Colgate Toothpaste Marketing Project by qoj34008

VIEWS: 16,458 PAGES: 53

More Info
									                      A
               PROJECT REPORT
                     ON


Prepare wholesale business model-optimization for
          Colgate Palmolive products.




                   FOR
        COLGATE PALMOLIVE INDIA LTD




                     BY
             MANGESH.C.SONONE
              (M.B.A 2004-2006)




SUBMITTED IN THE PARTIAL FULFILLMENT OF MASTER
      OF BUSINESS ADMINISTRATION TO THE
                                   UNIVERSITY OF PUNE




                        1
                       To Whom so ever it may concerned



                                   CERTIFICATE


This is to certify that the project titled       Prepare Wholesale business model
optimization for COLGATE PALMOLIVE Products is a bonafide work carried out
by MANGESH.C.SONONE (Roll No.457) For COLGATE PALMOLIVE INDIA
LTD. He is a student of Vishwakarma Institute Of Management, Pune and has worked
under our direction and guidance .The project report is submitted in the partial fulfillment
of Masters in Business Administration course of University Of Pune for the academic
year 2004-2006.




Dr. Sharad Joshi                                       Prof .Rajesh.Vhatkar
Director                                                Project Guide




                                             2
                            CONTENTS



S. No.                  Title                  Page No.

  Executive Summary                       1

  Company Profile                         2

  Products Basket                         7

  Literature about wholesale market       8

  Objective of the Study                  11

  Research Methodology                    12

  Limitation of the Study                 14

  Data analysis and Interpretation        15

  Findings                           34

  Recommendations                         35

  Annexure                           37

  Bibliography                            42




                                 3
EXECUTIVE
SUMMARY




OBJECTIVES




             4
RESEARCH
METHODOLOGY




LIMITATIONS




              5
DATA ANALYSIS
AND
INTERPRETATION




RECOMMENDATIONS




                  6
ANNEXURE




BIBLIOGRAPHY




               7
    KNOWING THE COMPANY
        WORLDWIDE




COMPANY
PROFILE




             8
KNOWING COMPANY
      INDIA




              PRODUCTS
                BASKET




      9
FINDINGS




LITERATURE ABOUT WHOLESALE MARKET




                           10
11
                          EXECUTIVE SUMMARY

Every business organization big or small has its own sets of problems.
Sometimes they enjoy advantages over others; sometimes they also have to
bear the heat of the competition. They are not above the ups and downs of the
business.

Colgate Palmolive is the world leader in oral care industry. They cater the need
of different segments by offerring innovative products.

The main objectives of this study is to find the new potential retail outlets and
rearranging the whole Pune district distribution and also study the wholesale
market in detail on the various basis and also find out the ways to reduce the
involvement of wholesalers in distribution channel.

The study required a detailed study of Pune market. A detail wholesaler and
retailer survey was conducted to find out all the aspects related wholesale and
retail market.

Two different questionnaires for wholesaler and retailers were made and direct
interviews were held to get first hand information. The data collected from the two
surveys were scientifically analyzed and conclusions ware drawn. Based on
these conclusions and managerial theory we recommend a set of activities to be
implemented by Colgate Palmolive India Ltd. in order to reduce the involvement
of wholesaler and to promote secondary brands for business expansion.




                                        12
COLGATE PALMOLIVE WORLD WIDE

KEY FACTS



    Headquarter in USA

    $9 billion in Sales & over 38000 employees world wide

    We sell our products in 212 countries around the world

    We have a customer base of 4.5 million

    Colgate is a truly Global Organization with almost around 75 % of the
    sales coming from outside of USA

    Over 40 % of toothpaste used in the world bears the COLGATE name.




                                    13
COLGATE PALMOLIVE INDIA


    Headquarter in Mumbai.

    Annual Turnover around 1100 crs.

    Market leaders in Oral care.

    Colgate consistently won India s no 1 brand of the year award from last
    three years.

    Colgate   Ranked among Best Employer in India.

    Customer base of more than 8 lac retailers.


     Serviced by Company field force, more than 1800 stockiest & super
     stockiest
  & their field force

    Colgate is the brand that people trust, for complete oral care protection for
    themselves and the ones they love.




