RETAIL ENGAGEMENT: ASSESSING THE

COMPETITORS
Competitors viz.
1. HUL Super Value Stores
2. Cadbury Purple Star
3. Reckitt Benckiser Udaan
4. Marico Mera/Super Mera/Unnati Stores
5. Colgate Hero No.1
1. HUL Super Value Stores
With the Super Value Store Program, herby referred to as the SVS, HUL aims to exclusively
target mom-n-pop stores by refashioning them to resemble somewhat a modern retail
outlet. A unique aspect of the SVS program is the fact that, HUL not only provides the usual
portfolio of schemes but also imparts retail training and solutions to help shopkeepers add
value and change for the better.
1.1 The Program:-
The SVS programs scheme is simple viz.
1. An additional 3.5% commission on monthly sales to the retailers who opt to rebrand
themselves as the Super Value Stores for HUL.
2. According to most shopkeepers, HUL installed special cabinets in the shop for
displaying its products. The number of display windows range from 2 to 6 in
Delhi/NCR markets.
3. Apart from the aforementioned discount, special incentives on achieving targets set
by the company are also given out. These target based earnings ranged from as small
as Rs.800 to as high as Rs.6000.
4. Maintenance of the displays, shelves and other merchandizing is also done by the
company itself.
5. Merchandizing beats at SVS stores are twice a week, instead of once in two weeks
for normal outlets.
6. Apart from overall sales targets, product specific achievements are also rewarded by
HUL.
Ex:- A free hair dryer worth Rs.175 for every Rs.200 worth of HUL shampoos.
7. Any new product in the pipeline, the company claims to give the first sample to the
SVS outlets. Feedback from the SVSs is used for further improvement of the product.



1.2 Drawbacks:-
Although the SVS program is a very progressive step towards retailer engagement, but it
does have its weaknesses:-
1. Revamping the normal stores to a Super Value Store makes it look very much like an
expensive up-town outlet, the owners certainly do not mind, but some customers do
have their apprehensions. A sense of expensiveness creeps in.
2. The target policies for Super Value Stores are very stringent.
Ex:- The target, if not completed, gets carried over to the next month and is
accumulated up to a maximum of 4 months; after which the SVS is put up for review.
3. The smaller outlets which are not eligible for an upgrade to the SVS, experience huge
undercutting losses, because some of these SVSs offer discounts on the MRP as well.
HUL needs to balance the space it vacates in the smaller outlets with the incremental
sales at the SVSs.

2. Cadbury Purple Star
The retailer engagement program of Cadbury India Limited is known as the Purple Star
Program
2.1 Classification
The purple star outlets are classified into four categories viz.-
1. Purple Kings
2. Purple Prince
3. Bournvita Chemist Club (BCC)
4. Bournvita Ka Badshah (BKB)



The basis of classification of outlets is as follows
Classification Sales Norms Quarterly Benefits
Purple Kings Minimum of Rs.12000
of overall portfolio
Choclates:
Visicooler or Minimum 3
sq.ft. of Horizontal Space
3 sq.ft. of vertical space
CIL Large Pack Dispenser
at Cash Counter
Bytes:
5 Strips hanging or Pure
Bytes Stand
2.5% for visibility
1% on Targets
Purple Prince Min. Rs.10000 p.m. of
Chocolates and Bytes
1.5% on monthly
targets
0.5% on Targets of
Focus Lines
BCC
(Chemists)
Min. Rs.3000 p.m. of
Bytes and FSM
Min. 4 sq.ft. of horizontal
space adjacent to the
category stocking
Min. 12 Bytes facing (incl.
Min. 3 Five Star Magic
Rs.300 p.m.
BCC
(Excluding
chemists)
Min. Rs.3000 p.m. of
Bytes and FSM (Five
Star Magic)
Min 4 sq.ft. of horizontal
space adjacent to the
category stocking
Min. 12 Bytes facing
Rs. 400-600 p.m.



