Next Gen Distributor Management Model Jan 2007

4
2007 Edition
Module 3 GT Learning Series
Winning at Point of Purchase
The Practical D&E Guide to the Next Generation Distributor Model
Introduction
01 Introduction
Dear Unilever Colleague,

The Win @ POP team has been giving special focus on enhancing our capabilities in the Developing & Emerging Markets of Asia AMET, Latin America & CEE. To Win with Customers we need to win everywhere. Why this booklet? One of the business strategies of Unilever in D&E is to serve all consumers & shoppers whether rich or poor, whether at the top or the bottom of the pyramid. With the increasing GDP growth across D&E and the emergence of more discerning shoppers our Distributors & RTM partners have to extend beyond just making our products available to winning @ pop in a holistic manner. This booklet gives practical guidance on realizing this new capability requirement in our Go To Market operations. Apart from this Guide, this learning series on The Next Generation Distributor model consists of: 1. 2. 3. Toolkits which will help you to analyse the maturity profile of your distributor system. Rapid Action Learning Modules which can be rolled out in your country with actionable output E-Learning materials which colleagues can use at their own pace for personal capability enhancement.
This Series is to help serve better the 4.7 billion shoppers which Unilever D&E is privileged to cater to. We look forward to your use of this Guide and the Toolkits to enhance your business performance and achieve outstanding growth in the D&E markets.
Mark Barnard SVP CD Asia AMET On behalf of CDLT September 2006
Contents
Introduction Why Do We Need The Next Generation Distributor Model Essence Of The Next Generation Distributor Model Appendix: Essence Of The Next Generation Distributor Model Channel Goals Appendix: Channel Goals Key Performance Indicators (KPIs) Appendix: KPIs Organisation Appendix: Organisation Systems Appendix: Systems Case Study: HLL India The Next Generation Distributor Model Contributors 03 13 19 25 43 59 93 109 135 145 191 203 223 246
Introduction
04 Introduction
05 Introduction
Background
Unilever has a large presence across geographies in the Developing & Emerging (D&E) markets with historically strong positions in leading categories, as shown below. Unilever has been present in many of these geographies for decades.
Leading Positions in Key Countries

India F Cleaning Hair Care Face Skin Cleansing Deos Tea Savoury Ice S. Africa Indonesia Thailand Turkey Brazil
The success of Unilever in D&E has been founded on our deep local insights and global scale on one side and our excellence in Customer & Channel Management on the other. As Customer Development professionals our role is to ensure that this overwhelming superiority is sustained and built upon with newer and / or enhanced capabilities in all aspects of Customer & Channel Management. With this end in mind four booklets are being created to enable us to further update our capabilities in managing General Trade and Route to Market. These are: Module 1 Module 2 Module 3 Module 4 Unilever Route to Market Strategy and Design Guide The Practical Guide to Shopper Defined Channel Management The Practical Guide to Next Generation Distributor Management The Practical Guide to Extending Reach through Route to Market (RTM) Management
The ultimate objective of these Guides is to help us Win @ POP in hybrid markets.
06 Introduction
The Strategic Role Of Point Of Purchase (POP)
Manufacturers and Retailers have begun to refocus attention on store level, and execution at the POP. It is in store and at the shelf that the most important activity for the retailer and supplier occurs: selection and purchase by the shopper! The POP is any place where shoppers can find and purchase our brands. These venues will vary widely across and within markets. There are numerous channels and types of outlets / formats where our products can be found. In addition to traditional outlets such as Grocery Stores, Super Centres, Discounters and Cash & Carry outlets, there are convenience stores, drugstores, speciality stores, mini marts, and lots more! The common characteristic of all these different locations is the fact that shoppers will go there and will make their purchase either to buy our products or a competitors one. They may also decide to satisfy their original need with a product from an adjacent category, or even to delay the purchase if the desired item is not available for purchase. In all the above locations, or in any new kind of POP that may emerge in the market in the future, our goal is to influence the shoppers decision and make them buy our product, without delays or substitutions, by optimising on shelf availability, and ensuring that our Brand strategies are executed brilliantly. The POP is the place where the three most important business variables: Brand, Customer / Channel, Shopper meet. As Customer Development (CD) professionals our job is to ensure Achieve targeted levels of agreed range and distribution of SKUs Achieve recommended on shelf brand positioning and location Manage Price on shelf effectively & ensure right price in every channel Achieve adequate and appropriate promotional merchandising Achieve quick speed to shelf for Innovation
The starting point in good POP programs is good understanding of Category Channel Strategy (output of Category Strategy and National Category Building Plan) and its implications to our local markets (covered in Module 2, The Practical Guide to Channel Management).
07 Introduction As CD professionals, once we group POP by Channel, we are able to: Understand more about different types of shoppers in order to better satisfy their needs. Assess the size and growth potential of each channel. Evaluate the competitive position of Unilever and competitors in each Channel.
Based on these insights, we will: Maximize the use of our resources. Develop the most appropriate organizational structure to satisfy Channel Servicing needs. Determine the Strategy for each Channel with the adequate investment. Define the most appropriate RTM Strategy and Design to maximize our availability & visibility through proper use of Distributors or other Route to Market (RTM) available to us.
Steps
RTM Strategy Outline... Category Channel Strategy Development Process
Category Channel Strategy supports CD objectives, orienting decisions regarding product availability
1
Channel Analysis
Outlet Mapping Understand shopper and outlet environment
2
Opportunity Assessment
What are the opportunities What improvement can we make
3
Channel Prioritization
Which channel do we need to drive Size of the prize How difcult is it to penetrate new channels
4
Strategy Development
Our objectives by channel Which are the 6ps directions that we need How can we better supply these channel given the Obj & Strategies Access external world
5
Category Channel Plans
Positioning Product Assortment Packaging Price Promotion
Key Questions
Group outlets Channel differentiation What channels are our customers
Channel Knowledge
Outputs
Channel Denition Channel Architecture Share / Channel
Unilever / Competitor performance
Channel Prioritization
Channel Strategy RTM Design (the Pricing & RTM requirements)
Channel Blueprint
Source: Asia / LatAm Channel Strategy Documents
08 Introduction A few points to remember 1. Channel Analysis This is the process of identifying shopper defined channels that exist in a market and helps define the channel architecture... Channel Architecture The most relevant way to understand and structure the market is by looking at the purchase and consumption behaviour of consumers.
Level 1
In Home
Out of Home
Level 2
Non Grocery Retail Outlets
Traditional Grocery
Modern Grocery
Impluse
On Premise
Vending
Level 3
Drug Stores
Neighbourhood Grocery
Hypermarkets
Petrol
Restaurant
Non-Food Retail Outlets
Independent Grocery
Supermarkets
CTN / Kiosk
Catering
Small Independent Traders
Convenience
Leisure
Level 3 of the architecture clusters consumer touch points operating within the dened business models and are shown here. Further sub-clusters are dened at market level and reect local variants.
Discounters
Take away outlets
Cafe / Bar & Licensed Trader
Club Stores
Hotel / Trader
Direct - Internal
Non-Food Ooh Outlets
09 Introduction 2. Opportunity Assessment
It is important to assess the potential of each channel & the outlet numbers in the given geography. Given below is an example of a bubble chart which graphically shows the relative importance of a channel based on its turnover, Unilever market share and outlet numbers. The bubble tool is part of the Practical Guide to Channel Management. This analysis helps to identify the top prizes and the size of each prize.
10 Introduction 3. Channel Prioritisation
It is then necessary to do a channel assessment to understand the jobs to be done by channel and prioritisation of the most attractive channels. Given below is an example of a typical channel prioritisation in a GT environment:
Total (Benchmark) Hypers & Large Supers (1) Small Supers Convenience Store HPC Street stores Urban (2) 186,859 7 27,842 7 (3) 11,146 11 2,831 11 (4) 1,549,448 3 325,384 1 Rural (5) 1,125,579 5 213,860 4 PC Street stores Urban (6) 20,410 9 4,286 9 HPC Market stores Urban (7) 1,990,883 1 322,523 2 Rural (8) 1,606,405 2 305,217 3 PC Market stores Urban (9) 1,258,840 4 203,932 5 Skin Market stores Urban (10) 138,540 8 27,708 8 (11) 15,418 10 1,033 13 B2C via B2B Womens Salons Premium (12) 3,773 13 1,132 12 Standard (13) 6,667 12 3,000 10
Channel Assessment
Source
Size of Channel (kg) Rank of Channel Our Sales Volume (kg) / Year Rank of Channel
Internal Internal Internal Internal
Total
8,273,852
359,886 6
Sunsilk
1,504,967
66,219 6
Channel Objectives
Increase Share Incremental Volume (Ton) Maintain Share Target Increase Distribution % (W) Incremental Volume (Ton) Target Reduce OOS % (W) Incremental Volume (Ton) Marketing Activities Growth (Ton) Outlet Growth (Ton) Total incremental volume from what we can change (Ton) Total incremental + outlet + marketing activities driven growth
Retail Panel Internal Internal Internal Internal Internal Internal Internal Internal Internal Internal 12.9 12.9 69.3 39.7 122.0 0.56 0.58 6.62 7.2 0.29 0.29 6.43 6.1 12.9 0.02 0.02 0.17 0.2 13.7 1.6 0.5% 2.42 2.42 15.40 1.6 19.4 8.0 x 3% 6.1 x x 0% 4.9 2.3% 1.75 1.75 10.66 4.9 17.3 0.0 0.5% 0.03 0.03 0.35 0.0 0.4 3.10 3.10 11.65 12.9 27.7 x 4% 7.0 2.3% 2.50 2.50 14.32 7.0 23.8 1.96 1.96 3.06 2.0 7.1 x x 1% 7% 0.1 0.2% 0.22 0.22 0.43 2.0 2.6 0.02 0.02 0.01 0.8 0.8 32.0% 0.0 0.2% 0.01 0.01 0.09 0.7 0.8 29.0% 0.0 0.7% 0.01 0.01 0.15 1.6 1.7 5% 0.8 10% 0.4 10% 0.7
The sources of data for this exercise will be available from syndicated research sources such as AC Nielsen and from internal company data. This will be covered in detail in the Practical Guide for Channel Management
11 Introduction 4. Strategy Development
From Channel Prioritisation will emerge our strategy on the 6Ps. Given below are two typical examples on Channel Coverage & Price Forming Objectives: The Strategy development phase will highlight the RTM design requirements as well. Coverage Objectives
Channel Category Hyper 100% 100% 100% 100% 100% 100% 100% 100% Super 100% 100% 100% 100% 100% 100% 100% 100% CVS 40% 0% 15% 15% 40% 0% 75% 90% Covered Markets 90% 65% 95% 90% 50% 90% 80% 75% Street Stores 85% 60% 95% 90% 50% 90% 85% 75%
Hair Skin Fabric Cleaning Oral Care Deos HHC Savory Beverages
Pricing Objectives (Benchmark Index vs Competitor)

Hair Brand Sunsilk Bottles Clear Bottles Lifebuoy Bottles Lux Bottles Sunsilk Sachets Clear Sachets Lifebuoy Sachets Lux Sachets Hyper 95 105 80 100 100 100 100 100 Super 95 105 80 100 100 100 100 100 Channel CVS 100 105 80 100 100 100 100 100 Covered Markets 100 105 85 95 100 100 100 100 Street Stores 100 105 90 95 100 100 100 100
1 Introduction 5. Category Channel Plans
Finally as part of the BMP & CMP process, Channel Category plans covering the 6Ps will be drawn up with detailed activity calendars for Field Execution. The above will be covered in greater detail in Module 2 and is covered here only as a background so that the preeminent importance of POP in our entire RTM design is not under emphasised. This D&E Practical Guide will focus on the Next Generation Distributor Model.
Why Do We Need The Next Generation Distributor Model
15 Why Do We Need The Next Generation Distributor Model The Next Generation Distributor Model: Why do we need it? 1. With growing affluence and changing shopper needs the trade structure across D&E is changing rapidly & Unilever needs to be prepared for increasing hybridization of our markets with the entry of MT formats including global customers. In the new context, excellence in customer service to trade is critical for Unilever to remain as the most preferred supplier. With higher level of innovation in the market place and lower level of product differentiation in many categories, speed & quality of execution that bring our brands to life @ POP are important variables for market share growth. In an economic environment of attractive alternative business opportunities for our RTM partners, a richer quality of partnership with our distributors is required to build a sustainable & profitable business for the distributor & Unilever In addition, our competitors (both local & international) are replicating our model & in many instances building upon & improving on our model Given Unilevers strength in the D&E markets it is always to our advantage to leverage a consistent approach across the region on the distributor model using our One Unilever strength.
2. 3.
4.
5. 6.
16 Why Do We Need The Next Generation Distributor Model No matter what our market type, given the vast outlet universe which we serve as Unilever, in the foreseeable future we cannot manage without Distributors in a large portion of the D&E world. In addition, no matter where our distributors sit in the 6 business models given below there is a need to manage them in a professional manner to enhance our competitive advantage over our competitors. Given our long history in this region, there has been a tendency to stay rooted to the practices which have served us so admirably in the past. However, with the changing retail landscape of increased hybridization and inroads by our competitors into what where hitherto white spaces for them, it is imperative to revisit our processes and update them to current realities. Unilever Operating companies who have done this in the recent past have reaped big rewards. Next Generation Distributor Management In D&E we are not operating in a homogenous market. Our markets are diverse and the challenge of reach efficiency is enormous. Unilever has identified 6 key market types across the world as shown below and all 6 exist in D&E.
Type 1: Highly Fragmented Market

100% General Trade (GT) Highly fragmented market with no clear retail or wholesale structure in channel or geographic penetration. Distributors and wholesalers dominate distribution penetration. They service wholesale markets, wet / open markets, Over-TheCounter and small self service stores. These stores are supplied on a cash basis. Ranging is limited to best sellers, focusing on small pack sizes. Pricing and margins are stable, with limited promotions visible.
Type 2: Traditional Trade Dominated Market

Up to 10% MT & 90% GT Larger supermarkets starting to evolve in key cities. They can be serviced directly by manufacturers. Modern Trade = 1 to 10% of business. Most supermarkets are still serviced through Distributors. Wholesalers are still key to sales growth and market coverage, although pricing pressure is starting in key cities where Modern Trade is focused. Modern Trade uses price promotions to attract shoppers.
Type 3: Forming Hybrid Market

UP to 25% & 75% GT Large formats (hyper / super) start to dominate in key cities. Small chains / groups are evolving. Majority of new Modern Trade outlets are serviced by Distributors. International retailers are entering. Key Customers influence price forming in the market. Some convenience stores are now visible in key cities. Wholesale channel is consolidating but declining in key cities. Some wholersalers operate own supermarkets. Pricing in key cities is distruptive due to increased price promotion activities, and is effecting surrounding cities / areas.
Type 4: Advanced Hybrid Market

Up to 50% MT & 50% GT Supers & hypers dominate key cities and start to expand to secondary cities. Retail chains are well established, with several international retailers operating. DOBs are entering. Some traditional stores have upgraded to small supermarkets. Top 5 customers = up to 25% of business. Key Customers lead market behaviour. Convenience stores are wide spread. Wholesalers continue to decline. Distributors are moving either to logistic servicing or to central purchase units. Disruptive pricing in marketplace with parallel trade increasing.
Type 5: Organised Market

Up to 75% MT & 25% GT Top 5 customers = up to 50% or more of business, following further consolidation and acquisition of local retailers. Key Customers are driving agenda and influencing industry. Store level control is reducing as retailer headquarters centralise decision marking. Key customers start to seek cost efficiencies. Shopper channels are new well defined. Remaining distributors focus primarily on servicing small supermarkets with limited wholesale opportunity. Most categories contain a DOB offer.
Type 6: Concentrated Market

Modern Trade (MT) > 75% Top 5 customers are up to or more than 75% of the business and dominating the agenda. Wholesalers have almost all disappeared. A limited number of independent supermarkets are operating. International retailers or major national retailers dominate through their market share. Decision making is highly centralised and centrally controls stores in place. Retailers are focusing equally on cost reduction activities and price competitiveness.
17 Why Do We Need The Next Generation Distributor Model Given the 6 market types mentioned earlier which are all related to the ratio of MT and GT and Unilevers strength in a market, generally Unilevers Distribution system can be classified into one of the 6 models given below.
H
Unilever share of total
Exclusive distributors
Exclusive distributors Direct / KA Non-exclusive distributors Direct / KA
Channel service providers Direct / KA
Non-exclusive distributors
Wholesalers
M
Modern Trade as % of total
Exclusive Distributors In a highly-fragmented market with high share, the turnover & work level justifies exclusive distributors of Unilever. They do not have any other distribution house or distribution of any other company. However, they may have other businesses, but not in the related line. The exclusivity ensures complete involvement and better focus to the business and the high dependence of the distributor on Unilever, gives a fair amount of control & bargaining power. Non-exclusive Distributors In a highly-fragment market with average market share, Unilever distributors tend to have distribution of other company, but not in the same categories. The cost sharing model helps the distributor earn the expected take home & ROI. Besides, they may have other businesses. This model helps reach out to places which will not justify an exclusive distributor. However, along with the costs, the focus & involvement also gets distributed and the bargaining power diluted. Wholesalers Wholesalers are the best channel in a highly fragmented market with low share & turnover. This is the best way to reach out in markets, where the business is small / inviable and the relative cost of servicing is unjustified. A wholesaler may or may not be into further distribution, but a major contribution is through next level of re-sellers.
18 Why Do We Need The Next Generation Distributor Model The channel is limited to the benefit the organization can offer and is vulnerable to substitution and shifting loyalties. It is not a long term or binding channel. Exclusive Distributors, Direct / KA In a medium level of organised market where we have high shares, we have exclusive distributors (explained above) for GT & Directly serviced customers / Key Accounts for big Modern / Organised trade partners. The two may have overlapping channels. The Direct / KA ensures direct touch with the customer and the format gives a lot of opportunity for activation, interaction with customer and to build brands with consumers. Non-Exclusive Distributors, Direct / KA However, where the share of pie is low, the distributors may be non-exclusive (explained above) for GT while organized trade may be serviced directly. The format gives flexibility to reach in GT and have stronghold on the key contributors. The service levels get reduced where the Modern store format is not viable as a direct customer and has to be serviced indirectly through non-exclusive distributor. This format ensures availability but offers limited avenues for brand building. Channel Service Providers Direct / KA In a sophisticated, organized market with high share we have channel partners and directly serviced chains / KAs. This is a concentrated and focus approached with high customer service. The format gives opportunity for high customer interaction, joint business planning and greater avenues for building brands through consumer. Winning at the point of purchase is the key. However, the channel is demanding and easily accessible to all. No matter where our distributors sit in the 6 business models given above there is a need to manage them in a professional manner to enhance our competitive advantage over our competitors. This Practical guide will focus upon the Distributor model and explore the various dimensions which need to be managed for a robust, competitive & modern Distribution system. At the heart of the Distribution model is the objective of Winning @ POP. A good distributor model is only one of the elements to Win @ POP.
Essence Of The Next Generation Distributor Model
0 The Next Generation Distributor Model
1 Essence Of The Next Generation Distributor Model In 2005, the Indian business which is one of the largest Unilever businesses employing Distributors, realizing the need for change made a very successful transformation of its distribution model. This is documented as a case study in this guide. At the same time another Citadel business of Unilever which is the Indonesian business embarked on their Back to Basics programme which again accelerated the growth rate of this already very successful company. Distilling the Indian & Indonesian models, the next generation distributor model can be divided into 4 parts viz Channel Goals, KPIs, Organization & Systems. No matter where we are in the world this model can serve us most effectively. In this model there are clear deliverable from our RTM partner as well as clear deliverable from us as Unilever to make this happen effectively. Given below are the requirements from our Distributors & RTM partners.
1. Channel Goals 2. KPIs EDGE Metric QOC / QOP Performance Linked TTS Distributor ROI Distributor CCFOT EQ (Trade) Quality of Engagement (HR) 3. Organization Scale Requirement Sales / Activation Structure / Profile Roles & Responsibility Remuneration (PLP) OTJ Training
The Next Generation Distributor
Effective Distribution Merchandising Activation Customer / Channel Program Execution SLAs
4. Systems IT : DMS / HHT CRS / VMI TPM CVA / OPSO Standard Operating Procedures by Channel Warehouse Management JBP
Unilever needs to provide the necessary strategic & technical input to make the operations effective.
Essence Of The Next Generation Distributor Model
Next Generation Distributor: The Basics from Unilever
1. Channel Goals Category / Brand Strategy Channel strategy
2. KPIs EDGE Metric QOC / QOP Targets Performance Linked TTS Distributor ROI Benchmark EQ (Trade) 3. Organization UL Governance Structure Distributor Selection Process Distributor Scale Requirement Recruitment / Rem Policy Training Plans Contact Norms Infrastructure / Finance Norms
The Next Generation Distributor
RTM / Distributor Strategy Channel Assortment Srds Channel Merchandising Stds Activity Calendars 4. Systems IT Strategy CRS / VMI Platform CVA / OPSO Training Ops Manual R&R Finance Warehouse TPM Training
The first step for you to do is a self assessment using the Maturity Profile tool given in this Practical Guide to understand where you are now and develop your journey plan to implement the Next Gen Distributor Model. We need to be honest while doing this and ensure we have sufficient evidence to support our assessment to get the maximum benefit. A questionnaire / checklist for the country maturity profile is in Appendix A. A software based toolkit is also available for you to do the profiling.
3 Essence Of The Next Generation Distributor Model Given below is an example of maturity profiling done in Asia
India
100% 90%
China
Pakistan
80% 70% 60% 50% 40%
Malaysia
30% 20% 10% 0%
Bangladesh
Vietnam
Sri Lanka
Philippines
Indonesia
CHANNEL GOALS KPIs SYSTEMS
Thailand
ORGANIZATION OVERALL
In the next few chapters we will cover this model in detail. A key question which may be asked: Is this applicable to all distributors within your country or can it be applied selectively or extended to all over a period of time? There is no simple answer for this and has to judged at individual country level on how fast you should go. However, having said that, the principles are universal and can be applied to all distributors and in all market situations.
4 Essence Of The Next Generation Distributor Model If choices are to be made then there are two good practice approaches: 1. 2. You should cover all distributors who contribute from 70% to 80% of your turnover so that the impact is meaningful. In a large country with different market conditions and hence distributors with different turnover size, you can divide your distributors into different types and start by applying minimum mandatory standards for each type. Guidelines for this is given below.
Type 2 Other Large Cities Type 3 Other Cities Rural Type 4
Description Population Size
Type 1 Key Cities e.g., Capital / Provincial Capital / Big Metro Cities Presence of Self Service Formats, Multiple Shopper defined channels, large wholesale market Income, literacy, durable ownership, internet connectivity above National Average High Density vs National Average & High accessibility High
Market Characteristic
All of Type 1 but to lesser degree of evolution Income, literacy, durable ownership, internet connectivity above National Average but lower than Type 1 High Density vs National Average & High accessibility but lower than Type 1 High
Fewer Shopper defined channels, active wholesale Income, literacy, durable ownership, internet connectivity at or slightly below national average Density & accessibility in line with National Average Moderate Optional Items: Channel Focused Coverage, Trade CCFOT, Full Sales Organisation, Sales Force Automation, CRS / VMI, JBP, CVA / OPSO, SOP by Channel, TPM
One or two channels, small wholesale Income, literacy, durable ownership, internet connectivity below national average Low Density & remote locations with poor infrastructure Moderate to Low Optional Items: Channel Focused Coverage, Trade CCFOT, Full Sales Organisation, Sales Force Automation, CRS / VMI, JBP, CVA / OPSO, SOP by Channel, TPM, Performance Linked Remuneration
Demographics
Population Density & Infrastructure Competitive Pressure
Minimum Mandatory Standards
Full Next Generation Model as per phased roadmap
Full Next Generation Model as per phased roadmap
See Appendix B for an example of Indias Distributor Maturity profile
Appendix: Essence Of The Next Generation Distributor Model
7 Appendix: Essence Of The Next Generation Distributor Model
Appendix Appendix A:
Country Maturity Profile Checklist
There are four sections viz. KPIs, Channel Goals, Organisation & Systems. For each of the section we have to evaluate UL & the distributor organisation. Every question has been broken into four statements. Go through each of the statements. Put 1 against the statement that is most applicable for your organisation & your distributors Scoring is done as follows(example) Statement We do not have a GT Scorecard We have a GT Scorecard but it is not reviewed regularly We have a GT Scorecard & it is reviewed quarterly We have a GT Scorecard & it is reviewed monthly Score 0 1 2 3
Calculate the total of all the scores for each of the sections For each of the sections, calculate the percentage out of the maximum possible score for the section
8 Appendix: Essence Of The Next Generation Distributor Model CHANNEL GOALS

