i ld

d is t r ib u t io n a n d

a v a i la b i l i t y o f

s k in c r e a m s

a c r o s s a l l o u t le t

ty p e s

I n c r e a s in g w id th a n d p r e s e n c e o f d i s t r i b u t io n a c r o s s a l l

o u t l e t ty p e s

U s e W h o le s a l e a c t iv a t io n to in c re a s e p r e s e n c e in

r e m o te m a r k e ts

O p e r a t in g s c h e m e s o n th e p a c k w i th o u t a f f e c t in g th eO p e r a t in g s c h e m e s o n th e p a c k w i th o u t a f f e c t in g th e

m a r k e t r a te s


O pportunity

D escription

Sales Triggers

G ain share from

greys in urban

Increase ECO on A xe especially in Chem ist / L ifestyle

stores

Build salience at the PO P by quality m erchandising

Build

distribution of

Value Added

O ils in rural

Pressure selling to try and re establish N ihar in the

m arket

Placem ent of at least two V A O Skus in every Parachute

/ D abur outlet.

ASA Road Map

Developing

Action Plans

Area Vision

Define Area

Potential

Identifying

Growth drivers

Zeroing in on

Sales Challenges

Sales Challenges

• Improving extent and quality of outlet coverage• Min 200 outlets / lac of population

• Killing sales threats• Anchor / CDC in Oral, Chik in Hair / Fair Ever in Skin / KCLL in Metro / Deo in Metro

• Rallying focus behind LUPs• Shampoo Minis / Pep/C Up 40

• Attracting and retaining quality RSSM• RSSM Training / Incentivization / Listing

• Implementing a quality merchandising template that ensures the best visibility / salience at the POP

• 3 P Merchandising in Bangalore City

• Building RS/ RD involvement• Driving RS 1-2-ka-4

• Deploying optimal infrastructure for growth by mutual agreement with the RS

• HLL Way Norms to be strictly implemented

Improving extent and quality of outlet coverage

• Identify Gap Towns based on Census Information and suggesting a coverage plan

• Improving quality of coverage in current townstowns

• Using TSI / SO time to ensure the universe of outlets is visited at least once every two years

Action Points

• O/L Audit in 10L+ towns

• Construction of beat card

• Rationalize beat structure in line with HLL Way

• Begin Coverage Expansion

– Additional salesmen paid by 1-2-ka-4 to increase coverage

• Monitor Coverage• Monitor Coverage

• Incentivise Coverage

– Merchandiser / RSSM incentive of Rs.10 per new O/L billed

• RS’s given 2 JC time till JC 9 to increase coverage else an open market system for gap O/L

• SO given live project to empirically prove that 1 additional S/M gives the RS 10% growth

Killing Sales Threats

• ORAL Anchor and CDC in N Karnataka

• HAIR Chik in South Karnataka• HAIR Chik in South Karnataka

• SKIN Fair Ever in Rural / Urban

• DEO Greys in Bangalore

Killing Sales Threats - ORALMarket in LACS

KARNATAKA 2001YR 2002YR 2001YR 2002YR URBAN RURAL

TOOTH PASTES 11052.2 8520.0 5029.8 3875.0 2.79% 2.72%

ANCHOR HEALTH 434.6 613.6 276.5 383.9 88.27% 85.11%

ANCHOR 369.1 569.9 248.8 352.3 105.86% 88.83%

ANCHOR 5/97 WHITE 50 G 134.2 166.2 114.5 157.2 65.05% 82.94%

ANCHOR GEL 65.5 43.7 27.7 31.6 -10.92% 51.73%

COLGATE-PALMOLIVE 5541.2 4261.6 3233.1 2548.4 2.54% 5.10%

COLGATE DENTALCREAM 4083.4 3250.2 2778.8 2263.8 6.13% 8.62%

COLGATEDENTALCREAM 7/78 50 GM 1459.2 1229.9 1670.4 1473.1 12.38% 17.59%

PEPSODENT 1343.2 1043.6 465.2 430.3 3.59% 23.34%

PEPSODENT 11/91 50 G 388.2 115.8 212.3 86.4 -60.22% -45.75%

CLOSE-UP NEW 0.0 374.8 0.0 83.9 NA NA

CLOSE-UPNEW03/02TNGLY RED 50G 0.0 70.1 0.0 27.6 NA NA

RURALURBAN GROWTH

• Chalks growing ahead of Gel in KN

• Anchor growing well ahead of the market• Growth driven by 50gm pack

• Colgate also growing ahead of market• Growth driven by 50gm pack

• Pep Brand growth driven by value packs• Clear opportunity to dominate 40 / 50 gm segment



Killing Sales Threats - ORAL%Dealer (Category)