For the audit of the visibility in outlets, a Third Party has been appointed. The main task of
the Third Party Representative is:
To check whether the outlet is maintaining the proper visibility and following minimum
requirements.
To check whether the purity of Visicooler is maintained
Installation of POP, sticking of posters, etc.
Maintenance of Visicoolers
Proper Brand Blocking Circulation of stocks, i.e., if any product of previous date is kept,
the representative would keep that stock above the new stock so that it is sold before
the new stock. This reduces the replacements.
3.Reckitt Benckiser
3.1 UDAAN SCHEME:
Under this scheme selected outlet are targeted mainly those have a significant sales volume.
These outlets are selected based on sales potential, locality and taking other point into
consideration. In these outlets two windows at eye level are selected for display of only
Reckitt Benckisers product. These windows are specially decorated by the merchandiser
with company POS as per the specification given be the company. And to maintain these
window retailer are offered monetary incentive of 2.5% of total purchase quarterly.
3.2 CLASSIFICATION
UDAAN classifies its retailers into three categories:-
1. Platinum Club:-
The outlets with sales above Rs. 30000 come under this club. They receive a monthly
payment of Rs. 900 and 1000 per month for alternate quarters of the year.
2. Gold Club :-
The outlets with sales between Rs. 15000 and Rs. 30000 are members of the Gold Club.
They receive Rs. 600 and Rs. 500 per month for alternate quarters of the year.
3. Silver Club :-
The outlets with sales from Rs. 5000 to Rs. 15000 are members of the Silver Club. They
receive Rs. 250 per month.
4.MARICO
4.1 MERA Stores:-
The MERA program aims to incentivise the top Key outlets in the area. The selection of
the Key outlets which will be the beneficiaries of the program is done by the ASM in that
area. Ex:- If 100 outlets need to be selected then a master list of +20% will be created
and the KEY outlets then will be on the basis of softer factors viz.:-
Range of products sold
Customer footfall
The program is carried out in phases of 4 months, after which subtle changes, based on
the response and certain indicators of effectiveness, are made.
The elements of executing the program are as follows:-
i. A window; ideally placed behind the counter.
ii. Fixed size of window
iii. Multi Product Dispenser: Male grooming products and the Therapie range of
products
iv. Targets: Every phase brings new targets for the outlets
4.1.1INCENTIVES:-
Under the MERA scheme, following incentives re given to the oulets:-
Window : Rs.450 per month is paid to the outlet owners
Targets: 1% discount over and above the usual schemes



4.2 SUPER MERA
The elements of the Super Mera stores are:-
i. Windows: 2 windows alongside each other
ii. Fixed size of windows
iii. Saffola Zone:- To be placed near the edible oil category products in the outlet.
Size of stand at the Saffola zone is standard across all such stores
iv. Multi Product Dispenser: Similar to Mera stores
v. Target : New targets every phase
4.2.1 INCENTIVES:-
i. Windows : Rs.475 a month
ii. Saffola Zone : Rs. 1000 a month
iii. MPDs : Unpaid, only POS material supplied.

4.3 UNNATI
The UNNATI category is exclusively includes Chemist outlets.
The elements of the UNNATI stores are:-
i. Window: 1 window necessarily behind the counter
ii. Window carries a focus product communicated by ASMs as and when
required
iii. Multi Product Dispenser: Similar to other categories
iv. Target: Similar to other categories
4.3.1 INCENTIVES:-
i. Window: Rs.400 per month
ii. Target: 3% discount over and above the usual schemes offered.


4.4 BASIS OF CLASSIFICATION INTO DIFFERENT CATEGORIES:-
1. Chemists: Pharma, OTC drugs and other medical products
2. Modern Trade: Sales of Rs.1,00,000 or above and our nationalized outlets
3. General Trade: Sales similar to the above, but the stores must not belong to a
national chain
4. Wholesale: All outlets having sales of greater than Rs.5000 and selling to retailers
who cannot be reached by the distributors
5. Key: Out of the remaining outlets, stores which contribute to80% of the business are
called KEY stores
6. Others: The remaining 20% are the OTHER stores
4.4.1 SUPER MERA Stores:-
The outlet must be a KEY store
Minimum sales of Rs.35,000
Must stock the whole Marico range
4.4.2 MERA Stores:-
The outlet must be KEY store
Minimum sales of Rs.20000
Must stock the whole range of Marico products
4.4.3 UNNATI Stores:-
The outlet must be a CHEMIST store
The outlet should have sales of at least Rs.3000
Except Suffola and Sweekar, all products of Marico need to be stocked
Outlet Utility:- 1. Warehouse Comm, 2. Bar Code reader, computerized billing