BENCHMARKING,

& IN MODERN TRADE & PRESSURE WASHERS INDUSTRY FOR

CONSUMER AND PURCHASE BEHAVIOR ANALYSIS

By

Rahul Gupta Vinod Gupta School of Management, IIT Kharagpur SBD - 2012

Under the guidance of

Mr. Abhinav Mathur Head Strategic Solutions and Marketing, Stanley Black & Decker

SBD Project Report Rahul Gupta

Table of Contents
Acknowledgement ........................................................................................................................................ 4 Executive Summary ....................................................................................................................................... 5 About Stanley Black & Decker....................................................................................................................... 7 Project 1 ................................................................................................................................................... 10 Objective, Scope and Methodology ............................................................................................................ 10 Objective ................................................................................................................................................. 10 Scope ....................................................................................................................................................... 10 Methodology ........................................................................................................................................... 10 Phase 1 ..................................................................................................................................................... 15 Questiionaire............................................................................................................................................... 15 Segments of Market (Cleaning Range) ....................................................................................................... 15 Market Size ................................................................................................................................................. 15 Demographics of Respondents ................................................................................................................... 16 Findings from Questionnaire (USERS - Demographics) .............................................................................. 17 Findings from Questionnaire (USERS Place of Purchase) ........................................................................ 17 Findings from Questionnaire (USERS Place of Purchase) .................................................................... 18 ................................................................................................................................................................ 18 Findings from Questionnaire (USERS Preference during Purchase) .................................................... 18 Findings from Questionnaire (USERS Most Liked Attribute) ............................................................... 19 Product Benchmarking............................................................................................................................ 21 Methodology for Scoring ........................................................................................................................ 21 Analysis of Each Category of SKUs .............................................................................................................. 22 Handy Corded ......................................................................................................................................... 22 Car Vacuum Cleaner................................................................................................................................ 22 Small & Medium Corded ......................................................................................................................... 23 ................................................................................................................................................................ 23 Large Corded ........................................................................................................................................... 23 Wet N Dry Vacuum Cleaners................................................................................................................... 24 Results & Recommendations from Questionnaire and Benchmarking ...................................................... 25 Live Project Implementation....................................................................................................................... 26 Survey.......................................................................................................................................................... 26

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Steam Mop .................................................................................................................................................. 26 Findings ....................................................................................................................................................... 27 Recommendations & Way Forward: ........................................................................................................... 28 Appendix ..................................................................................................................................................... 37 Glossary ....................................................................................................................................................... 38 References .................................................................................................................................................. 39

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Acknowledgement
I would like to take this opportunity to extend my sincere thanks to Stanley Black and Decker for offering a unique platform to earn exposure and garner knowledge in the field of Pre-sales, marketing and sales strategy. I am able to say with conviction that I have immensely benefited from my association as a summer intern with Stanley Black & Decker. I am deeply indebted to my project guide Mr. Abhinav Mathur, Head Strategic Solutions and Marketing, Stanley Black and Decker for guiding me throughout the project and providing valuable inputs and insights. His knowledge and experience served as a continuous source of encouragement and motivation for me. Special thanks are also due to Mr. Balajee Husker, and Mr. Nirupam Dutta who helped me on various aspects at different points of time. Being a part of Stanley Black and Decker for the past eight weeks has been exciting, enriching and fun. Rahul Gupta VGSOM, IIT Kharagpur SBD 2012

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SBD Project Report Rahul Gupta