UNILEVER INPUTS
1 We do not have a documented RTM strategy We have a RTM strategy, but it is not updated We have updated RTM strategy for a few categories Our RTM strategy is reviewed annually 0 2 We have not done work on shopper insights or establishing channel platforms We have done work on shopper insights & establishing channel platforms in the past, but the same has not been updated We have updated shopper insights & channel platforms for a some of the categories Shopper insight & channel platforms are updated annually 0 3 We do not have annual channel marketing plans including promotions & activation We have channel marketing plans including promotions & activation, but the same have not been updated We have updated annual channel marketing plans including promotions & activation for some of the categories We regularly update the channel marketing plans including promotions & activation (Please indicate frequency) 0 4 We do not have documented Channel assortment standards We have documented Channel assortment standards in terms of must have SKUs, but the same has not been updated We have updated documents on Channel assortment standards in terms of must have SKUs We annually update & document Channel assortment standards in terms of must have SKUs 0 5 We do not have documented Channel pricing standards We have documented Channel pricing standards in terms of fast moving SKUs, but the same has not been updated We have updated documents on Channel pricing standards in terms of fast moving SKUs We annually update & document Channel pricing standards in terms of fast moving SKUs 0 6 We do not have documented Channel visibility standards We have documented Channel visibility standards in terms of priority SKUs, but the same has not been updated We have updated documents on Channel visibility standards in terms of priority SKUs We annually update & document Channel visibility standards in terms of priority SKUs 0
SCORE
COMMENTS
UNILEVER INPUTS
7 We do not have channel coverage target for the year We have a channel coverage target for the year, but the same has not been updated We have an updated channel coverage target for a few categories We regularly update channel coverage target for the year for all categories
SCORE
COMMENTS
0 8 We do not have a dedicated merchandiser organisation We have a dedicated merchandiser organisation for a few locations / channels / categories We have a dedicated merchandiser organisation for few locations for all channels / categories We have a full fledged merchandising organisation across all locations / channels / categories 0 9 We do not have formal Service Level Agreements (SLAs) with our distributors We have formal Service Level Agreements (SLAs) with our distributors for a few items, but not reviewed regularly We have formal Service Level Agreements (SLAs) with our distributors, but the same is not reviewed regularly We regularly review our Service Level Agreements (SLAs) with the distributors 0
DISTRIBUTOR INPUTS
1 Distributors do not have channel wise break up of the number of outlets to be covered Distributors have channel wise break up of the number of outlets to be covered, but the same has not been updated Distributors have channel wise break up of the number of outlets to be covered, but the same is reviewed infrequently Distributors have channel wise break up of the number of outlets to be covered & it is reviewed regularly (Please indicate frequency)
SCORE
COMMENTS
0 2 Distributors do not have annual channel coverage targets Distributors have channel coverage target, but the same has not been updated Distributors have channel coverage target, but the same is reviewed infrequently Distributors have channel coverage target & the same is reviewed frequently (Please indicate frequency) 0 3 Distributors do not have channel wise break up of turnover by category Distributors have channel wise break up of turnover by category, but the same have not been updated Distributors have channel wise break up of turnover by category, but the same is reviewed infrequently Distributors have channel wise break up of turnover by category & is reviewed infrequently 0 4 Distributors salesmen do not have channel wise effective coverage targets Distributors salesmen have channel wise effective coverage targets, but it is not updated Distributors salesmen have channel wise effective coverage targets, but it is reviewed infrequently Distributors salesmen have channel wise effective coverage targets & reviewed regularly (Please indicate frequency) 0 5 Distributors salesmen do not have channel wise bill productivity targets Distributors salesmen have channel wise daily bill productivity targets, but the metric is not updated Distributors salesmen have channel wise bill productivity targets, but it is reviewed infrequently Distributors salesmen have channel wise bill productivity targets & is reviewed frequently (Please indicate frequency) 0
DISTRIBUTOR INPUTS
6 Distributors salesmen do not have channel wise lines per productive calls targets Distributors salesmen have channel wise daily lines per productive calls target, but the metric is not updated Distributors salesmen have channel wise daily lines per productive calls targets, but it is reviewed infrequently Distributors salesmen have channel wise daily lines per productive call targets & is reviewed frequently (Please indicate frequency)
SCORE
COMMENTS
0 7 Distributors do not have channel visibility standards Distributors have channel visibility standards, but the metric is not updated Distributors salesmen have channel visibility standards, but it is reviewed infrequently Distributors salesmen have channel visibility standards & is reviewed frequently (Please indicate frequency) 0 8 Distributors do not run promotions by channel Distributors sometimes run promotions by channel, but do not follow UL guidelines completely Distributors run promotions by channel & occasionally follow given UL guidelines completely Distributors run promotions by channel as per given UL guidelines 0 9 Distributors frequently run promotions on ad hoc basis Distributors sometimes run promotions on ad hoc basis Distributors at times run promotions on ad hoc basis Distributors never run promotions on ad hoc basis 0
Max. Score Possible: 54 Your Score: % Score: Minimum Mandatory Standard: 80%
54 0 0%
KPIs
UNILEVER INPUTS
1 We do not have a GT Scorecard We have a GT Scorecard but it is not reviewed regularly We have a GT Scorecard & it is reviewed quarterly We have a GT Scorecard & it is reviewed monthly 0 2 Our KPIs are not in line with EDGE metrics Some of our KPIs are in line with EDGE metrics Our KPIs are in line with EDGE metrics Our KPIs are in excess of EDGE metrics 0 3 Our TTS structure is not linked to performance Our TTS structure is partly linked to performance Our TTS structure is completely linked to performance Our TTS structure is completely linked to performance & is reviewed at least once in two years to reflect business priorities 0
SCORE
COMMENTS
UNILEVER INPUTS
4 We do not have a Joint Business Planning (JBP) process We conduct a JBP but it is not reviewed We conduct JBP & review it quarterly We conduct JBP & review it monthly
SCORE
COMMENTS
0 5 We do not measure distributor coverage increase We expect the distributor to increase coverage but we do not review it on a regular basis We measure distributor coverage increase on quarterly basis We track distributor coverage increase every month 0 6 We do not measure effective distribution on an on going basis We expect the distributor to ensure effective distribution but we do not measure it on a regular basis We measure effective distribution by the distribution once every quarter We track effective distribution by distributor every month 0 7 We do not measure lines per productive call We expect the distributor to focus on lines per productive call, but we do not review it We measure effective distribution of the distributor once every quarter We track effective distribution of the distributor every month 0 8 We do not measure bill productivity We expect the distributor to focus on bill productivity, but we do not review it We review bill productivity every quarter We review bill productivity every month 0 9 We do not have merchandising standards in place We have merchandising standards, we expect the distributor to implement it in the market, but we do not measure compliance on regular basis We measure distributor wise merchandising standard compliance once every quarter We measure distributor wise merchandising standard compliance every month 0 10 We do not have activation plans in place We have activation plans, we expect the distributor to implement it in the market, but we do not review the same We measure distributor wise activation plan compliance at the completion of the activity We measure distributor wise activation plan compliance for all activities every month 0 11 We do not review distributor working capital We expect the distributor to manage working capital, but we do not review it on a regular basis We review distributor working capital management every quarter We review distributor working capital management every month 0
12
We do not review distributor stocks We expect the distributor to manage stocks properly, but we do not review it on a regular basis We review distributor stocks every quarter We review distributor stocks every month 0
13
We do not review distributor credit to his customers We have guidelines on distributor credit extension to his customers, but we do not review it on a regular basis We review distributor credit to his customers every quarter We review distributor credit to his customers every month 0
14
We do not review distributor ROI We have distributor ROI structure, but we do not review it on a regular basis We review distributor ROI every quarter We review distributor ROI every month 0
DISTRIBUTOR INPUTS
1 Distributors do not have KPIs for their sales team Distributors have KPIs for their sales team, but it is not updated Distributors have updated KPIs for their sales teams, but are reviewed infrequently Distributors have updated KPIs for their sales teams and is reviewed at least twice a month (Please indicate the frequency)
SCORE
COMMENTS
0 2 Distributors do not have visual performance monitoring board Distributors have performance monitoring boards but the same is not updated Distributors have updated performance boards, but is reviewed infrequently Distributors have updated performance boards and frequent review is done (Please indicate frequency) 0 3 Distributors salesmen do not have effective coverage KPI Distributors salesmen have effective coverage KPI, but it is not updated Distributors salesmen have effective coverage KPI, but it is reviewed infrequently Distributors salesmen have effective coverage KPI & reviewed regularly (Please indicate frequency) 0 4 Distributors salesmen do not have bill productivity KPI Distributors salesmen have daily bill productivity KPI, but the metric is not updated Distributors salesmen have bill productivity KPI, but it is reviewed infrequently Distributors salesmen have bill productivity KPI & is reviewed frequently (Please indicate frequency) 0 5 Distributors salesmen do not have lines per productive call KPI Distributors salesmen have daily lines per productive call KPI, but the metric is not updated Distributors salesmen have daily lines per productive call KPI, but it is reviewed infrequently Distributors salesmen have daily lines per productive call KPI & is reviewed frequently (Please indicate frequency) 0
DISTRIBUTOR INPUTS
5 Distributors salesmen do not have lines per productive call KPI Distributors salesmen have daily lines per productive call KPI, but the metric is not updated Distributors salesmen have daily lines per productive call KPI, but it is reviewed infrequently Distributors salesmen have daily lines per productive call KPI & is reviewed frequently (Please indicate frequency)
SCORE
COMMENTS
0 6 Distributors do not have visibility KPI Distributors have visibility KPI, but the metric is not updated Distributors salesmen have visibility KPI, but it is reviewed infrequently Distributors salesmen have visibility KPI & is reviewed frequently (Please indicate frequency) 0 7 Distributors salesmen do not have NPI KPIs Distributors salesmen have NPI KPIs, but the metric is not updated Distributors salesmen have NPI KPIs, but it is reviewed infrequently Distributors salesmen have NPI KPIs & is reviewed frequently (Please indicate frequency) 0
Max. Score Possible: 63 Your Score: % Score: Minimum Mandatory Standard: 80%
63 0 0%
Organisation
UNILEVER INPUTS
1 We do not have supervisory roles by channel or geography We have supervisory roles by channel or geography but the same are not fully enforced We have supervisory roles enforced by channel or geography We have supervisory roles enforced by channel or geography & the requirements are reviewed regularly 0 2 We do not have supervisors for merchandising & activation We have supervisors for merchandising & activation, but not used effectively We have supervisors for merchandising & activation, but a few are used effectively We effectively use our supervisors for merchandising & activation 0 3 Company sales force pay is not linked to performance Company sales force pay is linked to performance, but it is not fully enforced Company sales force pay is completely linked to performance Company sales force pay is completely linked to performance & reviewed regularly 0
SCORE
COMMENTS
We do not have any guideline for distributor FF recruitment We have company guideline for distributor FF recruitment, but the same is not fully enforced The distributor FF is recruited as per company guideline The distributor FF is recruited & requirements reviewed as per company guideline 0
UNILEVER INPUTS
5 We do not have any guideline for distributor FF remuneration & reward We have company guideline for distributor FF remuneration & reward, but the same is not fully enforced The distributor FF remuneration & reward is as per company guideline The distributor FF remuneration & reward & revision of the same is as per company guideline
SCORE
COMMENTS
0 6 We do not have any guideline for minimum size of turnover for appointment of distributor We have company guideline for minimum size of turnover for appointment of distributor, but the same is not fully enforced The company guideline for minimum size of turnover for appointment of distributor is fully enforced The company guideline for minimum size of turnover for appointment of distributor is fully enforced & is regularly reviewed 0 7 We do not have any guideline for distributor infrastructure including warehouse, vehicles etc. We have company guideline for distributor infrastructure including warehouse, vehicles etc., but the same is not fully enforced The company guideline for distributor infrastructure including warehouse, vehicles etc. is fully enforced The company guideline for distributor infrastructure including warehouse, vehicles etc. is fully enforced & is regularly reviewed 0 8 We do not have any guideline for IT equipment at distributor We have company guideline for IT equipment at distributor, but the same is not fully enforced The company guideline for IT equipment at distributor is fully enforced The company guideline for IT equipment at distributor is fully enforced & is regularly reviewed 0 9 We do not have any training policy & calendar for Distributor sales force We have company guideline for training policy & calendar for Distributor sales force, but the same is not fully enforced The company guideline for training policy & calendar for Distributor sales force is fully enforced The company guideline for training policy & calendar for Distributor sales force is fully enforced & is regularly reviewed 0 10 We do not have any FF manual which outlines the roles & responsibilities of company staff We have FF manual which outlines the roles & responsibilities of company staff, but the same is not fully enforced The FF manual which outlines the roles & responsibilities of company staff is fully enforced The FF manual which outlines the roles & responsibilities of company staff is fully enforced & is regularly reviewed 0 11 We do not have a documented policy on productivity KPIs from Company sales force We have a documented policy on productivity KPIs from Company sales force, but the same is not fully enforced Productivity KPIs from Company sales force is documented & fully enforced Productivity KPIs from Company sales force are fully enforced & reviewed regularly 0
12
We do not have a documented contact norms for company sales force We have a documented policy on contact norms for Company sales force, but the same is not fully enforced Contact norms for Company sales force is documented & fully enforced Contact norms for Company sales force are fully enforced & reviewed regularly 0
13
We do not have capability officers We have capability officers only in select locations We have capability officers but only a few are being utilized effectively Our capability officers are effectively utilized 0
DISTRIBUTOR INPUTS
1 We do not have documented policy on profile requirement for distributor FF We have documented policy on profile requirement for distributor FF, but the same is not fully enforced We have documented policy on profile requirement for distributor FF that is fully enforced The policy on profile requirement for distributor FF is fully enforced & is reviewed regularly
SCORE
COMMENTS
0 2 The distributors do not have performance linked pay for their staff The distributors have performance linked pay for their staff but not in line with company guidelines The distributors have performance linked pay for their staff as per company guidelines The distributors have performance linked pay for their staff as per company guidelines & the same is reviewed regularly 0 3 We do not have any documented guidelines for roles & responsibilities of distributor sales force We have documented guidelines for roles & responsibilities of distributor sales force, but the same are not enforced The guidelines for roles & responsibilities of distributor sales force is fully enforced The guidelines for roles & responsibilities of distributor sales force is fully enforced & is regularly reviewed 0 4 We do not have a structured on the job training program for distributor sales force We have a structured on the job training program for distributor sales force, but it is not fully enforced We have a structured on the job training program for distributor sales force & it is fully enforced The structured on the job training program for distributor sales force is fully enforced & is regularly reviewed 0
Max Score Possible: 51 Your Score: % Score Minimum Mandatory Standard: 80%
51 0 0%
36 Appendix: Essence Of The Next Generation Distributor Model Systems

UNILEVER INPUTS
1 We do not have a documented IT strategy We have documented IT strategy but it is not fully operational IT strategy is fully operational IT strategy is fully operational & the requirements are reviewed regularly 0 2 We dont have a DMS system The DMS system is not backward intergrated with Company transaction system The DMS system is backward intergrated with Company transaction system The DMS system is backward intergrated with Company transaction system & the requirements are reviewed regularly 0 3 We do not have a FF automation policy We have a FF automation policy, but the same is not fully operational FF is fully automated FF is fully automated & the requirements are regularly reviewed 0 4 We do not do any VMI/CRS with our distributors The VMI/CRS with our distributors is not fully operational We follow VMI/CRS with our distributors We follow VMI/CRS with our distributors & review requirements regularly 0 5 We have not done CVA of our distributors in terms of gold, silver & bronze We have done CVA of our distributors but not used it for business benefits We have completed CVA of our distributors & used it partly for business benefits We have fully implemented CVA & effectively use it for business benefits 0 6 We do not have a differentiated policy for different distributors depending on size & importance We have a differentiated policy for different distributors depending on size & importance, but it is not fully operational We have a differentiated policy for different distributors depending on size & importance & it is not fully operational We have a differentiated policy for different distributors depending on size & importance & it is reviewed regularly 0 7 We do not analyse OPSO for promotions We analyse OPSO for big promotions but not use it for business benefits We analyse OPSO for big promotions & use it for business benefits We analyse OPSO for all promotions & use it for business benefits 0
SCORE
COMMENTS
We do not follow any TPM measures We have TPM measures but we do not follow it fully We fully follow TPM measures We fully follow TPM measures & TPM requirements are reviewed regularly 0
We do not have any training for company sales force on CVA & OPSO We have training program for company sales force on CVA & OPSO, but it is not fully operational We have training program for company sales force on CVA & OPSO & it is fully operational We have training program for company sales force on CVA & OPSO & the requirements are reviewed regularly 0
10
We do not have FF manual which outlines Std Operating Procedures( SOPs) We have FF manual which outlines SOPs but is not fully operational The FF manual which outlines SOPs is fully operational The FF manual which outlines SOPs is reviewed regularly 0
11
We do not have a documented damage & obsolete policy We have a documented damage & obsolete policy, but it is not fully operational The damage & obsolete policy is fully operational The damage & obsolete policy is fully operational & the requirements are reviewed regularly 0
12
We do not have legal contracts with our distributors We have legal contracts with our distributors, but not with all We have legal contracts with all our distributors We have legal contracts with all our distributors. The contract requirements are reviewed regularly 0
13
Our contracts do not have performance linked conditions Our contracts have performance linked conditions, but it is not fully operational Our contracts with performance linked conditions are fully operational Our contracts with performance linked conditions are fully operational & requirement reviewed regularly 0
DISTRIBUTOR INPUTS
1 Our distributor FF do not use HHT Our distributors have HHTs but is not being used properly Our distributors FF use HHTs as per company guidelines Our distributors FF use HHTs & the requirement are reviewed regularly
SCORE
COMMENTS
0 2 Data from HHT is not used for future planning or improving performance Data from HHT is sometimes used for future planning or improving performance Data from HHT is frequently used for future planning or improving performance Data from HHT is always used for future planning or improving performance 0 3 Our distributors do not use company DMS Our distributors do not use company DMS exclusively Our distributors use company DMS exclusively Our distributors use company DMS exclusively & it is reviewed regularly 0 4 We do conduct internal audits of our distributors We conduct internal audits at our distributors to check compliance with policy, but the audits are not regular We regularly conduct internal audits at our distributors to check compliance with policy We regularly conduct internal audits at our distributors to check compliance with policy. We regularly review the same 0 5 Supply chain does not conduct periodic distributor warehouse audits Supply chain conducts periodic distributor warehouse audits, but not in line with documented norms Supply chain conducts periodic distributor warehouse audits, in line with documented norms Supply chain conducts regular distributor warehouse audits, in line with documented norms 0
Max Score Possible: 54 Your Score: % Score: Minimum Mandatory Standard: 80%
54 0 0%
Appendix B: Distributor Maturity Profile Checklist India

A standard tool to develop forward plans with the Distributors Market Type: 1 Unilever Market Position: Strong Key Challenge: Ensure consistency of approach and instill discipline of execution across all Distributors
Please answer the following questions by ticking on any of the multiple alternatives mentioned herein. 1. With respect to identifying new opportunities of growth in my geography, at my RS point a. b. c. d. 2. No structured process exits, opportunities come as & when new outlets open Some processes are in place, but are irregular Some regular structured process are in place A clear set of formal processes are in place that identifies new growth opportunities. Specific people have been employed for that purpose All outlets are treated equally, no special focus given to any one Large Wholesalers and key accounts are given more attention than others A formal process exists to develop and manage the large Wholesalers and key accounts by focusing on their business needs and key actions are taken accordingly A formal joint agreement is made between me and the large Wholesalers and key accounts to build sales and relationship by focusing on elements like sales, merchandising, product freshness etc..
With respect to account management in my geography, the following is true a. b. c.
d.
3.
With respect to the Distributor Salesmen Call Planning Process in my geography, the following is true a. b. c. d. No standard process for the RSSM call exists Distributor Salesmen visits all scheduled outlets and books orders by using the trade service card Distributor Salesmen all scheduled outlets, uses stock norms from the trade service card for booking orders Distributor Salesmen visits all scheduled outlets and follows all the edge procedure like store check, order booking, merchandising, call closure etc..
40 Appendix: Essence Of The Next Generation Distributor Model 4. With respect to the Stock Management Process in my geography, the following is true a. b. c. d. 5. I review my closing stocks once in a month and take necessary actions I review my closing stocks every week and take necessary actions by focusing on slow moving packs I review my closing stocks every week, follow First in First out my stock point and take necessary actions by focusing on slow moving packs I review my closing stocks category wise every day, follow First in First out my stock point and take necessary actions by focusing on slow moving packs
With respect to the Warehouse Management in my geography, the following is true a. b. c. d. Products are stored without any stacking norms and stock taking is done once in a month A definite warehouse layout plan exists and stock taking is done once in a week A definite warehouse layout plan exists, FIFO is implemented and stock taking is done once in a week A definite warehouse layout plan exists, FIFO is implemented, Warehousing KPIs like %damages, TAT etc. are monitored and stock taking is done once in a week All outlets are treated equally, no special credit terms given to any one Large Wholesalers and key accounts are given more credit terms than others A formal channel wise credit terms have been negotiated with the outlets which is in line with the JBP discussions A formal joint agreement is made between me and the dealers to build sales and relationship by mutually arriving at credit terms that would suit the individual business needs of my dealers
6.
With respect to Market Credit Control in my geography, the following is true a. b. c. d.
7.
With respect to Market Credit Collection in my geography, the following is true a. b. No formal process of credit collection, it is a major issue in my market A standard process of credit collection with 100% manual (cash or cheque) collection done by the Distributor Salesmen
41 Appendix: Essence Of The Next Generation Distributor Model c. A standard process of credit collection with 100% manual (cash or cheque) collection done by the Distributor Salesmen by following negotiated channel wise credit terms with the outlets A standard process of credit collection with 100% manual (cash or cheque) collection done largely by myself following the formal joint agreement on credit terms made between myself and the dealer.
d.
8.
With respect to Managing my own people in my geography, the following is true a. b. c. d. All reviews with my salesmen are usually conducted by the company officials I take part actively in the daily review process with my salesmen A structured formal process exists for recruitment, training and performance evaluation of my salesmen A structured formal process exists for recruitment, training, performance evaluation along with monetary and non-monetary rewards and recognition for all my salesmen and other staff members
9.
With respect to Unify (Distributor Information Management System) at my RS point, the following is true a. b. c. d. Unify is still not fully functional at my distributor point Unify is fully functional and occasionally helps me in my daily review process with the salesmen Unify is fully functional and helps me in my daily review process with the salesmen Unify is fully functional and helps me in my daily review process along with finalizing category-channel wise business plans for future
4 Next Generation Distributor Model
Channel Goals
44 Channel Goals
45 Channel Goals Broad Overview

Channel Goals
Unilever What
Distributor How
Category Channel strategy MS, distribution etc.
Channel focused coverage
RTM / Distributor Engagement
Effective distribution ECO, LPC and BP
Channel standards Assortment, Merchandising
POP management Assortment, Merchandising
Activity Calendars To meet channel goals
Channel / Customer Activation
Unilevers Role Based on the National Category Building Plan each operating company would have Channel Category & Brand Plans. This will determine Unilevers Channel & RTM Strategy and will be the starting point of determining the Channel Goals.
Distribution Strategy
NCBP
BMP
CMP
46 Channel Goals Channel Category Strategy This is the ability to translate the category goals into actionable Distribution network goals for the organization. Current category & brand penetration as well as the future ambitions in terms of penetration & share (e.g., Rural) would also determine the kind of distributor network required. A Good practice on this from Unilever Bangladesh is given in the Appendix C.a. RTM / Distributor Engagement Strategy The Outcome of a RTM / Distributor Engagement Strategy would be the ability of the Distributor management structure / framework to be supportive of and aligned to the Distribution strategy in driving volume, NPS, Business efficiency or customer focus. A comparative analysis of direct & indirect distribution versus our key competitors would give a good benchmark in terms of our current gaps. Distributor network decisions such as number of distributors or outlet coverage gaps versus competition can then be identified and addressed. Given below is the example of a country which has used the Channel Value Assessment (CVA) tool to identify its gold, silver & bronze distributors and then devise annual business plans in line with category plans for each segment of its distributor network. Segment by region
East North
Bronze* 40
Silver 17
Gold 11
SH Haiyan HZ Simei RG Xinnuo SH Xinjiajia
Bronze* 75
Silver 6
Gold 4
SJZ Zhongshan BJ Shunxin BJ Ruifengyuan
ZJ Guoshi YW Zhongli NB Zapu CS Zhongli HN Baihuo SZ Zhongli NJ Weibai
BJ Yishang
South
Bronze* 101
Silver 10
Gold 5
West
Bronze* 65
Silver 7
Gold 3
HaiKou Zhangtian
KM Baihuo
Shenzhen Wanzhe FZ Jiechang
QZ Shengda Siduan Baihuo WH Dongyang YC Yuandian
47 Channel Goals Below is an example of possible outcomes from the segmentation:

Gold Manage growth above market average growth Build sustainable collaboration with DT Enhance DT capabilities to capture all growth opportunities Cultivate candidates for DT consolidation in future Highly aligned with UL strategy Sustainable growth in history and future Actively share market insight and own development Potential in exclusive relationship with UL Apply JBP to enhance joint business development Invest more financial (e.g., BB fund) and human resources (e.g., DSR investment) Apply CBP to enhance DT business development and strategy alignment with UL Focus on operation efficiency Optimise investment Willing to grow UL business Median alignment with UL strategy Low alignment with UL strategy Silver Manage growth at market average growth Enhance DT capabilities to capture major growth opportunities Bronze Manage distributor for average profit level
Goal What?
By Maturity Profile
Characteristics How?
Resource Implications How?
Timely review on operation efficiency
For the distributors to perform effectively in the market place, the Channel, Category & Brand strategy will allow you to deliver the following: 1. Assortment Standards by Channel Not every item can be sold everywhere. It is important for the Distributor to be given guidance by channel on what SKUs are Must Have for the Channel & what are Potential & Nice to have.
48 Channel Goals Typically, Must Have SKUs are those which contribute 75% to 80% of the value of the Brand in the channel. Potential SKUs are those which as of date are not large value or volume contributors but are of strategic importance to Unilever. Some examples are Hair Conditioners or Deodorants in some countries. In a well-run distributor operation, potential SKUs would be tracked and coverage ensured in the target channels. Nice to Have SKUs have the lowest priority and should not be the key focus of a sales call. Imagine the power of having clarity on what needs to be carried out from the Headquarters down to the frontliners. It gives more focus on winning @ the channels. 2. Merchandising & Visibility Standards by Channel Based on the classification of Must Have & Potential SKUs by channel, merchandising & visibility standards have to be set for each channel. The Merchandising strategy needs to be differentiated by channel depending on shopper profile & the brands job to be done. The standards would also include the type of Merchandising Material to be used as well as the location within the outlet. Given below is an example from a Type 1 market (Bangladesh) having a differentiated Merchandising strategy & tools for every channel. Channel Value Assessment Low High Cosmetic Stores Small SMs Family Grocers [100%]
Market Stalls Mom & Pop [40%] Kiosks Mom & Pop Rural Market Stalls [20%] Basic
Rural Cosmetic Stores [50%] Evolve
Channel Description
Merchandising standards revolve along the 3 pillars of: Position Presentation Inventory
49 Channel Goals It is key to differentiate the channel programmes with the ultimate aim on enhancing the shoppers experiences. Linking the category or brand objectives to the channel objectives and shopper insights will deliver the winning channel programmes. It is important to differentiate the approach and programmes to stay out of the big middle. It is only through this differentiation, which is always linked to channel and shopper insights, that Unilever can leverage the channels for value-creation our leading edge. A standard process, as a way of working, should be set up to sustain the channel strategies and implementation plans. Another example of the approach is shown below. Identify Focus Channels By Brands Identify Must Have and Potential SKUs for the Channel
Study Brand Shopper Profile
Study Channel Merchandising Innovation Potential
Study Channel Merchandising Scale
Right POP Materials
Channel Merchandising Strategy
Right POP Coverage
Optimise investment to maximise benefit It is important that our frontliners do the following: Maximize the use of Point of Purchase (POP) materials Obtain the best location Display following the Unilever Vertiplay (vertical blocking of our Brands) technique Obtain a (better than ) fair share of space
50 Channel Goals 3. Activation & Promotion Calendars For the Distributor to plan flawless execution, sufficient planning needs to go into activation & promotion campaigns. In Good practice companies, there is an annual plan based on the BMP & CMP which is updated quarterly & monthly to ensure a smooth execution. Unilever China has created a simple but practical integration of category activities by channel, following the steps of the Brand Marketing Plan (BMP) so the resources in the areas of execution and focus are achieved. An example of a Think Tight output follows: Annual Activity Plan with measurable target Channel Based Activity Calendar Gold Customer Initiatives are considered All activities have qualification of output and requirement
Jan Media Plan Innovation Key customer initiatives Hyper LS 400ml BP 100% Incremental = 4.5m NIV In-store merchandising 80% increase in the top stocking 300 outlets (national top 1000) = 1.5m) Goods) C4 prelaunch 400ml BP Allure launch Suguo 10th Anniversary Hymall Theme Activity 100% Increment = 4.5m NIV Feb Mar Apr May Jun July
BA (Top 300), test hair 00 stores, 4 m TG, 800 stores, m TG POSM (GE / normal self) 50% increase in the top 300 outlets (national top 1000) = 1.5m) Pillar decoration (300800 outlet)
Customer Channel Related
SS
mixcase 00ml + Paper Bin POSM self in 00 RMB / outlet x 500 outlets 0.5m NIV
CVS
1. Sell in package (must have SKU sell in) . 00ml consumer Promotion (8ml sachet) 00 RMB / outlet x 500 outlets 0.5m NIV
400ml BP + mini-shelf 00ml Promotion + POSM sell in 00 RMB / outlet x 500 outlets 0.5m NIV
G/K mixcase (1 packs must have SKU, free 3 bar) mixcase 00ml + Paper Bin 100% Incremental = Promotion suitcase 1.3m NIV WS conference Distribution build 3 months DSR support DTR conference
WS Merchandising sets of sachet hanger pack 8ml
After the Think Tight step is the Integration as demonstrated by the example below:
51 Channel Goals
Integration Integration is an important Gate Keep Step to ensure company strategy can be implemented through CD team with optimized investment. The following tools have been developed for this step: Category Priority in Channel / Regional / Customer Sales Capacity Status TG / DM availability Check list
Jan Media Plan Innovation Media Plan Innovation Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Allure launch
Ice-cream Ice-cream
July July
Media Plan Innovation Media Plan Innovation Key customer initiatives Hyper LS
Customer Channel Related
Customer Channel Related SS
CVS
G/K
Key Suguo 10th Anniversary customer C4 Jun Allure launch Jan Feb 400ml BP Mar Apr May July prelaunch Keyinitiatives Suguo 10th Anniversary Hymall Theme Activity Media Plan customer C4 400ml BP Innovation 100% initiatives prelaunchAllure launch Hyper Instore 400ml Jan Feb Mar Apr May Jun July Hymall Theme Increment = 4.5 m NIV 100% Activity Incremental = Key merchandising Suguo 10thBP Anniversary 100% 4.5m NIV customer Hyper C4 Instore 400ml LS BA (Top 300), test hair 400ml BP Incremental = 100% Increment = 4.5 m NIV Allure initiatives 2 80% increase in Jan Feb Mar Apr May Jun prelaunch July merchandising launch the top BP 200 Activity 2 Hymall Theme stores, 4 m TG, 800 stores, 2m TG 4.5m NIV 300 outlets (national top stocking Key LS BA (Top 300), test hair POSM (GE/normal self) Suguo 10th Anniversary 100% 1000) in the top customer C4 Hyper Instore 80% increase = 1.5m) Goods) 400ml 2 200 Increment50% increase in the top stores, 4 m=TG, 800 stores, 2m2 TG 400ml BP 100% 4.5 m NIV Incremental = Allure launch 300 outlets (national top initiatives prelaunch 300 merchandising outlets (national top BP stocking 4.5m NIV POSM (GE/normal self) Activity Hymall Theme 1000) 1000) = 1.5m) Goods) 50% increase in the top LS BA (Top 300), test hair = 1.5m) Suguo 10th Anniversary 100% C4 80% increase in the top 300 outlets (national Hyper Instore 400ml 200 stores, 4 m2 TG, 800 stores, 2m2 TGtop 400ml BP Pillar decoration (300800 outlet) 100% Increment = 4.5 m1000) = 1.5m) NIV Incremental = prelaunch stocking merchandising 300 outlets (national top BP self) Activity POSM (GE/normal Hymall Theme 4.5m NIV 1000) = 1.5m) Goods) 50% increase in the top SS mixcase LS BA (Top 300), test hair Customer 100% 300 Pillar decoration (300800 outlet) top 200ml + 400ml 2 1. Sell in package (must outlets (national400ml BP + mini-shelf 80% increase in the top 200 stores, = 4.5 m 800have 2m2 TG Channel Instore 100% Increment 4 m TG, NIV stores, 1.5m) Incremental = 1000) = Paper Bin BP stocking SKU sell in) SS mixcase Related merchandising 300 outlets (national top 4.5m NIV Customer POSM (GE/normal self) POSM 2. 200ml consumer in the top 200ml + 400ml BP + mini-shelf 50% hair CVS 1000) = 1.5m) Goods) 200ml outlet) 1. Sell in 300), test increasePromotion Channel 200 RMB/outlet x 2500BA (Toppackage (must have decoration (300800Promotion + POSM sell in Pillar 2 80% increase in the top in self (8ml satchet) 300 Paper Bin SKU 2 TG, 800 outlets (national top Related outlets 0.5m200 stores, 4 msell in) stores, 2m TG NIV 300 outlets (national top stocking 1000) = 1.5m) SS mixcase 200 RMB/outlet x 2500 POSM 2. 200ml consumer Promotion CVS 200ml Promotion + POSM sell in Customer POSM (GE/normal self) x 2500 200 RMB/outlet 1000) = 1.5m) Goods) 200ml +200 RMB/outlet 1. Sell in package (must have top x 2500400ml BP + mini-shelf 0.5m NIV 50% increase in the outlets self in (8ml satchet) Channel outlets 0.5m NIV outlets decoration (300800 outlet) Pillar 0.5m NIV Paper Bin SKU sell300 outlets (national top in) 200 RMB/outlet x 2500 Related 200 = Promotion 1000) RMB/outlet POSMG/K 2. 200ml consumer 1.5m) x 2500 200ml Promotion + POSM sellNIV SS mixcase outlets 0.5m in CVS 200 RMB/outlet x 2500 NIV self in (8ml haveoutlets 0.5m400ml packs must satchet) 200ml + 1. Sell mixcase (12 outlet) DTR conference outlets 0.5m NIV in package (mustPillar decoration (300800 BP + mini-shelf Paper Bin 200 RMB/outlet x 2500 SKU sell in) have G/K 200 RMB/outlet x 2500 SKU, free 3 bar) mixcase 0.5m POSM 2. 200ml consumer Promotion mixcase200ml Promotion + outlets sell in NIV conference CVS DTR outlets 0.5m NIV (12 packs must POSM mixcase 2500 200ml + 200 RMB/outlet xSell in package(8ml satchet) 400ml BP + mini-shelf 1. (must have self in have100%free 3 bar) = SKU, Incremental WS Merchandising 2 sets of sachet 200ml + outlets 0.5m NIV 1.3m200 RMB/outlet x 2500 NIV Paper Bin Promotion suitcase SKU sell in) G/K hanger pack 8ml Paper Bin mixcase 200 RMB/outlet POSM 2. 200ml consumer Promotion x 2500 (12 packs must POSM sell in NIV DTR conference 100% Incremental 200ml Promotion outlets= 0.5m + mixcase 200 RMB/outlet x 2500 WS Merchandising 2 sets of sachet 200ml + 1.3m 3 bar) WS conference self in (8ml satchet)outlets 0.5m NIV have SKU, freeNIV Promotion suitcase outlets 0.5m NIVBin hanger pack 8ml Paper 200 RMB/outlet x 2500 G/K mixcase Distribution build 3 months DSR support 200 RMB/outlet x 2500 100% Incremental 0.5m NIV WS outlets = conference mixcase (12 packs must DTR conference WS Merchandising 2 sets of sachet 200ml + outlets 0.5m NIV 1.3m NIV Promotion suitcase have SKU, free 3 bar) Paper Bin Distribution build hanger packDSR support 3 months 8ml
Tea
Laundry
Hair
National Channel Activity Plan (Across all Categories)
mixcase 200ml + Paper Bin mixcase 200ml + Paper Bin
100% Incremental = WS conference mixcase (12 packs must DTRWS Merchandising 2 sets of sachet conference 1.3m NIV Promotion suitcase have SKU, free 3 bar) Distribution build 3 months DSR support hanger pack 8ml 100% Incremental =WS conference WS Merchandising 2 sets of sachet 1.3m NIV Promotion suitcase hanger pack 8ml Distribution build 3 months DSR support WS conference Distribution build 3 months DSR support
Distributors Role The Unilever Distributor will deliver the following in return: 1. Channel focused distribution This is the ability of the Distribution network to be aligned with and be supportive of the channel strategy. In a leading edge CD organization there would be a clear understanding on processes to formalize Distributor management structure in line with overall channel objectives. Measurements would be agreed and monitored to assess the effectiveness of the network in delivering the Channel objectives. This would be in 4 areas: 1. 2. 3. 4. Direct Coverage of Outlets within a Channel Sales Force Deployment by Channel Sales force deployment by Category Service Standards by Channels (covering frequency, beat size named either as route or section & team type)
5 Channel Goals Given below is an example of Sales Force Deployment planned by Channel / Customer type... DSR management structure changed from territory focus to outlet type focus
Current structure By territory UL SR Structure change Outlet type covered DSR type
1. Big store 2. DSR (KDSR) Hyper market Large super Department store Wholesalers
Proposed structure By outlet type UL SR Grade 3 KDSR DSS* Grade 2 WDSR Sub-DT DSS Grade 1 SDSR SDSR SDSR SDSR
DSR
DSR
DSR
DSR
3. Wholesaler DSR (SDSR) 4. Small store DSR (SDSR)
Small super Convenience store (CVs) Kiosk Manage small store DSRs
Description
DSR serves all types of stores DSR split by territory All DSRs managed by SR directly
5. DSR supervisor (DSS)
Description
DSR split by outlet type Individual DSR focuses on specific type (s) of store New role of DSS set to manage small store DSRs
Applied to all tier 1 & tier 2 cities Simpler structure applied to tier 3 cities given small store dominance
USR = Unilever Sales Representative
DSR = Distributor Sales Representative
The focus of DSR redeployment will vary due to local channel and customer mix
DT N/A 1 Redeploy DSR by outlet type (e.g., Chongqing) 4 Redeploy DSR by outlet type and focus on wholesaler markets (e.g., Wenshou)
Characteristics of city type Channel mix In a certain city, which channel plays major or dominant role in UL-related business, MT or GT Customer mix In a certain city, which kind of customer plays major dominant role in UL business, DT or KC?
Customer mix
1 Balanced Redeploy DSR by outlet type (e.g., Beijing)
2 Redeploy DSR primarily by outlet type and also consider territory requirement (e.g., Hangzhou) 3 Maintian DSR deployment by territory (e.g., Wuxi) Balanced Channel mix GT
N/A
Redeploy DSR by outlet type (e.g., Shanghai)
KC MT
KC = Key Customer
DT = Distributor
...and tailored to suit different distributor territories given the development of Modern Trade.
53 Channel Goals The Coverage Standards would also include Professional Account Management which means identifying key customers such as large wholesalers or large retail customers (including Modern Trade format customers) and creating a differentiated service level for them including tailored customer marketing programs. Scientific call planning (also a part of Coverage Standards) refers to the ability to deploy resource to maximize reach & category sales at the lowest cost. A good practice from Unilever Bangladesh is in Appendix C.b. 2. Effective distribution Effective Channel focused Distribution encompasses 3 areas: a. Effective Coverage (ECO) by channel which essentially is a measure of the % of the defined universe who have bought our products at least once in the preceding 4 week cycle. Bill productivity (BP) by channel which measures the % productive or effective calls in a given day in a designated route (also called Beat or Section) Lines per productive call (LPPC) by channel which measures the average number of lines sold per invoice. The combination of these 3 are defined as Field Capability and measurement of the same is called Field Capability Score (FCS)
b. c.
Please see Appendix D The starting point in designing the effective distribution map is to do a retail census or an assessment using relevant benchmarks on the number of outlets that exist in a designated area. The methodology to conduct a census or estimate number of outlets has been given in detail in the Practical D&E guide for increasing reach through RTM. Please see Appendix C.c for the Retail Census Survey and Appendix E for Urban coverage expansion. The overall outcome of this should be an increase in weighted distribution and a reduction in trade out of stocks. The definition is available in the appendix on EDGE.
54 Channel Goals 3. Merchandising as per Unilever Requirement Once guidelines are received through the Merchandising Standards, the Merchandisers (who can belong to our Distributor or a 3P) need to bring these standards to life in the designated channels. In addition there will also be event based merchandising such as a new product launch, a re-launch or a large promotion / activity. In such cases the Distributor will deliver the merchandising requirements. Merchandising in the field is also aided by merchandising tools such as sachet hangers, detergent stands, Skin Care Cabinets etc.. Some examples on Ponds. MERCHANDISING TOOLS
Must Have PONDS Red Frame
O
Island Display
O
Vitrine
Information Board
Counter Display Customized by store
Optional
The Distributors merchandisers need to ensure that these assets are deployed as per guideline and are maintained properly through their estimated life cycle. 4. Effective Activation in shop (when required) While a large proportion of in market activation is done through 3rd party agencies, occasionally Distributors can be used to conduct activation programs especially in less developed markets. Depending on the sophistication of a particular market, many activation approaches are available from the very basic such as skin cabinets with samples to medium complexity activities such as sampling, demonstration & redemption in-store using temporary or permanent promoters to more evolved activation methods using shopper insight.
55 Channel Goals Given below is an example from India on activating in a shop based on shopper insight on different zones in a shop. STORE ZONES Orientation Zone Orientation Zone Orientation Zone
Browsing Zone
Hunter Zone
Fast Zone
The Distributor is required to identify these shops and manage the interface on behalf of Unilever. 5. Customer / Channel Program Execution Depending on the sophistication of a particular market, many approaches are available from the very basic such as Display contests to the very evolved shopper insight based Channel platforms. A Display Contest is usually a short term program where retailers are incentivise to display selected products from our company and prizes are given either on the quantity displayed and / or the creativity shown.
56 Channel Goals Given below is an example from a Type 1 market.
Display Contest
One effective Channel Program employed in most countries which is a step ahead of regular unpaid in-shop merchandising & Display contests is one look merchandising programs which run on a permanent annual basis and are based upon clear guidelines agreed between the shop-owner, the Distributor & Unilever. Usually these programs are formally agreed through signed contracts and have a financial reward for the outlet. Examples of this are Star Club (Vietnam), Unilever Bonus Club (Thailand) and POP HITS program (Philippines) to name a few. Please see Appendix F for Merchandising Program details. Given below are some examples of the One-Look program implemented in the Market Stall channel in the Philippines:
57 Channel Goals
At the highest level are shopper insight based channel programs such as Super Value Stores in India or Try & Trust Stores in Vietnam. The Distributor needs to provide differentiated service levels to such customers and ensure high levels of customer satisfaction.
Channel Program Roadmap
Channel Development
Channel Differentiated Programs Shopper-linkage Basic Merch-Standard One look by Channel Integration of Channel & Shopper Insights Long-term Value adding Shoppers Experiences
Basic
Intermediate
Advance
Channel Program differentiation can be a journey depending on the market and channel development of the country. At any level, the aim is always win at the channel and POP. This will be covered in greater detail in The Practical D&E Guide for Channel Management and Outlet Leadership.
58 Channel Goals 6. Customer Service to his customers as per standard service level agreements A distributor will have different types of customers in his designated area. In Hybrid markets these can vary from Self service stores to outlets in Municipal markets to neighbourhood grocery stores. These customer types will have different service level requirements in terms of the order to cash process and the next generation distributor must be in a position to provide this differentiated service as per channel & customer characteristics.
Appendix: Channel Goals
60 Introduction
61 Appendix: Channel Goals
Appendix C a. Channel Category Strategy Bangladesh

