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					       About Whirlpool
•   Home making is our passion
    Innovation. our lifeline
    Performance's way of life for us
    Customer... the focus of all our activities
    And people are energy behind everything we do.

• We invite you to be our partner in Home
                   Our Identity
• A     subsidiary      of   Whirlpool
  Corporation, the world’s leading
  manufacturer and marketer of major
  home appliances
• Annual sales of over $11 billion,
  68,000     employees      with     50
  manufacturing      and    technology
  research centers around the globe.
• The company has its presence in
  markets in more than 170 countries.
  Set up in 1996, Whirlpool of India is
  now a 2500 strong family, with an
  extensive sales and distribution
  network, robust manufacturing and
  R & D infrastructure.
        Our Value System
• Whirlpool is one of the most admired and trusted brand
  name in home appliances. Our focus on customer has
  earned us a dominant market share in Refrigerator And
  Washing Machine business. We pride in possessing and
  nurturing the best talent pool in the country.
• We have a culture that supports our Enduring Values of
  Integrity, Respect, Teamwork and Diversity with
• We welcome high performers from across industries and
  categories. We use a robust talent management process
  called “ Talent Pool System “ to constantly assess and
  deploy our top talent.
Whirlpool Distribution Network

                                                          18 each for each sales branch

 Sub-Dealers                       Institutions                  Direct Dealers

Whirlpool Distribution Network…
• 60%of the sales at Whirlpool is done through
  Distributors while the rest 40% is undertaken by
  the direct dealers.
• Distributors are being preferred as they increase the
  company’s reach into rural markets as well reduce
  the risk exposure of the company by providing
  credit worthiness in the shape of Distributors.
• Direct Dealers are also important as there are some
  stores where each of these companies has to be
  present so as to have a superior business
  relationship with the customer.
• Here the problem arises as to
   – How many outlets to be present in ?
   – How big a counter to be present in ?
   – How to take out the most from these counters ?
Whirlpool Distribution Network…
• These aspects are covered well in detail in
  the rest of the project report.
• We came at a general conclusion at this
  stage that
  – Market Share=f{weighted dealership,counter share}
• The distributor margin is around 3.25%
  while the dealer margin is around 1.25%
• There are 3 factories of Whirlpool which
  server by providing the following goods
  – Faridabad----Refrigerators
  – Pune----------Washing Machines+Refrigerators+Exports
  – Pondicherry-Washing Machines
LG’s Distribution Network
              Manufacturing Units


  Retailers                         Institutions

         Some findings at LG
• Unlike Whirlpool, LG has a distributor appointed for
  each of its Dealers/ Sub Dealers
• LG has fixed a Net Landing Cost for all the dealers
  and a minimum price below which no dealer of it
  can sell the product in the market. This gives higher
  satisfaction to multi brand dealers selling LG as
  they do not fall completely in competition with
  bigger dealers as in the case of Whirlpool.
• LG follows a network of both Exclusive Dealers as
  well as Multi Brand Dealers. The element of
  Exclusive dealers is missing at Whirlpool as the
  company does not manufacture products like
  Televisions, Music Systems, Mobile Phiones etc.
  which contributes to around 50% sales at any
  electronic goods counter across India.
         The Change Equation
                           Dissatisfaction with Status Quo

                                          TE & BM rediculed
                                                     Insufficient review of
     No Annual Plan
                                               by a TP
                                              Network Action ->improvement plan
                                                        in last 1 year

   In-spite of 2 lac DC       Lack of interaction
 stock in trade and WPL Between field force and marketing
         in Mar ‘04       At branch and territory level
 we still lose off-take due
    to non availability
BM/ RM do not have authority                                    Basic
 To take decision of even 10 K                                hygiene of
                                                             Branches ??
    Change Management Lens
             Ethos – Way We Work
• Closest to the consumer

• Quick decision making through

• Fact-based decision making               Value
• Clear accountabilities with authority

• Transparency

• Empathy
              Team Charter
Institutionalize sales processes / resources to
         focus on secondary / off take
• Drive sales execution focus on volume weighted
  distribution and market working
• Determine and drive roles & accountabilities required at
  each layer of the sales & marketing organizations
• Direct focus on effective planning & execution of trade
  marketing and consumer centric approach
• Improve discipline through effective commercial / credit
• Category/marketing involvement in developing, execution
  & reviewing the branch plans
 Planning & Review Process
Laid out the process for review and control :

– Annual planning process with formats

– BMR, GM Meet, Operating Group Meet.