                                     14
COLGATE PALMOLIVE INDIA

FACTS & MILESTONES



    1937 : The company was incorporated in India and
      Started trading activities. It was then a cent
       Percent US company

    1949 : Manufacturing started operations in Mumbai

    1985 : Started contract manufacturing of Paste, Brushes
      And Shampoos

    1988 : New Toothpowder factory at Waluj, Aurangabad

    1990 : Soap plant started production

    1993 : CP ( US ) raised it s equity from 40 % to 51 %

    1994 : CP (I) buys the Oral Care division of Ciba Geigy

    1997 : Manufacturing facility in Hetauda, Nepal for
      Dental Cream and Tooth powder

    1998: Successfully rolled out SAP in India. Colgate
      Oral Pharmaceuticals launched.

    1999 : Regional Technology Centre & Corporate office at
      Powai, Mumbai.
      Operations in New geographies Bangladesh,
      Nepal and Srilanka




                                     15
                                GLOBAL VISION


Be the innovative leader with our brands every day in every home.

                                   Our Mission

Achieve market dominance in Oral Care through aggressive volume growth,
and establish a significant presence in Personal Care.


Colgate Palmolive Values


The Company cares about its people, consumers, Shareholders and Business
Partners.

 Colgate is committed to act with compassion, integrity and honesty in all
situations, to listen with respect to others and to value differences.

Colgate is committed to getting better every day in all that it does.

By better understanding consumers and customers expectations and
continuously working to innovate and improve products, services and processes,
Colgate will become the best .




                                         16
DISTRIBUTION CHANNEL




                                  FACTORY

                               WAREHOUSE/C&F


   SUPER STOCKIST                 STOCKIST                     CO.OP STORES
      (DIRECT)                    (DIRECT)                       (DIRECT)



   RURAL STOCKIST
     (INDIRECT)




 WHOLESALER         RETAILER              WHOLESALE          RETAILER
                                              R


                                CONSUMER




FIELD OPERATIONS


     The All India Sales operations is headed by the Vice-President - Sales.

     There are four branches, each managed by a branch manager who
     reports to the VP Sales

     Four branches are divided into 11 Regions. Each of the Regions managed
     by RSM s are divided into Districts, managed by DM s.Further there are
     Zones in each district, managed by SO s




                                     17
COLGATE PALMOLIVE INDIA

LINES OF BUSINESS

     Oral Care

     Personal Care

     Hard Surface Care (Household Care)

ORAL CARE

     Colgate Dental Cream
     Colgate Gel Toothpaste
     Colgate Advanced Whitening
     Colgate Cibaca Toothpaste
     Colgate Herbal Toothpaste
     Colgate Total Toothpaste
     Colgate Active Salt
     Colgate kids Toothpaste
     Colgate Toothbrushes
     Colgate Cibaca Toothbrushes
     Colgate Tooth Powder

PERSONAL CARE

     Palmolive Shaving Creams
     Palmolive Shaving Foam /Gel
     Palmolive Shaving Brush
     Palmolive Aroma Soap- Revive
     Palmolive Aroma Soap-Relax
     Palmolive Aroma Shower Gel
     Palmolive Aroma Cream
     Palmolive Liquid Hand Wash
     Palmolive Charmis Cream
     Hello Shampoo

  HARD SURFACE CARE (HOUSEHOLD CARE)

        Axion Dish Washing Paste
        Ajax Floor Cleaner




                                    18
LITERATURE ABOUT WHOLESALER SECTOR.

Wholesaling is concerned with the activities of those persons or establishments
which sell to retailers and other merchants and or to industrial institutional and
commercial user s nut who do not sell in significant amount to ultimate
consumers.

Categories of wholesales trade could be
1.Manufactures sale branches, who sell direct
2. Agents and brokers who sell manufacture good nut do not take title to them
and.
3. Merchant wholesalers who take title and usually passes the goods for resale.

