To counter the problem of Fill Rate what we can do is, in the purchase order if a particular product is not available we can send the higher quantity of the different size of same product. Example if there is order of 100 units of fem pink bleach in 25 gram and 50 gram each. Now if the 50 gram is not available we can send 50 extra units of 25 gram. By doing this we will not lose the sale and customer since we are substituting his demand to small unit of same product. Other than this, we can also make the forecasting process more accurate so that company is not short of goods.
While retailers concentrate more on the sale Bleach, as it is highest selling product of FEM, they should not avoid other SKUs. We can give them more margins on the sale of Hand Wash and Hair Removal Category. Special retail schemes can also be
introduced like, on purchase of 500 units of Hand Wash 100 units free. This will not only motivate the retailer to sale slow moving products but will also increase the sale for the company. Giving special discount schemes and high margins to retailers will also improve relationship between the company and the retail chain.
Regular survey should be done in these retail chains to see, what kind of variant of the product and size of the pack is preferred by the consumers. Feedback and suggestions can be taken through online surveys.
A special dedicated small van should be taken for transport of FEM products to various stores so that FEM order does not have to wait for Dabur supply. Special norms should be laid down and regarding the same contract should be signed with the distributor for supply of products within the time limit.
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Minimum Base Quantity should not be the same throughout the month. Since there is an increase in the footfall of consumers in the first 10 days of the month as
compared to the rest of the month. MBQ should be setup in such a way that the supply does not fall short of demand. Example if there are 24 units of bleach ordered, then it should be increased to 36 units. Buffer should also kept in case of sudden increase in demand.
Company should make sure that the distributor is maintaining good hygienic conditions in the warehouse so that spoilage of products can be avoided. Regular check from the company representative should be done to see of the standards are maintained or not.
Purchase order should be send through mail so that the retailer does not have to wait for the company representative to come and collect the order. Sales person can be provided with palmtops so that they can take order quickly and with ease.
Margin should be setup keeping in view the competitive scenario. Low margins can demotivate the retailer. Healthy margins keep the retailers on their toes and it also motivates them to sell product since that gives them higher margin and higher revenue.
Credit issues should be avoided. Retailer, distributors and company should follow the contract, any conflict should not affect the sale the products.
A notification should be sent to all the distributors and retailers in case company introduces any new product or SKU. Promotional schemes should also be
communicated to the retailers through email. Any kind of communication gap should be avoided.
Salesman should not push the product. Special incentives should be given to the salesman on achieving their targets. This will keep the salesman motivated, and those who are unable to achieve targets can be given training to teach them special selling techniques to improve their productivity.
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Recommendations
Part 2
Since major part of the FEM consumers is in the age group of 18 to 35 and in that most of them are females. FEM’s brand and consumer promotion should be done keeping in my mind segment of Females aging within 18-35.
While this is primary target segment, men of same age group can also targeted because there is a growing trend of use Bleach and Hair Removal Cream among men. If promotion regarding the same can be done, FEM products can be made equally famous among men as well.
FEM’s should concentrate more on the promotion of Hand Wash and Hair Removal since its sale is still very low as compared to the sale of Bleach.
FEM also needs to keep its promotional activity consistent throughout the year, to make a mark in the mind of the consumers. Once people buy a product under a scheme and if like the quality of the product, then customer’s loyalty towards that brand increases.
Since people prefer more of Monetary scheme over Non-Monetary scheme, our strategy should be such that it includes more of monetary scheme and less of Non- Monetary. Company should not concentrate of either of the two but on both of them. Strategy should be made to make use of both the techniques of promotion efficiently.
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According to the Analysis done above related to product life cycle stage of different categories of FEM product. Different promotional methods can be recommended.
FEM’s hair removal cream is in its Introductory or Infancy stage. Products coming under this stage need more of advertising and publicity.
Encouraging personal selling and providing trial of hair removal cream can be of highest cost effectiveness. I would recommend schemes like:
1. Buy Hair Removal Jar/Tube 40 gram, get Rs. 7 off
2. Buy 3 packs of Hair Removal and get discount on this month’s FEMINA magazine
3. Buy Hair Removal and get sachet cleansing cream free.
FEM’s liquid hand wash category falls under Growth stage. In this
advertising, sale promotion and personal selling all grow more important but above all of them is the power of word of mouth which takes all the momentum of demand. For liquid hand wash I would recommend schemes like;
4. Buy Hand Wash 1liter and get Rs. 20 off
5. Buy Hand Wash 250 ml and get 200 ml pouch free 6. Buy Hand Wash 250 ml and hair remover sachet free
FEM’s bleach category also falls under Growth stage. But since it’s a market leader and the competition is not that strong. Any kind of Consumer promotion will work for this category
7. Buy Bleach and get cold cream sachet free 8. Buy Bleach and get mud pack free
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CONCLUSION
The Gap analysis in distribution, assortment and MBQ levels and designing the promotion mix strategy were successfully developed and analysed for FEM products naming; Bleach, Liquid Hand Wash and Hair Removal Cream. Certain gaps in the distribution should be given serious consideration by the company. Analysis done on promotion can be helpful in
determining the schemes that are preferred by the buyers the most.
Detailed recommendations on both the parts of the projects have been given. Information on improving the various loopholes that exist in the distribution structure has been listed in the report. Some limitations were faced during the collection of data from various sources. But the same has been overcome with the help of Dabur Management and Distributors of Dabur. Various promotional schemes have been provided in the recommendations and the data to validate it as well.
The project was carried out in a good manner and has met the expectations of the organization and the institute satisfactorily, though it still has quite some scope for improvements which could be incorporated subsequently.
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REFRENCES
1. www.google.com 2. www.wikipedia.com 3. http://www.dabur.com 4. http://www.femcareworld.com 5. http://www.supplychainmetric.com 6. http://retail.about.com 7. http://www.citesales.com 8. http://www.bizmove.com/general/m6h5.htm 9. www.docshare.com 10. http://www.indiaprwire.com109
BIBLOGRAPHY
1. Tapan K. Panda; Sunil Sahadev; (2009) Sales and Distribution Management, Oxford University Press.
2. Tony Yeshin; (2006) Sale Promotion, Thompson Learning
3. Havaldar, Cavale Krishna, Vasant; Sales and Distribution Management, Tata McGraw- Hill.
4. Don E. Schultz; William A. Robinson; Lisa A. Petrison; (1998) Sale Promotion Essential, The McGraw-Hill Companies.
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