Executive Summary
The project was done at Stanley Black & Decker, Bangalore. The project was carried out to understand and the study the Perpetually declining ARPU Loss of subscribers (Chord cutting effect) Emergence of the disruptive OTTs Emergence of technologies like IPTV Emerging trends in TV everywhere, multi-play and bundled offerings In such a heavily technology dependent service industry, as the C&S industry, it is very important to identify the future service trends and adapt to those by changing and adopting in order to survive. The C&S companies have already started strategically investing in developing their services to be future ready and in this process choosing the right IT vendor is of utmost importance. The companies are not only looking for outsourcing partners but IT partners who can provide future roadmap consultancy as well. And there lies a huge opportunity for SBD. The C&S industry in North America is estimated to be around $ 66 Billion1. Currently SBD has engagements with four big C&S players: Dish TV DirecTV Comcast Sky Network These engagements have given SBD an exposure to the C&S industry and have helped to gain valuable insights. However, the engagements did not have any managed services or major end to end enterprise solution implementation projects. They mainly consisted of a cluster of smaller outsourced projects and thus SBD has still not been able to establish itself as a reliable and capable end to end IT services vendor within the C&S community. Leveraging on these engagements and the current portfolio of solutions that SBD has to offer, the GCSP hunting team has focused its efforts towards identifying the large C&S accounts in Europe and North America which are most lucrative for SBD. As a result of this focus, the scope of the current project was decided to be as follows: To identify the accounts to target from North America and Europe; perform a deep dive analysis on each of the accounts and find out the most attractive accounts from amongst them. One of the most important outcomes of this project is the Attack Plan that SBD is going to adopt for the different targeted accounts. The Attack Plan would essentially consist a mapping of SBDs products and services with the specific account needs - The needs for every account is individually identified by

According to - IDC US SMB Telecom Vice and Data Services 2011-2014 forecast

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analyzing and understanding their pain points and the various cost, revenue and growth initiatives taken by them. The final deliverables of this project includes the following: Framework to Evaluate Hunting Accounts Attractiveness Deep dive Account Analysis PPT Comprehensive Attack Plan for Each Account Solution Mapping Defining Tiers and Segmenting the Accounts into Tiers Final Recommendations

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About Stanley Black & Decker

When you trace it all the way back, it comes down to three individuals: Frederick Stanley, Duncan Black, and Alonzo Decker. Three passionate individuals who built powerful companies that they were so proud they put their names on them. In 1843, Frederick Stanley started a small shop in New Britain, Connecticut, to manufacture bolts, hinges, and other hardware from wrought iron. With superior quality, consistent innovation, and rigorous operational improvement, Stanleys company defined excellence, and so did his products. In 1910, S. Duncan Black and Alonzo G. Decker started their shop, similar in size at first, in Baltimore, Maryland. Six years later they changed the world by obtaining the worlds first patent for a portable power tool, and the company they built has been changing the world ever since. Both companies grew in parallel over the ensuing decades, amassing an unparalleled family of brands and products and an even more impressive wealth of industry expertise. In 2010, the two companies combined to form Stanley Black & Decker, to deliver the tools and solutions that industrial companies, professionals, and consumers count on to be successful when it really matters. Globally Stanley Black & Decker have the following divisions: Hardware 1. 2. 3. 4. 5. 6. 7. Baldwin Acquired in 2010. Emhart Teknologies Fastening and assembly. Acquired in 2010. National Hardware General hardware. Acquired in 2005. Precision Hardware Panic and fire exit hardware. Pfister Faucets and other plumbing hardware. Acquired in 2010. Stanley Hardware Vidmar Industrial storage. Acquired in 1966.

Health care 1. Senior Technologies 2. Stanley Health Care Solutions 3. InnerSpace Health care supply storage. Security 1. 2. 3. 4. Best Access Systems Door hardware and locks. Acquired in 2002. C.J. Rush Industries (Canada) Revolving doors and entrance systems. EVS (Canada) Frisco Bay Industries Ltd. (Canada) Stanley Black and Decker

SBD Project Report Rahul Gupta

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Tools 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Frisco-ATMS (Canada) Gnrale de Protection (France) HSM Security services. Intivid Solutions Video electronics. Kwikset Door locks and door hardware. Acquired in 2010. Safemasters Sargent and Greenleaf, Inc. Stanley Access Technologies Stanley Door Closers Stanley Security Solutions Stanley Correctional Services Security systems for correctional industry. Formerly Integrator. Weiser Lock Door locks and door hardware. Acquired in 2010. Niscayah AB. Acquired in 2011

20.