A Distribution improvement exercise resulting from the Channel Strategies Market Type: 1 Unilever Market Position: Strong Key Challenge: Increase Distribution of channel relevant SKUs
Background Aiming to achieve best in class availability across channels, Unilever Bangladesh Ltd, embarked on developing Channel Strategies for the identified key channels. Dependence on ACN Retail Store Audit, for Distribution readings, only gives an indicative figure and hard to base the decisions on. Opportunities through Channel Category Strategy and Distribution Improvement Drive were tapped. Identify distribution opportunities through a robust and agreed pack size standards Drive distribution improvement and focus
Objectives
How it worked
Step 1 Result 1 Channel contribution for the category Key Channels for the category
Step 2 Result 2
Pack size contribution in Key Channels Opp. Pack size to drive
Step 3
Pack size wise Relative MS % of UBL SKUs Category Strategic Choice
Result 3
Strongest / Weakest SKU to Drive Mkt.
Step 4 Result 4
Distribution status of opportunity SKUs Distribution Target
6 Appendix: Channel Goals Looking into the Hair Care category to explain the process in greater detail: The process starts with identifying the key channel(s) for each of our categories. This is done by looking into the channel contribution to the category market.
Channel Urban Wet-Grocer Urban General Store Urban Neighbourhood-Grocer Urban HPC tong Urban Cosmetic Urban Others Rural Wet-Grocer Rural Neighbourhood-Grocer Rural Others Contribution RSA (Total HC Cat) 12% 15% 15% 4% 3% 7% 9% 26% 9%
Then for the key channels the most important pack-size is identified, again based on pack-size contribution to channel.
Contribution RSA (Total HC Cat) 12% 15% 15% 4% 3% 7% 9% 26% 9% 100% Channel Contribution Large Pack 32% 39% 16% 11% 74% 62% 12% 2% 24% 22% Medium Pack 25% 24% 16% 5% 22% 25% 19% 7% 25% 17% Small Pack 43% 37% 68% 84% 4% 13% 68% 91% 51% 60% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Channel Urban Wet-Grocer Urban General Store Urban Neighbourhood-Grocer Urban HPC tong Urban Cosmetic Urban Others Rural Wet-Grocer Rural Neighbourhood-Grocer Rural Others Total
63 Appendix: Channel Goals At the end of this stage two different strategies are taken depending upon the nature of the category. If the category is mature, market share gain becomes the priority and drive the weakest SKU for each opportunistic channel-pack size combination. On the other hand, for growing categories the mission is to grow the whole pie by driving the strongest SKU in the high-opportunity channel-pack combination. To illustrate: Category
Matured Category
Growth Category
Share Gain
Market Growth
Thru Driving Weak SKUs
Thru Driving Stronger SKUs
Taking the example of Hair Care Category would be an ideal one. In Bangladesh the sachet market is undergoing explosive growth while bottle market shows attributes of a matured category. As per the above strategies, for sachets, Sunsilk 4ml is taken for driving the market growth. On the other hand, for bottles, where our mission is to grow share, All Clear 200ml a relatively weaker SKU for driving share gain, is taken.
Large Pack Channel AC200 Urban General Store Urban Neighbourhood-Grocer Rural Neighbourhood-Grocer 16% 25% 25% SS 200 27% 30% 25% AC100 25% 25% 25% SS100 36% 45% 38% LBS 100 7% 5% 0% AC 19% 21% 7% SS 57% 62% 75% LBS 5% 6% 11% Medium Pack Small Pack
64 Appendix: Channel Goals Once the priorities are identified, then the current situation of distribution can be measured. This time, instead of depending on the third party retail data, a look into the SKU-wise average monthly outlet penetration, is done. The outlets which have purchased the particular SKU at least once a month as per the set placement norm, are considered to be penetrated. Our mission is to increase this penetration realistically depending upon the baseline. Once current status is known, the next challenge is to set the distribution improvement target. For target setting the following formula is use. Baseline Penetration 50%+ 30% 50% 15% 30% <15% Target Penetration 85% 75% 60% 25%
Distribution Improvement Drive The frontline execution: Step 1: Pick Opportunity Channel from Target Sheet Step 2: Pick Opportunity SKU within target channel Step 3: Arrange a weekly briefing session for DSRs in the beginning of the week. Step 4: At the end of the week, Evaluate each channels achievement against the target SKU.
65 Appendix: Channel Goals Key Results & Benefits: The success of any business process is depicted in the results. The first phase delivered significant improvement in direct distribution for the targeted SKUs:
Baseline Category Brand / SKU WLS 135g WWP 500g Fabric Wash Priority Channel UNG RNG UNG RNG UNG UWMG UNG RNG UNG (metro only) UNG UWMG UGS SC / CS UNG (metro only) RNG RNG UGS UGS UWMG RNG UNG (metro only) UNG (metro only) UNG (metro only) RWMG RNG UGS Number of Outlet 25,795 7,135 21,244 8,242 22,089 4,098 7,243 9,549 11,503 18,967 4,742 1,365 1,140 131 12,321 4,346 1,845 1,271 332 553 2,247 6,213 5,977 5,728 7,263 2,235 394 Penetration 59% 30% 48% 35% 50% 25% 16% 41% 63% 43% 28% 20% 32% 1% 53% 19% 27% 19% 2% 2% 12% 34% 33% 32% 31% 33% 6% Q-3, 2006 Number of Outlet 34,285 12,056 33,007 13,085 32,769 6,256 21,937 15,594 15,958 30,000 9,891 3,606 2,556 1,396 10,604 4,016 4,412 4,249 5,519 1,813 5,776 7,363 9,941 11,405 9,910 4,347 2,064 Penetration 78% 51% 75% 56% 74% 38% 50% 67% 87% 68% 59% 53% 72% 8% 45% 17% 65% 63% 33% 8% 32% 40% 54% 64% 42% 64% 31%
WWP 200g SXL 500g WPW 25g
Personal Lux 90g Wash LBG 85g HHC VIM Bar 325g AC 200ml Hair Care LBS 100ml Sunsilk 7ml LBS 4ml Oral C UP 150g PGC 200g Taaza JP 50g Tea TZ DD 400 FAL AM 25g FAL AU 50g Skin FAL 25g FAL 10g Pond FW 50g DEO
Rexona Deo Roll On UGS
Achieved alignment across the business on the priority SKUs by channel Measurement of result is now a regular process
Appendix C b. Coverage Standards Bangladesh

Channel strategy towards resource optimization Market Type: 1 Unilever Market Position: Strong Key Challenge: Ensuring the right coverage standards to match the channel goals
Background Channel is defined as a common group of POPs satisfying a certain set of consumer / shopper needs or characteristics. Realignment of direct coverage by channel is one of the key projects that Unilever Bangladesh embarked on in 2005-2006 as one of its major strategic thrusts. Objectives It is best for customer management to service and manage every POP individually. But in reality, it would not be feasible or cost-effective. Besides, this would not allow our brands to reach their full potential which in turn would make UBL susceptible to competition. Therefore the next best option UBL considers for effectively and efficiently managing the POPs is to divide and manage them in groups that are defined by certain criteria like shoppers behaviour and profile, channel characteristics and types of products sold. Other important objectives for bringing this change in UBL coverage strategy include: Change the One-Size-Fits-All strategy: one of most important reasons for reshaping coverage by channels is to bring change in the conventional strategy for all types of POPs. It was needed to divert the focus from outlet needs to shoppers needs. Moreover, this would allow differentiation and effective servicing for different groups of POPs in terms of availability, trade spend, promotions, merchandising, activation etc. Increased focus on different Brands / SKUs: rather than emphasizing on every brands / SKUs in every outlet, coverage by channels would give UBL space to rationalize focus on different brands, pack size or SKUs in different types of outlets divided in groups. UBL Channels: UBL defines its channels depending on 4 criteria as follows: 1. 2. 3. 4. Location Shoppers Profile and purchase behaviour Types of Products sold, and Structure of Outlet (Permanent / temporary)
67 Appendix: Channel Goals Priority Channels: Urban Channels: 1. Urban Wet Market Mudi (Grocer) 2. Urban Neighbourhood Grocer 3. Urban General Store 4. Urban HPC Tong Rural Channels: 1. Rural Wet Market Grocer 2. Rural Neighbourhood Grocer Emerging Channels: 1. Urban Cosmetics Shop / Shopping Complex 2. Key Accounts 3. Rural Cosmetics Store How it Worked Channel wise coverage re-alignment planning was done in a 2-step process: 1. 2. Coverage audit i.e., collecting required information / data for planning and Re-organization Plan according to the standards decided upon. The table below displays the total picture at a glance:
Value Cont. 17% 28% 8% 3% 9% 3% 1% 3% 1% RTM 100% Direct Dist 90% Direct Dist 100% Direct Dist 70% Direct Dist 70% Direct Dist 50% Direct Dist 80% Direct Dist 100% Direct Dist 100% Direct Dist Cov gap 4,308 25,622 5,692 13,825 15,612 83,286 700 1,899 Beat size 40 35 30 50 40 30 30 25 4 Portfolio Split Category / Brands Split Category Split Category Combined Split Limited portfolio Combined PP Combined Frequency 34 4 2/3 1 2 1 1 2 23
Channels Urb Wet Mkt Mudi Urb Ngh Grocery Urb General Store Urb HPC Tong Rur Wet Mkt Mudi Rur Ng Grocery Rural Comestic Store SC / Comestic Shop Key Accounts
Universe 33,137 102,488 18,974 37,364 74,341 244,958 4,372 7,032 65
Current Coverage 87% 65% 70% 33% 49% 16% 64% 73% 100%
Direct Coverage Principle: The most important principle followed in coverage strategy setting was to take 80% value contributing outlets into consideration. This data was acquired from coverage audit. Coverage Audit: Apart from the 80% value contributing outlets, coverage audit also provided with guiding numbers like total universe of outlets by channel, current coverage and its value contribution. Based on these figures RTM decisions were taken.
68 Appendix: Channel Goals Reorganization Plan: Once the Direct Distribution percentage or Coverage Target was determined, reorganization plan followed considering 3 important parameters: 1. 2. Coverage gap: the difference between Coverage Target and Current Coverage. Beat Size: Determining Standard Beat Size for each channel is one of the most impacting factors that were to be decided upon. Judgment was applied keeping in mind the following points: 3. Average ideal time to be spent per outlet (by channel) Location of outlets Channel wise average value contribution per beat etc.
Portfolio / Split Principle and Frequency: Depending on the channel needs and some other crucial factors like value contribution of category Split Principle i.e., brand / category portfolio norms were determined which is shown in the table below:
Channels Mix DT: 65%, PP:35% DT: 52%, PP:48% Beat 1 FW + HH FW + HH FW + HH DT:35%, PP:65% Detergent + Tea Detergent + Tea Beat 2 PW + Tea PW + Tea PW + Tea OC + HC PP Beat 3 OC + SC + HC + Deo OC + HC OC + SC + HC + Deo SC + Dep Beat 4 FW + PW SC + Deo
Frequency 4
UWMG UNHG UWMG UGS ALL CHANNELS
Frequency 3 Frequency 2
Here DT-PP mix shows the average value contribution of the category. Below is the timetable for implementation.
Sl no 1 2 3 4 5 Steps Coverage Audit Reorganization Plan Business Case for Distributor Beat and frequency finalization in UWMG and UGS Beat and frequency finalization in All Channels Time X X +1 month X + 2 months X + 4 months X + 8 months
Appendix C c. RETAIL CENSUS: Outlet Information Database Bangladesh

Putting science into the way of working Market Type: 1 Unilever Market Position: Strong Key Challenge: Add robustness, through a scientific tool, in designing coverage standards
Background Till 2003 Unilever Bangladesh used to calculate the POP universe based on assumptions or extrapolation. This extrapolation is done in two ways: 1. 2. 3. AC Nielsen audits in a small geography and then extrapolates the findings with the population data. TM / ASM prepares a survey format in line with what the company prescribes. DSRs / Supervisors goes with that format to markets that are known to them only.
More often than not this type of extrapolation is inaccurate as the survey provides a limited version of the total picture. The universe of the base remains unknown. Therefore the Coverage Gap could never be accurately identified. What was possible then was to estimate the total outlet depending on the basis of total population data of an area extracted from Statistical Bureau Reports. Hence, the need of a POP / outlet database that is authentic and could act as a backbone of a scientific coverage strategy. What is Retail Census Survey (RCS) Retail census is a database of outlets that contain a range of information about an outlet. This survey is done within the geographic boundary of Bangladesh by SOMRA (a 3P agency) including all outlets found operating at the time of the survey. Initially a questionnaire is prepared for the survey. Relevant pieces of information that helps in formulating a solid coverage strategy are: Name, address and location of outlet Retail / wholesale ratio Channel definitions Total product range Value per outlet for all categories not only Unilever categories
70 Appendix: Channel Goals There are two main reasons as to why value per outlet for all the products is significant rather than just value per outlet for Unilever products. 1. 2. It is very difficult to get correct information about a companys business from a particular outlet. Finding out the opportunistic outlets and opportunistic channel for Unilever to improve in the channel where Unilever is weak. All the data is by distributor so that it can be used at town / distributor / territory / regional level.
Optimal Coverage
100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0
Feasible Coverage
% Value
Pallydut Coverage 110000 Direct Coverage after RCS 215000 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
% Outlets
Once census is completed, the following are made available: 1. 2. 3. Total Universe of Outlets where they want to go Total direct coverage where they currently are Total number of outlets not serviced by UBL the Coverage Gap How far they were from the destination
With the help of the above chart, Unilever finds out the optimal coverage. Initially, a small percentage of outlets generate more value but as the number of outlets increase the curve starts to become flat. This is because more and more marginal outlets come into the equation. Unilever take that point as the cut off point from where incremental coverage do not yield proportionate incremental value
71 Appendix: Channel Goals This is at a national level. Once UBL knew the optimal coverage targets, then judgement is applied to find a realistic coverage target considering the following factors: 1. Dispersion of outlets Cost to serve Base for Coverage Expansion / RTM Reorganization: From RCS database, actual coverage gap could be identified which in turn provided with a base for coverage expansion plan. In 2004, the largest reorganization in UBL history took place, which was done solely depending on the RCS. Without a database like RCS a reorganization of this scale might not have been possible. Unilevers coverage increased from 165,000 to 215,000. Base for Distribution Correction: Gives not only the number of outlets Unilever is not currently covering, RCS could also supply with the number of outlets where Personal Wash products of competitors, for example, are present but Unilevers PW products are absent. From this information, Distribution Correction Plan for different category / brands could be developed with a reliable tool. Rural Mapping Base for Coverage by Freelance DSRs: One of the most significant benefits of RCS is that it helped identify the actual coverage gap in the deep rural areas where direct distribution is not feasible / profitable. The idea of UBLs successful project Pallydut was generated to address this issue, which would not have been possible without a firm direction that was indicated by RCS.
Key Results & Benefits
2.
3.
Limitation: However, there are limitations. It includes outlets which are found operational at the time of survey. However, by the time the company planned the re-organization based on the RCS data, few outlets (mainly marginal outlets) in the database could not be found when physically verified. It is recommended to utilize RCS data as soon as it is ready otherwise it loses relevance.
7 Appendix: Channel Goals How it Worked 4 Step Action Process to be followed for implementing RCS: 1. 2. 3. 4. Sorting out 80% value contributing outlets Desk Verification Field Verification Planning Phase Use RCS to sort 80 % value contributing outlets Export the data to Excel file Exclude all outlets which dont sell our categories i.e. drug store / fertilizer outlets / fruits shop / hotel / tea stall etc. The outlet database derived in this fashion will be termed as Mother List.
Step: 1 Sorting Out 80% value contributing outlets:
Step: 2 Desk Verification Verify the list of covered outlets (previous outlet survey ) with the mother list in order to locate 80% value contributing outlets that are currently uncovered:
Previous Outlet Survey List which is currently being covered
80% Value Contributing Outlet List / Mother List
Outlets currently being covered but non existent in the Mother list: Dont Worry, keep covering
Note: circles not according to scale
Common Outlets: No Problem
80% value contributing outlets which are currently not being covered: Area to concentrate
Step: 3 Field Verification: After sorting out 80% value contributing outlet which are not being covered, the next step is to verify the same through field visit by involving the DSRs / Supervisors in the process.
73 Appendix: Channel Goals For simplicity, the verification can be initiated thana or section wise. The following format can be used for field verification:
80% Value Contributory Outlets which are currently not being covered Field Verification NC NF BC NC AC OC OT
NC: Not Covered, NF: Not Found, BC: Business Change, NC: Name Change, AC: Address Change, OC: Other Change (Channel, Type etc); OT: Other Territory Step: 4 Planning Phase 1. After physical verification, the new outlets that will be identified as uncovered, will be grouped under the following heads:
Existing Route The uncovered outlets that have been identified within the existing routes or adjacent route can be tagged with the existing section through section resizing New Route For outlets that cant be covered under any existing route have to be covered by creating new routes.
2.
Detail planning regarding additional logistics, manpower etc. to support coverage expansion. Accelerated growth: Since the implementation of RCS in 2004 UBL has enjoyed accelerated growth as shown in the following chart:
25 20 15 10 5 0 14 Growth 20 21
Key Results 1.
2004
2005
YTD 2006
74 Appendix: Channel Goals 2. Highest ever coverage expansion in UBLs history. In 2004 UBLs direct coverage via distributors increased from 165000 to 215000. Another 110000 outlets came under coverage in 2004 and 2005 by Pollyduts (Free Lance Sales Representative). Both numeric and weighted distribution of most of the UBL skus increased.
3.
RETAIL CENSUS: The Questionnaires Bangladesh RETAIL CENSUS DATA COLLECTION FORM

Thank Respondent and Close Interview
Appendix D Field Capability Score (FCS) India

Computing for Field Capability Score Market Type: 1 Unilever Market Position: Strong Key Challenge: Standardization of Field Force market performance
Effective coverage (ECO) 90% 90% of the outlets under coverage must be invoiced at least once in a cycle Bill Productivity (BP) 65% 65% of the scheduled calls must be productive Lines per productive call (LPC) 15 15 lines must be sold in every productive call. Total outlets 100 Scheduled calls 400 weekly coverage ECO Target 90 90 outlets must make at least 1 invoice in the cycle BP Target 260 = 400 X 65% Salesman should make a bill for at least 260 outlets LPC Target 3900 = 15 lines X 260 O / L Salesman should sell at least 3900 lines The distributor salesman gets a score of 100 for each parameter that he achieves. He has to achieve all 3 parameters i.e. score of 300 achieve FCS.
Appendix E URBAN COVERAGE EXPANSION India

Revisiting the gaps to tap opportunities Market Type: 1 Unilever Market Position: Strong Key Challenge: Increasing outlet coverage
Objective Increasing urban coverage is usually not so much about expanding boundary of coverage (as is in the case of Rural Expansion) but more about ascertaining the gaps in the already present coverage. The process of increasing urban coverage for an ASM is a simple 3-step process. How it Worked Step 1: Do I have the adequate amount of coverage? At the first instance it will be important to understand whether there is a weakness in the existing coverage and if there is a need for this exercise at all. And if indeed a gap is discovered, it is important to understand the extent of this gap. The robustness of coverage can be measured by a variety of economic indicators but one of the simplest has been found to be the metric of Population. Each area has a standard number of outlets per unit of population. For example in India the standard has been found to be:
Outlet norms Heavy Urban Area City Small town Village 300 250 220 180 Per Unit of Population 0.1 million 0.1 million 0.1 million 0.1 million
The table above indicates that for a large Urban Metropolitan area in India, say Mumbai, there must be about 3000 outlets per million people. Hence if the census data for a geography is available, it will be able to see what the shortfall in coverage is.
78 Appendix: Channel Goals Step 2: I know I have a coverage problem but how do I gain coverage? Having quantified the extent of the problem the next stage would be an outlet audit. If population statistics are available for smaller units of the city (such as postal areas, wards, etc.) then the problem areas can be isolated and the audit can be done only on the focused problem areas. An audit is ideally carried out by a professional agency and the information they provide can be tailored by you. A handy checklist of information you might like would be: Name of the Outlet Address of the outlet Total monthly turnover Key brands stocked in your focus categories Whether competition has put up visibility in the outlet
Step 3: I have the audit results how do I proceed? Once you have the audit results you will need to go through the list with a fine-toothed comb. You will not cover all outlets in the list provided as all outlets may not stock the relevant categories you are interested in. Moreover, there will also be a threshold turnover, below which any outlet covered would work out inviable for your distributor. For example you may choose to explore all outlets stocking any brand of soap and having a turnover of $40 per month. Having fine-tuned the projected list of outlets, you can sort these out basis geography and hand the list over to the relevant sales in-charge. The sales rep will then have to physically visit this outlet, verify the findings of the agency and enroll the outlet under the distributors coverage. This verification should ideally take about a week. At the end of the period you would need to check if the additions have been incorporated into your coverage by crosschecking the modified beat plans. The new beat plans should list these new outlets as part of the salesmans beat. You might want to carry out this activity every once a year or once every two years as a dipstick of coverage hygiene in your area.
Appendix F a. One-Look Program Philippines Achieving the same look across outlets by channel
Market Type: 2 Unilever Market Position: Medium Key Challenge: Ensure a common merchandising look at the channels
Background One Look program started in 1995 focusing on the Public Market channel Results were successful and encouraged competition to follow The program was revisited to ensure that channel understanding and shopper insights are incorporated Align with channel definitions and cover key channels Update standards incorporating shopper insights, category / brand and channel strategies Integrate all shop score components Align with EDGE metrics
Objectives
80 Appendix: Channel Goals Ensure ease of execution for the sales force Start with a POP vision to get the basics right POP vision is supported by POP hits and score as shown in the framework below:
How it worked
Vision hits
A summary of merchandising hits at POP, taking a specic look at the ff POP drivers:
score
An audit process, both internal and external, that measures the stores in terms of adherence to the POPHits.
1) 2) 3) 4)
Assortment Pricing Planogram Merchmats
All except POP Promotions!
POP hits are defined as follows:
POPHits Assortment OSA Shelf Capacity Product HK Pricing Planogram Pricing Brand Location SOS >= SOM Sequencing Segmentation Merchmats Must-have Add-on
81 Appendix: Channel Goals Translating the POP hits into the channels mean the following: How do hits translate to GT?
POPHits Assortment OSA Shelf capacity Product HK Pricing Pricing GT DSOTC MKLs (set per channel cluster) N/A Clean, Intact, Upright and Facing the shopper min LPAT max SRP min LPAT max LPAT + 2% (if RTM) or SRP (if non-RTM) Full frontal hanger Glass cabinet Hanger 50-75-100% of store frontage Glass cabinet: none min LPAT max SRP PM SSS
Planogram
Brand location SOS >= SOM Segmentation Sequencing
Middle of cabinet Glass cabinet min 35% N/A Brand / Variant All DSOTC
Merchmats
Must-have Add-Ons
i. Full Frontal Display only ii. Full Frontal Display with ULP Glass Cabinet iii. Duplo Module
i. Full Frontal Display with ULP Glass Cabinet ii. Full Frontal Display only
It is not a menu of what can be done in a channel... IT OUTLINES HOW THE TOTAL STORE SHOULD LOOK LIKE WITH OUR PRODUCTS! Some examples of the Hit number 1, which is the assortment by channel (Mom & Pop)
Sari Sari Store
8 Appendix: Channel Goals Hit number 2 is on Pricing to ensure compliance is according to the pricing strategy
Sari Sari Store
Hit number 3 is on planograms by channel. Below are some examples:
Sari Sari Store
Sari Sari Store
Sari Sari Store
84 Appendix: Channel Goals The last Hit is on Merchandising materials defining the Must Have and Add-on tools. Some examples follow:
Sari Sari Store
Sari Sari Store
Execution at the channel is measured by both self-audits of the Field force and a Third Party audit Measurement becomes a way of working at all levels(from Unilever managers, the Distributor managers and salesmen
85 Appendix: Channel Goals Key Results & Benefits:

...allowed us to dominate Mom and Pop stores...
Point 2 Whats New Display Point 1 Hanging / Frontage Display
Point 1 Hanging Display
...allowed us to highlight priority brands...

Plus Highlighting of Close Up and Surf
Point 1 Hanging / Frontage Display
Point 2 Counter Top Display
...allowed us to highlight priority brands...