Marketing functions performed by wholesaler for manufacturers:

      Market coverage function
      Sales contact function
      Inventory holding function
      Order processing function
      Market information function
      Customer support function

Functions performed by wholesaler for customers :

      Product availability function
      Assortment convenience function
      Bulk breaking function
      Credit and finance function
      Customer service function
      Advice and technical support function

Wholesalers services to retailers

      Wholesalers can offer retailers guidance and counsel in public relations,
      housekeeping and accounting methods.
      Reorders are frequently filled more quickly.
      Wholesalers guarantee the sale (any items not sold can be returned for
      full credit)
      Defective products are replaced promptly
      The wholesalers extends long-term credit
      The percentage of markup by working through a wholesaler is more than
      offset by decreased inventory carrying costs and improved service levels.




                                       19
Essence of wholesaler:

      We have seen that the wholesaler is key element between manufacturer
      and retailer. But if we imagine what could happen in absence of
      wholesaler?
      Retailer may have to hold large stocks of verified goods for which he might
      need additional stocking space and capital.
      He may have to assembled repack some of the goods received from
      different manufactures.
      Retailer will incur additional cost in arranging lifting goods from
      manufacturers place. Warehousing and further bringing it to his retail out.
      He may have to bear the risk of fluctuations in prices, changes in tests of
      consumers and demands, with the amount of capital available with
      retailer, it may not be possible to carry of such risks.


Eliminating wholesalers means.

Direct sale to retailer s employing traveling salesmen or establishing contact with
departmental stores or super shops direct sale to consumer through.

      House to house counseling
      Mail order selling
      Multiple shop system


   Background :

      There are close to 16 lac outlets across India and CP product coverage is
      to the tune of just 50%
      Wholesale plays a major role in reaching CP products to the outside CP s
      direct coverage.
      Wholesale channel contributes to around 45% of Colgate s value
      business.
      Since wholesalers operate on thin margins and large volumes, stockiest
      cash discounts and company schemes plays a major role in driving
      various categories / brads through these channels.

      It is very important to manage this channel carefully because they can
      have strong favorable or adverse impact on the brands of a company.




                                        20
Assumptions in project :

      Wholesalers work in a very competitive environment .
      They have a strong bargaining power.


   Types of wholesalers operating in the FMCG sector


   Wholesalers are divided in two types

         Collective wholesalers market :

       Collective wholesale market is that where whole market is doing
      business in wholesale. there are various types wholesalers who are
      dealing in various categories, according with various product assortment .
      These wholesalers serve to retailers from different towns and cities.

         Bit wholesalers :

      These are wholesalers who are situated in retail market.
      They are serving to near by retailers.


      Range and assortment of products sold by the wholesalers channel.

         Exclusive FMCG
         Tobacco and tobacco products
         FMCG and food-grains
         Major food grains
         Confectionary and food products with FMCG




                                      21
                                    OBJECTIVES

A project will haywire if it does not have its objective clear. If one knows the whole only
then the right path can be decided and with disciplined work and positive attitude
achieving this objective will be a catwalk.

Therefore, we also set down the objectives before starting the project which are as
follows.


   1. Study of Wholesale business in detail.

   2. Study the performance of Colgate Palmolive Brands in wholesale
      market.

   3. To study their customer base and also their customer retention strategies.

   4. How can Colgate reduce the involvement of wholesaler in their distribution
      chain?

   5. How to optimize supply through wholesale channels?

   6. How to promote secondary brands in wholesale market?

   7. Find out new potential retail outlets for expansion of the business.

   8. Also take part in rearranging the whole Pune district distribution of Colgate
      Palmolive.




                                            22
                                 RESEARCH
                               METHODOLOGY

Development of research procedures is another important step in the market
research process. Research Design is actually the blue print specifying every
stage of action in the course of research.

Features Of Research Design: -

      The design was formulated to be a flexible so that changes can be
      adapted in the execution of the research.
      Care was taken to minimize the bias at every stage since any research
      work made untrue information would turn out to be unreliable or worthless.
      Effort has been taken to collect as many information as possible through
      the questionnaire so that elaborate analysis can be carried thereafter.
      The design was closely linked with the objectives set earlier, so that the
      essence of the information collected and analyzed does not get diluted.