Black & Decker Acquired (via merger) in 2010. DeVilbiss Air Power Pneumatic tools. B & D acquired in 2004.[14] DeWalt Power tools. B & D acquired in 1960. Oldham Saw Company Circular saw blade & wood router bit products. B & D acquired in 2004[14] Porter-Cable Power tools. B & D acquired in 2004[14]/5.[15] Bostitch Fastening tools. Acquired in 1986. Facom (France) Professional tools. Acquired in 2006. Mac Tools Professional tools. Acquired in 1980. Oldham Blades Saw blades. Acquired in 2010. Proto Industrial hand tools. Acquired in 1984. Blackhawk Mechanic's tools. Acquired in 1986. Sidchrome (Australia/New Zealand) Mechanic's tools. Acquired in 1990. Stanley Assembly Technologies Stanley Hand Tools Carpentry and construction hand tools. Craftsman Private-label hand tools for Sears, up until the mid-1980s. Husky Private-label hand tools for The Home Depot. Acquired in 1986, later transferred to Home Depot. Kobalt Private-label hand tools for Lowes. Later made by Danaher Corporation Stanley Hydraulic Tools InnerSpace - A provider of healthcare storage solutions and inventory management analysis. InnerSpace also provides web-based supply management software that utilizes barcoding technology to increase charge capture, reduce excess inventory, and eliminate waste. Acquired in 2006 Stanley Supply & Services MRO products and services. Formerly Contact East and Jensen Tools renamed in 2006.

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21. Vector Products Battery chargers, power inverters, and similar power products. Acquired in 2007. 22. Virax (France) Plumbing tools. Acquired in 2006.

In India Stanley Black & Decker has headquarter in Bangalore and manage the following brand portfolio: Black & Decker Stanley DeWalt Proto Facom Stanley Hydraulic Tools

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Project 1 Objective, Scope and Methodology

Objective
Understand the cleaning range market. Analyze consumers Buying pattern. Usage Behavior Feature Preference Listing and comparing our offering to the competitive companies. Develop action plans keeping in mind the target market and our constraints w.r.t. to our competitors Finally, implement a live project on the field which entailed launch of a new product implementation of an offer gauge the effectiveness of offer Analyse and interpret the sales pattern and consumer behaviour.

Scope Methodology
The entire project was divided into two Phases which are detailed as follows: Phase 1: Visits were made to the following Retail outlets in Bangalore and Mumbai to understand the consumer behavior in modern retail, understand the functioning of retail chains and measure consumer behavior for available cleaning range products from different vendors. Hypercity Hometown Croma Reliance Digital eZone Giriyas Pai Interview: Product manager: Parul Singh (Ex Eureka Forbes) to get a knowhow of Current scenario of cleaning range market in India Comparison of vacuum cleaners sales with other home appliance sales growth in India.

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Opportunities in the cleaning range market. Consumer psyche when buying vacuum cleaners. Range of vacuum cleaners available in India.

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Deployment and Analysis : Questionnaire

For Both Users and Non Users

Questions to ascertain the demography of both users/non users: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. How old is the typical customer? (18-24, 25-30, 30-40, 40 and above) What gender is the typical customer? ( M/ F) What is the highest degree they have received? (Graduate / Post Graduate / Ph. D) What is the typical customer's employment status? (Employed / Self Business / Homemaker) What is the customer's yearly household income? (3-5, 5-10, 10 and above) Is the customer currently married or single? Does the typical customer have children, or not? Does the typical customer own a two - wheeler or four - wheeler? The customer lives in an independent house or flat? What influences your purchase behaviour the most? 1. TV Ad 2. Newspaper Ad 3. Demo at home 4. Word of mouth 5. Online reviews How familiar are you with vacuum cleaners?(/ Never Used/ Dont Know/ Knows but not used / used but not owned / owner)

11.