KARNATAKA 2001YR 2002YR 2001YR 2002YR

TOOTH PASTES 100 100 100 100

ANCHOR HEALTH 52.56 46.21 35.76 32.69

ANCHOR 49.25 43.46 34.29 32.69

ANCHOR 5/97 WHITE 50 G 33.66 29.78 24.37 21.81

ANCHOR GEL 24.39 11.54 10.67 4.42

COLGATE-PALMOLIVE 90.00 91.73 91.37 88.47

COLGATE DENTALCREAM 90.00 89.08 86.73 82.48

COLGATEDENTALCREAM 7/78 50 GM 85.50 85.40 82.01 81.35

PEPSODENT 67.41 65.56 36.86 47.58

PEPSODENT 11/91 50 G 52.75 19.22 19.88 5.94

CLOSE-UP NEW 0.00 47.84 0.00 23.86

URBAN RURAL

• Anchor growth despite lower % dealer stocking

• Clearly driving growth through the wholesale channel

• Pepsodent stocking improved considerably

• CDC still miles ahead• Importantly the trend is a declining one

• This is a good time to go for the kill

CLOSE-UP NEW 0.00 47.84 0.00 23.86

CLOSE-UPNEW03/02TNGLY RED 50G 0.00 27.19 0.00 7.34


Killing Sales Threats - ORAL%MS by Value (Category)


TOOTH PASTES 100.00 100.00 100.00 100.00

ANCHOR HEALTH 3.93 7.20 5.50 9.91

ANCHOR 3.34 6.69 4.95 9.09

ANCHOR 5/97 WHITE 50 G 1.21 1.95 2.28 4.06

ANCHOR GEL 0.59 0.51 0.55 0.81

COLGATE-PALMOLIVE 50.14 50.02 64.28 65.76

COLGATE DENTALCREAM 36.95 38.15 55.25 58.42

COLGATEDENTALCREAM 7/78 50 GM 13.20 14.44 33.21 38.02

PEPSODENT 12.15 12.25 9.25 11.11

PEPSODENT 11/91 50 G 3.51 1.36 4.22 2.23

URBAN RURAL

• Anchor share gain in rural is startling (4.41%)

– growth driven by 50gm pack

• Pepsodent gaining too

– 40gm not captured / 50 gm declining

• MUST REVERSE THIS TREND

PEPSODENT 11/91 50 G 3.51 1.36 4.22 2.23

CLOSE-UP NEW 0.00 4.40 0.00 2.17



Killing Sales Threats - HAIR

2001YR 2002YR 2001YR 2002YR

SHAMPOO (1/72) 2815.3 2176.7 2016.2 1703.8

CAVINKARE 174.1 123.6 233.0 278.8

CHIK DBLE CONDITRS 4.7 22.5 60.9 259.9

CHIK DBLE CONDITRS 6/01 BLACK PPH 1.2 6.2 25.1 90.4

CHIK DBLE CONDITRS 6/01 JASMINE PP 0.6 2.7 11.6 37.5

NYLE-HERBAL 127.8 79.8 0.9 1.5

HINDUSTAN LEVER 1847.0 1509.1 1752.2 1389.3

CLINIC ALL CLEAR 426.9 385.6 304.0 215.5

URBAN RURAL

– Chik Double Conditioners a growing threat

– P&G Contained

CLINIC MINI PLUS 77.3 93.6 184.5 258.9

CLINIC PLUS 662.7 501.5 941.7 673.0

LUX NEW SUPER RICH 57.6 83.0 91.5 121.1

SUNSILK 314.2 51.6 101.8 14.9

SUNSILK NEW 181.0 337.3 23.2 71.9

HEAD & SHLDR NEW 167.6 133.5 2.1 10.1

HEAD & SHOULDERS 91.3 26.2 2.6 0.5

PANTENE PRO-V NEW 129.3 95.2 1.9 2.4

Killing Sales Threats - HAIR%Dealer (Category)


SHAMPOO (1/72) 100.00 100.00 100.00 100.00

CAVINKARE 44.02 46.17 50.19 50.38




NYLE-HERBAL 18.26 14.82 0.31 1.45

HINDUSTAN LEVER 94.23 96.52 98.58 97.61

CLINIC ALL CLEAR 70.48 69.09 30.89 32.32

CLINIC MINI PLUS 42.21 55.52 40.76 55.82

CLINIC PLUS 85.88 83.26 81.22 77.28

URBAN RURAL

• Need to get distribution act on C+ right

• Despite % dealers remaining flat Chik has taken huge share in rural

• Focussed wholesale activation

CLINIC PLUS 85.88 83.26 81.22 77.28


SUNSILK 30.04 21.36 17.10 2.43

SUNSILK NEW 51.84 52.95 18.93 23.15

HEAD & SHLDR NEW 27.09 26.65 6.48 0.78

HEAD & SHOULDERS 12.79 6.07 0.25 0.37

PANTENE PRO-V NEW 23.92 20.93 1.93 3.10

Killing Sales Threats - HAIR%MS by Value (Category)