Plus Highlighting of Close Up and Surf
Point 2 Counter Top Display
...allowed us to include other merch materials...

Point 4 Pyramid Module
Point 3 Glass Module
Point 2 Whats New Display
...allowed us to extend it to Foods... One Look Merchandising
Point 2 Counter-Top Display
...DOMINANCE in public markets...

...DOMINANCE...
Highlighting of Close Up Point 1 Hanging / Frontage Display
...DOMINANCE...
Point 1 Hanging / Frontage Display Point 1 Hanging Display
Ponit 3 Glass Module Display Highlighting Surf and Close Up
Merchandising Programs Star Club Vietnam
Going for high-impact and long term merchandising programs Market Type: 2 Unilever Market Position: Strong Key Challenge: Stand out of the clutter in the most efficient and permanent way
Background With strong Unilever brands in the market, competition is also very active. Merchandising is always a tough battleground and materials are easily matched or out-merchandized by competition The channels (Market Stalls and Mom & Pop) outlet owners welcome innovative and functional materials.
Objectives STAR-CLUB using Merchandising for leveraging at POP
OBJECTIVE
Branding at POP Competitors Defeater

TRUN AO G S
CLB
Loyalty Builder
Star Club
Sales driver Off-take Builder
Y Y BA
90 Appendix: Channel Goals How it worked Designed merchandising tools which serve as functional tools for the channel (e.g., plastic shef-in-shelf, hangers for sachets, plastic standees with rollers and glass cabinets) Developed basic merchandising standards for each channel outlining the presentation of the brands and planograms, position of the brands in the category and inventory of the products and merchandising materials. Presented and agreed with the outlet owners the merchandising standards and sealed the agreements with annual contracts. Incentivised the outlet owners with gifts as long as the standards and inventory of Unilever products are maintained always. Developed a 5-star rating to qualify the outlets to five (5) different levels, 5-star status being the highest and most coveted. Directed both the Distributors sales force and a Third Party Agency to self-audit and check the quality of execution.
STAR-CLUB using Merchandising for leveraging at POP
Pictures
Key Results & Benefits Implemented and sustained in 20,000 outlets Big factor in owning the channels (Market Stalls and Street Stores) Sales in these outlets increased to at least 35% Market Share in all categories of the participating channels higher than non-Star Club members Space share increased by a minimum of 10%
9 Introduction
Key Performance Indicators (KPIs)
94 Introduction
95 Key Performance Indicators (KPIs) Broad Overview

KPIs
Unilever What
Distributor How
EDGE Metrics
FCS, SAI, Debtor days, stock level, QOC & QOP
Performance linked / Differentiated TTS
Focusing on service excellence
Distributors ROI - % & cash
Cost benchmarks
Customer Satisfaction Score ( EQ)
Trade CCFOT EDGE Metrics achievement
Once we have established the Channel Goals for our Distributors, the next step is to put in place relevant KPIs & enablers such as Terms of Trade to drive strategic goal alignment with our Distributors. This would mean the following: 1. Cascade & monitoring of the EDGE (Every Day Great Execution) metrics (that relate to our distributors.) The EDGE metrics is a comprehensive set of metrics that measure our effectiveness at POP.
96 Key Performance Indicators (KPIs) Given below is the scope of EDGE.
Improve Business Performance

1. What are we trying to achieve? 2. How? Availability Visibility Price Promotion Market share growth + Financial Improvement
GSV Turnover USG TMI CC Debtor
On shelf Visibility (MT-SOS >= SOM) (GT-Forward)
Off shelf Visibility (MT secondary display visibility) (GT Display visibility)
Price vs. Competitor (GT & MT Price Index)
Promotion Effectiveness (GT & MT Promo pressure)
Promotion ROI (GT & MT ROI)
Stock Availability at customer & distributor (MT CCFOT) (GT SAI FCS)
On-shelf Availability (MT-OSA & NOOS) (GT-OOS)
Relevant Assortment
Distribution (GT & MT Weighted Distribution) (GT & MT Brand Devt Index)
New product (MT NPI speed) (GT-NPI speed primary GT-NPI speed secondary)
Regular (MT void B)
The key EDGE metrics that relate to our Distributors are: a. Field Capability Score which is the combined measure of effective Coverage, Bill Productivity & Lines per Productive call.
97 Key Performance Indicators (KPIs) FCS has now been integrated into the EDGE metrics and measures % compliance To improve FCS standard Operating Procedures have been documented and available in the EDGE Guide. b. c. d. e. f. Stock Availability Index which measures stock vs norm and includes stock days Debtor Days which measures the Distributors debt with Unilever New Product Introduction (NPI) speed Forward stock compared to Market share in GT stores & Share of Shelf vs Share of market in MT Stores % Out of Stock in GT stores & % On shelf availability in MT stores.
Improvement in these KPIs will lead to improved business performance. Leading Edge companies would have documented Standard Operating Procedures to accelerate improvement in the metric scores. Details of EDGE metrics & Glossary is given in the Appendix G. Given below is a Regional Framework of how EDGE is brought to life and integrated with CD KPIs. EDGE EDGE Metrics
Availability Visibility Price Promotion Customer Satisfaction
Numeric Distribution Weighted Distribution On Shelf Availability Out of Stock Nearly Out of Stock
Forward Stock Share of Shelf
Price Index
Numeric Dist Weighted Dist Market Share
eQ Score CSS
KPIs
Sale Out FCS Focus Packs CCFOT & OOS Channel Plan Visibility Price Variance Focus Pack OPSO & ROI ROI NCC CCFOT OOS Distributor Stock (in wk)
98 Key Performance Indicators (KPIs) 2. A revisit of our Current Trade Terms Structure to ensure that the terms of trade drive performance of our Distributors. Our Distributor trade terms in most countries are flat discounts / commission or mark up with low co-relation with business performance aligned to Unilevers strategic goals. The most critical part of the Distributor Management Process is the establishment of Distributor Terms of Trade. In essence there are two components to GT TMI as shown below. The objective of the Distributor Terms of Trade is to manage the transactional part of TMI. TTS VS COUNTERPART
TRADE TERMS
Business Building Efficient Operation Other Terms
COUNTERPART
Promotion Activation Extra Visibility Trade Communication to Consumer
Benefits which Customer get by selling UL brands. Transparent between Customers. Value Given Value Received basis so benefit can be seen instantly.
Benefits which Customer get by developing UL brands. Different for every Customer to reflect our strategic intent with each customer. On Investment basis so benefit can be seen in the long term.
The Terms of Trade need to allow the Distributor a reasonable return above their cost of doing business and to drive the Opco distribution strategy.
99 Key Performance Indicators (KPIs) A leading edge Opco would have Terms of Trade which are fair, equitable, transparent and reward the Distributor (above the cost of doing business) on a Value Given Value Received basis. In the Next Generation distributor model, trading terms need to be redefined on a cost plus basis incentivising the right behaviours from our Distributors. Given below is an example of how this can be done in a Type 1-2 or Type 3-4 market. Type 1 & 2 Example Distributor Trade Terms India
Distribution Models Trade Discount % Selling & Distribution Cost % Interest Cost % RS Margin % Unnati Program % (Variable for RS) Gross Margin %* * Only HPC without wheel Legend: CSP = Channel Service Provider RD = Rural Distributor RS = Redistribution Stocklist (Urban Distributor) LAB = Leadership Across Business (Rural) CIDC = Combined Indirect Coverage (Rural) CSP 1.50% 1.20% 0.32% 0.50% 0.50% 4.02% 6.76% 4.76% 4.76% 1.45% 2.00% 1.50% RD 3.00% 2.31% RS (Urban / LAB) 0.80% 1.96% RS (CIDC) 0.80% 2.46%
100 Key Performance Indicators (KPIs) Type 3 & 4 Example Trade terms should be applied to prioritised DT KPIs
KPIs for UL distributor 1. Sales volume 2. Priority category sales 3. New product quick listing 4. Coverage
High
Business Result
KPIs prioritisation
UL Policy Compliance
Impact on DT Behaviour DTs behaviour could be easily changed if trade terms applied on it
5. 6. 7. 8.
Promotion execution Price control Customer service No goods return
10 6 7 3 8 1 Driven by trade terms
DT Operation Resources
9. Stock level 10. Early payment 11. Information sharing
2 4 11 5 Driven by BB Fund
High Relative importance to UL Importance to drive UL growth profitability and operation efficiency
Covered by current trade terms Not covered by current trader terms Low Low
The most comprehensive example in this area resides with Unilever Thailand and a copy of the Thai TTS can be found in the Appendix H.
101 Key Performance Indicators (KPIs) 3. Quarterly Quality of Contribution (QOC) & Quality of Performance (QOP) targets. What is QOC? In addition to measuring Top line Growth, a measure termed as Quality of Contribution (QOC) has been designed to ensure holistic execution at POP. It consists of metrics that are: Basis factors within the control of people being measured & Drives long term health of the system Consistent across channels, population strata & branches / regions Involve a limited amount of manual or automated data collection Has relevant importance or materiality weights for the people being assessed & Is clearly linked to the SIA plan.
These metrics are also:
10 Key Performance Indicators (KPIs) Given below is an example from India where it was first introduced which details standard QOC components: QOC components
RS Business performance Value (basis QOP) RSSM Value (basis QOP) TSI Value (basis QOP) AE Value Channel specific (basis QOP) CE QOP ASCM
Availability
ECO target (selected packs) Depth target (RR uplift)
ECO target (selected packs) Depth target (RR uplift)
ECO target (selected packs) Depth target (RR uplift) Visitrack Visitrack Visitrack (AE avg) % FCS achieved (TSI average)
Visibility % FCS achieved by his RSSM
FCS
achievement
% FCS achieved by his RSSM Activity efficiency score
FCS
Execution Efficiency
PNC (N-2)
Capability development
% improvement in bottom box RSSM TSI evaluation by ASCM TTSSI scores infra kundali Infra index
Infrastructure
RS SM = Redistribution Stockist Salesman (Distributor Sales Rep) TSI = Territory Sales In Charge (Unilever Sales Rep) AE = Activation Executive CE = Capability Executive (Field Trainer ASCM = Area Sales & Channel Manager (Unilever Field Sales Manager)
Rewards & Recognition These metrics are used to:: Decide on quarterly / monthly bonus for CEs / AEs / TSIs They are also to ensure optimum performance consistently throughout the year
Determine RSSM variable pay (FCS) Decide on quality of FF basis QOC results E.g., RSSM are rated A / B / C on the basis of FCS achievement
Please see Appendix I for examples of JC incentive scheme and Quarterly incentive scheme
103 Key Performance Indicators (KPIs) Delivering QOC through EDGE EDGE SOPs aim to improve in QOC metrics: Availability (ECO, FCS) Through selling through replenishment Ensuring range through scientific stock norms By rigour in lineselling Standard operating procedures Resolution process Mandating ways of working in the market place base on best practices
Visibility (Visitrack)
Capability Development (improving bottom boxer RSSM)
Given below is an example from AMET in the same area defining clear KPIs, line of sight & weightage. KPIs KPIs
KDSM / KDSM Supervisor Value delivery Week & Month Target Focus Pack (Depth) Focus Pack (Width) FCS KDM Week & Month Target Focus Pack (Depth) Focus Pack (Width) FCS Merchandising Score FSM / RM / GSM Month Quarter Target Focus Pack (Depth) Focus Pack (Width) FCS Merchandising Score Merchandising Score Activation Score Merchandising Score Activation Score MR / MR Supervisor FAM / TM Month & Quarter Target SC / Commercial Month target* Quarter Target*
Availability Visibility
CCFOT OOS / SAI
Price Promotion Focus Pack (D&W)#
Price Index Focus Pack (D&W)#
Price Index Focus Pack (D&W)# Channel Plan Channel Plan ROI / OPSO Budget Compliance NCC^ NCC Closing Stock
Customer satisfaction
NCC ROI
NCC ROI
NCC^
* Sale in for SC # Promo Pack to be part of Focus Pack ^ Trade NCC for activities / channel plans (Customer Marketing)
104 Key Performance Indicators (KPIs)
Line of Sight
KDSM / KDSM Supervisor Week Target Month Target Value delivery Focus Pack (Depth) Availability Focus Pack (Width) FCS Merchandising Score Visibility Activation Score Price Price Index Channel Plan ROI / OPSO Budget Compliance CCFOT OOS / SAI Quarter Targets Month Target* Quarter Target* KDM FSM / RM / GSM MR / MR Supervisor FAM / TM SC / Commercial
Promotion
Focus Pack (Depth & Width)#
Channel Plan
Customer satisfaction ROI * Sale in for SC # Promo Pack to be part of Focus Pack ^ Trade NCC for activities / channel plans (Customer Marketing)
NCC^ Closing Stock
105 Key Performance Indicators (KPIs) What is QOP? QOP stands for Quarterly operating plan and is a sub-set of QOC. It measures your achievement of Secondary volume & value targets. This is a quarterly plan which is broken up into 3 cycles and weightage is given for both monthly & quarterly achievement. A composite scorecard is used to measure both QOP (subset of QOC) & QOC. An example from India on QOP is given below: QOP: Derived Secondary Nos. after taking into account stock reduction based on BSSS Firm estimates to add to QOP Commitment RM / RSM to carry primary sales targets Performance of RM / RSM: 100% on QOP. Performance for ASM: 50% on JC and 50% on QOP achievement Performance for TSI / SO: 50% on JC and 50% on QOP achievement
Performance against key Ops 5 Key Ops with clear uplift targets. Action Standards: Achieve target in all 5ops packs: 5 points Achieve target in 4 ops packs: 4 points Achieve target in 3 ops packs: 3 points Achieve target in < 3 ops packs: 0 points
RM = Regional Manager RSM = Regional Sales Manager (HPC or Foods or Corporate) ASM = Area Sales & Customer Manager TSI = Territory Sales In Charge SO = Sales Officer BSSS = Brand Secondary Sales Strategy
Given in Appendix J are some examples of QOC scoring sheets and Appendix K are QOP measurements.
106 Key Performance Indicators (KPIs) 4. Distributor ROI A key philosophy in the Next Generation Distributor model is to treat the Distributor as a Business Partner. This means ensuring that the Distributor has an attractive cash return on his business as well as a good Return on Investment%. In terms of Cash Return, the Distributor should get a return which is in the top quartile for FMCG distribution in his market and a return on investment% which is a minimum of 2.5 times the Minimum Bank Lending Rate (MLR) Risk vs Return
ROI of an asset High
Stocks Unilever Distributor Real Estate Treasury Bills Competitor X Distributor
Q: What ROI is the competition offering to their distributors?
Low
Low
Corporate Bonds
Risk Free Rate of Return
Q: How does the ROI we offer our distributors compare to alternative investment options?
High (Market) Risk
Note: With risk we mean the volatility of financial returns over time
Excessively high ROI % is not desirable as well and any return on investment exceeding MLR by 4 times should be examined carefully. Cost Modelling of Distributors is a good practice to ensure that distributor costs are constantly monitored and kept at optimum levels. In the Appendix L a toolkit for calculating ROI is demonstrated. This toolkit enables you to calculate Distributors ROI in a standardized manner.
107 Key Performance Indicators (KPIs) 5. Trade CCFOT This is the most difficult and desirable part of the Next Generation Distributor model. This refers to the ability to work on replenishment basis with his customers and to be able to measure his CCFOT to his customers. The higher the CCFOT to his customers, the lower the Out of Stock of Channel standard assortment leading to increase in Market Share. This is truly possible in an environment where SFA (Sales Force Automation) is fully integrated backwards into the Unilever ERP system. Trade CCFOT for 100% of the universe while ideal is difficult to do. It is recommended that Trade CCFOT be measured for Gold Customers and / or channels. The objective of Trade CCFOT is to reduce loss of sales and increase market share. 6. Customer Satisfaction Survey (eQ Score) The most important measure in terms of KPIs is an external customer satisfaction survey. For example, Unilever uses AC Nielsen in Asia AMET to conduct detailed Customer Satisfaction Surveys (branded as eQ Survey) once every two years among its distributors, wholesalers, retailers & modern trade customers. The objective of Unilever is to be the No. 1 supplier and to consistently improve its eQ scores vs its competitors. This is only possible where the Unilever distributor is operating at peak efficiency. Given below is an example of a summary eQ score from Vietnam:
eQ Index
important weighting 2002 eQ Index image Product Marketing / trade Support Profitability order / delivery & billing service Building Trade Partnership 79 71 63 59 52 53 43 364 363
Vietnam
Unilever
1998 85 88 89 65 81 82 83 2000 88 90 93 89 81 87 87 2002 91 94 95 92 87 89 91 86 367 289 344 1998 75 75 77 72 71 79 76
P&G
2000 77 76 79 76 72 82 78 2002 79 79 82 79 76 81 79 76 367 1998
Nestle
2000 71 71 72 67 65 79 73 2002 72 73 74 67 67 78 75 68 319 367 145 1998 66 65 65 62 63 75 79
Colgate
2000 71 70 68 69 69 80 74 2002 72 72 71 68 71 78 74 68 354 357
Base: All who gave an answer
108 Introduction
Appendix: KPIs
110 Introduction
111 Appendix: KPIs
Appendix G Every Day Great Execution (EDGE) Metrics Glossary

Measuring our effectiveness at the POP
Metrics BUSINESS PERFORMANCE
Finance Data as reported in carat* / as per manual report GSV (in Euro m) Turnover (in Euro m) USG% TMI% CC% Debtor Days Market share (AC Nielsen) Carat (National) / Country Report (GT-MT Split) Carat (National) / Country Report (GT-MT Split) Carat (National) / Country Report (GT-MT Split) Carat (National) / Country Report (GT-MT Split) Carat (National) / Country Report (GT-MT Split) Carat (National) / Country Report (GT-MT Split) AC Nielsen National National National National National National National GT - MT GT - MT GT - MT GT - MT GT - MT GT - MT GT - MT Corporate Corporate Corporate Corporate Corporate Corporate Category Corporate Corporate Corporate Corporate Corporate Corporate Brand
Source
Level of Requirement Country Level Product Level
AVAILABILITY
CCFOT% (as per country report) Brand Development Index (AC Nielsen) %Wtd Distribution (as per AC Nielsen report) Regional supply chain (national - corporate) / Country report (GT - MT split & category data) AC Nielsen AC Nielsen National National National GT - MT GT - MT GT - MT Corporate Category Category Category Brand Brand
AVAILABILITY GT
%OOS GT (as per AC Nielsen report) SAIGT Compliance (distributor report) %FCS GT Compliance (country distributor report) % Assortment as per AC Nielsen report NPI Speed GT (primary) NPI Speed GT (secondary) AC Nielsen Country report (distributor system) Country report (distributor system) AC Nielsen Country report (distributor system) Country report (distributor system) GT GT GT GT - MT GT GT Category Corporate Corporate Category Category Category Brand Category Category* Brand
AVAILABILITY MT
Void B OSA MT Compliance NOOS MT Compliance NPI Speed MT Country report (Local Field Audit Check) Country report (Local Field Audit Check) Country report (Local Field Audit Check) Country report (Local Field Audit Check) MT Category MT MT Category Category
VISIBILITY
% Forward Stock GT (as per AC Nielsen report) MT Linear SOS >= SOM Compliance Display Visibility Score GT Secondary Display Visibility Score MT AC Nielsen Country report (Local Field Audit Check) Country report (Local Field Audit Check) Country report (Local Field Audit Check) GT MT GT MT Category Category Category Category Brand
PRICE
Price index (as per AC Nielsen report) AC Nielsen (based on Unilever standard of price rates against competitor) GT - MT Brand
PROMOTION
Promo Pressure ROI Finance data Finance data GT - MT GT - MT Category Category Brand Brand
11 Appendix: KPIs
Measure GSV
Description of KPI Sales Value to third party customers arising from the sale of products in the course of the companys ordinary activities, before any deductions are made. Value is based on country list price or price before any discounts. Net sales value derived from GSV deducted by Trade Marketing Investment Underlying sales growth. This is like for like growth. Trade Marketing Investment over Turn Over. Trade Marketing Investment in customers includes Efficient Operations, Business Building, and Other Terms. Customer Contribution over Turnover
How to calculate Total Value sold based on country list price or price before any discounts
Turnover
GSV Trade Marketing Investment
USG% TMI%
(TY T / O LY T / O) / LY T / O% (Efficient Operation (EO) + Business Building (BB) + Other Terms (OT)) over TurnOver
CC%
TurnOver deducted by 1. 2. 3. 4. Supply Chain Cost, Trade A&P, Trade Mktg research and CD Indirect, divided by TurnOver.
Debtor Days
Debt owed by Customer
Number of actual days outstanding to collect cash from sales invoiced to customers Value of product sold to the market over total value of particular product in the market 1. No of cases ordered captured 2. No of cases invoiced captured 3. No of case delivered (subset of (2)) on time as per service level agreements is captured 4. CCFOT is (3) as % of (1) 1. Target for distributor salesman for a month is 65% Bill productivity, 90% ECO & 15 LPPC 2. On achieving each of the targets he get 100 points and hence maximum possible is 300 3. % FCS score measure the % of distributor salesmen achieving score of 300 in the market
Market Share
This measures our position in the market vis a vis our competitors on certain SKU, brand, or category This measures our ability to service demand of our primary customers (large accounts / distributors) on a per order basis. This is a key driver of customer satisfaction FCS is a composite measure of front end selling efficiency of distributor salesmen as measured by 3 parameters 1. Bill productivity (% of outlets billed on a day out of total calls made, 2. Effective coverage / ECO (% outlets of total planned universe billed
CCFOT
% FCS
113 Appendix: KPIs
Measure Brand Development Index
Description of KPI This helps us determine headroom opportunity in a channel for brand(s). This is an index of market share of brand(s) in GT versus market share of the same brand(s) overall, all channels put together. Hence if the index is below par, the headroom is determined This metric gives us an idea of the relevance of the distribution from a category context
How to calculate (Market share of selected brand(s) in GT) / (Market share of selected brand(s) overall (all channels combined)). If this is < 1, it indicates an opportunity.
Weighted Distribution
Percentage of total sales value of the category from the shops that has stock at the time of audit for a particular brand to the total category value in all shops that has stock for the category 1. A safety stock norm is defined for the distributor depending on service frequency and sale rate of SKU 2. Value of all SKUs is added, ignoring the value which is in excess of the safety norm for that particular SKU 3. The value thus arrived at is The audit identifies SKUs by outlet which are not available and calculates this as a % of relevant outlet-sku combinations which exist The audit identifies SKUs by outlet which are available in a very small quantity as compared to the rate of offtake & will soon be out of stock (leading to loss of sale) and calculates this as a % of relevant outlet-sku combinations which exist VOID B The audit identifies the number of SKUs placed in shelf (according to price tags available) vs. number of SKU that has been listed. The audit identifies SKUs by outlet which are not available and calculates this as a % of relevant outlet-sku combinations which exist
Stock Availability Index
This measure helps us determine if the distributor has adequate stock cover across SKUs to service POPs w/o loss of sale
% SKUs OOS
This indicates the gaps in SKU assortment availability in key outlet types for critical brands This indicates the gaps in SKU assortment availability in key outlet types for critical brands
%SKUs NOOS
Void B
Void B indicates the gaps in SKU already listed with the number of SKU actually placed on shelf (according to price tags available) This indicates the gaps in SKU assortment availability in key outlet types for critical brands
% On Shelf Availability
114 Appendix: KPIs
Measure Speed to Distributor
Description of KPI This measures the speed at which reach action standards have got met in case of NPI
How to calculate In order to ensure NPI speed to outlet, it is important that the new product reaches distributor point as per the agreed norms. The % of distributors receiving NP stocks as per the agreed norms is the NPI primary speed to distributor 1. Every NPI needs to have a targeted no of outlets and sell in norm by SKU by outlet classification 2. The % of outlets meeting sell in norms (ECO) is monitored as per milestones set for the NPI 3. Time taken in no of days to meet targeted ECO is the SKUs 1. Every NPI needs to have a targeted no SKUs by account classification 2. The first measure is the no of days to obtain listing of the SKUs by account 3. The second measure is the no of days to make the SKUs available by account on shelf % of total forward stock of the brand(s) / sku(s) to the total category forward stock The audit identifies number of SKUs displayed on the shelf vs. actual market share 1. A competitor is defined for each category. 2. There are 5 sizes of secondary display XL, L, M, S, XS with points (6, 4, 2, 1, 0.5) for each display in store. 3. Activity done during the month for each store get additional 2 (big one) & 1 (small one). 1. Starts with defining key SKUs (including competition), for which price at wholesale is critical and clearly articulating the benchmark prices every month as per the pricing strategy 2. AC Nielsen audit picks up the actual prevailing prices of these def
Speed to Shelf
This measures the speed at which reach action standards have got met in case of NPI
Speed to Shelf
This measures the speed at which reach action standards have got met in case of NPI
Forward Stock Share Linear Share of Shelf Visibility Score
Indicator of our on shelf presence Vs market share This measure volume displayed against market share Indicates how visible we are against competitor
Price versus Benchmark
Absolute and relative pricing (wrt to competition) is a key driver in wholesale and there is a need to comply to the agreed pricing strategy. This measure indicates degree of compliance to the same
115 Appendix: KPIs
Appendix H Trading Term Structure Thailand

Growing with our business partners the Distributors Market Type: 3 Unilever Market Position: Medium Key Challenge: Bringing the TTS framework to action with our Distributors
Fundamental income for CCN which aims to cover its operating costs and profit.
1. Unilever Growth Fund
CCN Fee
2 Strategic Alignment
To drive business result which align to UTT strategy
NPS Achievement UBC Effective Outlet Category / Channel Devt Fund Optimum CCN Business Trip Incentive Merchandising Blitz Incentive
3 Category / Channel Development Fund
To maximize growth of key brand and maximize contribution of key GT channel
4 Others
Other income for CCN
I.
Unilever Growth Fund Contents : CCN Fee Payment Rate : 6% of NIV before VAT Payment Method : On- Invoice
CCN = Distributor
116 Appendix: KPIs II. Strategic Alignment (NPS Related)

Payment Rate Evaluations and Conditions Payment Method
Contents 1. NPS Related 1.1 Achieved 100% of IOP target by cycle and by BU HPC1 HPC2 Hair HPC2 Others Foods 1.2 Achieved 100% of IOP quarterly target for all BUs HPC + Foods 1.3 Achieved 100% of IOP yearly target by BU HPC1 HPC2 Hair HPC2 Others Foods
1. Measured by actual NPS vs target set per cycle 12,000 Baht per cycle 12,000 Baht per cycle 14,000 Baht per cycle 12,000 Baht per cycle (50,000 x 12 = 600,000 B) 2. Evaluate from 2nd sales at the end of each cycle C/N C/N C/N C/N
1. Measured by actual NPS per quarter 35,000 Baht per quarter (35,000 x 4 = 140,000 B) 2. Evaluate from 2nd sales at the end of each quarter C/N
25,000 baht per year 25,000 baht per year 30,000 baht per year 25,000 baht per year (105,000 x 1 = 105,000 B)
1. Measured by actual NPS per year 2. Evaluate from 2nd sales at the end of the year
C/N C/N C/N C/N
Payment Rate compared to %NPS % NPS PMT Rate < 95% 0 95% 0.75 100% 1 105% 1.15 110% 1.3 115% 1.4 120% 1.5
117 Appendix: KPIs Strategic Alignment (Non-NPS Related)

Contents 2. Non NPS Related 2.1 UBC Merchandising 3,000 Baht per quarter Scheme 3,000 Baht per quarter 3,000 Baht per quarter (*Start on UBC RK HPK Q206) UBC RK HPS (9,000 x 4 = 36,000 B) UBC RK Foods / 3,000 Baht / quarter Wet Mkt 2.2 Achieved Effective Outlet RK HPK 80% RK HPS 80% RK Foods 70% (Q1 06) 80% (Q2 Q4 06) RF 80% 3,000 Baht / quarter 3,000 Baht / quarter 3,000 Baht / quarter (12,000 x 4 = 48,000 B) 1. Same evaluations an conditions as UBC Scheme 2. UTT reserves the right for changing formula or ways of working during the year C/N C/N C/N Payment Rate Evaluations and conditions PMT method
*Formula: (average 3 cycles) no. of effective outlets of HPK no. of outlets in PJP * Payment Ratio Achieved Foods < 70% (Q1 06) < 80% (Q2 06 Q4 06) 75% (Q1 06) 80% (Q2 Q4 06) 80% (Q1 06) 85% (Q2 Q4 06) 85% (Q1 06) 90% (Q2 Q4 06) 90% (Q1 06) 95% (Q2 Q4 06) HPK, HPS, RF <80% 80% 85% 90% 95% PMT Rate (times) 1 1.15 1.30 1.50 Baht 0 3,000 3,450 3,900 4,500
C/N
2.3 Distribution Drive RK HPK (2) RK HPS (2) RK Foods (2) RF (2) RF Platinum (1) 3. Market Share Open Trade in 2006 6,000 Baht / cycle (3,000 baht / SKU) 6,000 Baht / cycle (3,000 baht / SKU) 6,000 Baht / cycle (3,000 baht / SKU) 6,000 Baht / cycle (3,000 baht / SKU) 6,000 Baht / cycle (6,000 baht / SKU) (30,000 x 12 = 360,000 B) 1. Every 0.1% of increasing Open trade market share from 2005, get 50,000 baht
* Formula: no. of outlets buying distribution SKU no. of outlets in PJP in previous cycle * Payment is only made when achieving the distribution target (HIT OR MISS)
C/N
1. Measured by Open Trade market share 2. Evaluated by estimate market share DJ-ON 05 3. Market share information is from AC Neilsen 4. Maximum payment is 1,000,000 MB / CCN
C/N
118 Appendix: KPIs III. Channel / Category Development Fund

Contents 1 Increase MPR contribution in 2006 Payments 1. Every 1 % MPR contribution increased, receive 50,000 baht Evaluations and conditions 1. Measured at the end of the year 2006 (Dec, 31st 2006) from Solomon Report 2. Maximum payment 500,000 baht / CCN 3. IOP 100% achievement is required 1. Measured from actual NPS vs target set 2006 2. The given pick-up truck must be used for UTT business at least 5 years PMT C/N
2 Achieved 100% from 2nd sales IOP Target for all BUs 1) HPC1 2) HPC2 3) Foods
One pick-up truck; maximum valued 500,000 baht (Toyota or Isuzu)
N/A
IV. Other Terms

Contents 2 Starter Incentive Payment 2.1 HPS 2.1.1 Incentive Payment for HPS 2.1.2 Guarantee Profit 1.5% of HPS NPS 2.1.3 HPS Incentive Payment Rate Evaluations and conditions PMT
100,000 baht for new CCN with HPS route additional 100,000 baht if HPS route is Pre-order 1.5% of Actual GP Remark: ** Break Even point = Sales 600,000 B. ** Break Even point + Profit + sales 800,000 B
** For 2006 new CCN or CCN with additional sales area only ** 2nd sales per route <800,000 B per cycle ** Achieved HPS target 80% or more ** Payment will start on Cy7 05 to Cy6 07, 2 years total period
C/N C/N
2.1.3 HPS Incentive By cycle Achieved 100% 110% 120% 100% 110% 120% C / N PMT 0.80% 1.10% 1.50% 0.20% 0.30% 0.50% ** Measured by % Achieved compared to actual performance by cycle and quarter C/N
By quarter
** Payment will start on Cy7 05 to Cy12 06, 1.5 years total period
119 Appendix: KPIs
Appendix I Distributor Incentive Schemes Bangladesh