Methods Of Data Collection:-

Sources Of Data

   A. Secondary data

      1. Internal sources

             Company records
             Annual reports

      2. External sources

             Web pages of organizations and journals
             Newspapers
             Magazines

   B. Primary data

      Data required for the study is collected first hand from

             Wholesalers
             Retailers




                                        23
Tools for data collection

Questionnaire Based Interview Method:

The questions are crafted in a way to generate as many information as
possible with minimum effort on respondent s part.

Type Of Questions Used:

       Open ended
       Close ended
       Multiple choices

Sampling:

The sample size for for the customer s was 50 wholesalers.

The samples were selected randomly to ensure unbiased information. The
samples ware selected from all over the city.

Analysis Methods And Tools:

The entire analysis of data was done with the aid of Microsoft Excel
spreadsheet programming. The diagrammatic representation of the data
was done through this software.




                                24
                                  LIMITATIONS

Nothing is perfect in this world. The last perfect person was crucified to the cross.
This project is not an exception to this rule.

Following are the limitations of the project:

  i.    The study is made on the responses to the questionnaire framed.

 ii.    Though utmost care has been taken, the views expressed by the sample
        may not represent the views of the population at large.

 iii.   Sometimes due to lack of time the respondent may not have given reliable
        information.

 iv.    Some respondents did not see the project important so they gave
        exaggerated information that had to be manipulated.

 v.      Conclusions arrived at might not be suitable to the other part the city.




                                          25
OPERATION KHOJ

      AC Nielsen reported Accounts: 14250.
      Current CP Coverage: 7289.
      Gap: 50%
      Hence:
      Wholesale Contribution 34%
      High Cost of Sale.
      Low contribution of secondary brands.

      Market visits showed that a lot of small/ marginal accounts were not
      covered.
      This was prominent in the far-off extensions of the city.
      Mostly small bi-lanes were never probed by our salesmen/ SOs during
      their working.
      The usual excuse of the salesman would be

              these do not buy regularly,
              the order gets cancelled as they won t have cash at the time of
             delivery.
              they did not buy when I visited them earlier.

we are four people working on operation Khoj we together found out 2333
potential retail outlet in new municipal limits of Pune and 536 in metropolitan
areas with the help of questionnaire. Out of these 2333 I have found 508 new
retail outlet in new municipal limits and 133 in metropolitan areas(excluding new
municipal limits).




                                       26
PERCENTAGE OF CLIENTS ON THE BASIS OF FIXED AND
FLOATING

Client
Type        Fixed     Floating
No. of
W/S              38        12




           Percentage of fixed and floating
                       clients


             24%
                                               Fixed
                                               Floating
                                 76%




         From graph we can see that most of wholesalers operate with
         Fixed clientele i.e. 76% percent of wholesalers operate with fixed
         Cliental and 24% with Floating.
         So they have strong fixed customer base.




                                          27
AVERAGE PERCENTAGE OF CLIENTS FROM LOCAL AREA
AND FROM OTHER TOWNS



Customer               Other
Type         Local     Town
Percentage     68.26     31.54




       Average(%) of Local and other town

             32%




                                                 68%

                        Local    Other Town




     From above graph we can infer that most of the clients from fixed clientele
     base are from local Area i.e. from Pune city.
     So the percentage of local clients is 68% and from other towns it is 32%.
     The percentage of other towns is also non negligible .




                                       28
AVERAGE NO OF CLIENTS SERVED IN A DAY BY
WHOLESALER

Client
Class      0-50       51-100     101-150      151-200    201-250   450-450
   No of
    W/s           9        12       12               5         9   3




             No. of client served in a day by
                        wholesaler

             12
             10
              8
    No. of    6
    whole-
     saler    4
              2
              0
                  0-50   51- 101- 151- 201- 450-
                         100 150 200 250 500
                               Client class



      From above graph we can infer that most of wholesalers served between
      51-100 and 101-150clientts in a day.

      After that there are some wholesalers serving between 201-250.We can
      say that they have huge customer base.