Question for Non Users: 1. Which brand do you know about in vacuum cleaning? 2. Have you ever had a demo of vacuum cleaner? 3. Reason for not buying: Maid does a better job, not suitable for my requirement, expensive, never thought about it 1. If not suitable why? 1. Too Bulky for storage 2. Unwieldy for everyday use 3. Not suitable to my environment 4. How would you rank these features (1 being the highest)? 1. Brand 2. Price 3. After Sales Service 4. Ease of usage 5. Which of these additional feature will positively influence you to buy a vacuum cleaner 1. Blower

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2. Cordless 3. Robotic 4. Compact 6. How likely are you to buy vacuum cleaners in the future (1 being highly unlikely)? 7. Have you heard of steam mops? 8. Have you ever used a product of Black and Decker? 1. Yes - >If Black & Deckers new Vacuum Cleaners were available today, how likely would you be to use it? Questions for Users: 1. Why did you buy vacuum cleaner? 2. What factors influenced your purchase decisions? 1. TV Ad 2. Newspaper Ad 3. Online ad 4. PoP Marketing 5. Word of Mouth 6. Brand 3. Where did you buy vacuum cleaner Retail Marts, Unorganised Retail, Online, TV Shopping or Direct Selling by company, Gifted, CC points redemption? 1. Why did you choose this place of purchase? 4. When did you buy? 5. How frequently do you use vacuum cleaners? 6. Overall, are you satisfied with your experience using vacuum cleaners? (Neither satisfied or dissatisfied with it, or dissatisfied with it or completely satisfied/ somewhat satisfied)? 7. What changes would most improve your current vacuum cleaner? 8. How would you rank these features on the scale of 1-10? 1. Brand - 2 2. Price - 3 3. After Sales Service 4 (spare availability) 4. Ease of usage - 1 9. What do you like most about your Vacuum Cleaner? 1. Ease of cleaning the vacuum cleaner (Bag-less / Bagged) 2. Blower / Inflator 3. Accessories and Attachments 4. Convenience of use (size, functionality of attachments, ease of using attachments) 10. Do you want new features in Vacuum Cleaner? 1. If yes, specify? 11. Have you tried cordless vacuum cleaner for quick cleaning? 1. If not why? 12. Have you tried car vacuum cleaners? 1. If not why? Stanley Black and Decker

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13. Have you heard of steam mops? 14. Have you ever used a product of Black and Decker? 1. Yes - >If Black & Deckers new Vacuum Cleaners were available today, how likely would you be to use it instead of competing Vacuum Cleaners currently available from other companies? Phase 2: Using the information acquired in the phase 1 of the project, to launch a product in modern retail: Interviewing the promoter for the launch period of one week. Set Up the launch platform in the retail place (Hypercity) taking care of place and position to capture max attention of consumers. Analyze the effectiveness of the freebie on offer. Obtain Consumer feedback about the new product launched(Steam Mop) and make recommendations.

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Phase 1 Questiionaire Segments of Market (Cleaning Range)

Traditional Segments of Vacuum Cleaner 1. Handy 2. Small & Mid Size 3. Large Pupose Specific Vacuum Cleaner 1. Wet N Dry 2. Car

Value in Rs. Crores

Market Size
We estimated the market size by interviewing Parul Singh, she intimated the data Eureka Forbes Marketing management team used for guesstimating the launch strategy and sales estimation and forecast.

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Demographics of Respondents

100%

77 35 Respondents

Non Users Users

50%
0%

41 71 0 100 200

Married Unmarried

Independent
102 Flats

10
49 65 Four Wheeler Two wheeler

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Findings from Questionnaire (USERS - Demographics)

Majority Users Age 25-40. Married Four wheeler owners. Lived in Flats Claimed Dexterity of usage with Vacuum cleaners. Vacuum cleaners used sporadically Most frequent users: weekly. Most infrequent: annual

Findings from Questionnaire (USERS Place of Purchase)

Retail Marts 62% Direct Selling 23% Gifts 8% Online Shopping 5% CC Points 2%

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Findings from Questionnaire (USERS Place of Purchase)

While Blower function in itself wont drive purchase decision, but its considered an important feature. Usage to blow the dust away from windows, porch, balconies etc.