Rewarding and recognizing our Distributors Market Type: 1 Unilever Market Position: Strong Key Challenge: Engaging our Distributors to grow with Unilever
Background As UBL considers its distributors as Business Partners and Integral Parts of it growth journey it always puts a significant effort into ensuring their wholehearted commitment towards achieving companys targets and goals on one side and continuously improving their capacity and financial health to facilitate those achievements on the other. UBLs Incentive Schemes for Distributors are developed for this purpose. Currently there are two types of schemes: 1. 2. JC incentive Scheme Quarterly Bonus Scheme
In order to rationalize the scheme all distributors are divided into 3 groups according to their contribution to UBL business.
Group A B C Contribution >=1.6% 1.5% to 0.75% < 0.75%
Distributors Cont Group
1.6 1.5
Cut off Point (Cont %)
1 0.75 0.5 0.01 0 0% -0.5

Contribution of Group
10%
20%
30%
40%
50%
10 Appendix: KPIs Objectives JC Incentive Scheme: Encourage distributors direct involvement in improving the quality distribution To reward distributors on achieving: a. b. c. d. Value Target (by month): Minimum, Stretching & Outstanding Distribution Improvement Target Achievement Volume target achievement of Focus Brands and SKU of the JC SKU Productivity / LPC Target achievement
Basics: Incentive to be calculated on Total Secondary Sales Value Four parameters / targets to be considered for incentive: a. b. c. d.
Parameters Achievement %
Total Value target (secondary) Distribution Improvement Targets (Channel specific) Focus Brands / SKUs volume target of the JC SKU productivity / LPC Improvement target
Incentive to be given on each parameter individually upon achievement

Group A 0.2% 0.4% 0.6% 0.2% 0.1% 0.1% 0.2% 1.1% Group B DMS Non-DMS 0.15% 0.2% 0.35% 0.2% 0.3% 0.4% 0.2% 0.1% 0.1% 0.2% 0.9% 0.2% 0.55% Group C DMS 0.15% 0.2% 0.3% 0.2% 0.1% 0.1% 0.2% 0.8% 0.2% 0.45% Non-DMS 0.1% 0.15% 0.25%
Minimum: 90% of target i) Total Value Stretching: 100% of target Outstanding: 110% of target 100% Distribution of All SKUs ii) Distribution (As per the town-wise target) Improvement 100% Distribution of 80% SKUs Individual volume 0.02% per brand for DMS+ iii) 5 Focus Brands towns & 0.04% for Non-DMS+ Towns iii) SKU Productivity / LPC 30% Increase from Avg. Q1 06 base Total Maximum
11 Appendix: KPIs Objectives Quarterly Incentive Scheme: To encourage high performance distributors to perform even better To boost up potential but currently low performers in improving their performance Evaluation to be made on a 100 point scale Four parameters / targets to be considered for incentive: a. b. c. d. Growth Target (on a cumulative basis) Individual Brand Growth Targets Annual Business Plan Implementation Adherence to Distribution fundamentals
Basics:
Incentive to be given on each parameter individually upon achievement
Point Matrix:
PARTICULARS 1. Secondary Sales Growth PARAMETERS 20 25% YTD over SPLY Minimum 25.1 30% YTD over SPLY Stretching 30.1% + YTD over SPLY Outstanding Section reorganization within time Manpower deployment within time Vehicle procurement within time Durbin Implementation Godown & Office Renovation Working Capital Investment Total for ABP Implementation All brands above OPs Vol Growth Target 90% brands Above OPs Vol Growth Target 80% brands above OPs Vol Growth Target 70% brands above OPs Vol Growth Target Less than 70% brands above OPs Vol Growth Target POINTS 15 25 50 5 5 5 5 5 5 15 25 20 15 10 0
Annual Business Plan 2. implementation within the timeline: Any three from Parameters to be selected & clear target with time line to be agreed
3.
Ensuring QOG (quality of growth) through Brand focus
4. Discipline: Adherence to Distribution Fundamentals Source: Once a quarter joint audit by non-supervisor TM will check the Distributors Operations Group C distributors Management Audit Report ASM will check the Group B distributors RSM will check the Group A distributors
10
1 Appendix: KPIs Reward System: Based upon total points achieved, top 3 distributors from each group will be awarded cash prizes.
Group Total No. of Distributors No. of Distributors to be awarded Award % of Total Secondary sales of the group A 17 3 0.051% B 25 3 0.054% C 74 3 0.058%
13 Appendix: KPIs
Appendix J QOC Scoring sheets India

RSSM (Distributor Salesman) AIM FACTORS WITHIN HIS SPAN OF CONTROL METRIC MEASUREMENT METRIC MEASUREMENT METRIC MEASUREMENT Market share Selling in assortments / width / replenishment / compliance to the EDGE way of selling KPI: Business Performance Monthly Value Target (basis QOP) Secondary sales report (Unify) KPI: Availability Range: 4 selected packs ECO target (Unify) Assortment sell in (Range) Bundle ECO from Unify 1 assortment per MOC Bundles should be pre-defined and put into the system. Unify should throw up reports stating %of ECO achieved & task ahead (incomplete bundles, etc.) METRIC NPI / Seasonal pack Speed to shelf (can be merged with ECO target for the 4 selected packs) ECO (Unify) % Near out of stock External Audit of key SKUs (can be part of visitrack) KPI: Depth METRIC MEASUREMENT Target uplift of RR (4 packs + 1 selected assortment) Secondary sales (Unify) KPI: Maximizing Customer service TSI (Unilever Supervisor) Market share Managing RSSM & RS to achieve sales KPI: Business Performance Monthly Value Target (basis QOP) Secondary sales report (Unify) KPI: Availability Range: 4 selected packs (4+4 for an HPC TSI) ECO target (Unify) Assortment sell in (Range) Bundle ECO from Unify 1+1 (for HPC) assortment per MOC An average of the bundle ECO score achieved by his RSSM
NPI / Seasonal pack Speed to shelf (can be merged with ECO target for the 4 selected packs) ECO (Unify) average score of his RSSM % Near out of stock External Audit of key SKUs average score of his RSSM KPI: Depth Target uplift of RR (4 packs + 1 selected assortment) Secondary sales (Unify) KPI: Maximizing Customer service
MEASUREMENT METRIC MEASUREMENT
14 Appendix: KPIs
METRIC
%FCS (1) ECO to be a TDP measure (90%) (2) Bill productivity also to be basis TDP (65%) (3) LPPC by channel: FG 25; MR 15. Unify MIS report (outlet universe to be frozen) KPI: EDGE SOP Compliance Call Procedure compliance 3P area audit done on quarterly basis (quarterly bonus to be linked to this)
% FCS (1) ECO to be a TDP measure (90%) (2) Bill productivity also to be basis TDP (65%) (3) LPPC by channel: FG 25; MR 15. Unify MIS report average score of his RSSM KPI: EDGE SOP Compliance Call Procedure compliance 3P area audit done on quarterly basis (quarterly bonus to be linked to this)
MEASUREMENT
METRIC MEASUREMENT
UNIFY = Distributor Management System MOC = Monthly Operating Cycle BUNDLE ECO = Assortment ECO
15 Appendix: KPIs
MERCHANDISER AIM FACTORS WITHIN HIS SPAN OF CONTROL Market share Optimum brand communication putting up & maintaining high quality visibility on time & with full adherence to set templates
ACTIVATION EXECUTIVE Market share Management of key channels (availability, visibility, activation). Putting up & maintaining high quality visibility on time & with full adherence to set templates as per plan across all channels KPI: Business Performance Monthly Value Targets as per channels that they manage SVS / Vijeta, etc. Secondary sales report (Unify) KPI: Availability Range: Selected packs in the relevant channels ECO target (Unify)
KPI: Business Performance METRIC Monthly Value Target (basis QOP) Secondary sales report (Unify) KPI: Visibility METRIC MEASUREMENT Share of Shelf (SOS >= SOM) Visitrack: Share of shelf to be built in with no. of units to be defined per type of outlet (SVS, SLO, LLO, Unicare, Fancy, etc.) Template adherence paid / unpaid Adherence to set visibility templates in an outlet measured through Visitrack % DSM facing shopper & / or eye level
MEASUREMENT
METRIC
Assortment sell in (Range) in the relevant channels SVS, AE outlets, etc. An average of the bundle ECO score achieved by his RSSM NPI / Seasonal pack Speed to shelf (in SVS / AE outlets / Wholesale) can be merged with ECO target ECO (Unify) average score of his RSSM % Near out of stock in key channels External Audit of key SKUs (can be part of visitrack) KPI: Visibility Share of Shelf (SOS >= SOM)
MEASUREMENT
METRIC MEASUREMENT
Visitrack
Product Availability in Visibility Windows METRIC MEASUREMENT KPI: EDGE SOP Compliance Call Procedure compliance Visitrack
16 Appendix: KPIs
METRIC
3P area audit done on quarterly basis will include SOP compliance & rigor of following resolution procedures
Visitrack: Share of shelf to be built in with no. of units to be defined per type of outlet (SVS, SLO, LLO, Unicare, Fancy, etc.) Template adherence paid / unpaid Adherence to set visibility templates in an outlet measured through Visitrack
MEASUREMENT
METRIC MEASUREMENT %DSM facing shopper & / or eye level Visitrack METRIC MEASUREMENT Product Availability in Visibility Windows Visitrack KPI: Channel Activation Implementation Efficiency Evaluation of timely & quality implementation of all activation tasks in monthly AWP KPI: EDGE SOP Compliance Call Procedure compliance 3P area audit done on quarterly basis (quarterly bonus to be linked to this)
17 Appendix: KPIs
AREA SALES MANAGER AIM FACTORS WITHIN HIS SPAN OF CONTROL METRIC MEASUREMENT METRIC MEASUREMENT KPI: Availability METRIC MEASUREMENT METRIC MEASUREMENT KPI: Maximizing Customer service METRIC % FCS (1) ECO to be a TDP measure (90%) (2) Bill productivity also to be basis TDP (65%) (3) LPPC by channel: FG 25; MR 15. Area Score KPI: Visibility METRIC MEASUREMENT METRIC MEASUREMENT METRIC MEASUREMENT Composite score Visitrack KPI: Channel Activation Implementation Efficiency Average AE score for his area KPI: EDGE SOP Compliance EDGE SOP compliance 3P area audit done on quarterly basis Composite score A calculation based on his TSI & AE Availability scores biannual Assortment Availability AC Nielsen biannual Market Share Implementing plans, policies & activities of his area by managing his team and his customers KPI: Business Performance Monthly Value Target (basis QOP) Secondary sales report (Unify) Market Share Target AC Nielsen
MEASUREMENT
18 Appendix: KPIs
CAPABILITY OFFICER / EXECUTIVE AIM FACTORS WITHIN HIS SPAN OF CONTROL METRIC MEASUREMENT METRIC MEASUREMENT METRIC MEASUREMENT METRIC MEASUREMENT Develop capabilities among FF to ensure superior execution Mandate & tools to do capability building TSI capability building % of bottom 25% TSIs reaching the previous quarter QOC average for branch RSSM capability building Average FCS of all TSIs in area Delivery on planned activities CEWP completion EDGE SOP compliance 3P area audit done on quarterly basis Call procedure compliance RS infrastructure compliance
Appendix K QOP Measurement India

RSSM (DISTRIBUTOR SALESMAN) QOP Measurement Weights 20 Scoring 98 100% 100 achievement 95 98% 80 achievement 90 95% 60 achievement < 90% achievement 0 All 4 packs 100 3 packs 60 < 3 packs 0 All 4 packs 100 3 packs 60 < 3 packs 0 All 2 assortments 100 1 Assortment 30 ECO: 90% 100 BP: 65% 100 LPPC:15 100 (All 3 have to be achieved) Data Source
QOP (monthly targets)
DMS
10 Availability 10 Ops Packs Assortment (Bundle ECO) 20 40 FCS
DMS
DMS DMS
BOCS / DMS
QOP = Quarterly Operating Plan
19 Appendix: KPIs
Merchandiser QOP Measurement Weights 20 Scoring 98 100% achievement 95 98% achievement 90 95% achievement < 90% achievement 20 Visibility Share of Shelf (SOS >= SOM) defined as per outlet type 20 Visibility Template adherence (paid & unpaid) Weighted score 75 + Weighted score 60 + Weighted score 50 + Weighted score < 50 Weighted score 75 + Weighted score 60 + Weighted score 50 + Weighted score < 50 20 Visibility Product Availability in visibility windows EDGE (resolution process Compliance) 20 Weighted score 75 + Weighted score 60 + Weighted score 50 + Weighted score < 50 Green Amber 100 80 DMS 60 0 100 80 60 0 100 80 60 0 100 80 60 0 100 40 Quarterly 3P audit results area Visitrack Visitrack Visitrack Data Source
QOP (monthly targets)
130 Appendix: KPIs
TERRITORY SALES IN-CHARGE QOP Measurement QOP (monthly targets) Weights 20 Scoring 98 100% achievement 95 98% achievement 90 95% achievement < 90% achievement Availability 10 All 4 packs (4 + 4 for HPC) 3 packs < 3 packs Ops Packs 10 All 4 packs (4 + 4 for HPC) 3 packs < 3 packs Assortment (Bundle ECO) EDGE (Call Procedure Compliance) % RSSM achieving FCS 20 20 All 2 assortments 1 Assortment Green Amber 20 75% RSSM 50 75% RSSM
TSI = Unilever Sales Representative
Data Source 100 80 DMS 60 0 100 60 0 100 60 0 100 30 100 40 100 80 DMS Quarterly 3P audit results area BOCS / DMS DMS DMS
131 Appendix: KPIs
ACTIVATION EXECUTIVE QOP Measurement QOP (monthly targets) in his relevant channel Weights 20 Scoring 98 100% achievement 95 98% achievement 90 95% achievement < 90% achievement Availability in his relevant channel 10 All 4 packs 3 packs < 3 packs Assortment (Bundle ECO) in his relevant channel Activity Efficiency 10 All 2 assortments 1 Assortment 20 100% achievement 95% achievement 90% achievement Visibility Share of Shelf (SOS >= SOM) defined as per outlet type 10 Weighted score 75+ 100 80 DMS 60 0 100 60 0 100 30 100 80 60 100 Activity Tracker DMS DMS Data Source
Weighted score 60+ Weighted score 50+ Weighted score <50 Visibility Template adherence (paid & unpaid) 10 Weighted score 75+ Weighted score 60+ Weighted score 50+ Weighted score <50 Visibility Product Availability in visibility windows 10 Weighted score 75+
80 60 0 100 80 60 0 100
Visitrack
Visitrack
Weighted score 60+ Weighted score 50+ Weighted score <50 EDGE (call & resolution process Compliance) 10 Green
80 60 0 100
Visitrack
Quarterly 3P audit results area
13 Appendix: KPIs
CAPABILTIY EXECUTIVE QOP Measurement Improvement of bottom box 25% RSSM TSI Contact Form Eval Weights 25 20 Scoring % of bottom reaching last QTR avg If 90% TSI at level 3 If 75% TSI at level 3 If 60% TSI at level 3 EDGE (Call Procedure Compliance) %RSSM achieving FCS CEWP completion 20 Green Amber 20 15 75% RSSM 50 75% RSSM 100% achievement 95% achievement 90% achievement
RS = Redistribution Stockist (Distributor) RS SM = Redistribution Stockist Salesman (Distributor Sales Rep) TSI = Territory Sales In Charge (Unilever Sales Rep) AE = Activation Executive CE = Capability Executive (Field Trainer ASCM = Area Sales & Channel Manager (Unilever Field Sales Manage
Data Source 100 100 65 35 100 40 100 80 100 80 60 HR Helpdesk / Branch Database BOCS / DMS Quarterly 3P audit results area HR Helpdesk / Branch Database ASMs quarterly eval of TSI
133 Appendix: KPIs
Appendix L Return on Investment (ROI) calculation

An illustration...
ROI CALCULATION INVESTMENT
NORM in Days Credit Stock Claims + Damage OD from Bank Credit by OPCo. Own Investment 14 5 14 2 NORM in ABS VAL 166667 466667 66667 200000 466667 33333 ACTUAL in VAL 200000 500000 70000 200000 500000 70000 ACTUAL in Days 6 15 2.1 6 15 2.1
A standard way of achieving ROI (software available)
REVENUE (PER MONTH)

GROSS T / O Turnover per month Wholesalers Channel 1 (Hyper / LSM) Channel 2 (SSM) Channel 3 (CVS) Channel 4 (GT) Channel 5 (GT) Gross Revenue 1000000.0 100000.0 50000.0 50000.0 400000.0 200000.0 200000.0 % MGN 4.8% 4.0% 4.0% 4.0% 5.0% 5.0% 5.0% REVENUE 48000.0 4000.0 2000.0 2000.0 20000.0 10000.0 10000.0 48000.0
134 Appendix: KPIs
COST
NO. Wholesale RSSM Channel 1 (Hyper / LSM) RSSM Channel 2 (SSM) RSSM Channel 3 (CVS) RSSM Channel 4 (GT) RSSM Channel 5 (GT) RSSM Supervisor Manager Comp Operators Acountants Others Total No. of Heads RSSM vehicle and fuel Service charges for merchandisers Delivery charges including. Loading / unloading Godown maintenance charges Office Costs Others Bank Interest Total 12% 1.0 2.0 1.0 2.0 2.0 1 1 1 1 1 1 14.0 5 5 OUTFLOW per HEAD 2000 3000 1000 1000 1000 1000 4000 5000 1500 2000 1000 1964.3 1000 500 COST 2000 6000 1000 2000 2000 1000 4000 5000 1500 2000 1000 27500 5000 2500 5000 1500 2000 750 2000.0 46250
ROI
NORM Net Take Home Indicative % Net Margin on own investment (ROE) Indicative ROE Indicative % Net Margin on gross investment (ROI) Indicative ROI 1750 5% 63% 0.8% 9.0% ACTUAL 1750 2.5% 30% 0.6% 8%
Organisation
136 Key Performance Indicators (KPIs)
137 Organization Broad Overview

Organization
Unilever What
Distributor How
UL Governance Structure
Distributors Organization
Distributors selection Process & Scale Guidelines Recruitment, profile
Clearly defined Roles & Responsibilities
Capability Training
On the Job training
Norms - Contacts, Infrastructure, Financial
Performance linked pay
Channel Goals & the KPIs to measure our effectiveness in meeting channel goals has to be supported by the right Distributor Organization. This will start from Unilevers side with: 1. The UL Governance Structure This is essentially the supervisory organization which Unilever deploys to oversee the Distributor operations. This consists of 5 functional streams: Customer Development, Finance, Supply Chain, HR and IT Business Partner. In the Customer Development function under the Field Sales Manager there are essentially 3 distinct roles 1. 2. 3. Creating availability & visibility Delivering activation and Creating capability through Training both on the job and in classroom setting
138 Organization The Next Generation Field Manager ASM
Capability
Activation
Availability
Capability Exec
Activation Exec
TSI
Driving EQ
Driving Share
Driving Coverage
In a large Unilever operation these roles could be separate while in a smaller organization this could be combined.
139 Organization Generally, the skill sets required for doing a role in this area are as per the guidelines given below for Distributor & Field Management: Purple Squares indicate CD Professional Skills at FULLY OPERATIONAL level per CD Role
Mastery of Customer Development Essentials Developing the Customer Channel Investment Strategy Developing the Customer Channel Business Plan
UNILEVER CUSTOMER DEVELOPMENT ROLES

ACCOUNT / CHANNEL MANAGEMENT DISTRIBUTOR MANAGEMENT FIELD MANAGEMENT TRADE CATEGORY MANAGEMENT CUSTOMER MARKETING CD OPERATIONS CUSTOMER SERVICE
UNILEVER CUSTOMER DEVELOPMENT SKILLS
Optimising Promotion Sell-out Leveraging Strategic Customers Understanding and Applying Shopper Insights Developing Integrated Brand Communications Category Management Developing the Customer Service Strategy Developing the Customer Service Plan Managing Customer Service Operations Implementing the Customer Channel Business Plan PoP Execution and Monitoring Developing the CD infrastructure & Organisation Developing Customer Relationships Third Party Management
140 Organization Unilever has operated the Diamond model with Modern Trade Customers for a number of years. The Next generation distributor model needs the Diamond model to come alive in General Trade as well. The Diamond Model in summary: Collaborative relationship Value-added focus winning with consumers Integrated processes / data sharing Many functional points of contact
Finance ensures the proper administration of Channel Value Assessment tool, the OPSO tool, the correct TTS structure to drive growth and manages the internal audit system. Supply chain ensures replenishment based primary sales and brings in expertise on TPM & scientific warehouse management. HR helps to embed formal processes to screen, recruit & retain Distributor sales force while IT helps to ensure front end IT technology is in place. 2. Distributor Selection Process Distributor selection will have to be looked at from 3 different perspectives: 1. 2. 3. Based on the Company Category Strategies the level of distribution reach required down the population strata A geography cut based on economic cost to serve to determine number of Distributors required and the further RTM interventions to be used. Based on market sophistication the profile of distributors required. As the markets move from a highly fragmented to an organized level, the distributor structure evolves accordingly from a basic distribution to a service provider & business partner.
The 6 business models given earlier in this Guide is a good indicator on the type of distributor required.
141 Organization
H
Unilever share of total
Exclusive distributors
Exclusive distributors Direct / KA Non-exclusive distributors Direct / KA
Channel service providers Direct / KA
Non-exclusive distributors
Wholesalers
M
Modern Trade as % of total
3. Scale Requirement Deciding the Distributors size is the most complex of all the elements in the Next Generation Distributor model. The Three Key Filters to be considered are: Filter #1 The Investment required to provide the required infrastructure. The Unilever requirement on Coverage, Warehousing standards, profile of sales force, stock & credit norms will determine the minimum working capital & fixed asset requirements for the Distributor Filter #2 ROI & Cash Income. Typically the ROI required should range between 2.5 times to 4.5 times of MLR (Mean Lending Rate) while the Cash income should be in the top quartile of FMCG distributors in his area. Filter #3 Cost to Serve for Unilever. In addition, drop sizes & distance from Unilever Distribution centres as well as accessibility conditions such as terrain will be the 3rd filter on the spread of the Distributor network.
A ROI Tool called the Size Calculator has been developed to determine Turnover requirement based on required cash profit. This toolkit is available separately
14 Organization A study of typical Type 1-2 & Type 3-4 markets on purchasing power parity basis shows wide variance of turnover per distributor in different countries. However, it is safe to assume a minimum cut off of 4m Euro pa (for Type 3 & 4) & 2m Euro pa (for Type 1 & 2)
Distributor TO per Year Corrected for PPP 25

22
20 15 10
5 12 12
Type 2-4 Mkts Type 1-2 Mkts
8 6 3 3 4 6 2 2
5 0
n Turkey n Malaysia n Egypt
TO per Yr n Philippines n China n Bangladesh Desired Minimum n Thailand Vietnam n Pakistan n Indonesia n Sri Lanka n India
Given below is the Indonesian EXCO Roadmap which is a good example of RTM choices made on the basis of scale requirements.
TO coverage > 720 Outlets > 570 719 Outlets 361 569 Outlets 180 360 Outlets 25 179 Outlets STOCK POINT SMALL DISTRIBUTOR DISTRICT 1-2 SERBU TEAM SUT TEAM CORPORATE TEAM SPLIT TEAM MEDIUM DISTRIBUTOR DISTRICT 2-3 RP 50,000 per call < RP 75,000 per call RP 100,000 per call RP 125,000 per call RP >125,000 per call BIG DISTRIBUTOR DISTRICT > 5
143 Organization 4. Recruitment & Remuneration Policy (Distributor & Distributor Sales force) In the past recruitment & remuneration of Distributor sales force has often been left to individual distributors. This has led often to high turnover owing to low pay scales or poor profiles which have hindered growth. It is imperative in the Next Generation Distributor model to have a documented policy on the profile required for Distributor sales force, the remuneration & incentive standards and transparency on the performance of the sales force. The Thai & Indian Salary Recommendation & a Salesman profiling tool used in India are given as good practice in the Appendix M. 5. Training Plans Standard D&E training material in Basic Call Procedure (6 x 9) needs to be mandatory to improve the performance of Distributor Sales Force in both Type 1-2 & Type 3-4 markets. In addition structured training plans need to be available for training on category knowledge and general field skills such as coverage expansion, merchandising etc. Basic training material of Basic Call Procedure is provided in the Appendix N. 6. Contact Norms Clear Contact norms need to be set as guideline for Unilever staff in terms of frequency of visits & tasks to be accomplished through a field operation manual. Standard Contact norms, roles & responsibilities are given in the Appendix O. 7. Infrastructure & Finance Norms Critical for the Distributor operations is guidelines on the infrastructure required as well as the finance required to allow smooth operations at the distributor. The important characteristics as identified in the Next Generation Distributor model are given below:
Quality of Service Coverage Human Resources RSSM Field Capability Score Credit Logistics and Stocks Quality of Stocks Delivery Capacity FF Efficiency ROI Financial and Operational Health Stretch Godown
Merchandisers Market Working
144 Organization 8. Standard Operating Procedures by Channel & Role Unilever also needs to document standard call procedures for different channels as well as clear roles & responsibilities for Distributor staff. This ensures uniformity of operations across distributors. Examples from India & Indonesia are given in the Appendix P. Distributors Role 1. The Distributor Organization Structure The Distributor Organization structure should be an outcome of the Unilever Category channel strategies and would need to cater for the coverage, merchandising & activation requirements that emerge from the channel strategy. This includes the number of people to be employed, their educational qualifications & experience as well as their remuneration standard. This can be no longer left to the Distributor to decide but should be the outcome of Unilever policy & standards. 2. Roles & Responsibilities Each individual on the Distributor payroll will have a clear position in the organization structure and clearly documented roles & responsibilities including KPIs. A comprehensive example from Unilever Bangladesh is available as guidance in the Appendix Q. 3. Performance Linked Pay In many countries distributor sales force remuneration policy is left to the individual distributors to decide and in some countries there is no incentive linked payment. As a result Unilever Distributors often end up paying less than our peer group and do not incentivise growth. This can lead to below standard sales force and high turnover of the competent individuals who leave for higher paying jobs. Given the importance of the POP interface, it is critical to give documented guidance to distributors on remuneration & incentives. In Good Practice companies, typically 65% to 70% form base pay and another 35% to 45% forms incentives. This allows high performers to earn more than the 100% of recommended salary when they do well. Good practice examples can be found in the Appendix R. 4. On the Job Training The other important factor is a philosophy of continuous improvement in capability through disciplined on the job training. In good practice companies on the job training is not a once-off but a regular process. Regional tools such as 6 X 9 & Field Coaching Module should be used to make on the job training a way of life. Given in Appendix S is an example from Unilever Bangladesh
Appendix: Organisation
146 Introduction
147 Organisation
Appendix M a. Salary Structure Thailand

Aligning the structure for sustainable growth Market Type: 3 Unilever Market Position: Medium Key Challenge: Ensuring a competitive salary structure to deliver growth
2006 Trading Term CCN Sales Standard income structure
Standard salary Salary Supervisor Sales - RK Sales - RF Driver Helper - RK Helper - RF Merchandising Blitz
PMT = Channel A RF = Channel B CCN = Distributor UTT = Unilever Thailands
Incentives (CDM) PMT 5,075 3,750 0 2,533 1,867 0 3,000 3,000 Sales RF Total 5,075 3,750 3,000 2,533 1,867 0 3,000
CCN Sales team
Total CCN PMT 17,075 12,250 10,500 7,533 6,267 4,400 9,000
Incentives (UTT) 5,075 3,750 2,000 2,533 1,867 1,867 0
Total Income 22,150 16,000 12,500 10,067 8,133 6,267 9,000
Salary / total income 70% 69% 71% 66% 70% 100% 67%
12,000 8,500 7,500 5,000 4,400 4,400 6,000
148 Organisation
b. Distributor Salesmen Profiling Tool India Getting the right people for the right jobs
Market type: 1 Unilever Market Position: Strong Key Challenge: Correct high attrition rates and prepare the organization for growth delivery
Distributor Name: ___________________________________________________________ Distributor Salesman Name: ___________________________________________________ Instructions: All 20 questions have to be answered as Yes or No. For every yes, give 1 mark & for every No, give a 0 mark. Count the marks out of 20. Also calculate the FCS score of the salesman for the last 6 operating cycles. Based on the Profiling FCS Matrix, rate the salesman.
Sr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Question Is the physical appearance tidy and is the individual smartly dressed? Does the individual have required education qualification? Does the individual have relevant experience (FMCG industry / Channel) of at least 2-3 years? Can the individual read & write elementary English / Official language? Is the individual proficient in the local language? Is the individual reasonably comfortable with numbers and is able to do elementary analysis with numbers? Is the individual able to do simple multiplications, divisions with speed & accuracy? Is the individual able to handle simple commercial problems of profit & loss? Does the individual present his case in a persuasive manner? Can he express his views logically? Does he have the ability to assert himself? Can he cite instances where he has done that in the past? Does the individual show the ability to handle objections effectively without becoming either too defensive or too aggressive? Does the individual display drive for achievement based on his past achievements? Does he present himself (based on past experience) as an individual who excels in achieving stretched targets? Can the individual quote instances from his experience where he has displayed specific care for customers? Does he demonstrate instances where he is interacted with people sensitively & respectfully? Does he have good knowledge of the product category he has handled in the past? Is the individual aware of different types of promotion activities? Does he have good understanding of the market where he has operated in the past? Does he have understanding of local market & retail behaviour / responses? Is he aware of merchandising inputs in trade? Can the individual analyse competitor activities vis a vis his own companys activities in the market that he has been operating in? Does the individual display the ability to identify differential trade needs & modify his sales call accordingly? Is the individual reasonably aware of current affairs?
149 Organisation
Profile Score >= 15
All 6 A (Star Salesmen: Retain) A (Groom) B (Intensive Inputs)
No of Cycles In Which FCS Score was Met 5 out of 6 4 out of 6 A (Develop) A (Groom) B (Intensive Inputs) A (Develop Skills) B (Borderline: Intensive Inputs) C (Separate)
<4 B (Watch) C (Separate) C (Separate)
11 to 14 < 11
Distributor Salesmen Salary Structure India (Linked to KPIs, an example) 1. Basic salary New salesmen without experience start with a basic salary (Rs 3000) Metro: Experienced salesmen: Rupees 3000 / 3500 / 4000 depending on experience / last job / last salary. NON-Metro: Experienced salesmen: Rupees 2000 / 2500 / 3000 depending on experience / last job / last salary. Variable component of salary.
Metro 3500 Rs 20 per day Rs 250 Rs 250 Rs 250 Rs 400 Rs 300 Rs 250 Rs 10 per day Rs 5550 Rs 6050 Non Metro 2500 Rs 20 per day Rs 200 Rs 200 Rs 200 Rs 400 Rs 300 Rs 200 N.A. Rs 4100 Rs 4700
Variable salary components Basic Salary (Rupees) Daily Allowance Lines target achievement Bills productivity target achievement ECO target achievement Value target achievement 100 % Value target achievement 98% New Product Target Achievement Credit limit under agreed norm Average Salary Maximum Salary
150 Organisation
Appendix N Basic Call Procedure (BCP)

Sales Tools 1. Sales form / Invoice or HHT Call sheet / Retailer card. Presentation Materials / Tools Merchandising Materials. Sales priority list. Sales Organizer. Sales form / Invoice or HHT 2. Additionally depending on requirement one can have Good Return Form (i.e., forms authorizing take backs from trade). Participation forms for trade programs. i.e., Loyalty / competition etc.. Its a history of customers purchases, for all customers. Benefits: Serves as a permanent record. Assists in checking movements. Good tool for inventory management. Helps increase range selling. Maintain record of customer grievances.
Calling on the outlets in a standard way to achieve efficiency and effectiveness
Call Sheet
151 Organisation 3. Presentation Materials / Tools Sales aids. i.e., product samples, catalogue, current advertising materials, anything that helps highlight the features and benefits of the product and gives a better feel of the products to the customers. Benefits: 4. Assist in gaining attention of the customer Maintain interest. Emphasize benefits Handle Objections Assist in closing Memorize the contents of the aid, so that you dont have to read it. Hold the aid facing the customer, so that the customer has a clear view. Show the customer one thing at a time and emphasize the important points. Ask questions to verify his / her understanding. Keep the aid in good condition. It shouldnt get dirty.
Tips of Using Sales aids
Merchandising Materials / Tools Point of Sales Materials that help in activating products at POP. Examples: Shop board, dispensers, hanger, shelf talker, poster etc.. Other materials like twine, scissors, tape, punch machine, hammer, nail etc.. are also part of this group as these are tools that can be used in putting up product displays. Determines the call order of SKU. Priority is determined by RCDMs / FSMs. Some examples of call order determinants New Product Innovation (NPI) Promotion / Activity SKUs etc.. A bag or portfolio to carry the above tools.
5.
Sales Priority List
6.
Sales Organizer
15 Organisation Summary of 9 Steps of call.