                                                29
CREDIT PERIOD GIVEN BY WHOLESALERS TO THEIR
CLIENTS IN DAYS.


Credit
Period     0          2-4         4-6     6-8      8-10      15-20
No of
 W/S       7          5           4        6        6         12




                          Credit period

          16
          14
          12
   No. of 10
   whole- 8
   salers 6
           4
           2
           0
                  0         2-4    4-6   6-8    8-10 15-20
                                  No of Days




     From above graph we can say that lot of wholesalers are not doing
     business on credit basis in spite of knowing that credit is a major tool in
     wholesale business.
     But there is also good percentage of wholesalers who are offering
     maximum i.e. of 15-20 days credit on the basis of customer reliability.




                                          30
  TYPES OF CLIENTS SERVED BY WHOLESALER


                       Big &                   Small &
Custome    Big         small       Small       Household       Pan
Type       Retailer    Retailers   Retailers   customers       kiosks
No. of
W/S              2           20           6             15              7




          Major client base of wholesaler

                                                Big Retailer
          14%         4%

                                                Big & small
                                                Retailers
                               40%
                                                Small
   30%                                          Retailers

                                                Small &
                                                Household
                12%                             customers
                                                Pan kiosks




     Maximum i.e. 40% of wholesaler s customer base is of big and small
     retailers.
     After that 30% of wholesaler s customer base is of small retailers and of
     household customers.




                                               31
PERFORMANCE OF COLGATE GEL IN GEL SEGMENT AT
WHOLESALE MARKET


     Brand    Colgate Gel   Close up
 No. of W/S       19          27




         Competitiveness of Colgate Gel in Gel
                      Category


                                       38%
                                             Colgate Gel
                                             Close up
  62%




     From above graph we can analyze that Colgate gel in gel category is not
     doing good in comparison with Close Up.

     62% percent of wholesalers said that Close Up is giving good business
     and 38% of wholesalers are earning good businss from Colgate Gel.




                                       32
 PERFORMANCE OF CP S TOOTH BRUSHES IN THE TOOTH
 BRUSH SEGMENT.

             Colgate            Pepsodent
  Brand Palmolive      Oral B    & Others
  No. of
   W/S         27       15          8




           Competitiveness of CP's toothbrush in
                      Brush segment
                         16%
                                               Colgate
30%                                            Palmolive
                                               Oral B


                                    54%        Pepsodent &
                                               Others




       From above graph we can infer that Colgate s toothbrushes are doing
       good business in the toothbrush category at W/S counter.

       54% of wholesalers said that Colgate is doing good business.




                                          33
PERFORMANCE OF COLGATE HERBAL TOOTHPASTE IN
HERBAL CATEGORY AT WHOLESALE COUNTER.


              Colgate
     Brand    Herbal       Dabur/Babool      Meswak
 No. of W/S     14              13             23




      Competitiveness of Colgate Herbal in
                Herbal category
   46%                             28%

                                          Colgate Herbal
                                          Dabur/Babool
                        26%               Meswak




      Meswak is doing good business in the Herbal category.
      Colgate herbal has acquired second position.




                                     34
PERFORMANCE OF PALMOLIVE SHAVING RANGE IN THE
SHAVING PRODUCTS CATEGORY.


Brand       Palmolive   Others(Godrej,Denim,Oldspice)
No. of
W/S                20                              30




          competitiveness of Palmolive shaving
                       products



                                                Palmolive
 60%

                                         40%    Others(Godrej,
                                                Denim,Oldspic
                                                e)




         40% wholesalers voted for others i.e for brands like Godrej , Denim, Old
         Spice.
         40% of wholesalers replied that Palmolive shaving products are giving
         good business .




                                           35
WILLINGNESS OF WHOLESALERS TO PROMOTE SALE OF
SECONDARY PRODUCTS.


Option      Yes        No
No. of
W/S               30        20




         Wholesalers willingness to Promote
              the secondary Brands


           40%
                                                    Yes
                                                    No
                                   60%




         From above graph we can infer that 60% of wholesalers are ready to
         promote sale of secondary brands if they will get attractive schemes and
         margins.




