MARKET WORKING

2/4/14: Bara Bazaar, Chhota Bazaar Shahdara (14)

3/4/14: Gta Co!o"# (2$)
4/4/14: Bho%a! Mar&t (24)
1.Information Flow:-
1'1 (ro) Sto*&+,t to SSM
The computer system at the stockist contains details viz.
The name, type of each outlet; a diferent list for each market
The monthly transaction details of each outlet
The regular order details for each outlet
Bills pending, details of credit and cash sails.
Availability of products, their sizes, packages
The discounts, fat rates, schemes, bulk order !s etc.
Before leaving for his daily beat, a SSM carries with him the handheld PDA, a
portfolio of the products and the bills which have been paid for in creditin
either in part or in full
The Botree "oft#are, !rishti is used at a !abur stockist to integrate all the
above information to the ""$%s handheld &!A.
1'2' (ro) SSM to Sto*&+,t
The ""$ uses the &!A to collect orders from the retailers. The 'uantity,
variant and domination of each product are selected and saved in the
&!A.
At the end of the daily beat, the ""$ returns to the stockist and again
synchronizes the &!A #ith the stockist computer. The bills are
generated automatically and replicated in the outbound stock list, a
separate one for each outlet.
2. The Interaction at the Outlet
The ""$ sks the retailer #hat he needs, and enters it into his &!A.
$ore often than not, the store itself is (lled bustling ith customers and
the retailers do not pay heed to the ""$. The ""$ then tries to (gure
#hat product might be out of stock, or is going to be out of stock in a
#eek and suggests it to the retailer. Also, to get the retailer order
more, the ""$ has options viz.
!iscounts; bulk and fat ,)or e*+, -./ discount on Ashokarisht if
bought from the !abur stockist.
"chemes. )or e*+, )ree 0..gm !abur 1oney #ith !abur Badam
Tel etc.
ash !iscounts. )or 2*+, )or orders above 03.. #hich are paid
for in cash, a discount of 0/.
3. Orders: Reaching a store from the Stockist
After getting the orders fed into the system, the order contents are
transported to the retailer on the very ne*t day. At the delivery, some
of the payment is made in cash and others are held 4very similar to
selling on credit5 for a later time. The payments made are duly noted
and the pending ones are marked. These bills are then redeemed by
the ""$ on his ne*t #eekly beat to the retailer.
. Factors a!ecting orders "# retailers $Sell Ins%:-
The numerous factors can be categorized into the follo#ing +,
4'1 -)a"d o. th /rod0*t
The retailer is, #ithout a doubt, #ooed by the company%s eforts but
ultimately if the product is not in demand by the customers then there
is absolutely no #ay that an order for it can be obtained. "ome
e*amples+,
4.. Dabur Shila!it "old
2ven #ith a lucrative scheme of free "hila6it 7il, he retailers simply do
not #ant to stock it. 8o matter ho# huge the margin is, no matter that
the free product can be sold at the $9&,8o. of orders + :;3..
4..# Sharbat $ A%am
!espite being the summer season nota single retailer ordered this
product, because of the same reason. There are no customers #ho
#ant to buy it. 8o. of orders+.;3..
4'2 Co)/t+t+o"
)or the 9etailer+, Better margins, take back policies, heavy discounts,
fre'uency of delivery, merchandising bene(ts.
2*+, )oods+
Tropicana 0../ ofers a margin of </ as compared to 9eal Activ.
!abur takes back only e*pired products. 8ot a single reason is
accepted for product damage at the retailer%s end.
1A+,
=as 7 )ast from $ankind, get t#o at the price of one and sell both
separately.
)or the ustomer+, Better visibility, 'uality, loyalty, pricing and on the
marketing side; attractive and credible promotion.
2*+, Again Tropicana pays the retailers for a dedicated display of
Tropicana 0../ at the front of the shop.
Another very critical factor is &ocal Brands. These brands compete
solely on price and sell at very lo# margins. 1o#ever, some products
do have launched in very cpnvenient packaging.
2*+,'hamadiya is visible at nearly all chemists, at the front counter
alongside 1a6mola 6ars.