SHAMPOO (1/72) 100.00 100.00 100.00 100.00

CAVINKARE 6.19 5.68 11.56 16.36




NYLE-HERBAL 4.54 3.67 0.04 0.09

HINDUSTAN LEVER 65.61 69.33 86.91 81.54

CLINIC ALL CLEAR 15.16 17.71 15.08 12.65

CLINIC MINI PLUS 2.74 4.30 9.15 15.20

CLINIC PLUS 23.54 23.04 46.71 39.50

URBAN RURAL

• Huge share gain in Rural for Chik (5%)

• Entire gain at the cost of SS and All Clear• Have to build SS by focussing on Low Cost in W/S

• Need to enlist W/S to build SS in rural urgently

CLINIC PLUS 23.54 23.04 46.71 39.50


SUNSILK 11.16 2.37 5.05 0.87

SUNSILK NEW 6.43 15.50 1.15 4.22

HEAD & SHLDR NEW 5.95 6.13 0.11 0.59

HEAD & SHOULDERS 3.24 1.21 0.13 0.03

PANTENE PRO-V NEW 4.59 4.37 0.10 0.14

Killing Sales Threats - SKIN

URBAN RURAL

SKIN CREAMS -8.51% 9.91%

* PETROLEUM JELLY 12.37% -16.96%

** ANTISEPTIC CREAMS 15.29% 11.77%

** BLEACH CREAMS 12.44% 1194.17%

** CLEANSING MILK -31.19% 8.82%

** COLD CREAMS -13.50% -21.19%

GROWTH 02

• Must counter Bioline / Fakes in WPJ Urban

• Must capture share and new customer in Fairness Rural

• Moisturizers in LUP for Rural is a huge opportunity

** COLD CREAMS -13.50% -21.19%

** OTHER FACE CREAMS -8.06% 14.95%

** OTHERS 3.68% -24.34%

** VANI.CREAMS/SNOWS -26.58% -33.81%

***MOIST. LTN/CREAM -13.62% 78.59%

Killing Sales Threats - SKIN

• Competition falling apart

– Emami (-1.5%)

– Godrej (-1.1%)

• Some new entrants learning the hard way

– Himalaya

%MS by Value (Sub Category) TOTAL-MARKET(FROM JAN2001)URBAN(FROM JAN2001)RURAL(FROM JAN2001)

KARNATAKA 2001YR 2002YR 2001YR 2002YR 2001YR 2002YR

** OTHER FACE CREAMS 100 100 100 100 100 100

CAVINKARE 19.23 20.22 18.23 19.09 21.32 22.55

FAIREVER 16.51 4.00 16.03 4.92 17.52 2.09

FAIREVR NEW IMPRVD 2.72 16.22 2.20 14.17 3.80 20.46

EMAMI 4.22 2.67 5.75 3.52 1.00 0.91

EMAMI NAT FAIR PERL 1.24 2.00 1.72 2.67 0.21 0.63

NATUR-FAIR 2.98 0.67 4.03 0.86 0.78 0.28

GODREJ CONSUMER PROD 2.17 1.07 2.96 1.42 0.51 0.35

FAIRGLW FAIRNES CR 2.17 1.07 2.96 1.42 0.51 0.35 – Himalaya

– Paras

• Emerging threats

– No Marks (1.3%)

– Eraser (0.4%)

• Only Fairever remains a threat

– share gain in rural and urban

FAIRGLW FAIRNES CR 2.17 1.07 2.96 1.42 0.51 0.35

HIMALAYA DRUG 0.01 0.12 0.01 0.18 0.00 0.00

AYURVDIC CNCPTS FRNS 0.00 0.10 0.00 0.15 0.00 0.00

AYURVEDIC CONCEPTS 0.01 0.02 0.01 0.03 0.00 0.00

HINDUSTAN LEVER 70.67 69.91 68.12 67.59 76.04 74.71

FAIR & LOVELY ADV.F 5.41 7.21 7.38 8.85 1.29 3.82

FAIR & LOVELY NTRCH 63.87 56.62 59.05 52.38 73.99 65.40

FR & LVL AYV FRNS CR 0.00 5.44 0.00 5.55 0.00 5.19

FR & LVL BDY FARNS 0.11 0.07 0.17 0.10 0.00 0.00

FR & LVLY DK CIRCL 0.01 0.12 0.01 0.16 0.00 0.03

OZONE 0.00 1.31 0.00 1.79 0.00 0.30

NO MARKS 0.00 1.31 0.00 1.79 0.00 0.30

PARAS PHARMA 0.25 0.17 0.30 0.19 0.13 0.13

FRESHIA 0.25 0.17 0.30 0.19 0.13 0.13

ERASER 0.00 0.34 0.00 0.50 0.00 0.00

Rallying Focus behind LUPs• LUP to be consistently focussed on every JC

– RSSM Swingers 1 LUP per JC

– TSI Focus LUP every alternate JC

• Lines growth through LUP focus

– All O/L to be billed LUP once every JC to ensure 100% ECO on all LUPensure 100% ECO on all LUP