                                         36
MODES OF SERVING TO CLIENTS BY WHOLESALER

                                          Order
Modes                                     booking
of          Counter                       &                           Telephone                          Van
Service     sales                         supply                      Orders                             sales
No. of
W/S                          45                              2                                  3                        0




                     Mode of Serving to Clients

             60
                                          45
             40
No Of W/H
             20
                                                                      2                              3                            0
                 0

                                                                                                rs                            s
                                    les                        . ..                        de                            le
                                a                            su                                                        sa
                        te
                             rs                          &                               Or                        n
                    n                           i   ng                              ne                        Va
                 ou                          ok                                   ho
             C
                                           bo                            l   ep
                                    er                                Te
                                Ord

                                                                        Mode Type




      Most of Whosalers serve their clients by counter sales only.
      2 Wholesalers replied that they served by way of Order booking and
      delivery.




                                                                                                         37
VARIABILITY OF PRICES ON THE BASIS OF CUSTOMER


Option     Yes      No
 No. of
  W/S      20       30




      Veriability of prices from customer to
                      customer



                                   40%

                                               Yes
     60%                                       No




      60 % of wholesalers replied that prices cannot change from customer to
      customer.
      40% of wholesalers rplied that prices can change by customer to customer
      on the basis of their purchase and reliability.




                                     38
      AVERAGE THROUGH PUT OF CDC & CTP PER CLIENT BY
      WHOLESALER



Brand   0-500    500-1000   1000-1500    1500-2000    2000-2500     2500-3000   3000-3500   3500-4000   Revenue   Percentage
CDC         0           1            2           3            5             9          17          13    148500       63.191
CTP         5          13            5           6            7             8           3           3     86500       36.808
                                                                                                         235000




                  Average throughput of CTC & CDP per client

                       18
                       16
                       14
                       12
                       10
            No. of W/s
                        8
                        6                                                             CDC
                        4                                                             CTP
                        2
                        0
                             0-500       1000-       2000-        3000-
                                         1500        2500         3500
                                                 Rs .




                             Percentage of CTC & CDP




                37%
                                                                                    CDC
                                                                                    CTP
                                                                     63%




            From above graph we can analyze the percentage throughput of CTC and
            CTP per client.




                                                        39
JUDGING THE PERFORMANCE OF COLGATE PALMOLIVE IN
W/S MARKET ON THE BASIS OF HIGHEST DEMAND


     Brands    I(5)     II(4)    III(3)         IV(2)   V(1)     Weights
  Colgate       45        5         0             0      0        245
 Pepsodent       2       40         8             0      0        194
  Close Up       3        5        32             5      5        146
Dabur/Babool     0        0         4            33      13        91
   Anchor        0        0         6            12      22        64




         Comparison of Brands (in % ) as per Highest
                         Demand
                       9%

                12%
                                               33%

                                                               Colgate
                                                               Pepsodent
                                                               Close Up
               20%
                                                               Dabur/Babool
                                                               Anchor
                                26%




     From the above graph we can say that Colgate is the brand which
     possess numero uno position .
     After that pesodent and close Up aquired second and third position.




                                          40
COMPARISON OF BRANDS ON THE BASIS OF MARGINS &
SCHEMES


Brands           I(5)         II(4)   III(3)         IV(2)   V(1)    Weights
Colgate           18           17        9             4      2       195
Pepsodent         15           18        7             6      4       184
Close Up           5            7       18            15      5       142
Dabur/Babool       7            4       10            21      8       131
Anchor             5            4        6             4      31       98




         Comparison of Brands (in % ) as per Margins &
                          Schemes
                        13%
                                               26%



           17%                                                      Colgate
                                                                    Pepsodent
                                                                    Close Up
                                                                    Dabur/Babool
                                                                    Anchor
                                               25%
                  19%




     We can say that colgate is giving good schemes and margins on their
     range of products.
     There is not very big gap between colgate and pepsodent.
     We can infer that it is the magic of the brand.