Findings from Questionnaire (USERS Preference during Purchase)

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Findings from Questionnaire (USERS Most Liked Attribute)

Summary: 85% - somewhat satisfied with their experience of vacuum cleaners. Around 70% of respondents - Satisfied with the features of vacuum cleaners. Desired Feature Cleanup glass surfaces Work on floors spilled with water (unaware of wet n dry). 95% of respondents concurred cordless cleaning will be much easier and desired. But wary of available time of operation. Over 80% of respondents : unaware of Black & Decker brand

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Findings from Questionnaire (Non - USERS Demographics)

Majority of the respondents: Aged 25-40 Employed Married four wheeler owners. Average vacuum cleaner usage knowledge professed: 2/5 Lived in flats Only 17% of the respondents have had a demo of Vacuum Cleaners at home or office.

Findings from Questionnaire (Non - USERS Brands Known)

Findings from Questionnaire (Non - USERS Reason for Not Buying)

17

39 17

Maid Not suitable Unwieldy Never Thought About It

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Product Benchmarking
Significant features were compared, and score derived for each SKU, and then mapped with their price.

Body Type ( Metal / Plastic ) Bag less / Bagged Power (watts) Suction power (air-watts) Cord Length Cyclonic action Auto-cleaning filter tech. Variable speed control Filter type Dust capacity Number of stage filter system Fully rotary hose socket Cable rewind Blower function

Methodology for Scoring

Every feature was given a weight in accordance to the consumer perspective and experts opinion. Then the scores were normalized on a scale of 10, and then final score was analyzed and ranked against the other SKUs and mapped versus the price to get a perceived value chain result.

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Analysis of Each Category of SKUs

Handy Corded
(VCs that are compact and designed to be handheld while usage)
Eureka Morphy Panasonic B&D

4300 4000

Pricing (INR)

VH781/80 3700 3400 3100 2800 2500 2200 MCDL201 Pets

Comfi Clean Easy Clean Sensi Clean 1 2 3 4 5 6 Product Value Rating 7 8

9 10

Car Vacuum Cleaner

VCs used exclusively for cars

ACV1205 2700 2400 2100

Pricing (INR)

Croma B&D

AV1205 1800 1500 1200 900 600 300

CRV0029

5 6 Product Value Rating

10

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Small & Medium Corded

Optima Eureka
9500

Panasonic Croma Black & Decker LG Morphy Richards

VCD281NTY

8500

7500

Pricing (INR)

6500

5500

VM1430
MCCG 303

4500 ESS Com pact 3500

Smart Clean
VC1600W

CRV0032 2500

T Nano
VC1400

1500

10

Product Value Rating

Large Corded
Eureka Panasonic B&D Optima
VM2040 8500

10500 9500

VM2200B

Pricing (INR)

7500 6500 MCCG 304 5500 4500 3500 2500 VC2000W VM1630

T Steel

T Xeon

5 6 Product Value Rating

10

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Wet N Dry Vacuum Cleaners

45000 GAS 50
GAS 25

15000 13500 12000

Eureka Einhell Karcher B&D Bosch

Pricing (INR)

10500 WV1400 9000 7500 6000 WD 3.300 4500 3000 Einhell WD GAS 11-21

T Wet N Dry

5 6 Product Value Rating

10

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Results & Recommendations from Questionnaire and Benchmarking