Review plans Opening the call Store Check Collections Sales Presentation Close Records & Reports Merchandising End & Evaluate
1.
Review Plans Do a fast review of your preparation before entering the outlet Value and distribution objectives. Merchandising objectives Collections Any issues / grievances of the retailer that remained unaddressed during the previous visit.
Review results of last call using retailer card.
2.
Do a quick check of the selling tools / equipment. Opening the call Greet the owner / buyer. Warm, sincere and courteous. During the meeting mention your name and the name of Unilever. Observe stall appearance. Ask permission to enter the store and check the store. If the store has an outstanding, leave the invoice with the owner / buyer for processing. Be professional: You are there to assist him increase his turnover, so be courteous but be also objective. Dont start talking about particulars if the owner / buyer is entertaining a customer.
153 Organisation 3. Store Check Objective 4. Inventory Merchandising Competitor status Product quality check Check shelf space and position. Check for availability of SKUs / Brands Check about performance of competitor (inventory is smaller / larger) and their activities. Record comments / observations in retailer card. Promo packs inventory. Check Inventory status. Is the retailer following FIFO. Are there old (seasonal/ close to expiry) products
The To-Dos
Collection (if the store is a cash customer then skip this step) The objective is to clear all receivables from the customer. Be firm and tactful. Have all necessary documents ready before you enter the outlet. Always have a uniform credit policy (consult KDM/ FSO for details) If a customer is unable to pay Evaluate the risk, consult with KDM/ FSO. Identify opportunities to assist the customer to pay. Liquidate old stocks (if any) etc..
154 Organisation 5. Sales Presentation. What are you selling to the retailers?
Yourself
Products
The Company
Prioritise your presentation. Call order of SKUs should be determined by FSO / FSM and to be followed in every outlet. Use your sales priority list. Start with something that is interesting that will attract the attention of the retailer. Use sales aid for NPI, discuss SKUs you want to include in the order. Take down the order in the order sheet or HHT. Readout the order to the retailer, for the retailer to agree or challenge. Benefits of writing down the order in the order sheet or HHT first; Helps organize your sales presentation. Easier to handle objections. (You can tackle one objection at a time) Helps generating push sales. Analyse the situation. Plan what you want to do. (E.g. write down the order first etc..) Explain your plan to the customer. Reinforce the benefits of your proposal. Objection is the customers way of saying he / she still has not understood the benefit the product will bring him / her. Examples of common types of Objection.
Steps to design a sales presentation.
Handling Objections.
155 Organisation
Objection Type Need Objection: Price: Features: Time Objection: Source:
Brief Description I have one of those already., I have no space for any more., Sorry, I just dont want it. How much?, Your competitors sell a better product for less money. It is too big, It is not good enough quality I dont know. I need to think about it, I wont have the money until next month. How do I know if what you are saying is correct?, I heard that your company treated its workers badly.
Objection Handling Technique Listening helps develop rapport. Demonstrates your interest in their grievance. Hence show interest, listen carefully. Is the reason for the objection clear, or is there a hidden reason. Should the objection be handled now or park it for later. Can I address it or should I wait for my superiors etc..
Listen
Question
Ask appropriate questions, watch for body language. Open ended questions to bring forth alternatives and Close ended questions to verify Learning. When the reason for objection is clear. And you are certain about what the response to your different suggestions / questions are going to be. Now that you
Think
Handle
Check
Check whether the objection has been addressed. Ask if there is any more concerns.
6.
Close Closing a sale is asking for order. When do you try to close a sale?
156 Organisation When you receive a buying signal like; Retailer agree to the benefit of the plan Agree with an answer to an objection Asking price, terms etc.. Asking probing questions A pause which indicates weighting of decisions. etc.. How do you Close? (Examples of Closing Technique) Ask for the order directly. Shall I bring 20 cases? Offer a choice. So 50 pieces of CUP and 200 pieces OMO or 50 PCS CUP and 100 PCS Lux 140g. Use an open ended question. May I write down 200 pieces for you
Dont be afraid about closing. Ask for order. Close based on situation. Dont linger on a decision already made. Close as many time as you deem necessary or as many time, you address an objection. Once you have taken the order prepare stocks for delivery. When preparing for delivery remember to mix colours / variants. Ensure safe turnover of the stocks to the customer. Sometimes, ask the customer to count the stocks, in front of you. Or you count the stocks in front of the customer. Collect Cash Records and Reports Update retailer record sheet. Listing invoice details and comments. Update any other form or additional record sheet.
7.
157 Organisation 8. Merchandising 9. Ensure adherence to in-store merchandising guidelines. UNL products should be displayed in category locations with names and features distinctly visible. Assist in stock rotation: Assist retailer so that sell-out follows FIFO. (First In First Out) Look for opportunities to improve visibility. Assist in sell-out. Excuse yourself and bid good bye to the customer. Inform him of your next scheduled call. If he had queries / objection which are unanswered remind him that you will revert with the reply. Ensure that your transactions have been completed. Evaluate the call What were your objective you had set for the call. What have you achieved? What are the objective of the day? How much is achieved, and how much is left. What do you have to do?
End and Evaluate
End of the day Activities. 1. 2. 3. 4. 5. 6. Deposit cash in the bank Reconcile stocks from the van. Deposit sales sheet / HHT for uploading to Ultra. Prepare summary sheet. Fill-in the appropriate numbers on the team board in the KD office. Review: Performance vs target set during the beginning of the day. Seek answers to questions like; Did I meet my days targets, if not, why not? What should have been done differently.
158 Organisation 7. Where am I in context of my months target / weeks target. What have I done today to improve my productivity in the section? What objections queries do I have to handle when I service the question again? Set objectives for the next day. Prepare materials required for the next day. Prepare so that you can make an early start for the market and be the first one in the market. (You may want to prepare the stocks etc..)
Planning for the next day.
Summary of 9 Steps of call.

1 Review plans 2 Opening the call 3 Store Check 4 Collections 5 Sales Presentation 6 Close 7 Records & Reports 8 Merchandising 9 End & Evaluate
159 Organisation
Appendix O Standard Contact Norms Bangladesh

Achieving efficiency in the field Market Type: 1 Unilever Market Position: Strong Key Challenge: Ensuring a standard way of working for the field force
Background Permanent Journey Plan (PJP) is the schedule of DSR / ADSRs weekly service or Section Calling Plan. It is designed as a part of distributors Operating Process for redistribution. Though it can be revised based on re-organization plans it is called permanent because it is generally programmed for a whole year. Scope: Usually PJP is devised for DSRs to schedule their daily Section Order Booking in a week along with the delivery plan. Therefore, PJP in other words is the job itinerary of both DSRs and ADSRs. Also, PJPs are made for Distributor Sales Supervisors (DSS) and Contract Merchandisers (CM). Objectives To have a handy Customer / Section Service Plan To regularize field forces sales / service calling jobs To better manage and utilize distributors Logistic resources To keep customers informed of UBL service dates so that they can plan their own purchases and thus to exploit their full purchase capability. To ensure better and confirmed service to the customers with planned resources having considered other companies service schedules To develop Contingency Service Plans in advance in case of situations arising from natural / artificial calamities
160 Organisation How it worked 1

Inputs: Coverage Target Reorganization plan Channel Strategies Coverage Planning: Determine the Frequency of service: No. of Sections to be covered Responsibility: RSM / ASM / TM
2
Considerations: Routes and Frequency Table Delivery Profile (Category / Brand Mix) Distance of Routes Resource Planning: Determine the resources required: No. of Vehicles needed to support coverage: Mechanized vehicles Non-mechanized vehicles Responsibility: ASM / TM Distributor
3
Considerations: Routes and Frequency Table Resource Planning: Determine the resources required: A No of DSRs required (No of section / Working days per week) Responsibility: ASM / TM Distributor
4
Considerations: Logistic Plan Other Companies PJP Journey Planning: Designing DSR Order Day Table: a Sections to book orders from by DSRs Responsibility: ASM / TM Distributor / DSS
PJP Planning:
Sl. 1 2 3 4 Routes Channel A UWMG No of Sections Outlets 35 A -G1 A - G2 A - G3 A - G4 Delivery Group Det - 1 Det - 2 PP - 1 PP - 2 Order Day Sat Sun Tue Thur Delivery Day Sun Mon Wed Sat Name of DSR Mr. X Mr. X Mr. X Mr. X Name of ADSR Mr. P Mr. P Mr. Q Mr. Q Vehicle No Pick Up - 1 Pick Up - 1 C.Van - 3 C.Van - 3
161 Organisation At a Glance: Handout for the Field Force

Day DSR Mr. X Sat Sec: A G1 Outlet: 35 Del Group: Det-1 Del Day: Sun ADSR: Mr.P Vehic: P / U-1 Mr. Y Sec: C G1 Outlet: 37 Del Group: Det-1 Del Day: Sun ADSR: Mr. S Vehic: P / U-2 Sun Sec: A G2 Outlet: 35 Del Group: Det-2 Del Day: Mon ADSR: Mr.P Vehic: P / U-1 Sec: D Det Outlet: 39 Del Group: Det Del Day: Mon ADSR: Mr. P Vehic: P / U-3 Mon Sec: B Det Outlet: 40 Del Group: Det Del Day: Tue ADSR: Mr. R Vehic: P / U-2 Sec: C G2 Outlet: 37 Del Group: Det-2 Del Day: Tue ADSR: Mr. Q Vehic: P / U-1 Tue Sec: A G3 Outlet: 35 Del Group: PP-1 Del Day: Wed ADSR: Mr. Q Vehic: C.Van-3 Sec: D PP Outlet: 39 Del Group: PP Del Day: Wed ADSR: Mr. R Vehic: C. Van-1 Wed Sec: B PP Outlet: 40 Del Group: PP Del Day: Thurs ADSR: Mr. R Vehic: C.Van-1 Sec: C PP Outlet: 37 Del Group: PP Del Day: Thurs ADSR: Mr. Q Vehic: C. Van-2 Thurs Sec: A G4 Outlet: 35 Del Group:PP-2 Del Day: Sat ADSR: Mr. Q Vehic:C.Van-3 Sec: C Com Outlet: 42 Del Group: Combined (DT + PP) Del Day: Sat ADSR: Mr. S Vehic: P / U-2
16 Organisation
Appendix P Unilever Roles & Responsibilities Indonesia

Achieving role clarity towards delivering growth Market Type: 3 Unilever Market Position: Strong Key Challenge: Aligning the Distributors organization with Unilevers strategies and needs
Regional Sales Manager (RSM) Main Duties: To build short-term and long-term strategies to achieve the following targets: 1. 2. 3. Secondary Sales = Primary Sales Distribution Development Coverage Extension (Urban / Rural)
Organisation Structure:
CC Dir
GSOM
MSOM
RSM
ASM
AIM
AMSOM
TSS
AO
163 Organisation Work Process: 1. To build short-term and long-term strategies to achieve Secondary Sales = Primary Sales target: 1.1. To plan Secondary Sales = Primary Sales target: Receive BBS from Customer Director. Receive BBP from Customer Director. Receive CSS from MSOM. Analyse each areas Secondary Sales performance. Build strategies for sales target achievement. Make breakdown of individual areas annual target. Give suggestions to GSOM and MSOM for the effectiveness of marketing plans and proposes recommended changes. Give suggestions and solutions particularly on sales issues in his / her respective area as well as issues on logistics, administrations and matters relating to daily sales practice to the sales management. Evaluate the effectiveness of sales activities and make recommendations for necessary changes. Supervise the updating of Wall Report, Retailer Card and Communication Book as a requisite in assessing and evaluating quarterly sales results. Monitor OB Replenishment by volume and NPS per week. Approve or reject delivery of Order Bookings to Distributors with payment problems. Approve or reject Allocation proposed or urged by MSOM. Approve or reject sales reward payment. Coordinate ASM in achieving Secondary Sales = Primary Dales target. Evaluate Area Work Plan submitted by ASM on a monthly basis. Evaluate Customer Business Development Profile and maintain good working relationship with distributors.
1.2. To achieve Secondary Sales = Primary Sales target:
164 Organisation Approve or reject ASM suggestions to change distributors area by: increasing or decreasing the number of districts. shifting districts among distributors. combining districts among distributors. combining distributors operating area.
Approve or reject suggestions to terminate or appoint prospective distributors. Approve or reject the issuance of Distributor Appointment Agreement (PPSD[s]). Approve or reject ASM suggestions to: Increase or decrease Bank Guarantee value Give extra credit Postpone payment due dates
1.3. To give approvals of the execution of launching / re-launching / CEA activities in regions / areas to GSOM / MSOM / AIM. 1.4. To give approvals of the execution of merchandising activities in region / area to AIM. 2. To build short-term and long-term strategies for distribution development: 3. To make recommendations on selling method to anticipate changes in distribution channels. To make recommendations on selling method to anticipate market growth. To make recommendations on distributors sales distribution system for each product Category.
To build short-term and long-term strategies with the objective to achieve Extension Coverage (Urban / Rural): To receive Coverage Target from Customer Care Director. To approve Coverage Target proposed by ASM. To coordinate the planning and implementation of Extension Coverage Road Map in Area.
165 Organisation 4. Customer Relationship Management: Coordinate the implementation of mandatory procedures in Area. Approve or reject suggestions and or changes of sales method policies in the Area. Maintain good relationship with Distributors in Areas.
Area Sales Manager (ASM) Main Duties: To plan and achieve the following targets: Secondary Sales = Primary Sales Distribution Coverage Merchandising
CC Dir
GSOM
MSOM
RSM
ASM
AIM
AMSOM
TSS
AO
166 Organisation Work Process: 1.1 To plan and achieve Secondary Sales = Primary Sales target: 1.1.1 To plan Secondary Sales = Primary Sales target: a. b. c. d. e. f. g. 1.1.2 a. b. Receive CSS from MSOM. Receive launching / re-launching activities from RSM. Receive promotional activities and activity plans from MSOM. Receive annual primary sales target from RSM in November. Analyse each distributors secondary sales performance based on volume and value. Develop strategy for annual sales target achievement. Break down annual target for each TSS. Ask reports of order bookings by quantity, fiberite and value from ACA. Monitor the quantity of daily orders and orders to be delivered the following day and take action, when the need to do so arises. Ask debtor monitoring report from ACA. Approve or reject SPO submitted by distributors through TSS. Make SPO for non-Order Booking SKU Replenishment. Suggest RSM to decide approval for delivery of Order Booking in case distributor is having payment problems. Suggest to RSM to: h. i. Increase / decrease Bank Guarantee value (2 RPP + 25%). Give extra credit. Defer payment due date.
To achieve Secondary Sales = Primary Sales Target:
c. d. e. f. g.
Monitor actual order quantity and value per day and take action if needs be. Suggest to RSM to change (reduce / increase) allocation of new product to be conveyed to CSOG / MSOM.
167 Organisation j. k. l. m. n. o. p. q. Monitor and take necessary actions to achieve weekly and monthly primary targets. Monitor remaining primary target and take action if necessary. Evaluate monthly activities carried out in Area. Monitor daily Secondary Sales and takes action if needs be. Evaluate the achievement of Secondary Sales weekly target. Evaluate the achievement of Secondary Sales monthly target. Make policies on monthly sales activities (sales brief for distributors). Ensure the update of Wall Report to evaluate the achievement of HK, BP, Lines and point targets as a requirement to determine SLD and Distributor sales commission within his / her Area. Check the completion and use of Retailer Card as a supporting selling tool by Distributors Salesmen in his / her Area. Make use of Communication Book as working document for ASM concerned, TSS and Distributor to be followed-up on every sales call. Ensure the completion of Coverage Road Map, Exco Road Map per Distributor, Territory and Area.
r. s.
t. 1.1.3
To coordinate TSS in achieving Secondary Sales target: a. b. c. d. e. f. Evaluate Territory Work Plan reported by TSS on a monthly basis. Evaluate Customer Business Development Plan submitted by TSS on a quarterly basis. Evaluate profit, NPBT, ROI, and Cash Flow Distributor quarterly. Coordinate cooperation between TSS and the relevant sales administration staff. Control Companys equipment and facilities within the Area. Monitor competitors activities within the Area and takes action if necessary.
168 Organisation g. h. 1.1.4 Control and evaluate the implementation of sales reward for each Distributor. Ensure that Distributors Selling Prices are in accordance with the applicable Selling Prices. Mandatory Procedure: Evaluate and suggest changes in the implementation of mandatory procedures to RSM to be subsequently conveyed to CSOG and MSOM regarding the following: Running Rate Top 50 SKUs New Products Other SKUs recorded in OBR Newly launched items: additional 0.5 1 week (3.5 4 weeks) High Profit Not Bulky: 3 RPP + 0.5 (Skin, Deo & Royco) Fast Moving & Bulky: 3 RPP 0.5 week (Powder, Pepsodent 75gr) OBR (see MP) Allocation (see MP) Inform GSOM-MSOM-RSM of competitors activities being conducted in the Area: Trade promotion Consumer promotion Merchandising promotion Activation Distribution system Etc..
Customer Relationship Management: a.
Stock Norm:
Market Intelligence:
169 Organisation Maintain good relationships with key customers in the Area: Top 5 Distributors Top 5 Second Dealers Top 10 Strategic Retailers Maintain good relationships with all Partners in the Area. Maintain good relationships with the Regional Government, relevant Ministries and community in the Area.
External Relation:
1.2 To plan and achieve distribution target: 1.2.1 To plan distribution target: Receive annual distribution target for individual brand from MSOM as specified in the Category Sales Strategy and subsequently exercise the following process: 1. 2. To determine appropriate shop type according to individual brands distribution target. To determine locations for distribution sampling.
Receive monthly distribution target from MSOM as specified in the Sales Brief and subsequently exercise the following process of dividing distribution targets by volume and type of shop for individual territory. 1.2.2 To achieve distribution target: 1. 2. To evaluate distribution checklist done by TSS, on a regular basis. To conduct local activities for territories in which distribution check samples are below the target.
1.3 To plan and achieve Coverage target: a. b. c. d. To suggest Coverage Target to RSM in December for approval. To make Area Coverage Road Map. To suggest RSM the subsidy amount for coverage development To set coverage target for each TSS
170 Organisation e. f. To coordinate outlet survey and outlet mapping to be done by TSS and DSS To make coverage development plan (Area Extended Coverage Road Map) by: g. h. Increasing or decreasing the number of districts Shifting districts among distributors Combining districts among distributors Combining distributors operating area Terminating and appointing Prospective Distributors
To get the approval from RSM on the above. To evaluate coverage target for every TSS. To plan merchandising target: a. b. c. d. e. f. g. h. To accept merchandising brief from MSOM. To accept targeted display participants and display planogram from MSOM. To accept POS materials allocation from MSOM. To accept outdoor materials allocation from AIM. To collect market data from each TSS. To break down targeted display participants by market size, total universe outlets and market potential. To break down the quantity of POS materials according to market size and number of outlets within each territory. To approve appointment of distributor merchandising staff who will control the administration and implementation of giveaways delivery.
1.4 To plan and achieve merchandising target: 1.4.1
171 Organisation 1.4.2 To achieve merchandising target: a. b. c. To give briefing on executions to TSS and AO at book month meeting. To do random field check regarding the implementation of display activities and installation of POS materials. To evaluate quality and quantity of display participants and POS materials installation coordinated by TSS and AO. Territory Sales Supervisor (TSS)
Territory Sales Supervisor (TSS) Main Duties: 1. To plan and achieve the following targets: 2. Secondary Sales Distribution Coverage Merchandising
To conduct training and provide coaching for distributor team in two formats i.e., On the Job Training and Off the Job Training
Unilever AIM ASM Distributor Merchandising 3rd party AO TSS Owner
OM SPV DSS MUT SLD
17 Organisation Work Process: 1.1 To plan and achieve Secondary Sales target: 1.1.1 To plan Secondary Sales target: a. b. c. Accept final annual sales target from ASM in December. Break down annual target into monthly, weekly and beat targets. Make RPP report based on value and volume that includes the following three figures: d. e. f. Last 13 weeks RPP Year To Date RPP Previous Years RPP
Analyse sales trend by volume, value, category, brand and SKU. Analyse potential of each distributor and each SLD. Make sales target estimation based on outlets covered, product distribution, districts potentials and promotional activities. Divide sales target per SLD, Brand and SKU based on volume. Convert volume target into Rupiah target (Shop Price + VAT). Confirm to ASM if there is discrepancy between volume target and Rupiah target. Daily Sales Target 1. Morning Briefing TSS / OM / DSS sets his / her own individual SLD target based on: RPP beat against last three weeks actual recorded in wall report. Ongoing promotional activities (see current months activity monitoring board). Daily target negotiation: At the least equals to the days RPP beat Target = 100%.
g. h. i. 1.1.2
To Achieve Secondary Sales Target: a.
173 Organisation Ongoing promotional activities are capable to boost sales by few percent above last 13 weeks RPP or last three weeks actual. The remaining promotional budget can be allocated to increase daily sales target by 10% 20%. Daily sales evaluation: Sales actual < 100% check Sales summary. See sales invoice (BP) quantity (whether < sales invoice (BP) target). Identify non buying shops. Reasons for not buying: Price is cheap report it to ASM. Stock shortage SPO. Market is dull: Compare with the others. Find out competitors activities. Find out top 50 SKU sales distributions. Find out promotional item sales.
2.
Afternoon Briefing
3. b.
To break down and carry forward the unachieved target to the following day in the week. TSS / OM to make weekly target based on: a. b. Average Weekly Sales (RPP) last 13 weeks sales average. Last 3 weeks sales average.
Weekly Sales Target 1.
174 Organisation c. Ongoing promotional activities: The estimation of weekly target calculation: (a+b) < = RPP increase allocation of promotional 2 activities (a+b) > RPP reduce allocation of 2 promotional activities (a+b) + c = Weekly Target 2
d. e. 2. 3. 4.
Allocate the unachieved target to the following week. Re-allocate promotional activities among Distributors, ASMs approval must be secured first. Ensure completion of Wall Report to evaluate achievement of HK, BP, Lines and point targets as a requisite to claim for SLD and Distributor Sales Commission. Check the completion and use of Retailer Card as a selling tool. Make use of Communication Book as a working document when meeting Distributor to be followed-up on every sales call. Stock and Sales Report a. Incoming goods must be consistent with OBR (Final Order). If there is inconsistency, immediately report it to ACA / ASM for next weeks OB process. If warehouse stock (on hand) + OBR current weeks sales < 1 week, immediately make an SPO. Check RPP for Order Booking against RPP reported in LP3; proposes recommended changes to ASM in case of discrepancy or data error. Suggest to ASM to stop delivery of allocation product if Distributors stock on hand > 3 weeks cover. Suggest to ASM to change New Product allocation if supply is not consistent with mandatory procedures.
5. 6.
c.
Customer Relationship Management: 1.
b. c.
d. e.
175 Organisation 2. Top 50 SKU: Continuously monitor the development of Top 50 KSU to be reported to ASM in case of: 3. a. Inconsistency with mandatory procedures. Sales trend going downwards or upwards ( 10%). Market Price < Shop Price Volume Discount Promotion. HET (Maximum Retail Price) > RSP. Maintain good relationships with Key Customers (top 10 Second Dealers) and retailers strategic to outperform in the marketplace. Offer quick response to and provides the right solution of complaints from shop owners and reports such to ASM for solutions beyond TSS capacity. Report to ASM in case TSS finds competitors new product or activity.
Trade Relationship:
b.
d.
Reports to ASM: 1. 2. 3. TWP on a monthly basis. Customer Business Development Plan on a quarterly basis. Distributor Profitability on a quarterly basis.
1.2 To plan and achieve Distribution target: 1.2.1 To plan Distribution target: a. Accept annual distribution target per brand from MSOM as specified in the Sales Brief and thereon exercises the following process: 1. 2. Determine the right kind and type of outlets. Determine locations for distribution sampling inside or outside the market.
176 Organisation b. Accept monthly distribution target from MSOM as specified in the Sales Brief and thereon exercises the following process: 1. 2. 1.2.2 Divide monthly distribution target based on individual SLDs number of outlets. Make distribution target estimates per SLD based on shop type relevant to the demanded product.
To achieve Distribution Target: a. Annual Distribution Target: 1. 2. 3. 4. 5. Make distribution checklist every month for brands determined by ASM. Take distribution sampling from inside and outside the market. Evaluate distribution gap between distribution actual and distribution target. Make distribution target estimated. Make product allocation in case of distribution decline in his / her territory by giving allocation priority to shops that run out of stock or have not been carrying out our products for long. Give distribution priority to retailers (not second dealers) and give such priority to Area experiencing tight competition in case there is a short of supply. Monitor daily and weekly achievements of each SLD. Evaluate weekly achievement and makes SLD target reallocation to achieve territory target. Approve target achievement for administrative purposes if SFI is offered. Report to ASM to discuss monthly target achievement at book month meeting.
6.
b.
Monthly Distribution Target 1. 2. 3. 4.
177 Organisation 1.3 To plan and achieve Coverage target: 1.3.1 To plan Coverage target: a. b. c. Accept coverage target per Area from ASM in January. Ask for population data from ASM. Make coverage gap analysis to compare shops covered with shops not yet covered based on the population within his / her territory. Conduct outlet survey to identify outlets not yet covered. Coordinate outlet survey conducted by DSS. Make mapping of outlets covered and not covered. Develop coverage extension plans (Exco Road Map). Secure ASM approval.
d. e. f. g. h. 1.3.2
To achieve Coverage Target: a. b. c. d. e. f. g. Draw new district map. Revisit district if necessary. Develop PJP. Make operational team cost estimates. Calculate ROI to analyse distributor profitability. Discuss implementation detail with distributors. Redistrict may be done only if it does not harm distributors profitability; however, if it harms distributor profitability, TSS should propose subsidised cost to add approved team(s) (SERBU, SUT, SDK). Secure ASM approval.
h.
178 Organisation 1.4 To plan and achieve Merchandising target: 1.4.1 To plan Merchandising target: a. b. c. d. e. f. g. h. i. Receive Merchandising Brief from ASM in the form of Mechanism, Budget & Planogram. Receive Corporate Display Targeted Participants and Budget from ASM. Receive Divisional Display Targeted Participants and Budget from ASM. Receive Hair Display Targeted Participants and Budget from ASM. Receive allocation of POS Materials and GIFTS from ASM. Receive allocation of Merchandising Team from AO approved by ASM. Translate Display Targeted Participants into Merchandising Teams PJP. Integrate POS Materials / GIFTS allocation with Merchandising Teams PJP. Select and propose to ASM the appointment of Distributors Merchandising Staff to control the administration and implementation of giveaways. Give Briefing and hand in display target to Distributors MUT SPV. Check the update of MUT Card. Check the update of MUT and SPV Wall Report. Make use of Merchandising Communication Book among TSS-AO-SPVE-MUT-SLD-DSS provided at Distributor.
1.4.2
To achieve Merchandising Target: a. b. c. d.
179 Organisation e. f. Approve request for collection of allocated POS giveaways according to the PJP. Assess display target achievement according to PJP MUT-SPV on a quarterly basis for third partys administration, accounting and personnel purposes and AO as the person in charge of third party personnel reporting to ASM-RSM. Propose to ASM additional Display Participants. Propose to ASM Display Participants reallocation. Propose to ASM change of or additional MUT-SPV.
g. h. i. 2.
Conducts training and provides coaching for DSS and SLD in two formats i.e., On the Job Training and Off the Job Training 2.1 On the Job Training: TSS must provide On the Job Training in the form of tandem selling (minimum of two days in a week) and Coaching for DSS and SLD who have substandard performance. Steps to be taken: a. b. c. d. e. To review wall report on DSS / SLD not meeting current months target. To call and provide coaching for DSS / SLD concerned. To monitor DSS / SLD concerned performance. To do tandem selling if they fail to improve their performance. To inform the owner if those re-trained DSS / SLD are still unable to achieve target in order to decide the next action.
2.2 Off the Job Training a. b. To develop training plan (time, materials, venue, etc.). To conduct two-hour training at distributors office, at the least once every quarter.
180 Organisation
Appendix Q Distributor Roles & Responsibilities

Distributor Sales Supervisor (DSS) Prime Responsibility: 1. 1. To Supervise the DSRs to help them achieve a. b. c. d. 2. a. b. c. 3. 4. 5. Sales Target (Value and Volume) Other Field Capability Scores like Bill Productivity and LPC Distribution Improvement Target JC Competition targets Maintenance of PJP Plan-o-gram Implementation at CMs Outlets Proper utilization of merchandising materials at POP
A common way of working for the Distributors
To Supervise Contract Merchandisers (CM) to ensure
To train and develop current and new DSRs and CMs. To help distributor and Territory Manger achieve Coverage Target To supervise DSRs and assist TM to manage Trade Loyalty Programs
DSR
CM
DSS
TM
181 Organisation Organization Structure:

