1. Tic Tac Project Objective – To provide the way-forward for Tic Tac to be the category leader in the wholesale channel Saurabh Gupta Kelley School of Business, Indiana University (Under the guidance of – Mr. Nikhil Singh)

2. Agenda

3. The Approach Summary 2 3 4 5 Understand the wholesale market Design a Questionnaire for the wholesalers Visit wholesale markets across south India Collate and analyze findings, recommend Design an approach for market research Step 1 Step 2 Step 3 Step 4 Step 5

4. The Approach Step 1 Visit the local wholesale market to understand the tricks of the trade

5. The Approach Step 2 Prepare a holistic approach comprising of multiple aspects to proceed

6. The Approach Step 3 Page 1 of 4 Design a questionnaire for market research Visible Reachable Visible Visible Reachable Reachable

7. The Approach Step 3 Page 2 of 4 Design a questionnaire for market research

8. The Approach Step 3 Page 3 of 4 Design a questionnaire for market research

9. The Approach Step 3 Page 4 of 4 Design a questionnaire for market research

11. The Approach Step 5 Recommend Collate and analyze findings; recommend the way forward..

12. Sample size : 125 wholesalers across 7 cities Wholesale Segmentation – The Universe Wholesale Categorization 1. Confectionery (predominantly) 2. Confectionery and Food Products 3. Confectionery and Other Products

13. Wholesale Segmentation – The Universe 1. Confectionery (predominantly) % of wholesale shops

14. Wholesale Segmentation – The Universe Other Products Sold Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 1. Confectionery (predominantly)

15. Wholesale Segmentation – The Universe 2. Confectionery and Food Products 3. Fake Products 2. Local Food Products 1. Popular Branded Food Products % of wholesale shops

16. Wholesale Segmentation – The Universe Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 Food Products – Distribution Distribution of ‘ Confectionery and Food Products’ 2. Confectionery and Food Products

17. Wholesale Segmentation – The Universe 3. Confectionery and Other Products 1. Personal Care 2. Cigarettes / Tobacco 3. Premium Products / Gift Items % of wholesale shops

18. Wholesale Segmentation – The Universe Other Products – Distribution Average Price Range of Confectionery Products 50 paisa – Rs.2 Rs.5 – Rs.10 Distribution of ‘ Confectionery and Other Products’ 3. Confectionery and Other Products

19. Competitor Landscape – What’s Working For Them?

21. Polo Availability 77% overall availability – regardless of SKU Which SKU Sells More? Rs.5 Rs.2 Key take away: Half the shops that stock Polo prefer keeping ONLY Rs.2 Polo jars/packs! Shops that sell both SKUs sell Rs.2 SKU more SKU(s) Availability (% of the overall universe) Rs.5 48% Rs.2 73% Both 35% SKU(s) In the shops that stock Polo Only Rs.2 46% Only Rs.5 7%

22. Polo Visibility 62% of the shops that stock Polo have Facings of >2 boxes/jars Facings Category Visibility In the shops that stock Polo Good 23% Medium 57% Bad 20% Visible Reachable Visible Visible Reachable Reachable Good Medium Bad Visibility defined by –

24. Polo What’s Working?

26. Orbit Availability 56% overall availability – regardless of SKU Key take away: 97% of the shops that stock Orbit prefer only Rs.5 SKU Which SKU Sells More? Rs.30 Rs.5 Shops that sell both SKUs sell Rs.5 SKU more SKU(s) Availability % of the overall universe Rs.5 56% Rs.30 3% Both 3%

27. Orbit Visibility 87% shops that stock Orbit have facings of >2 Best in the category! Facings – In the shops that stock Orbit Key take away: Over 80% of >2 facings, driven entirely by the presence of multiple flavors Category Visibility In the shops that stock Orbit Good 33% Medium 51% Bad 16%