Initial reluctance to use Penetration very less, compared to appliances like microwaves, washing machines etc. in HIG and MIG households. Not considered suitable for daily cleaning: Sweeping Scrubbing Toilet (Chores for Maid) Hence is used occasionally. Misconception higher the motor power better or more powerful the vacuum cleaner is. Other major influencers: cord-length no of accessories Compactness. Pricing : Following range when buying Handi Vacs - < 3000 Mid-Size 3000 5,500 Large Vacs - > 5,500 Purchase decision based on the definition of cleaning: What meets the eye. Attitude, nature and personality of the home owner. Only curtains, sofa and carpets need vacuuming. Vacuuming is laborious and time consuming. Car vacuum cleaner is the star product for SBD in the vacuum cleaner range. ----------------------------------------------------------------------------------------------------------------------------------------- Creating selling opportunities for the same: Knowledge sessions Online Contests Most Important festivals like Diwali, or the holiday season. Vacuum cleaner is used mostly by men (loved by husbands). Promote it as a family product for their own convenience and safety. More attachments increase the visible usability. Training to couples, homemakers at residences/apartments. Knowledge Enrichment: Human cleaning not precise and thorough.(Vacuum Cleaners to the rescue.) Compare western living where cleaning is done only via vacuum cleaners. Demo : Cordless Dustbusters Insta Cleaning Instantly take care of your cleaning needs, with no hassles and storage issue. Marketing auto vacuum cleaner directly at car dealerships

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Live Project Implementation Survey

A small survey of Hypercity was done prior to launch of live project. It was observed that Hypercity had enough footfalls even on weekdays to do a week long continued activity. 90% of the people questioned were unaware of Black and Decker as a brand. Eureka Forbes is the generic brand for vacuum cleaners / cleaning range. But our biggest competition is maid not Eureka. Our target group the urban middle class and upper class feels cleaning is taken care of by maid, and will not give expensive tools to her.

Steam Mop
Decided to position Steam Mop as a lifestyle product taking care of family health by sanitizing the floors, rather than just a cleaning product. Focus on its ability to kill 99.9% of bacteria and No Chemical Natural Cleaning. Features highlighted that Steam Mop is dexterous enough to work on every kind of floor and requires only 30 sec to get ready and steaming.

X
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Findings
People are intrigued by a new product. Still doesnt feel the need. Wary of buying a product they havent seen being used anywhere else. Not excited by the free gift provided. Product not considered expensive as we presumed because no relative benchmarking in consumers psyche.

Key Targets: Mother with young kids:

Pet Owners:

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Recommendations & Way Forward:

3 months Pilot involving Direct sales team for Steam Mops. Market to Professional Crches, Play Groups and Day Nursery schools. Market to High End Hotels Branding @ Pet Stores Explore Collaboration with clinics like Apollo Clinic and other pediatric clinics in town, and project and reinforce the pro-health image of steam mops. Demo of Steam Mops directly at residences and apartments : Likely to generate more sale.

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Project 2 Objective and Approach

Understand Market Spheres of Pressure Washers. Understand and analyse existing business processes. Compare the value proposition of SB&Ds products against the competition. Suggest the steps necessary to close the performance gap

Approach: In Kerala Interview and Discussion with Dealers, Sub-Dealers, Field Agents & CONSUMERS

Dealers Visited Tool Group Jai Shankar Power Tools

Sub Dealers Visited Kwality Machine Tools Venus Machine Tools Delta Machine Tools Machinery and Spares Prince Engineering Elite Machine Tools Industrial Trade Corporation

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The Market and The Players

Expected Rate of Growth 25% SKUs Price Range Rs. 5000 to Rs. 40000 Users of Pressure washers: More than 90% of sales to professionals (Painters, Automobile Cleaning) Fraction of sale to Home Users Players: Bosch National market leader. Brand awareness maximum in the category. Presence in every channel Organized Retail Unorganized Retail Cash N Carry Online Direct More Service Centers (10 in Bangalore alone) Powermax Major player among Indian brands Low Pricing USP Bangalore presence: Cash N Carry Retail Organized and Unorganized both. Kerala presence Minimal More Service Centers Location : Non urban nodes Onsite service for priority consumers

Karcher Growing fast after launch Minimal Presence in Kerala Preferred by heavy and professional users. Accessories sold separately at cash n carry Featured Highlight Bucket Suction (Unavailable in B&D) Leverage the brand and German lineage Einhell Cost Effective International Brand Higher Pressure for lower price More customer complaints.