Distributor / Owner Territory Manger
House Manager
Supervisor
DSR / CM
Work Process: Supervising DSRs: To Achieve Sales and Distribution Targets 1. Planning: a. b. c. d. e. f. 2. Receive JC Value / Distribution Improvement / Focus SKUs volume targets from TM Extract Data from DMS + / Sales Records to determine the route / DSR wise contribution of a certain base period benchmark contribution Distribute the targets among routes and DSR according to benchmark Contribution Distribute Monitoring Sheets devised by TM Determine weekly and daily targets for DSRs and brief on them Determine Channel wise distribution targets for DSRs (no of outlets) with the help of TM and inform DSRs with monitoring sheets Check daily scores of DSRs value, SR and LPC and record them in daily monitoring sheets to prepare weekly reports. Accompany poor performers in the markets for demonstration and On the Job Training Review performance weekly and feedback on them, re-allocate targets according to remaining target. Check and review channel wise / DSR wise performance of distribution improvement on weekly basis.
Execution and Review: a. b. c. d.
18 Organisation 3. Reports and Evaluation: a. b. 1. 2. 3. 4. 5. 6. Prepare weekly performance reports to share with DSRs and to be submitted to TM Prepare JC performance reports for JC competition and submit to TM.
Supervising CMs: To Ensure Visibility and Utilization of POP Materials: Assist TM to select channel wise CM outlets for each CM considering their profile and performance (for channel wise CM deployment) and to develop PJP Ensure CMs are maintaining their PJP properly and regularly calling selected outlets Accompany each CM at least once a week to check his works and give feedback to TM. Accompany new CMs to train them on UBL visibility norms and develop their skills, also to get them introduced with the traders. Check CMs Daily Beat Report in line with his PJP and randomly check at field level. Allocate POP materials to routes considering channel and no of shops and distribute them to DSRs / CMs for utilization in the markets. Analyse DSRs JC performance reports and determine poor performing DSRs. Sit with Distributor / Manager / TM to discuss on corrective measures. Accompany poor performers on job and help them learn Basic Call Procedure and other selling techniques by demonstration and counselling. Check and review performance after coaching and give feedback to the respective DSRs and TM. Train new DSRs / CMs on and off the job and help them develop their skills. Conduct the outlet survey by DSRs Coordinate the survey and collate the reports Compare the survey with current coverage and determine the coverage gap Determine the Beats / Routes to be resized, new routes to be created Help Distributor / TM develop the reorganization plan and new PJP based on coverage gap.
Training and Development of DSRs / CMs: 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.
Assisting to Achieve Coverage Target:
183 Organisation Assisting to Manage Trade Loyalty Programs: 1. 2. 3. 4. 5. 6. 7. 8. 9. Get the briefing from TM on the programs modality. Debrief to the DSRs / CMs Determine the number of possible participants based on any previous program and / or sales contribution of outlets. Allocate route wise participation target to DSR and distribute the Program brochures Ensure each possible outlet is properly communicated on the program Check participation status at field level randomly Check and review DSR wise participation target, ensure maximum and judiciary participation. Monitor each outlets achievement, ensure DSRs are properly updating scorer at trade level. Periodical feedback to DSRs / Trade on achievement.
10. Collate the Program-end performance and prepare the final report. 11. Distribute gifts / prizes to the winners
JC = Journey Cycle TM = Terrority Manager DMS = Distributor Management System DSR = Distributor Sales Representive CM = Contract Merchandising
184 Organisation
Appendix R Performance Linked Pay Bangladesh

Rewarding great performance Market Type: 1 Unilever Market Position: Strong Key Challenge: Ensure reward is linked with performance
Background DSRs remuneration policy in Bangladesh is composed of two components: 1. Performance Link Pay (financed by Distributor) Incentive (financed by UBL) Performance Link Pay
PLP (Performance Link Pay) is a pay structure where monthly salary of distributors field staff is directly impacted by their months performance. It ensures competitiveness among the DSR, ADSR and Supervisors through rewarding the performers. Objectives To accentuate the importance of achieving target To boost up non-performers and encourage high fliers to do even better To uplift the standards of performance
How it worked PLP Structure Performance Link Pay = Fixed Salary + Variable Salary Fixed Salary equals 70% of current salary. The variable part is determined through multiplying the rest 30% of the salary by 2. The variable part solely depends on the months performance. The parameters of variable salary are Value productivity, Call Productivity, and LPC. Other parameters can be added if necessary. The shares of different parameters areValue Productivity : 50% Call Productivity : 20% LPC : 30% Note: For any parameter, achievement less than 100% is not taken into account. But for achievements more than 100% will reward on pro rata. Again, individual parameters are independent in case of getting reward on that parameter.
185 Organisation PLP calculation: Let, a DSR is currently receiving a salary of Tk. 3000. His value target for the JC is Tk. 50000, Call productivity target is 75% and LPC target is 12. Now with a couple of examples, lets see how PLP calculation is done for different achievements. Example 1: He achieves Value 50000 Tk, Call productivity 75% and LPC 12 That is Value achievement 100% Call achievement 100 % LPC achievement 100 % Calculation: Fixed Salary = 3000 X 70% = 2100 Variable = (3000 X 30%) X 2 = 1800 In that case his Variable Salary = (Value Achieved. X Variable X 50%) + (Call Achieved. X Variable X 20%) + (LPC Achieved. X Variable X 30%) Variable Salary = 100% X 1800 X 50% + 100% X 1800 X 20% + 100% X 1800 X 30% = 900+360+540 = 1800 PLP = Fixed Salary + Variable salary = 2100 + 1800 = 3900
Due to achieving all the targets he is getting 900 tk more. Example 2: He achieves Value 50000 tk, Call productivity 65% and LPC 12 That is Value achievement 100 % Call achievement 86 % LPC achievement 100 % Calculation: Fixed Salary = 3000 X 70% = 2100 Variable = (3000 X 30%) X 2 = 1800 In that case his Variable Salary = (Value Achieved. X Variable X 50%) + (Call Achieved. X Variable X 20%) + (LPC Achieved. X Variable X 30%) Variable Salary = 100% X 1800 X 50% + 0 X 1800 X 20% + 100% X 1800 X 30% = 900+0+540 = 1440
186 Organisation PLP = Fixed Salary + Variable salary = 2100 + 1440 = 3540
As he has achieved only the value and LPC targets, he is to get 540 Tk more. Note: If he cant achieve any target than he will get the fixed salary only. 2. Incentive for Distributors Field Force Background In every JC UBL runs an incentive program for distributors field force. This donation, from distributors standpoint, is a support extended to them for rewarding the high fliers among the sales representatives. Exploitation of this incentive has been proved to be a good fit in achieving UBLs KPIs. Objectives To ensure achievement of value To achieve Distribution correction targets To enhance the LPC (Lines per call) To enhance call productivity (strike rate) of the DSRs To improve the delivery of stocks To focus volume of strategic SKUs
How it worked Common attributes and modality of a typical Incentive Program At the beginning of each JC (month), distributors are given targets on KPIs like Value Target, LPC, Volume target for focus SKUs, SKU penetration target, etc. These targets are then cascaded down on individual DSRs as their target. Incentive on Value target: Different Prize money is provided ranging from Taka 200 to Tk. 700 for achievement of 90% to 110% over value target respectively. Incentive on SKU target: In each JC, usually 5 SKUs are set as focus SKUs. There is a prize money for achievement of volume target of each SKU. Incentive on LPC (Lines per Call) Target: Award are there for achievement of LPC Target (usually improvement up to 40%). Strike Rate (Call Productivity) of at least 75% is held as a precondition for getting this prize money. Incentive on Distribution (SKU Penetration) Target: A set of 18-25 SKUs (the number varies for different regions) are predetermined at the beginning of a Quarter. DSRs get an incentive of Tk 500 for meeting the target for his markets. Note that these features are mostly common to distributors incentive program also.
187 Organisation Prize for Outstanding Performance The outstanding performers often get an added reward. For example, a lottery is held in each sales area among the top performers in terms of value or LPC productivity to reward the 3 among the best players with a big prize money. Incentive for ADSRs Reward for delivering stock of 90% to 100% Cash Memo without any alternation (any addition or deduction of stock) Mechanism TMs to communicate the modality at the beginning of the month, set target for individual DSRs & ADSRs, evaluate the results and award the prizes to the individual at the end of the month. Distributors to instantly pay the prize money to the winners and then claim the amount endorsed by the copy of the results and money receipt.
DSR = Distributor Sales Representative ADSR = Assistant Distributor Sales Representative
188 Organisation
Appendix S Project Gladiator Bangladesh A capability building program for DSRs

Market Type: 1 Unilever Market Position: Strong Key Challenge: Developing the capabilities of the Distributors field force
Background UBL has around 1200 plus DSRs across the country who actually fight the front line battle for Win @ POP. As the market dynamics changes, they are the first one who have to face the challenges to serve the customer needs. In order to groom them up that way and to equip them with the UBL weapons for the battle, a capability program enabling them to upgrade their quality and motivation level and thereby increase their productivity was felt needed. Keeping that in mind Project Gladiator was designed and rolled out. Objectives To address the development needs of the DSRs and train them in a unified way so that their quality as a salesman improves the way UBL wants across the country To enhance the Motivation level of the DSRs To improve DSRs filed productivity scores To develop DSRs as future sales supervisors and trainer of newly recruited DSRs
How it worked Project Gladiator is a Certification Program encompassing there broad areas: Class room training followed by written exams Field Application Test Productivity Performance KPIs
The DSRs will be evaluated on these areas and at the end of their successful completion of the program, the successful DSRs will be acknowledged be the company. The program will initially run in the Territory Headquarters (50% DSRs contributing to 62% of total sales) as quality learning can be ensured with the direct supervision of the Territory Manager. Based on successful implementation of the program in the Territory HQ, the program will be rolled out nationally. Assuming that each year 25% of the DSRs will successfully undergo the program therefore we plan to implement the entire project within 4 years.
189 Organisation Project Architecture:

Roll Out By STM Train the Trainers: brief TMs in each region Cascading Down By TMs Brief distributors and DSRs on the project, its purpose and benefits
Classroom Training Training Modules to be supplied by STM TMs to discuss on the modules in DSR classroom Modules to be rolled out on fortnightly basis
Written Test Question paper from STM TMs to take the exam and evaluate the papers for 40% marks
Field Application Test TMs to accompany DSRs at least once a JC and evaluate their job application of the modules on 25% marks basis
Productivity Scoring TMs to rate DSRs Productivity Scores Value, Strike rate and LPC on 35% weight after Job Application Test
Evaluation Final Evaluation on total 100 marks: Below 40% Fail / Retake 40% to 60% 3rd Division 60% to 80% 2nd Division Above 80% 1st Division
Score Sheet Circulation TMs to send DSRs evaluation sheet to STM STMs to circulate the National Score Sheet
Final Result Publication After completion of all 10 modules and collating all score sheets STM will publish the final Score Sheet and the names of Gladiators
Rewards / Awards Course Completion Certificate Award from Chairman A TK 1000 per month for next 1 year A Selection for Supervisor Rank
190 Organization
Systems
19 Organization
193 Systems Broad Overview

Next Gen Distributor Model
Channel Goals What How What
KPIs How
Organization What How
Systems CVA OPSO SFA billing package CRS VMI
JBP
SOPs
TPM
The Distributor organization has to be backed up by strong Unilever Systems & processes. The key deliverable here would be: 1. SFA (Sales Force Automation) & Billing Package In Good practice organizations, IT capabilities are leverage to increase execution excellence in the field. Essentially, this means the distributor has implemented information system integrated to OpCo. The system is advanced & provides real time access to OpCo. In leading edge distribution systems all 3 critical elements of the use of Customer Development IT would be present: Sales Force Automation Distributor Information Management Systems Distributor to Unilever Reporting Systems Distributor Loyalty Management Packages
194 Systems A typical CD IT architecture would look like this: Building capability & a modern effective organization IT infrastructure
Transaction System
Demand Planning System
Data Warehouse
Distributor Web Portal
GT VMI
Channel Development Trade Fund Management
Sales Force
Distributors
Intranet DMS / HHT GTS
MT HHT MT VMI Customer Profitability Mngmnt
Sales force automation refers to the ability of the Distributors sales force to use Hand held terminals in the capture and transmission of orders. Distributor Information system refers to the Distributor having set up an information management system in line with Unilever specifications. Typically, the functionality would be in the areas of sales records, inventory management, account receivables / payables & tax management. Reporting to Unilever would involve providing the OpCo with standardized reports on a weekly, monthly and annual basis covering the critical areas of the Distributor operations in line with both contractual & Business Plan requirements. Some Standard Reports are given in the Appendix T. 2. Continuous Replenishment System / Vendor Managed Inventory The Sales Ordering System plays an important role in ensuring demand creation happens through a systematic order procedure which could be ready stock or pre-order but meets the assortment requirements of Channels & Customers. The best sales ordering system would be IT based and using a continuous replenishment system (CRS) or Unilever managed VMI system. Some leading edge Unilever organizations are already using these systems either across their distribution network or
195 Systems selectively among their top distributors. The principles behind these systems is to ensure optimum availability of stock without Distributor overload and reduction in trade out of stock. The process of moving from manual ordering system to an IT based model requires fair amount of pre-work on infrastructure, people & processes. The Process for moving from Manual ordering to automated CRS is given in the Appendix U. Where a manual ordering system is used, the system should be based on current rate of sales, forecasted growth rates & NPI activity and convert into a Basic stock cover norm based on the safety stocks planned. Stocks should be replenished strictly as per the Basic stock cover norm and should only be overrode in the case of a NPI or promotion allocation.
Item No. Product Description NSV Base Stock Norm (A) Uplift / Down lift (B) Safety Stock (C= AXB) Opening Stock Stock Received (D) During the Cycle (E) SIT (F) Total Secondary Closing Suggested Final Stock Sale (H) Stock Order Order (G= D+E) (I= G-H) (J=C-F-I)
Demand creation is also done through the proper management of NPI, Promotions & Activation at the right customers & channels. It is also the result of proper forecasting of demand to ensure minimum out of stock at the Distributor and on the delivery unit (in the case of ready stock delivery). 3. Channel Value Assessment Using the CVA tool is now mandatory to identify priority channels by geography & category. This allows Unilever and our distributors to focus on top prizes and leverage our scale. Given below is an example of a CVA in Thailand. Bubbles represent the channel with a clear distinction of the Route to Market (e.g., Makro).
196 Systems
Hair Category in Thailand
The Solution (Outcome)

Circle size represents Turnover
Bronze
80%
Silver
Gold
60% Degree of Challenge
Ro
B
40%
e ut
to
e rk
t
N
A
I
D
O
20%
F
H
0% 20%
30%
40%
50% Healthy Opportunity
60%
70%
80%
The CVA tool is described in detail in the Appendix V.
197 Systems 4. Optimising Promotion Sell Out (OPSO) A large proportion of TMI expenditure in the past has been on small promotions with only tactical short term volume uplift objectives in mind. In the Next Generation Distributor model, Promotions are an important lever to improve market share. The focus at an organizational level would be on fewer, bigger, better and in a good practice company this would be drilled down to Distributor level. The OPSO Lite tool allows the Organisation to understand the performance of different promotions by channel and the profit ROI from each and the volume uplift. This then helps in focusing promotions over a period of time by successful promotion types, gold customers & channels for different types of promotion and a clear understanding of what works and what does not. Example of use of OPSO Lite tool is given in the Appendix W 5. Joint Business Plan The Distributor Business Plan is at the heart of the Distributor operations. This is the bridge between the OpCo strategy, the Distributors goals and the retail / wholesale customers serviced by the Distributor. Typically the Business Plan consists of a review of the previous year and a business plan with specific focus on Customers, Channels & Infrastructure requirements for the forthcoming year. In a leading edge OpCo the customer / channel segmentation will reveal a clear understanding of opportunities & gaps and also the focus areas for bringing the OPCO Go to Market Strategy to life. In the best case scenario the Business Plan will be a joint exercise taking into account the overall Go To Market Strategy, the market challenges and the Distributors capabilities. This annual business plan would be jointly reviewed on a frequent and periodic basis for course correction. Given below is a suggested process and example of items covered in a Joint Business Plan.
198 Systems
DT JBP process 1 Annual business review
Description
1 Review DT performance in past year Review DT JBP compliance in past year
2.1 Objectives of UL NIV Investment efficiency
2.2 Objectives of DT Working capital efficiency Profit
Set UL objectives for DT business in coming year Understand and review DT objectives in coming year
Joint business objectives Sales target (incl. strategic categories SKU distribution and coverage DT ROI target Resources planning
Mutually understand and align objectives of both UL & DT Set joint business objectives and targets
Action plan and execution
Develop action plans to realise the joint business objectives and targets Executive plans Track plans execution Review action plans execution and performance monthly Review JBP execution and effectiveness quarterly Identify the gap, issues and root causes in JBP execution Develop correction and improvement initiatives to achieve JBP targets
JBP tracking and review (quarterly / monthly)
Correction and improvement initiatives
Typically the JBP will have two parts: 1. 2. The Business Needs & Infrastructure / Resource Requirements
199 Systems
DT JBP templates
Annual joint business objectives Objectives of UL Business resource plan DT business resources requirement - Working capital - Warehouse - Vehicles and transportation facilities - Staff DSR investment Objectives of DT Business management plan Sales-related target and performance - NPS - Strategic categories - Coverage & SKU distribution Operational target and performance - Inventory and logistics - Customer services (including UL serving DT and DT serving outlets) DSR target and performance DT ROI target and performance Action Plan Scorecard and review documents
The JBP Toolkit software is available separately. 6. Warehouse Management Warehouse management refers to the process of managing the distributor warehousing space and inventory while ensuring product freshness. This involves warehouse layout planning & control in line with established stock classification agreed jointly between Customer Development & Supply Chain. Regular monthly or quarterly physical stock taking is undertaken to ensure that inventory accuracy is upward of 95%. In addition Warehouse hygiene needs to be maintained as per guidelines from supply chain including palletisation, warehouse ventilation, fire & pest control etc. Warehouse Audit System is given in the Appendix X. 7. Finance Management This is a. The ability of the OpCo to manage Accounts Receivables from Distributors in line with the OpCo payment policy. The payment policy is jointly drawn up between the OpCo CD & Finance functions and ratified by the Company Management Committee. It takes into account the organizations own cash flow requirements, the prevalent financial risks in the market and the access to finance for Distributors.
00 Systems b. It also is the ability to pro-actively predict the working capital requirements of distributors to fund business growth and to ensure distributors bring in a regular flow of capital either from retained earnings or through other forms of financing including bank borrowing. Risk management also has to be ensured through the Credit Limit, Security Deposit & EPD policies. In addition there is Financial risk in the Distributor management of stock which could be in the form of write-offs owing to high stock levels leading to damages or slow & obsolete stocks as well as risk owing to losing business opportunity because of lack of stocks. This needs management through rigorous KPIs and monitoring of Distributor stocks at periodic intervals including physical stock checks. The final area where Financial risk exists is in the area of overall business performance through such areas as imbalance between primary & secondary sales, misreporting of secondary sales & stocks etc.. This whole area of Financial risk management falls in the preview of CD, Finance & Supply chain functions. A summary of the risks and steps for mitigation are given below: Managing Financial Risk
Risk KRA
c.
Order to Cash
Stock
Business Performance
Financial Risk
Overdue Bad Debt
Stock Levels Slow & Obsolete WH Damage
Poor Sales Poor Customer Service Fraudulent Sales
Investment Monitor Credit Limit Security Deposit / Adv Early Payment Discount
Stock Norm by SKU Replenishment Norms IT based DMS Distributor Insurance
Contractual KPIs Joint Business Plans IT based DMS
Mitigation
01 Systems 8. TPM What is TPM? TPM is a set of tools and a practice of serious methods originally pioneered by the Japanese to maximize the effectiveness of facilities that are used within a business. TPM = Total Performance Management In the context of a Distributor operation: Total All Distributor Sales Force Elimination of all losses / waste in Time & Effort
Performance Increased Productivity of the Distributor Sales Force Better Customer Service
Management Managing the Distributor & Market effectively for higher return. Typically if we take the example of a mathematical equation. This is about increasing the value of a Numerator & decreasing the value of a denominator. The higher the numerator and lower the denominator the higher the return. In a distributor organization the numerator would be the sales turnover while the denominator would be cost & time. Good TPM practice would help to identify losses which could be reduced to either increase turnover or reduce loss or both. The ultimate result would be higher sales, customer satisfaction & ROI. Typically, this exercise should be first piloted in a few key distributors with the help of our Supply Chain Colleagues, benefits documented and then rolled out.
0 Systems
Appendix: Systems
04 Systems
05 Appendix: Systems
Appendix T Standard Reports

Daily Reports a. Daily Sales Report
Mon Tues Wed Thurs Fri Sat Sun
A common way of reporting
Daily Sales Report Sales Target Sales Achievement Scheduled Beat Actual Beat Scheduled Calls Actual Calls % ECO No of Productive % Bill Productivity Total Lines Sold Lines Per Productive Call Key Activity Target Key Activity Achievement New Product Launch Target New Product Launch Achievement
Weekly Reports a. Weekly Sales Report

Stock Received During the Cycle (B)
Item No.
Product Description
NSV
Opening Stock (A)
SIT (C)
Total Stock (D = A+B)
Secondary Sale (E)
Closing Stock (F = D-E)
Stock Norm (G)
Stock Gap (H = G-F)
06 Appendix: Systems Monthly Reports a. Stock Control

Stock Received During the Cycle (B) Total Stock (C= A+B) Secondary Sale (D) Closing Stock (E= C-D)
Item Product Opening NSV No. Description Stock (A)
b.
Performance Report
Quarterly Report 1. Overall Performance LY Actual Qtr Sales Target Qtr Sales Achievement Qtr on Qtr Growth YTD Target YTD Achievement YTD Growth 2. Key Category Performance Category 1 Target Category 1 Achievement Category 2 Target Category 2 Achievement Category 3 Target Category 3 Achievement Category 4 Target Category 4 Achievement
c. d. e. f.
Claims Damage & Shortage Proposal Pending claims & Nil Claim Certificate Credit from the Company vs Credit norm
07 Appendix: Systems Quarterly Report

Quarterly Report 1. Overall Performance LY Actual Qtr Sales Target Qtr Sales Achievement Qtr on Qtr Growth YTD Target YTD Achievement YTD Growth 2. Key Category Performance Category 1 Target Category 1 Achievement Category 2 Target Category 2 Achievement Category 3 Target Category 3 Achievement Category 4 Target Category 4 Achievement 3. Coverage Report Coverage Plan Actual Coverage Coverage Gap 4. Infrastructure Report Point 1 Plan Point 1 Achievement Point 2 Plan Point 2 Achievement Point 3 Plan Point 3 Achievement Qtr 1 Qtr 2 Qtr 3 Qtr 4
Appendix U Transition Process (Manual Order to CRS)

Automating the Ordering System
Transitional process from Manual ordering to automated CRS
Back End Infrastructure Training Pre-Work
Std Billing Package
Design firm dispatch plans
Develop Anchors
Revisit Stock Transit Time
ERP System / IT Infra Distributor computer + OS CRS Order Portal
Train the trainer
Design firm dispatch plans
Train Depot Staff
Clean up Item / Plan codes
MIS Generator
Data Entry Infrastructure
Train Distributor Operator
Define Order Template
Rigorous Rolling Forecast
MIS: Order confirmation report, Order generated report & OTIF report SOP: Critical Stock defined when stock holding is less than 3 day of the norm Shortage pack / CP packs will be equitably distributed as order generated as a percentage of stock availability Any value order confirmed to be serviced on PDP No non-CRS to distributor with more than 2 PDPs in a week In case of Distributor OTIF < 75%, non PDP automatically granted
Define Stock Norms
Define Uplifts / Down lifts
Define Upward & downward order lock
Appendix V Channel Value Assessment

Determining the size of the opportunity Key Challenge: Assess and determine the priority channels.
Background Once the channels are identified, it is imperative to service and leverage these channels with great focus. Determining the priority channels should be made objectively. Objectives: Assess the size of the prize (Channel attractiveness) Rank the channel priorities and opportunities
Process for transiting from Manual ordering to automated CRS How it worked: Step 1: Critical Success Factors
Simple Flexible
Measurable
Successful Implementation
Balanced
Action Oriented
Aligned to Strategy
10 Appendix: Systems Step 2: The Framework
A
A1 A2 A3
Identify customers / channels
B
B1 B2
Define attributes
C
C1 C2 C3
Run the assessment
D
D1 D2 D3
Group strategically
E
E1
Apply to the business
Draw up initial customers / channels list Collect information Eliminate customers / channels Finalise the lsit of customers / channels
Select attributes Weight attributes
Collect data to define attributes Finalise assessment Feedback
Allocate to strategic groups Ensure conherence Feedback
Develop an operating framework
A4
Step 3: Stage A Identification
A1 Draw up Initial List
Broad Approach
A2 Collect Information
Turnover, Unilever History
A3 Eliminate Customers / Channels
Reduce to Between 7 and 25
A4 Finalise List
Include Strategic and Emerging Customers
11 Appendix: Systems Step 4: Stage B Define Attributes Attribute Definition
Selection
Weighting
Two Dimensions
Healthy Opportunity?
Degree of Challenge?
Step 5: Define Attributes Healthy Opportunities

Required Attributes
Size
Growth
Future Growth
Relative Profitability
Alignment
Healthy Opportunity?
ECR Capability
Marketing Sophistication
Industry / Technology Leadership
Optional Attributes
1 Appendix: Systems Step 6: Define Attributes Degree of Challenge

Required Attributes
Dependency
Reliance on Trade
Management Style
Commitment to
Degree of Challenge?
Spread
Collective Management Power
Trade Terms
New Market Entry
Organisational Stability
Optional Attributes
Step 7: The Matrix

100%
Degree of Challenge
Can be expressed as a Cluster or Quadrant Chart
0 Healthy
100%
13 Appendix: Systems Step 8: Stage C Run the Assessment
C1 Collect Data and Agree Scoring
Quantitative and Qualitative, Based on Relative Rankings
C2 Finalise Assessment
Combine Healthy Opportunity and Degree of Challenge Scores to Create the Data for the Matrix
C3 Feedback
Qualitative, Judgmental Assessment from Team to Eliminate Errors and Validate
Step 9: Stage D Group Strategically
D1 Allocate to Strategic Groups
From Cluster Chart and Strategic Judgment
D2 Ensure Coherence
Need to Link Global, Regional and Local Assessments
D3 Feedback
From Cross-functional Team, Sense and Understanding Checks
14 Appendix: Systems Step 10: D1 Allocation to Strategic Groups

100
80
Degree of Challenge
Customer I
Customer A
60
Customer B
40 Bronze 20
Emerging Emerging
Customer G
Emerging
Gold Silver
0 0 0 40 60 80 100
Important points Emerging customers / channels are included at end of assessment The size of the bubbles is based on an agreed KPI, usually NIP The positioning of the lines between the three groups is partly judgmental based on goal definitions The slope of the lines reflects the fact that the ideal combination is high opportunity, low challenge Important to monitor movements from one group to another over time
15 Appendix: Systems Step 11: Strategic Definitions

Bronze Goal Maintain Share, Growth in line with Improve Profitability Marketing Objectives Above average growth In line with Portfolio Development Silver Gold Emerging
Characteristics
Low Alignment Mixed Growth Record Optimise Investment
Less Attractive set of Attributes
Strategically aligned Sustained growth Forward thinking Scale Increased Investment
Unrealised Opportunity Strategically Aligned Directed Towards Key Activities
Resource Implications
Focus on Efficiency
Step 12: The Quadrant Chart

100%
90%
80%
70%
Degree of Challenge
60%
50% 0% 10% 0% 30% 40% 40% 50% 60% 70% 80% 90% 100%
30%
0%
10%
0%
16 Appendix: Systems Step 13: Channel Segmentation

Size of business, Growth, Profitability TACTICAL Responsive Demand Planning Efficient Engagement Win / Win Initiative Selling (Informal) TRANSACTIONAL Display Initiatives Maintain Standards Minimize Costs (Price-based) STRATEGIC Cross-Functional Collaboration Strategic Alignment Value Chain Innovation Custom Initiatives (Collaborative 8 Step CM) INNOVATIVE Selective Investment Create Best Practices Test New Concepts (3 Step CM)
Sales & Profit
Strategic Alignment
Step 14: Stage E Apply to Business

Develop an Operating Framework Selected KPIs
Sales and Profit Targets for Each Customer / Channel Plans for Changes to Strategic Positioning Agreed Roles and Benefits
Step 15: Strategy into Action

Roles and Responsibilities Must be Clearly Defined and Harmonised at Global, Regional and Local Level Key Metrics Turnover Growth Relative Profitability Market Share Cost Reductions Customer Service Levels Demand Accuracy Retail Execution Average Debtor Days Deduction Management Speed to Shelf
Action Plans and Measurements
Appendix W OPSO Lite Tool

Improving the efficiency & effectiveness of promotions
Background An Excel tool developed in conjunction with IT from best practices around the region The tool captures: Pre & post individual promotion evaluation (multiple products or single product in the promotion) Quantitative measures & KPIs ROI%, Forecast Accuracy, Incremental Turnover Growth Qualitative Assessment based on marketing / promotional objectives Total Weighted Score (combined score of ROI and Qualitative Assessment) Trade Profitability worksheet and analysis Consolidated summary of promotions & reports by brand or channel / customer driven by Master data
Objectives OPSO aims to improve the efficiency and effectiveness of our promotional investments with our customers. By applying OPSO we will be able to achieve: A greater transparency around our investment and the return on this investment by brand or channel / customer Continuous improvement based on learning and insights build up over time. Increased confidence of promotional choices. Improved promotion management by optimising resources.
How it worked Output generated from this tool: 1. 2. 3. Quantitative results: Financial KPIs such as ROI % and Incremental Growth% are calculated to assess the promotion from the financial view point. Qualitative results: The efficiency of the promotion from a qualitative point of view is anticipated based on the answers from a list of questions. Total Weighted score: An average percentage is taken between the two results in order to assess the overall promotion efficiency both financially and qualitatively.
18 Appendix: Systems Inputs required Marketing Objective Promotional Objective Promotion Mechanism Baseline volume before, during and after promotion Promotion volumes during and after promotion . Variable TTS description and value for each promoted item. Advertising & promotions description and cost. This refers to any specific or incremental A&P spend in trade / customer for the promotion
Appendix X Warehouse Audit System Vietnam

