Pidilite case study
Pidilite Case Challenge – Fevikwik and the Indore Market
A. Approach
Broadly there are two strategies to approach the situation – short term sales blip and long term market capturing strategies.
Now to increase short term sales i.e. to give a sales blip for say about 2-3 months we can use the below mentioned strategies. This will increase the short term sales and after that we can hope that majority of the users will keep on using Fevikwik. Increase Sales
Increase consumption per head Increase the consumer base
All the below mentioned strategies are based on very few generic principles which are-
Sales Strategy
How to implement strategy
1. Use Upsells Effectively
How many times we have experienced that we end buying products which are pushed by retailers. (For e.g. Sir, would you like to have French Fries also and we end up buying it)
Make sure that your wholesalers and retailers are pushing Fevikwik, but they need a reason to do it. The reason for them for short term will be – a new high valued wholesaler/retailer reward program.
2. New high valued wholesaler/retailer reward program
Cheapy and Fevikwik are vast apart in terms of their quality, but this has an impact on end consumers but not on wholesalers and retailers. They care about margins and Cheapy is providing them higher margins (4.5-12% for wholesalers and 30% for retailers vs only 17% for Fevikwik)
But in short term you can’t increase your sales by giving higher margins, but you can give very high valued reward program. For e.g. washing machine for highest grossing retailers. I believe this will work because giving just same rewards as Cheapy, will not change wholesalers mind, but higher reward will definitely do. You can easily control the cost by giving lesser number of rewards.
3. Incentive program for your sales team
Again on the same lines as above,
A. Approach
Broadly there are two strategies to approach the situation – short term sales blip and long term market capturing strategies.
Now to increase short term sales i.e. to give a sales blip for say about 2-3 months we can use the below mentioned strategies. This will increase the short term sales and after that we can hope that majority of the users will keep on using Fevikwik. Increase Sales
Increase consumption per head Increase the consumer base
All the below mentioned strategies are based on very few generic principles which are-
Sales Strategy
How to implement strategy
1. Use Upsells Effectively
How many times we have experienced that we end buying products which are pushed by retailers. (For e.g. Sir, would you like to have French Fries also and we end up buying it)
Make sure that your wholesalers and retailers are pushing Fevikwik, but they need a reason to do it. The reason for them for short term will be – a new high valued wholesaler/retailer reward program.
2. New high valued wholesaler/retailer reward program
Cheapy and Fevikwik are vast apart in terms of their quality, but this has an impact on end consumers but not on wholesalers and retailers. They care about margins and Cheapy is providing them higher margins (4.5-12% for wholesalers and 30% for retailers vs only 17% for Fevikwik)
But in short term you can’t increase your sales by giving higher margins, but you can give very high valued reward program. For e.g. washing machine for highest grossing retailers. I believe this will work because giving just same rewards as Cheapy, will not change wholesalers mind, but higher reward will definitely do. You can easily control the cost by giving lesser number of rewards.
3. Incentive program for your sales team
Again on the same lines as above,