29. Orbit What’s Working?

30. Orbit Wrigley’s Display Contest – Pune, Hyderabad

32. Mentos Availability All shops with Rs.5 SKU stock 50 paisa SKU too! Which SKU Sells More? 50 paisa Rs.5 70% overall availability – regardless of SKU Key take away: Again, 40% shops that stock Mentos prefer keeping ONLY a 50 paisa SKU SKU(s) Availability % of the overall universe 50 paisa 70% Rs.5 25% Both 24% SKU(s) In the shops that stock Mentos Only 50 paisa 40% Only Rs.5 2%

33. Mentos Visibility Facings – In the shops that stock Mentos 73% shops that stock Mentos have facings of >2 Key take away: Over 70% of >2 facings, driven entirely by separate jars for every flavor Category Visibility (% of shops that stocked Mentos) Good 26% Medium 52% Bad 22%

35. Mentos What’s Working?

37. Happydent Availability Availability of all SKUs is Poor, especially that of Rs.10 Which SKU Sells More? Re.1 Rs.5 44% overall availability – regardless of SKU SKU(s) Availability % of the overall universe Re.1 40% Rs.5 24% Rs.10 3% Both Re.1 and Rs.5 20% SKU(s) In the shops that stock Happydent Only Re.1 18% Only Rs.5 6%

38. Happydent Visibility Highest ‘Bad’ visibility among the competitors Visibility = Poor! Facings – In the shops that stock Happydent Key take away: 60% shops have facings >2, but sample size is too small to conclude anything Category Visibility In the shops that stocked Happydent Good 23% Medium 52% Bad 25%

40. Happydent What’s Working?

41. Tic Tac – Where It Stands

42. Tic Tac – Where It Stands 60% of Tic Tac monthly sales of >Rs.5000 driven by ‘Confectionery and Food Products’ shops Sample Size: 75 wholesale shops across 6 cities Sales (monthly) by Wholesale Type 57% of the universe 22% of the universe 21% of the universe Confectionery (predominantly) Confectionery and Food Products Confectionery and Other Products

43. Tic Tac – Where It Stands Availability In the shops that stock Tic Tac – regardless of the SKU Which SKU Sells More? Key take away: 78% shops that sell both Intro and T12 sell more Intro because of low price Based on wholesalers’ responses T12 Availability – In Perspective Key take away: Confectionery products’ availability decreasing with increase in unit price % of the universe SKU Availability In the shops that stock Tic Tac Only Intro 58% Only T12 8% Both 38%

44. Tic Tac – Where It Stands Visibility Intro’s visibility (92%) slightly better than that of T12 (85%) Facings T12 Intro Key take away: Intro driving Tic Tac’s visibility. T12 visibility (>2 packs) not impressive enough 65% facings of >2 Packs 91% facings of >2 Jars Category Visibility Intro Visibility T12 Good 41% 30% Medium 51% 55% Bad 8% 15%

45. Tic Tac – Where It Stands Visibility (Good / Medium) – In Perspective Key take away: Tic Tac’s visibility in general is good, but there is room for improvement Visibility in % Brand

46. Tic Tac – Where It Stands Key take away: Sales increase with an increase in visibility, and especially, facings! Effect of Visibility on Sales >Rs.20001 Rs.10000-Rs.20000 Rs.5001-Rs.10000 Intro sales – by facings T12 sales – by facings >3 Jars 2-3 Jars 1 Jar >5 Packs 2-5 Packs 1 Pack

47. Margins Margins – In Perspective * Average Across Regions Distributor Price Retailer Price MRP Tic Tac – Intro Tic Tac – T12 Tic Tac – Where It Stands Wholesaler Retailer Key take away: Tic Tac’s retailer margin is among the best in the category Tic Tac’s wholesaler margin among the worst in category Intro Margin* Wholesaler 3% Retailer 18% T12 Margin Wholesaler 2% Retailer 20%

48. Recommendations

50. Recommendations A SKU of Rs.180 is good, but another smaller SKU will assist in more trade penetration Average Jar Price (MRP) in wholesale Average Number of Units/Jar Price – Jar

51. Recommendations Price – Jar Another advantage of a smaller SKU – gets more visibility!

62. Questions?