– Special additional lines incentive to be given by the RS on this bill provided:• It has all LUP

• It has more than 50 linews

• It is a retail bill

• TSI Report Card

– Separate monitoring of performance on LUP

Attracting and Retaining quality RSSM

• RSSM Listing once every quarter

– 1-2-ka-4 Awards

– Certificates from the ASM

• RSSM Dinners with the ASM in key markets to improve motivation / buy in to company improve motivation / buy in to company requirements

• RSSM Workshop / Meetings once a year to inform / rally support to the sales mission for the year

• Career planning for Listed RSSM

– RSSM / CASM / TSI / SO / ASM

Implementing A Merchandising Template

• All FF to carry posters to the market

• One market day to be used solely to audit the quality of merchandising

• ASM / RSM to put up at least 20 posters in the market on every working daymarket on every working day

• Third party to be responsible for merchandising in Bangalore Metro

• Merchandiser to accompany salesman on all key account beats

Building RS Commitment

• RS Quality Circle Meetings in Bangalore every third Saturday of the Month

• Opening a personal dialogue with the RS• greetings on personal occasions

• mementos on achieving are landmarks

• recognition of the growth agenda on a continual basis• recognition of the growth agenda on a continual basis

• Leveraging IT to communicate with all the RS more often through RS Net

• Implementing CRS in word and spirit

• Training RSSM to help the RS achieve his growth ambition

Deploying optimal infrastructure

• Infrastructure inadequacy to be communicated as a grounds for RS termination

• HLL Way Outlet Coverage norms as a pre condition for RS to get 1-2-ka-4 money

• Failure to meet HLL Way norms will lead to exclusion from 1-2-ka-4 incentivesfrom 1-2-ka-4 incentives

• HLL Way Certification• Carrot to drive compliance across the area

• HLL Way news letter on a quarterly basis• Will highlight exceptional growth performances by RS

• Will capture details of the best selling stories

• Will help share best practice across the area

People Challenges

• Energizing the team• Yellow jersey for the top 3 TSI’s from JC 1

• The rest to chase the top three

• Clear differentiator

• Motivating the team• Celebration of success in a big way• Celebration of success in a big way

• Landmarks to be clearly maintained

• SO Tracking Sheet to make it competitive

• Career Planning• Participate in their dreams

• Coach consciously at every JC Meeting (Development Segment already implemented)

• Balancing Sales Pressures• ‘Know’ the families

• Surprise them

Area VisionTo be a 250 Crore Area by Year

Mission

Deliver 200 Crore in Year 2003

To be a 250 Crore Area by Year 2005

Train

3 TSI’s and 2 SO’s

For Higher Responsibility

Summary

• Key Thrusts

– Improving extent and quality of outlet coverage

– Killing sales threats

– Rallying focus behind LUPs

– Attracting and retaining quality RSSM

– Implementing a quality merchandising template that ensures the best visibility / salience at the POP

– Building RS/ RD involvement

– Deploying optimal infrastructure for growth by mutual agreement with the RS

• Key Opportunities

– Dental in rural

– Skin Creams

– Shampoos in rural

– Deodorants in Bangalore Metro

THE GAP / OPPORTUNITY : 2005

AC Incremental over 2002 : 90 crores

Buckets Urban Rural Tot Market

In LACS

Deo 659 659

Shampoo 597 1011 1608Shampoo 597 1011 1608

Skin Cream 1463 358 1821

Pastes 2380 987 3367

Total Gain 5099 2356 7455

Sales Challenges : 2003

• Improving extent and quality of direct coverage in 10L+ towns

• Dental , Skin Creams, Ayush , KCLL

• Building a town by town approach for key thrusts• Anti Chik : South KN

• Brushes : Selling pieces

• KCLL : Medical O/l coverage

• Anti Fair Ever : North KN

• Anti Anchor : North KN

• Driving HLL Way and 1-2-ka-4

• Avg RSSM Earning from 1-2-ka-4 > 1200 Rs. / JC

HOME WORK

ONE PAGE

Bring a One Page Concept Note on a Product you would like to launch.

Rules of Thumb – Concepts

• You should be able to read the concept in 30 secs or less

• Brand name should be evident and prominent

• Use consumer language, not technical mumbo jumbojumbo

• Headline should be principal selling message

• State all sizes in which it will be available

• State exact retail price

• Restage concepts – cue new

• Intrigue elements are not needed at this stage

Thank You

xim 4 - area sales approach

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