      Clear goals, Structured review &
  Immediate corrective actions Across functions
                to meet targets
                  Annual Planning
Market mapping                                 ORG / Francis Kanoi
•Category wise           Opportunities         •Category wise
•Territory wise         Product segment        •Segment wise
•TP wise                    Network            •Region wise
•Competition                                   •Competition

                   Market share objectives
                   Category & Geography wise

                          Key Thrust Areas

                           Input planning

                        Annual Strategy plan
                            Monthly phasing

                           Review matrices
Annual Planning Formats
•   Product Category Opportunities
•   Product Segment Opportunities
•   Network Structure
•   Network Profile
•   Network Health
•   Debtors Aging
•   Top 20 Retailers
•   Key Thrust Areas
•   TP Appointment Plan
•   Share Improvement Plan
•   Annual Sales Plan (Monthly phasing)
•   Annual marketing exp plan
•   Annual Expenditure Plan
•   Annual Expenditure Plan
   Channel structure : Jaipur (DC)

                Market           WOIL          LG            S'Sung       Godrej      Electrolux    Reach

Town      NOS      SALES   Nos    Pot   Vol    Nos   Vol    Nos   Vol    Nos   Vol    Nos   Vol    Num   Wtd tion     MS

Jaipur    138      27910   71    15620 10410   41    4135   37    2335   43    3210   51    4210   51% 56% 67%        37%

Udaipur   30        7145   16    3995   2720   10    1300   5     475    3     550    7     1375   53% 56% 68%        38%

Jodhpur   35        9925   15    5725   3200   6     1750   11    1050   2     750    6     1125   43% 58% 56%        32%

Kota      20        5300   6     1395   1270   2     625    5     645    5     350    8     1960   30% 26% 91%        24%

                                                    GO TO EXCEL SHEET
 Channel structure : Jaipur (DC)

Action Plan
• Jaipur : Increase the numeric reach to 65%
• Udaipur : Increase the numeric reach to 65%
• Jodhpur : Increase the numeric reach to 65%
• Kota : Increase the numeric reach to 50% by
  breaking into key dealers of E’lux
                                Channel Profile - Jaipur city- Direct Cool
                                                 A+             A           B            C           D
                                                > 1000       750-1000     500-750      250-500      <250         Total

Total No of Dealers                               2             5           3            21         107          138
No of Dealers Dealing with WP                     1             4           1            11          54           71
% Numeric Reach                                  50%           80%         33%          52%         50%          51%

Total Turnover of All Dealers                    2475         4300         1700         7000        12435        27910
Total Turnover of Dealers Dealing with WP        1200         3550         600          3550        6720         15620
% Weighted Reach                                 48%           83%         35%          51%         54%          56%

Total Turnover of All Dealers                    2475         4300         1700         7000        12435        27910
Dealer Turnover with WP                          825          2800         500          1850        4435         10410
% Volume Market share                            33%           65%         29%          26%         36%          37%

Shop Share %                                     69%           79%         83%          52%         66%          67%
Shop Share = ( Market Share/ Weighted
Reach) %

Action plan:
Target dealers                              Can we target?                         1            4           16           21
Resultant Numeric reach                                50%          80%          66%          71%         65%          67%

                                                         GO TO EXCEL SHEET
      Product category opportunity
       (ORG & Market Mapping)
                   Company wise break up of                                     Target
                     Market size 2003 (000)               WOIL                  share Expected P L A N   WOIL

           Tot     WPL LG SAM GOD E'LUX               Volumes           Share        04 Market 2004
CATEGORY                                                                 (%) 2004 (%) Gr%      (No)      Gr (%)
                                               2001   2002      2003    2003
DC           123    39   23      6 12     32     34       41       39     32%     34%       6%      44      14%
FF            27     4   14      5    1    3      1        2        4     14%     18%      20%       6      49%
WASHERS       61     8   23      9 0.5     4      7        8        8     13%     18%       6%      12      50%
TOTAL T2     211    51   60     20 13.5   39     42       52       51     24%                       62      22%

                              Action plan:
                              • Improve share in FF & Washers
                              • Hold share in DCs
       Key Thrust Areas - Jaipur
• Increase numeric reach in Jaipur city to 65% by
   – 1 dealer:B segment, 4 dealers: C segment, 16 dealers: D