                                               41
COMPARISON OF BRANDS ON THE BASIS OF DISTRIBUTION
SERVICE


        Brands     I(5)     II(4)     III(3)   IV(2)    Weights
Colgate             43        5          2       0       241
Pepsodent/Close
Up                  5        34        11       0         194
Dabur/Babool        0        6         26       18        138
Anchor              2        5         11       32        127




          Comparison of Brand (in % ) for Distribution
                          Service
                  18%


                                        34%

                                                       Colgate
                                                       Pepsodent/Close Up
            20%
                                                       Dabur/Babool
                                                       Anchor

                            28%




     Colgate aquired number 1 position for their exellent distribution
     service.Storng and efficient distribution service is the strength of colgte
     After that Hindustan Lever aquired second position.




                                        42
COMPARISON OF BRANDS ON THE BASIS OF CUSTOMER
SATISFACTION


Brands               I(5)        II(4)    III(3)        IV(2)   V(1)   Weights
Colgate               32          11         7            0      0      225
Pepsodent             11          19        17            3      0      188
Close Up               6          15        20            7      2      166
Dabur/Babool           1           5         2           29      13     102
Anchor                 0           0         4           11      35      69




          Comparison of Brands (in% ) for Customer
                        Satisfaction
                            9%


                                               30%
               14%
                                                                   Colgate
                                                                   Pepsodent
                                                                   Close Up
                                                                   Dabur/Babool
               22%                                                 Anchor

                                         25%




     Again Colgate got numero uno position in the category on the basis of
     customer satisfaction .
     After that Pepsodent and closeup aquired second and third position.




                                                   43
VARIOUS WAYS TO ATTRACT AND RETAIN THE CLIENTS AND
STRATEGIES TO FACE THE COMPETITION USED BY WHOLESALERS.


           Stock availability
           Credit term and period
           Personal relationship
           Good service
           Giving information regarding trade
           Products assortment
           Pass on the scheme
           Old and trusted name
           Order booking through salesmen and by phone
           Bulk breaking
           Customer service


For avoiding stock out and overload position(inventory control )

     Purchase 10% more stock
     Regular check on stock
     Keep stock of 7 days extra
     ( some wholesalers purchase extra because of scheme ,
     E.g.
         - if purchase 20 gm of Colgate in bulk then sale only this brands and
           stop 20 gm pepsodent and other brands.




                                     44
                            FINDINGS


Most of wholesaler have fixed client so they can serve better to their
customers and they can promote the brands which are not in demand.

Many wholesalers have local retailer as their clients.


Lot of wholesalers serve around 150 to 200 clients in day .so we can
understand that lot of retailers is not served by distributor of Colgate. So
there is big loophole.

Main point in wholesaler business is about credit period. But there are lot
of wholesalers who are not doing business credit. They offer credit on
basis of reliability.


Most of wholesalers serve to big and small retailers and household
customers

We can say that secondary brands like Colgate gel, herbal, Palmolive
range are lacking behind because of poor promotions.


Toothbrush of Colgate are doing good business because of increase in
margins

Wholesalers replied that they can get products much lower rate then
distributor but for service and relation they purchase from distributor.


Lot of wholesalers pass on scheme to retailers who have idea about it
and also on the reliability of retailers .

Lot of wholesalers gives good treatment to local manufacturer because of
huge margins and regular availability.




                                 45
                               RECOMMENDATIONS


    First try to cover the retailers from rural and slum areas.

    Try to calculate every wholesalers average purchase pattern and keep on
    giving good services to high potential wholesalers. try supply more
    quantity of secondary brands
.
    Try to find out wholesalers who are giving lower business at six month
    average according with that omit those wholesalers.

    Do not give very high scheme and margins because the purchases the
    products in huge quantity and start under cutting.

    try to give specific target for wholesalers market and retail market
    according with the market potential.

    Cover the retailers from newly developing and upcoming boundaries and
    areas of city.

    Use more and more POP material at wholesalers counter and also
    distribute to the retailers for increasing sale of secondary brands

    if we try cover the marginal account then first for few month try give them
    financial support by way of easy credit terms .

    keep regular eye on the distributor because they are selling and supplying
    the products other than there territory or city. Because of the big target.


    Use some of the mechanisms which are used by wholesalers such as
    regular product availability, good constant service try create personal
    relation ship with every wholesalers.

    Try to promote secondary brands in market first by huge promotion
    technique because when the primary demand will create then and then
    only sale will increase.




