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Logistical
Efficiency
(Increase Value shipped per Kilogram)
Sanchit Kumar Yadav
Objective
● To increase Logistical efficiency for one of the Key verticals under Home and Kitchen Category of udaan
● Reduce unwanted space thus increase value shipped per kilogram without hampering buyer experience
● Improve CM2 ( contribution margin 2 ) in the cookware category
Contents
• What is Pressure Cooker?
• Market Size
• Business on Udaan
• Existing VPKG
• What problem space to be Targeted?
• Current Product Packaging
• Pilot
• New Product Packaging
• New VPKG
• Impact on Business
• Marketing campaign
• Buyer Feedback
What is Pressure
Cooker?
• Air-tight cooking device
that cooks food quickly by
using the steam pressure
that builds up inside.
• Largely divided into Inner-
lid & Outer-lid ( ISI & Non-
ISI ).
Market Size- 2500cr
PRESSURE COOKER- 2500CR
Unbranded-
1000cr
40%
Branded- 1500cr
60%
Units Sold Average Value Market Share
Prestige 4500000 1200 540,00,00,000
Hawkins 3500000 1500 525,00,00,000
United 3000000 1000 300,00,00,000
Butterfly 500000 1200 60,00,00,000
Pigeon 500000 800 40,00,00,000
Business on Udaan
7%
4%
2%
87%
Sales 2019-20
Pressure cooker-70cr
Mixer Grinder-35cr
Gas Stove-20cr
H&K- Other Verticals- 870cr
Vertical Unbranded
VPKG
Commission Commission
Realization
(Current)
Deficit for GM2 Target*
Pressure cooker 112 16% Rs.18 Rs. 12
Existing VPKG (Value per Kilogram)
*Assuming GM2 Target is Rs.30 per
Kg
- VPKG (Value shipped per Kilogram )
VPKG = . Price of Product .
Higher Weight ( Dead or Vol.)
⮚ Possibilities of achieving GM2+
Target
- Increase Commission
OR
- Increase VPKG
⮚ Problem Statement
- To Improve VPKG without much disturbing Buying Experience
(Price and Packaging)
⮚ Basic hygiene factors for buyers:-
- Inner Product is secured
- Look & Feel of Product
- Standard packaging box
What problem space to be targeted?
Current Product Packaging
• 6, 8 or 12 Pcs are packed into a master carton as per size
& shipped.
Pilot
Pilot
Item L(cm) B(cm) H(cm) Vol.
weight
(Kg)
Dead
Weight
(kg)
Selling
Price
VPKG
Inner Lid- 5Ltr 39 22 21 3.60 1.95 575 159.50
Primary Box Dimension
Master Carton Dimensions (Pack of
6pc)
Item L(cm) B(cm) H(cm) Vol.
weight
(Kg)
Dead
Weight
(kg)
Selling
Price
VPKG
5Ltr 40 45.5 64.5 23.4 12.50 3450 147.50
Primary Packaging
Master Carton
Packaging
(Pack of 6pcs)
3D Design
– Primary
Packaging
Prototype
Product fit
inside
Prototype
3D Design
– master
Carton
New VPKG(Value per Kilogram)
Item L(cm) B(cm) H(cm) Vol.
weight
(Kg)
Dead
Weight
(kg)
Selling
Price
VPKG
Inner Lid-
5Ltr
39 22 21 3.60 1.95 575 159.50
3.00 191.65
Primary Box Dimension
Master Carton Dimensions (Pack of
6pc)
Item L(cm) B(cm) H(cm) Vol.
weight
(Kg)
Dead
Weight
(kg)
Selling
Price
VPKG
5Ltr 40 45.5 64.5 23.4 12.50 3450 147.50
63.5 22.5 64.5 18.43 187.20
Old
Old
Impact on Business
- 27% VPKG (value per kilogram) can easily be Improved without increasing commission.
147.5
187.2
23.6
30.0
20
0
140
120
100
80
60
40
180
160
200
O L
D
NEW 1 6 % O L
D
1 6 % N E
W
VPKG
3.6
Marketing Campaign & Launch
• We promoted Made in India via our
new Smart packaging as independence
day special.
• Product design for the new box was
very close to Gandhi’s Spinning Wheel.
• 2400+ Units sold at the launch event.