• Improve volume weighted in Kota city to 50% by
  targeting E’lux counters

• Deploy Hoardings and local ads worth 1 lac in
       Key Thrust Areas - Jaipur

•   Develop and implement action plan for Category
    Share as below :
     – DC – 34% (retain share)
     – FF – 18%
     – Washers – 18%

• Segment plan in DC
   – Maintain share in 165 low which is a growing segment
   – Improve share in 176-200 to 32%
   – Maintain share in 201-260 & >260 segments
Change management initiatives
      Area                           Key direction                               Team               Completion
Sales processes • Improved planning/ review through robust methods,           Sanjay Prasad, Manu   Mid-end March
                  better coverage and ownership                               Ahuja, Tamal Saha
                • Greater focus on market working, to enable better quality
                  of distribution
                • Structured approach to promotions management
                • Robust process of consumer feedback
                • Alignment of role/ rewards with business objective

Comml controls • Authority schedule to enable quicker and accountable         Gaurav Dua, Manu      Mid-end March
                 decision-making                                              Ahuja, Tamal Saha,
               • Effective systems to ensure correct documentation,           Sanjay Prasad
                 elimination of wasteful activities/ spends and better
                 management of assets/ exposure
               • Greater focus on review/ commercial measures to
                 improve adherence

Credit policy   • Alignment of credit terms with investment requirements      BS Bajaj, Gaurav      Mid-end March
                  from market                                                 Dua, Manu Ahuja,
                • Procedures to maximise adherence to norms                   Tamal Saha, Sanjay
                • Authority schedule and process for exception                Prasad
                • Process of risk/ exposure management
                   Change Management Plan for Sales operations
           Today                                            Transition
            ‘03                                                ‘04
                                                                                                                       End ‘04
Sales Process Drivers :          Sales planning & Review
Sales planning & Review          •Market mapping by 30th March
                                 •May to Dec’ 04 plan branch/territory phased mthly by 25th Apl   Sales planning & Review
• Short term planning
                                 • Clear cut benchmarks on numeric and vol.weighted for           Annual branch/territory plan phased monthly for 2005
•Less focus on network           branches/top towns                                               by Dec ’04 – Blue Book
management                       •Key thrust areas involving network and product segment          Marrying top down & bottom up plan
•Lack of ownership of branches   •Allocation of resources to deliver KTA
                                                                                                  Rigorous review through structured BMR, RIR and GM
•Lack of transparency            •Initiate formal review process
                                                                                                  meets focusing on HOW
•Unstructured review
                                 Market working & TP engagement
                                 •Classify outlets – A, B, C
Market working & TP              •Develop and roll out market working norms                       Market working & TP engagement
                                                                                                  Sales force working based on callage norms and PJP
•Norms not followed with rigor
                                                                                                  Implementation of structured activity plan
eg.PJP,counter activities
                                 Promotion & TM activities
•Formal call plan non-existent
                                 Placement of adequate manpower                                  Promotion & TM activities
                                 Ready made bank of ideas                                        Structured proposal and evaluation for increasing
Promotion & TM activities
•Ad hoc approach to branch TM
                                 Role clarity at different levels                                People
•Inadequate staffing at
                                 Single window contact between regions and Ho                    Empowered regional managers
                                 Decentralized reward system to regions                          Talent evaluation & deployment
                                                                                                  Maintain bench strength across levels
                                 Consumer centric approach
•Multiple decision making
                                 Structured RE monthly meets                                     Consumer centric approach
•Centralized reward system
                                 Regular consumer contact norms for sales force                  Formal feedback system to marketing
Consumer centric approach
                                                                                                  Joint sales & service review at branch level
•Unstructured RE meet            Innovation
•No consumer contact             •Process to capture innovative ideas
•Innovation                      •Reward the ideas on a regular basis
                                                                                                  Process in place to reward innovative approach
•Not embedded in sales
                                       Modules                                        Priority   Preparation   Execution
Sales planning & Review
Territory / month wise sales plan with planned strategy across areas of network,
                                                                                    High           15-M ar       25-Apr
product segment and promotion / TM for coming year

Sales & input plan by 25th of the previous month and deployment by 1 of the month
                                                                                    High            Done        Ongoing
to improve empowerment / ownership