                                      46
While launching new product do not give specific slabs for purchase.

For attracting and retaining high potential wholesalers arrange some
entertaining programs and distribute some prices to them.

Colgate is having high brand equity as compare to other brand and it is
market leader with high market share as per market data. Hence Colgate
should adopt an offensive strategy to defend its market share in changing
scenario. It can go for an acquisition of small brand for increase the
current price up to certain level at which the chances of switching over
brands is minimum.




                                47
                                 QUESTIONNAIRE
1) Name of wholesaler:
   Address:


2) Category
    a) Below-10000                            b) 10000-25000
    c) 25000-500000                           d) 50000& Above

3) Range and assortment of products
    A) Exclusive FMCG                         b) Tobacco & Tobacco products
    C) FMCG & Food grains                     d) Major Food grains
    e) Confectionary & Food products

4) Are you have fixed clients, if yes what is the percentage of these clients from local &
from other towns?

Percentage Of Local Clients:                             Percentage of clients from other
towns:

Local Areas:
Other Towns:
5) What various ways do you use to attract and to retain the various clients?




6) What strategies do you use to face the competition?




7) What is the exact number of clients you serve during the day?
 No of clients:

8) Who are your major clients? (Give ranking)
a) Big Retailers                              c) Panwallas
b) Small Retailers                             d) Household customers




                                            48
9) What is the average percentage of CDC &CTP per client?

            Product                            Amount
     Colgate Dental Cream
     Colgate Tooth Powder

10) What do you think about Colgate Gel Competitiveness in Gel category? (In
Comparison with Close up Other Gel brands)




11) How CP s Toothbrushes are performing in comparison with other brands?



12) Is the herbal performing better than Vicco, Meswak, and Dabur/Babool? If yes what
is the reason behind that?



13) Are you keeping Palmolive Shaving cream & Brush? How is the performance of this
brand in the market? And if not keeping what is the reason behind that?



 14) What is the minimum and maximum limit of credit period, you allow to your
customer? And on what Basis?



15) Are you willing to take extra efforts for promoting &pushing these brands if company
offers you some attractive schemes?



16) Are you keeping full range of CP Other than CDC &CTP? If not what is reason
behind that?
 a) Because of demand in market                     b) Because of margins
 c) Because of higher prices

 d) Any other reasons




                                          49
17) What do you think about Colgate Palmolive competitiveness with other brands?
                                (Rank the following)
Particulars  Colgate     Pepsodent Close-        Dabur/Balsara Anchor        Ajanta
                                       Up
Highest
Demand
Range of
Products
Margins
&scheme
Distribution
service
Availability
of Products
Customers
Satisfaction

18) Are the companies special schemes attract you? If not give the reason.




19) What are the various modes of ser vice to your customers?
a) Counter Sales only                         b) Order booking & supply at the
customers shop
c) Telephonic orders & supply through transport.        e) Van Sales



20) The important point in the wholesale business to have enough inventory or ready
availability of materials, how you handle or control your inventory? Have you ever
realized /experienced Stock out position? And if the stock gets overload then how do
you dispose it?




21) Are the wholesale prices may differ from customer to customer OR from area to
area?
If yes what is the reason behind that?




                                           50
22) If CP products are not available do you use to substitute the products to customer?
1) Pepsodent                                  3) Anchor
2) Close up                                   4) Ajanta
5) Dabur /Babul

23) How do you calculate the selling price of the products? What expenses you include
while deciding
 the price of product?


24) There are no of local manufacturers (Small manufacturers), they promote their
products through
your channel / Goodwill, what is your attitude towards them?



25) Any Suggestions




                                  BIBLIOGRAPHY




                                            51
BOOKS


AUTHOR              NAME OF BOOK               PUBLICATION


M.V Kulkarni        Physical Disribution and   Nirali Prakashan.
                     ChannelManagement
                          Mumbai.


C.R.Kothari         Research Methodology   Wishwa Prakashan
                    Methods and Techniques


WEBSITE

www.colgate.co.in




                                       52
This document was created with Win2PDF available at http://www.daneprairie.com.
The unregistered version of Win2PDF is for evaluation or non-commercial use only.

								
To top