Buyer Feedback
• We Captured 65 buyer’s feedback Who received close to 510+ units of new
packaging
Look & Feel of Box + Display attraction
Challenges in selling the product
(Retailer’s sold close to 190+ pieces to end
user)
Stacking/Shelfing
Very
Good
15
Good
48 Bad
2
No - 63 Yes -
2
Easy - 55 Manageable - 10
Thank You

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Logistical Efficiency.pptx

  • 1. Logistical Efficiency (Increase Value shipped per Kilogram) Sanchit Kumar Yadav
  • 2. Objective ● To increase Logistical efficiency for one of the Key verticals under Home and Kitchen Category of udaan ● Reduce unwanted space thus increase value shipped per kilogram without hampering buyer experience ● Improve CM2 ( contribution margin 2 ) in the cookware category
  • 3. Contents • What is Pressure Cooker? • Market Size • Business on Udaan • Existing VPKG • What problem space to be Targeted? • Current Product Packaging • Pilot • New Product Packaging • New VPKG • Impact on Business • Marketing campaign • Buyer Feedback
  • 4. What is Pressure Cooker? • Air-tight cooking device that cooks food quickly by using the steam pressure that builds up inside. • Largely divided into Inner- lid & Outer-lid ( ISI & Non- ISI ).
  • 5. Market Size- 2500cr PRESSURE COOKER- 2500CR Unbranded- 1000cr 40% Branded- 1500cr 60% Units Sold Average Value Market Share Prestige 4500000 1200 540,00,00,000 Hawkins 3500000 1500 525,00,00,000 United 3000000 1000 300,00,00,000 Butterfly 500000 1200 60,00,00,000 Pigeon 500000 800 40,00,00,000
  • 6. Business on Udaan 7% 4% 2% 87% Sales 2019-20 Pressure cooker-70cr Mixer Grinder-35cr Gas Stove-20cr H&K- Other Verticals- 870cr
  • 7. Vertical Unbranded VPKG Commission Commission Realization (Current) Deficit for GM2 Target* Pressure cooker 112 16% Rs.18 Rs. 12 Existing VPKG (Value per Kilogram) *Assuming GM2 Target is Rs.30 per Kg - VPKG (Value shipped per Kilogram ) VPKG = . Price of Product . Higher Weight ( Dead or Vol.) ⮚ Possibilities of achieving GM2+ Target - Increase Commission OR - Increase VPKG ⮚ Problem Statement - To Improve VPKG without much disturbing Buying Experience (Price and Packaging) ⮚ Basic hygiene factors for buyers:- - Inner Product is secured - Look & Feel of Product - Standard packaging box
  • 8. What problem space to be targeted?
  • 9. Current Product Packaging • 6, 8 or 12 Pcs are packed into a master carton as per size & shipped.
  • 10. Pilot
  • 11. Pilot Item L(cm) B(cm) H(cm) Vol. weight (Kg) Dead Weight (kg) Selling Price VPKG Inner Lid- 5Ltr 39 22 21 3.60 1.95 575 159.50 Primary Box Dimension Master Carton Dimensions (Pack of 6pc) Item L(cm) B(cm) H(cm) Vol. weight (Kg) Dead Weight (kg) Selling Price VPKG 5Ltr 40 45.5 64.5 23.4 12.50 3450 147.50
  • 18. New VPKG(Value per Kilogram) Item L(cm) B(cm) H(cm) Vol. weight (Kg) Dead Weight (kg) Selling Price VPKG Inner Lid- 5Ltr 39 22 21 3.60 1.95 575 159.50 3.00 191.65 Primary Box Dimension Master Carton Dimensions (Pack of 6pc) Item L(cm) B(cm) H(cm) Vol. weight (Kg) Dead Weight (kg) Selling Price VPKG 5Ltr 40 45.5 64.5 23.4 12.50 3450 147.50 63.5 22.5 64.5 18.43 187.20 Old Old
  • 19. Impact on Business - 27% VPKG (value per kilogram) can easily be Improved without increasing commission. 147.5 187.2 23.6 30.0 20 0 140 120 100 80 60 40 180 160 200 O L D NEW 1 6 % O L D 1 6 % N E W VPKG 3.6
  • 20. Marketing Campaign & Launch • We promoted Made in India via our new Smart packaging as independence day special. • Product design for the new box was very close to Gandhi’s Spinning Wheel. • 2400+ Units sold at the launch event.
  • 21. Buyer Feedback • We Captured 65 buyer’s feedback Who received close to 510+ units of new packaging Look & Feel of Box + Display attraction Challenges in selling the product (Retailer’s sold close to 190+ pieces to end user) Stacking/Shelfing Very Good 15 Good 48 Bad 2 No - 63 Yes - 2 Easy - 55 Manageable - 10