Rigorous monthly review of performance in line with annual & monthly plans at branch,
                                                                                      Medium       19-M ar       1-Apr
region and HO level
Market w orking & TP engagem ent
Coverage of market through adherence to defined market working norms                High           19-M ar       1-Apr
Structured set of activities to be followed by sales force at the TP location       High           26-M ar       1-Apr
Prom otions & TM support
Dedicated TM personnel to enable focus and effectiveness                            Medium          Do ne        1-Apr
Create and maintain bank of promotion ideas to enable speed                         Low             15-Apr       1-May
Process of setting objective and measuring effectiveness of each TM activity        Medium         19-M ar       1-Apr
People em pow erm ent and accountability
Provide role clarity at branch / region level                                       High           26-M ar       1-Apr
Authority schedule & budgets to ensure speed in decision making                     Medium          2-Apr        15-Apr
Improve decision making through single point contact between region - HO            High            Do ne       Ongoing
Consum er centric approach
Monthly RE meet to cover target achievement and consumer feedback                   Medium          19-Mar       1-Apr
Sales force interaction with consumers as per defined norms                         Low            26-Mar        1-Apr
Mechanism to provide consumer feedback to marketing function                        Medium         26-Mar        1-Apr
Operational efficiency
Sales forecasting process to achieve desired level of accuracy                      Medium         15-Apr        1-May
IT enablement for higher accuracy of data                                           High            15-Apr      Ongoing
                      Progress so far
             People                            Planning Process

•Structure                               •Annual planning

•Role Clarity                            •Monthly Planning process

•Accountability                          •Market working norms

•Rewards and recognition                 •Structured formal review process

   Commercial Processes                   Regional Empowerment

 •Credit policy
                                         •Regional profitability
 • KAM

 •Provision norms –debtors / inventory
                         Monthly planning
                                       BMR – TE & BM                   2nd & 3rd of Month

           Formats                     RDR – BM & GM                   5th & 6th of Month

           GM meet
           Formats                  GM Meet – GM & HO              Between 15th – 17th of Month

Operating group meet on 7th and
   21st to focus on N month.
                                        HO activity –
 Work for N+1 month after GM                                       Between 17th & 25th of Month
                                      Enable N + 1 plan

                 Funnel Approach – Same Issues & Actions reviewed at all levels
                                 - Focus on N + 1 Month
                         Monthly Journey Planning
                                            Towns                                                                                              Sales   Collection
                                              Visit                                      Dealers to be visited                                  Call      Call
 Date             Starting place   TOWN 1   TOWN 2    TOWN 3   Night halt   Distrbutor     A+        A           B   c   COMPETITION Callage   ( S)      (C)
        1 PLAN
        2 PLAN
        3 PLAN
        4 PLAN
        5 PLAN
        6 PLAN
        7 PLAN
    Market Working Norms

 Established Market working norms

– A,B,C classification of retailers
– Call norms
– Market visit norms
– Review of market working
– Territory Management Diary

   Territory Re-alignment, Planned coverage
          to maximize call productivity
                    Territory Re-alignment
                                 DISTRBUTOR                                                          IN SHOP
ELEMENTS                             /HO          A+       A        B         C     COMPETITION      SELLING

Norms (Calls in a month)             8            8        4         2        1            8               8

Nos Of WOIL Counters                 1            3        10       15       35

Total Visits                         8            24       40       30       35            8               8
Total Calls Required                153

ELEMENTS                 DAYS                          Every day puts 2 hr at the TP counter
TOTAL DAYS                30                           overseeing the sales (all sales personnels)
MONTHLY MEET                              2
HOLIDAY                                   5
TRAINING                                  1               For Upcountry : Territory needs to be Re-aligned
LEAVE                                     2
TOTAL WORKING DAYS                        20
                                                        Daily Coverage of                      TE
ELEMENTS                   CITY      UP COUNTRY         Outlets
AVERAGE CALL PER DAY        7              5
                                                        City                                   7 outlets
TOTAL CALLS AVAILABLE      140            100
                                                        Upcountry                              5 outlets
   Territory Management Diary
      • Profile of the Territory
           – Geographic / demographic profile
           – Market mapping data
           – Channel Structure, Profile and Health
           – Key Thrust Areas for the year phased monthly
           – Annual plan phased monthly
           – TP wise plan phased monthly
           – WOIL past sales data
      • Call productivity
Schemes & Key Account Mgmt.
– Scheme management
  • Fixed NLC

  • 25 TPs decided by HO - paid annually on strict achievement
  • Rest decided regionally by RM/BM - paid quarterly on strict
    achievement terms

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