4'3 Co)/t"* o. th SSM
The ""$ is the interface bet#een the company and the retailer. ""$ is
responsible for for potraying the bene(t of the company%s ofers to the
retailer in such a #ay that it contrasts positively from its competitors. A
healthy rapport #ith the retailers ensures that they atleast listen to
#hat the ""$ has to say. 7ther#ise, in event of a cro#d at the shop,
the ""$ is 6ust #aved a#ay.
)or intsance, At a chemist in "hahdara, the retailer didn%t place an
order for a product because the ""$ #as pushing too hard, repeating
the schemes on the same product again and again. The retailer openly
said that he senses something (shy about the product.
4'4 Sa,o"
"ome products provide themost bene(t in a particular season and in
others, thier demand is not so much. )or e*+, hya#anprash, Badam
9ogan.
>n the unfavourable season, the orders for these products goes do#n
drastically and the company%s schemes, ofers become all the more
important.
4'1 A2a+!a3+!+t# at th Sto*&+,t
9etailers might #ant to order a product out if their regular orders and if
it is not available at the the stockist, it creates a bad impression.
4'$ 4a#)"t o/t+o",
The retailer might ot have the e*act amount for cash available at the
time of delivery of the order. At this time, the comapny%s credit poilicies
are important. urrently, if somepart of the payment is not made at
the moment of delivery then the ""$ carries the unpaid bill in the ne*t
beat to the reatiler #hich happens generally the ne*t #eek. The
retailer might be e*pecting an increased sale in the coming #eek but
right no# doesn;t have the cash, but he does need to make a big order.
>f at this point, the credit policy of the company is not tailor made, then
that order might be foregone.
4'5 6"dr*0tt+"% 3# Who!,a!r,
?holesalers in the market order in bulk and receive discounts
especially in place for them. The retailers in turn get their order at
alesser price from them as compared to the company%s stockist. The
result; an order #hich could have come the stockist%s #ay is routed to
the #holesaler, being a better deal for the retailer.
2*+, =olden ?holesalers in hhota Bazaar are preferred over the
company stockist because of less price and high margins for the
retailer.
4'7 I".ra,tr0*t0r
The retailers have limited space available at the outlet. !ue to this
constarint, order size is not large enough or does not contain product
denominations #hich take up a lot of space. >ts better that the variety
the company ofers in terms of diferent denominations of the same
product ranges from small units to large bulk sizes.
&.Factors a!ecting orders "# retailers $Sell Outs%:-
A sell out is #hen the retailer sells to the customers.
1'1 8+,+3+!+t#
The product that has a better visibility is likely to increase the of,takes
from the outlet. ?ith better placement, merchandizing, packaging; the
number of sell outs can be increased. "ome products #hich are not
planned purcahses only come to mind #hen the customer spots it at
the store.
)or e*+,At chemist shops,!abur%s entire range of ayurvedic products
like Trifa, @avan Bhaskar #ere at the bottom dra#ers or at the very
back of the store; virtually invisible to the customer.
?hereas, the 1imalaya range #as very neatly stacked at eye level at
most of the chemists.
Baidyanath prodcuts #ere also placed near the front counters.
1'2 Mr*ha"d+z+"%
The products are placed strategically at the retail outlet; keeping in
mind the common hot spots, general patterns in #hich a typical
customer scans the shelves. Also, to catch the eye, diferent
arrangement, posters, hangers, shelf breakers etc. are used so that the
customers are able to locate the company%s brand better than the
others.
2*+, The order in #hich diferent brands are put on shelves, the product
that is placed (rst is more likely to be noticed.
1'3 4a*&a%+"%
Attractive packaging also helps in getting the attention of the
customer. "ome description of the product gets conveyed directly
through the packaging.
2*+, olor of the pack can be interpeted as an indicator of the type of
fruit it contains. Tropicana has a diferent color of pack depending upon
the type of fruit 6uice.
?hile 9eal does not change the orange base color #ith the 6uice type.
All packs look similar at a glance, result+ the customer is not curious
enough.
1'4 I"90"* o. th ,a!,)a" at th o0t!t
This factor is very common at the local chemist shop or a
confectionery etc. The customer is s#ayed by the suggestions of the
salesperson, #hich could be a result of trust, actual kno#ledge or a
history of good suggestions. The salesperson tends to push through
products #hich give him some or the other kind of incentive. A good
relationship #ith these people is very important.