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3-4% Gross Margin


Loss Leadership brands. Negligible margins

Focus on selling the whole stack

RoI =   Income         = Net Margins x Rotations
        Investment

                      It’s all about rotations!
Wheel today: Rs. 2,000 Crore Brand.

“Operation STING” Critical Success Factors:
Relevant consumer insight, optimum supply chain & wide distribution reach


Outsourced manufacturing & distribution

       Disruption needs rethinking the whole mix!
“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)”

       Sustained growth driver for the company
Consumers insist on Intel processor

~70% of assemblers use an Intel motherboard too! 30-40% more
expensive




        Assurance of Quality & Reliability
Changing a watch battery, every so often

Titan batteries are ~60-80% premium

Customers insist on brand, even outside the company stores


                      Tata = Trust!
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
Next Leap of Distribution

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Next Leap of Distribution

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. 3-4% Gross Margin Loss Leadership brands. Negligible margins Focus on selling the whole stack RoI = Income = Net Margins x Rotations Investment It’s all about rotations!
  • 12. Wheel today: Rs. 2,000 Crore Brand. “Operation STING” Critical Success Factors: Relevant consumer insight, optimum supply chain & wide distribution reach Outsourced manufacturing & distribution Disruption needs rethinking the whole mix!
  • 13. “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)” Sustained growth driver for the company
  • 14. Consumers insist on Intel processor ~70% of assemblers use an Intel motherboard too! 30-40% more expensive Assurance of Quality & Reliability
  • 15. Changing a watch battery, every so often Titan batteries are ~60-80% premium Customers insist on brand, even outside the company stores Tata = Trust!
  • 16. Key Learnings The New Way of Distribution
  • 17.
  • 18.
  • 19.
  • 20. People will forget what you said, people will forget what you did but people will never forget how you made them feel ! Maya Angelou
  • 21. Embrace technology… there is no getting away! Invest in the next wave and harness full benefits Compute, connect & collaborate