Helping the Distributors manage warehouse space inventory Market Type: 2 Unilever Market Position: Strong Key challenge: Optimising warehouse space
Dos & Donts 1. Basic a. Warehouse should have adequate space i. b. c. d. e. Clearly demarcated space for Food items & non food items
It should be properly lighted & ventilated It should provide adequate protection from rain, moisture, seepage, dust etc. The warehouse should hygienic & treated against rodents, termites etc. The surroundings should be clean. Basic safety measures should be taken i. ii. Fire extinguishers & fire exits should be provided. First aid box should be there.
f. 2. a. b. c. d. e. f.
Local laws / guidelines should be adhered to. Wooden / Plastic pallets should be provided at the base of the stack Gangways should be provided & there should be 15 cm gap from the walls. There should be no blockage / loose stock in the gangway. Each SKU should be stacked separately Brick layering / Honey comb pattern of stacking should be followed Right side up stacking Stock should be stacked up to the level as recommended to avoid damage. However, the height should not be more than 5 ft for safe physical handling.
Stacking
0 Appendix: Systems g. Racks should be provided in case of layered stacking i. ii. 3. Layout a. i. ii. iii. Stocks should be arranged based on the A, B & C product classification. Fastest moving SKUs to be closest to loading point Damaged stock should stored separately with a clear sign Not for Sale POSM should be stored separately but properly. In case of layered stacking on racks, lifters should be provided for safe loading / unloading. Heavy SKUs to be stacked in the lowers shelves & lighter ones on the higher shelves
Warehouse Audits need to be conducted by Supply Chain on a periodic basis and the results of the audit shared with Distributor including improvement plans and agreed with Field Sales Management Distributor Warehouse Audit
Score 30 20 10 0 Definition Clearly sufficient Meet LV standards Below LV standards Defective system Far below LV standards Nothing in place Unacceptable Description No or only minor deviations from standards noted Equivalent to 90 100 % achievement / implementation Major deviations noted Equivalent to 60 90 % achievement / implementation Critical deviations noted particularly wrt product safety Equivalent to 20 60 % achievement / implementation Equivalent to 0 20 % achievement / implementation
Score 90% to 100% 80% to 90% 60% to 80% 40% to 60% Less than 40%
Interpretation Very Good Good Satisfactory Unsatisfactory Poor
1 Appendix: Systems
Name of the Distributor: ______________________________________________________ Address of the Distributor: ____________________________________________________ Name of the Auditor: ________________________________________________________ Audit Date: _________________________________________________________________
Sr. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Description 0 Building Warehouse space is adequate for the size of business Warehouse must be strong enough to avoid collapsible Warehouse must be well lighted Warehouse must be properly painted. Walls show no signs of water leakage or seepage Adequate ventilation. Controlled humidity / temperature Warehouse roof must be in good condition, roof show no signs of water leakage Exclusive warehouse for Unilever products Building Total Hygiene There must not be rodent, cockroaches, ants and termites in warehouse Quarterly pest control contract, record & keep evidences Warehouse must be clean and dry, surface pooling of water avoid, there is no dust & rubbish under pallet Warehouse must not have dust or cobwebs Not allow to park motorbike, cycle etc. in the warehouse No empty outer cases in warehouse to prevent birds, rodents from gaining access into the building Hygiene Total Rating 10 20 Score 30 Out Of 30 30 30 30 30 30 30 30 30 210
2 2.1 2.2 2.3 2.4 2.5 2.6
30 30 30 30 30 30 180
Appendix: Systems
3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
Palletisation / Stacking Have to use pallet or plastic sheets to prevent humidity Maximum number of layers as in annex The distance between top layer and ceiling must be at least 1 meter Stock away from the wall 20 cm to avoid humidity from walls Stock follow branch of products to FIFO practice easily Space between stacks for way in & out Honey comb stacking (annex) to prevent collapse of outer case. Separate room or wood partition for tea product Palletisation / Stacking Total Product handling FIFO must be carried out Do not throw stock on the floor or trucks Stacking of cases should be right side to prevent product leakage or outer case damage on the pallet Product handling Total Damaged stock / expiry stock Damaged, leaking, dirty stock should not be mixed with good stock Separate area should be identified for quantity of expiry stock Damaged stock segregated Damaged stock / expiry stock Total Safety No inflammable and hazardous materials stored in warehouse Presence of good fire extinguisher in the warehouse, checklist for controlling Electrical wiring and equipment are in good condition No smoking in the warehouse Safety Total Grand Total Percentage Score
30 30 30 30 30 30 30 30 240
4 4.1 4.2 4.3
30 30 30 90
5 5.1 5.2 5.3 5.4 6 6.1 6.2 6.3 6.4
30 30 30 90
30 30 30 30 120 930
Case Study: HLL India The Next Generation Distributor Model
4 Introduction
5 Case Study: HLL India The Next Generation Distributor Model Hindusthan Lever Ltd was the pioneer in setting up the Distributor model in Asia Amet around 1940s. The model was based on an arms length availability philosophy with small sized distributors across the country. When set up this made absolute sense given the general media darkness making a pull system difficult to establish and poor road conditions which made the cost of extended distribution by large distributors unenviable. However, the landscape in India and across Asia AMET has changed over the years. TV has extended reach, people are more affluent with increasing GDP per capita, more retailing formats are available with the entry of large western & regional retailers. Why Next Gen Distributor Model?
Low GDP per Capita
Increased GDP per Capita
Fighting Competition Premiumisation / Choice Multiple Channels Lower Share of Wallet High Service Level Expectations
Evolving Distributor Model
Fighting Commodity Low Channel Differentiation Low MT Low Service Level Expectations
6 Case Study: HLL India The Next Generation Distributor Model The primary task of a distributor has evolved from distribution to creating pull at the point of purchase. The shopper has many brands to choose from at the point of purchase and brands which have their assortment, merchandising & activation right enjoy a distinct advantage over others. This is all about winning @ POP. In 2005 the team in India decided to fully revamp their Distribution network and bring it in line with the rapid economic changes taking place in India and across the region. This was forced upon the Indian team in the context of poor performance by HLL vis a vis industry growth & GDP growth. On introspection HLL as a business realized that markets had changed, customer expectations had changed and Distributors in the FMCG industry were looking for a richer Win-Win relationship. This was clearly evident in Customer Satisfaction Surveys which were conducted. Key elements of the change in the environment were: 1. 2. 3. The Shopper was coming more affluent & sophisticated and was looking for retail solutions To cater to this changing shopper, differentiated channels had emerged and had specific needs. The expectations of Retail trade had also dramatically changed influenced by other companies such as LOreal, P&G, Nokia etc..
The Indian Model: What is it? Bigger more professional distributors that were channel aligned Replenishment based Customer service organization Unilever CD organization with new roles & responsibilities and defined line of sight through clear KPIs A knowledge based organisation
7 Case Study: HLL India The Next Generation Distributor Model The objective of the next generation distributor model is to Win @ POP. The Indian CD team identified 5 aspects which needed attention within the organization to achieve this goal and call this the PRIDE model.
Win @ POP
People Engaged & Passionate
Real Channel Segmentation
IT Superior Capability
Delighted & Aligned Customers
PRIDE The move toward the next generation distributor model is not a journey accomplished in a day. 1st Pillar: People Engaged & Passionate The very first step taken was to move Primary Sales & Order booking from the Sales Force to supply chain using a continuous replenishment system (CRS). Depot officer gone CSO Customer Service Officer Primary Sales to commercial (PTC) 24 hour backend process Allocation process no manual allocation Rigorous management of uplifts & base stock norms 70%+ of orders confirmed w/o change
100% of orders untouched by hand
Well understood rules of engagement
Executional Excellence
8 Case Study: HLL India The Next Generation Distributor Model
Parameter Orders untouched by hand No of lines in an invoice % of distributors on CRS Mal distribution index Green % weeks HPC areas MIS RS Stock in Rs Cr
Before 0% 22 35% Not tracked <50% Manual excel sheet 100 Cr
After 100% 52 100% 29% 100% Real time HPC portal 80 Cr
Simultaneously the Sales force was restructured under Project Chrysanthemum in line with the new roles and responsibilities. The primary task of the sales force now was to Win @ POP.
RM
RSM Dets
RSM Rural
RSM PP
ASM
ASM
ASM PP
ASM Spl
SO
SO
SO
SO
TSI Dets Urban
TSI Rural Old structure
TSI PP Urban
TSI Speciality
9 Case Study: HLL India The Next Generation Distributor Model Key issues with the structure: 1. 2. 3. 4. 5. Driven by availability mind-set. No scope for running common HPC channel plans. Smallest span of control in the industry at ASM level. Focus on driving the top-end with scale and quality absent. Career management at the field level difficult with just two levels.
RM NSM U2
RSM U1
RSM Rural
ASM U1
ASM U2
ASM Rural
AE U1
AE U2
SO
TSI Dets
TSI PP
TSI U2 HPC Urban 2
TSI Rural
HPC Urban 1
Key Principles: 1. 2. 3. 4. 5. Two distinct skill sets at the FF levels Delayer the organisation by at least one level and raise productivity levels. Bring HPC scale to all channel plans. Focus at the top-end of the portfolio Make the jobs richer, more empowered and with definite growth potential.
30 Case Study: HLL India The Next Generation Distributor Model Front End Sales Structure
Earlier... TSI Sales Officer ASCM A pure distribution & primary sales focus Today Capability building, infrastructure & activation efficiency have assumed importance Positions have been created with clearly defined roles. TSIs also directly report to ASCM (creating a much wider span of control)
A clear shift!
Roles & Responsibilities

Effective Distribution & Capability Building Excellence in Activation Execution Capability Building Quality Infrastructure
TSI
AE / AO
CE / CO
CL
ASCM
The Objective: Winning @ Point of Purchase
TSI = Territory Sales In-Charge AE / AO = Activation Executive Officer CE / CO = Capability Executive / Officer ASCM = Area Sales & Channel Manager CL = Cluster Leader (Senior TSI)
31 Case Study: HLL India The Next Generation Distributor Model 2nd Pillar: Channel Segmentation
Channel
Key Channel Themes
Channel Prioritisation
Channel Big Ideas
Channel Strategies
Implementation
Shopper based channel segmentation

Shopper Based Channels Supermarket Supermarket (Evolving) Discounter Health & Beauty Store Family Grocer Small Kirana Kiosk Chemist Fancy Store
Historic Channels Modern Trade Traditional Trade
3 Case Study: HLL India The Next Generation Distributor Model 3rd Pillar: Superior IT Capability General Trade Indian Context 700K retailers covered through a network of around 4,000 stockists. Contributes 90% of the total revenues of HLL in year 2005 Amongst the largest channel base in Asia Pacific (no. of retailers, geographical reach, sales volumes).
GT IT Capablity Requirement Implement the next generation distributor program to improve capability to execute at POP. Win @ POP by delivering Every Day Great Execution Deliver best in class service to retail trade Develop and implement customer / channel marketing programs across channels Deliver better promotions effectiveness by better targeting in GT (OPSO change program) Realize cost savings in servicing GT customers Key high level IT capabilities required for addressing the above priorities: Common transaction package for stockists billing, collections, stock & sales; relay information to HLL Product, pricing and scheme information to be published centrally and pushed to the stockist system Enable pull-based replenishment (CRS) dispatches based on stock norms and secondary sales Local reporting capability for stockists to monitor sales, targets and salesman productivity KPI & Sales reporting - central collation, automated KPI & exceptions based on business rules Standard process for claims processing enabled by the standard transaction package at the stockist
33 Case Study: HLL India The Next Generation Distributor Model Project Unify covers the entire General Trade segment within India and comprises of multiple initiatives. 700K retailers covered through a network of around 4,000 stockists. Contributes 90% of the total revenues of HLL in year 2005 Amongst the largest channel base in Asia Pacific (no. of retailers, geographical reach, sales volumes).
Objective Set up a standard transaction package for distributor with master data integration with UL Leverage information on secondary sales at channel level for better decision making Automate distributor claim process Enable RS sales force to work on standard sales process to drive field effectiveness Seamless integration between the SAP and Unify masters, price data
Unify Component Core Unify Abacus (MIS) Any Time Money (E-claims) Quantum (HHT) Everest (SAP / ICH)
4th Pillar: Execution Excellence QOC & QOP Performance Matrix
QOP High Poor Performance Needs to Improve Low Best Performance High QOC
Poor Performance Unacceptable

QOC = Quality of Contribution QOP = Quarterly Operating Plan
Effort in Right Direction Results should follow Low
34 Case Study: HLL India The Next Generation Distributor Model Target Setting & Responsibility follows the line of sight principle which measures performance of the individual based on what he can directly influence. A system of scorecards & Dashboards have also been put in place so that each individual can visually assess their own performance. QOC Easy View Line of Sight
Availability Visibility ASM AE TSI / SO Depth FCS QOP Market Rates AWP Infrastructure
In addition, HLL introduced the role of Activation Executives whose primary job was to bring brands to life at POP (Customer Marketing Execution) and a specialized sales force Urban 2 (U2) whose focus was top end customers and top end brands in the portfolio. AE Structure AE Supported by a 3P Structure AE Office AE merchandisers and supervisors Focused on AE OL What is an AE OL? Top 40% of OL contributing to 80% of TO in all AE towns Focused on Anti Competition Includes all H&B OL and Chemists OL (Top 40% for PP done separately) Workplan focused on Activation, Visibility and Trade Relations Activation and Visibility on AWP every MOC SVS and Vijeta: 2 Channel Programmes BA training run by TMO Focused on Sell Out rather than Sell In
35 Case Study: HLL India The Next Generation Distributor Model Similar approach has also been followed in Indonesia with the Growth Engine (GE) Sales Team & Thailand with the HPS (High Potential Skus) sales team. In the second half of 2005 HLL focused on rolling out two key channel programs Super Value Stores addressing the Customer Marketing opportunities in neighbourhood grocery & Vijeta addressing the opportunity in wholesale. By quarter 4 of 2005, the end to end integrated billing package called Unify connecting Distributors to the company ERP system was set up.
Achieving EDGE
Changing the Organization Structure
Alignment to SIA
EDGE SOPs
Performance Management
EDGE SOPs
Rewards & Recognition Every Day Great Execution
Similar approach has also been followed in Indonesia, Pakistan, Sri Lanka, Bangladesh, Thailand & Malaysia to name a few others. The EDGE Process the importance of SOPs EDGE or Every Day Great Execution lies at the heart of what our Customer Development function aims to achieve: Winning at the Point of Purchase (POP) every time, every day and in every sales call that our front end field force makes. EDGE has defined a set of metrics, superior performance in which by CD and its partners will drive growth and market share. The EDGE Standard Operating Practices (SOPs) are inputs that aim to drive improvement in the EDGE metrics by the sales system. The SOPs are primarily aimed at improving: Availability Visibility Issue resolution
36 Case Study: HLL India The Next Generation Distributor Model The 2 metrics that will get directly influenced by these SOPs are Visitrack (a 3P visibility audit) and FCS (Field Capability Score). FCS is a simple measure very easily understood by the distributor salesman. It also covers all the parameters that need to be delivered at the end of the day to enhance customer delight one of our 3 must win goals. A Bill Productivity target ensures that the Sales System sells in only enough for optimum rotation to happen thereby ensuring (a) stock outs dont happen (b) capital does not get locked in unnecessarily for long periods and (c) high levels of freshness. An Effective Coverage target is aimed at making sure that a larger set of outlets get serviced on a regular basis. It works against a distributors tendency to leave out accounts that are small today. The final parameter measured through FCS is LPPC or Lines per Productive Call. An LPPC target encourages the Sales system to work at increasing range at the outlet level. Todays consumers want range so that they have a whole gamut of choices to select from. New categories / SKUs may be small today, but they can become the growth drivers of tomorrow if nurtured through proper placement at an outlet level. To achieve any plan that we may have in the market place, we need to execute through store owners. It is important that we become his supplier of choice and he considers the relationship as a partnership. This is only possible if we delight him with our service levels. Research has shown that around 70% of purchase decisions are made by the shopper at the point of purchase. Thus it is here that the battle for market share will be won or lost. We need to own this space in order to make the desired impact and for that we need the partnership of delighted customers. The SSMARTC Process One of the key SOPs in EDGE is on distributor salesman behaviour in the market. The salesman is the face of the Company on a regular basis and our strategies are ultimately only as good as his understanding / execution of them. These SOPs list down what he is expected to do in every store that he visits. It also puts down these actions in the desired sequence. Each SOP is customized channel wise to incorporate requirements of each channel. The SMART acronym makes it easy for the salesman to remember / recall the SOP as well as making it crisp and easy to understand. It covers every part of the call process (interaction with the trade) in a comprehensive manner from an opening salutation to call closing.
37 Case Study: HLL India The Next Generation Distributor Model These SOPs are distributed to each salesman in the form of a small laminated card in the local language so that he can carry it with him to the market.
RSSM Call Procedure SVS / UNICARE / STAR
Before starting the day:

Stock norm for the quarter by outlet / SKUs to be put on TSR from report in Unify 2 weeks for category A SKUs and 4 weeks for other SKUs S S M A R T C Salutation Store Check by SKU & Suggested order generation by SKU as per norms Merchandising visibility check correct visibility if needed. Give feedback to 3P merchandisers help desk Always brief retailer on Ops. Plan and Always check on QOC packs before finalising the order Rigor in generating order by SKU (stock norm-stock) maximum not to exceed 4 weeks Take stock of damages and replace as per policy Collect cash and close the call S SMART C
The SSMARTC process is basically all about replenishment selling and improving range available. It mandates use of a Trade Service Card updated with ideal stock norms (basis previous purchase history) for each SKU in each store. The salesman is expected to do a store check where he takes note of the closing stock of each SKU since his last visit and uses the preset norm to arrive at a suggested order. He is also expected to go through the entire list of relevant SKUs for the store with the customer so that no SKU gets missed out in the order. The SSMARTC process also endeavours to make the entire call a more holistic one. It encourages the salesman to take ownership on the merchandising aspect by fixing what he can on the spot and escalating what he cannot to a help desk for speedy resolution. It also advocates a proactive approach towards damages. Each salesman is taught the damage policy in very simple terms so that he can communicate the Companys position to each store in case any clarification is required. ALERT Process The ALERT process is all about handling objections / issues in a sensitive manner. Since the distributor salesman is the face of the Company as far as the store is concerned, it is important to train him on how best to deal with common questions from trade. Given below is the process as well as 2 sets of FAQs (1) HPC (2) Foods
38 Case Study: HLL India The Next Generation Distributor Model Frequently Asked Questions: few examples Q. A: L: E: Damages are lying with me. What should I do? Sir, I understand this is a problem for you You are a very important customer and we value our relationship with you Sir, please our damage policy advises you that stock received by you in damaged or defective conditions should not be accepted by you but be sent back to the distributor immediately preferably with reasons clearly mentioned at the back of the invoice. The distributor will replace these stocks immediately. E.g., leaking sachets, empty cartons, etc.. Also we have been doing replenishment based selling for some time now. In fact we sell in only based on your averages. We are specifically instructed not to sell more to you than your average so that no damage is created. This is to ensure that such occurrences dont happen. I am sure that you have seen this in practice. Thank you for your understanding & support Bottle has broken / Pack has fallen down and burst / Tube is disfigured in shop / Rats have eaten the soap. Please replace. Sir, I understand this is a problem for you You are a very important customer and we value our relationship with you Sir, we will replace stocks that have been delivered in a damaged condition. We cannot replace stock that has been delivered in good condition. Sir Please appreciate that we are replacing when the error is clearly at our manufacturing end, for other cases we request you to please excuse us. For example if one of your customers buys a glass bottle from you and drops it at home. Im sure you will not be able to replace it free of cost. I hope sincerely that you appreciate it is the same with us. Can we suggest putting railings and stacking the bottles properly to ensure that such situations dont happen any more? May I also suggest that we help you tack the shelves so that there is no hurry in taking bottles out of the shelf due to which they may drop and become damaged. Thank you for your understanding & support
R:
T:
Q. A: L: E:
R:
T:
Q. Your Launch Product is not selling. Please replace. A: L: E: Sir, your feedback is valuable to us and we will convey it to our team. You are a very important customer and we value our relationship with you However please have some patience. We have launched the product only two weeks ago. It is only after launch and ensuring that shops are carrying our new offering, do we start TV and Radio advertising. You must have seen our new advertisements. Soon demand will come for it. Please be reassured that demand will be created.
39 Case Study: HLL India The Next Generation Distributor Model R: Also from time to time, we do take back stocks that have not sold across the state. We term these as failures and take them back at significant cost to us since we value our relationship with trade. We are confident that this product will be a success, and request for some more patience from your side. Thank you for your understanding & support Lot of empty cartoons (e.g., Red Rs.10 / Shortages in pack, CLDs. What do I do? I understand this is a problem for you You are a very important customer and we value our relationship with you Sir, if it is a Manufacturing defect, we will definitely reimburse you for the same. However to ensure that in future such inconvenience is avoided; please check the stock at the time of delivery. Also we are in the process of shrink wrapping every outer carton. Also every single factory does quality control check to ensure that this does not happen like weighing every outer bag etc.. T: Q. A: L: E: Thank you for your understanding & support Quality of CLDs is bad. Hence I have more Damages than normal Sir, I understand this is a problem for you You are a very important customer and we value our relationship with you Sir, we are a reputed company and follow international standards. All our packaging is tested as per the Indian Institute of Packaging norms. I assure you that our packaging meets all relevant standards and is best in class. However you have a problem and it is my duty to assist you. May I suggest that you ensure your cartons are kept dry at all times and checked regularly to ensure no infestation. Thank you for your understanding & support
T: Q. A: L: E: R:
R:
T:
PDF file on EDGE SOP is available separately.
40 Case Study: HLL India The Next Generation Distributor Model 5th Pillar: Delighted & Aligned Customers To be the most preferred & sought after company to partner with
3. Heart
UnI connect
Customer Caring Culture
2. Mind
CRS Unify UnI vision UnI star
Interlocked Business Processes
1. Body
Best in Class Capabilities
Distributor engagement to achieve delighted and aligned customers The CSMM Survey conducted in July 2005 with the HLL Redistribution Stockists (RSs) across the country revealed that nearly 60% our Detergent customers and 54% of our Personal Product Customers were feeling trapped or vulnerable in their partnership with HLL. The voice of those customers strongly pointed towards a biased arrogant approach of customer management with little focus given to team-coordination and capability building. The UnI Initiative was thus born to bring back delight to customer management. The mission of this initiative is to provide best in class service and build a system that is truly service oriented, customer driven and strives for a long term win-win relationship. The first amongst the UnI Programme was the UnI Vision initiative. The UnI Vision or the Joint Business Planning (JBP) programme is an attempt to create a win-win combination with a set of chosen large customers by freezing a mutually agreed plan that is aligned to the SIA requirements. The second major UnI initiative was the UnI Star programme.
41 Case Study: HLL India The Next Generation Distributor Model The UnI Star programme had been rolled out with the objective of building a high quality relationship beyond profits with a set of chosen large customers by Recognizing and rewarding outstanding performances Building exclusivity in the treatment of those customers through special privileges To migrate from a transactional to a quality leadership by building a culture of appreciation
The UnI Star programme was created on the basis of a set of simple, clear, specific and measurable set of criteria (captured in the UniStar Distributor Dashboard) leaving no scope for another interpretation. Unistar RS Dashboard:
HEAD QOP QOC OPS PACK 5 Packs 4 Packs 3 Packs FCS PNC N-2 Infra Kundli No of RSSM with 300 pt Trade PNC As per JBP 75% 90% 90% 50% 80% 80% 30% 70% 70% ECO 5 Packs 4 Packs 3 Packs SUB-HEAD 5 POINTS 100% 4 POINTS 98% 3 POINTS 95%
Zero Bouncing is a pre-requisite to stay alive in the Unistar Programme Basis the dashboard scores the RSs were categorized into the following groups: 7 star RSs those RSs who get 4.5 points out of 5 or 90% 5 star RSs those RSs who get 4.0 points out of 5 or 80% 3 star RSs those RSs who get 3.5 points out 5 or 70%
** RS refers to Redistribution Stockists meaning direct distributors
4 Case Study: HLL India The Next Generation Distributor Model The detailed UniStar payout list has been given below. The payouts to the RSs could be classified under the following: Benefits (like discount coupons on white goods etc.) Recognition (Star pin at JBP, National meet with Chairman) Capability building (advanced learning programs at a reputed institute) Personal Excitement (Holiday trip to exotic locations) Business privileges (Channel financing privilege, first right of refusals etc.)
FINANCE APPRECIATION
7* RS Discount booklet National meet with Chairman Star pin at JBP Full page write up in E letter Letter of reco for Visa / education Advance learning program at University Best practices speaker / Faculty in University Launch / relaunch product samples Training / projects for their children in HLL* Letter for recognition Invite (with family) to a National Event Right of refusal for New Geo / PC / Channel Channel financing privilege
5* RS Discount booklet National meet with VP
3* RS Gift Hamper Letter of appreciation from RM
IMPORTANCE
Half page write up in E letter Letter of reco for Visa / education Advance learning program at University
Nomination for training at University
EXCITEMENT
Invite (with family) to a Regional Event Right of refusal for New Geo / PC / Channel Channel financing privilege
BUSINESS
Channel financing reco
The Unistar Scores are published every month and payouts are calculated basis the quarter score which is a simple average of the monthly scores in that quarter. The annual score for the distributor is again a simple average of the 3 quarter scores in the year.
43 Case Study: HLL India The Next Generation Distributor Model In MQ 07, HLL is extending the Distributor variable incentive programme for the distributor salesmen as well. The process starts with having the right profile of salesmen (the desired profile of HLL salesmen has been given below), providing the right training inputs to them, doing performance appraisals on a regular basis and having a standard uniform monetary (reward) and non-monetary (recognition) payout structure. The salesman dashboard looks exactly similar to that of the distributor and the salesmen gets graded into a 7*, 5* and 3* salesmen basis his dashboard score. His ratings determine his variable payouts for that month.
Attributes Family Background / Profile Communication Skills Aptitude for Selling Numerical Ability Basic Intellect Integrity Current Relative / Well known to RS Average Average Average Average High Desired Middle Class Graduate Good Cutting Edge Cutting Edge Above Average High
Summary 2005 The Journey To be the most preferred & sought after company to partner with
Real CRS Delighted Customer
FFLA Engaged People
Sales System Restructuring
QOC / FCS Excellence @ POP
AE Structure Win with Shopper
SVS / Vijeta Channel Programs
U2 Focus on Top
RS consolidation Project Chrysalis
UNIFY Igniting Growth
J Win @ POP
44 Case Study: HLL India The Next Generation Distributor Model 2006 The Journey
Uni-vision Uni-care MQ Edge Metrics EDGE SOP Cascade Project Victory (Fancy Channel) Uni-star Uni-versity SQ Win @ POP DQ
Uni Connect
JQ
Sales Force Automation is the last major capability builder to be tackled and this will be complete in 2007. The Results so far...
HLL USG% 12% 10% 8% 6% 4% 2% 0%
2004
2005
Till Q306
Contributors
(Lead) VP General Trade Development Asia AMET VP CD Latam Regional CD Director Asia Regional CD Director AMET VP CD Unilever Bangladesh VP CD Unilever Pakistan Unilever Bangladesh Unilever Bangladesh Unilever Singapore Regional Manager HLL India Regional Manager HLL India HLL India HLL India Unilever Thailand Unilever Indonesia Unilever Indonesia Unilever Indonesia Unilever Philippines UInilever Philippines Unilever Malaysia Unilever Vietnam Unilever Pakistan Unilever Sri Lanka Unilever China Unilever Arabia
Arijit Ghose Willian Dandrea Bong Dela Cruz Rana Sengupta Reazul Chowdhury Noeman Shirazi Mizanur Rashid Shoeb Assaduzzaman Dheeraj Arora Debjit Rudra Milind Pant Shoumyan Biswas Sushmita Banerjee Suphot Rittipichaiwat Bambang Trisanto Wahyujati Obor Djohan Aminullah Medel Aviles Doy Concha Louis Lim Phan-Duc Binh Liaquat Ali Qadri Aruna Mawilmada Allen Bai Arif Hunashi
Sarayut Jitcharoongphorn Unilever Thailand
47 Introduction
This document may only be distributed within the Unilever group of companies (Unilever) and its agencies, to persons who need to be aware of the contents to carry out specific tasks requested by Unilever. This document must not be copied in total or partially, or distributed outside Unilever without prior agreement with the copyright owners. Any unauthorised use may lead to legal action. Unilever 2007.
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4

Module 3 GT Learning Series

Winning at Point of Purchase

The Practical D&E Guide to the Next Generation Distributor Model

Dear Unilever Colleague,

Mark Barnard SVP CD Asia AMET On behalf of CDLT September 2006

Leading Positions in Key Countries

The Strategic Role Of Point Of Purchase (POP)

RTM Strategy Outline... Category Channel Strategy Development Process

Group outlets Channel differentiation What channels are our customers

Channel Denition Channel Architecture Share / Channel

Unilever / Competitor performance

Channel Strategy RTM Design (the Pricing & RTM requirements)

Source: Asia / LatAm Channel Strategy Documents

Non Grocery Retail Outlets

Non-Food Retail Outlets

Small Independent Traders

Take away outlets

Cafe / Bar & Licensed Trader

Non-Food Ooh Outlets

09 Introduction 2. Opportunity Assessment

10 Introduction 3. Channel Prioritisation

Internal Internal Internal Internal

11 Introduction 4. Strategy Development

Pricing Objectives (Benchmark Index vs Competitor)

1 Introduction 5. Category Channel Plans

Why Do We Need The Next Generation Distributor Model

Type 1: Highly Fragmented Market

Type 2: Traditional Trade Dominated Market

Type 3: Forming Hybrid Market

Type 4: Advanced Hybrid Market

Type 5: Organised Market

Type 6: Concentrated Market

Exclusive distributors Direct / KA Non-exclusive distributors Direct / KA

Channel service providers Direct / KA

Essence Of The Next Generation Distributor Model

0 The Next Generation Distributor Model

The Next Generation Distributor

Effective Distribution Merchandising Activation Customer / Channel Program Execution SLAs

 Essence Of The Next Generation Distributor Model

Next Generation Distributor: The Basics from Unilever

1. Channel Goals Category / Brand Strategy Channel strategy

The Next Generation Distributor

30% 20% 10% 0%

Description Population Size

Population Density & Infrastructure Competitive Pressure

Minimum Mandatory Standards

Full Next Generation Model as per phased roadmap

Full Next Generation Model as per phased roadmap

See Appendix B for an example of Indias Distributor Maturity profile

Appendix: Essence Of The Next Generation Distributor Model

7 Appendix: Essence Of The Next Generation Distributor Model

8 Appendix: Essence Of The Next Generation Distributor Model CHANNEL GOALS

9 Appendix: Essence Of The Next Generation Distributor Model

30 Appendix: Essence Of The Next Generation Distributor Model

31 Appendix: Essence Of The Next Generation Distributor Model

3 Appendix: Essence Of The Next Generation Distributor Model

33 Appendix: Essence Of The Next Generation Distributor Model

34 Appendix: Essence Of The Next Generation Distributor Model

35 Appendix: Essence Of The Next Generation Distributor Model

36 Appendix: Essence Of The Next Generation Distributor Model Systems

37 Appendix: Essence Of The Next Generation Distributor Model

38 Appendix: Essence Of The Next Generation Distributor Model

1 Introduction 5. Category Channel Plans

0 The Next Generation Distributor Model

Essence Of The Next Generation Distributor Model

7 Appendix: Essence Of The Next Generation Distributor Model

8 Appendix: Essence Of The Next Generation Distributor Model CHANNEL GOALS

9 Appendix: Essence Of The Next Generation Distributor Model

3 Appendix: Essence Of The Next Generation Distributor Model

4 Next Generation Distributor Model

WS Merchandising sets of sachet hanger pack 8ml