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Eureka Forbes Offers three models (online). Not available in any of the channels studied. Still a recognized brands with consumers. Woodpecker USP pricing and widest range. Oldest player in Kerala Presence in other markets minimal. Downside expensive spares

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Benchmarking
Significant features were compared, and score derived for each SKU, and then mapped with their price. Motor power Max. pressure Max. flow rate Weight Warranty Accessories Hose Pipe Length SKUs benchmarked:

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Benchmarking Analysis
Pressure Washers 90-110 Bar

Pressure Washers : > 110 bar

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Product Comparison
B&D 6 SKUs (100 to 140 bars) Bosch 5 SKUs (100 to 160 bars) Karcher - 2 SKUs (120 and 150 bars) Einhell only one SKU (160 bars). Woodpecker 6 SKUs (90 to 200 bars)

Price Comparison
Bosch Our MOP at par with Bosch Adopts High MRP High Discount Einhell One SKU available 160 bar Priced way below competition Karcher Premium Priced Product Both SKUs priced higher than competition Woodpecker Low price - USP

Promotion Comparison
Bosch Significant expense on brand building Branding on every store - Kerala Bosch Posters at Sub Dealers store Greater no of Standees at Metro Demo : In and Out of Metro Reserved spaces Better online promotion Top 8 result in Google search for PW Dealer Managed websites Karcher Promotion limited to Cash N Carry Stores Branding Bigger Scale at cnc stores. Use of Promoters Knowledgeable Smartly Dressed Working exclusively for Karcher Einhell Promoted as designed in Italy.

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B&D perceived as a made in china brand by new consumers iBell New Launch Road shows, demos and car-cleaning. Offer of onsite servicing.

SWOT

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Kerala Market Analysis and Findings

Sales based incentives to Dealers - quite successful. Two service training programs at sub-dealer level. Ingenious solution to Spare shortage. Kerala Strength: Brand Equity Good Pricing, value for money. Dealers are satisfied. Good sales, marketing and service team, perceived from the response of dealers, subdealers and consumers. Good dealer network, covering whole of Kerala Sub-Dealers satisfied with the product. Considered better service provider than Bosch and other competitors.

Scope of Improvement
Shorter product life time as compared to competition. So the availability of spares is less. (B&D 5yrs, Others 7-8 yrs.) Quality and availability of parts, questioned. Hoses Carbon Brush Lid (breakage) Price of accessories higher than competition. Specific parts not available.(Consumer has to buy the full kit) Dealers expectation from HO Increased frequency of Demo van Parts/Spares availability Service turnaround time is high 4-5 days (Dealers claim 48 hrs)

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Conclusion:
Avoid being complacent at both dealer and company level.(Kerala) Higher sales target and gifts will help in sales at both retail and dealer level. Sales based incentive for both dealers, sub dealers and ground sales staff. Launch of higher bar pressure washers (industrial use). Direct Selling Channel should be explored Ensure availability of spares and parts. Carry out phased, focused campaigns with promotional activities like: 1. Demo vans, 2. Sub-dealer service training programs (In markets like Mumbai, Pune, Delhi). 3. Tools Mela,- push on sales - Attractive discount. Adopt A Dealer A Pilot In the Regions Around Kerala & Punjab o Mentorship on marketing/branding, servicing and supply chain issues. o Rewards for Mentors Increase branding at exclusive stores, cash n carry and retailers.

Appendix
# 1 Documents Product Benchmarking Matrix
Matrix (Autosaved).xlsx

Attachment

Modern Trade - PPT

Modern Trade New.ppt

Pressure Washers - PPT

Pressure Washers New.ppt

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Glossary
SKU: Strategic Key Unit MSO: Multiple System Operators LATAM: Latin America ARPU: Average Revenue per User DRM: Digital Rights Management DAM: Digital Asset Management ICT: Information and Communications Technology CEM: Customer Experience Management TTM: Time to Market CRM: Customer Relation Management IT: Information Technology LTE: Long Term Evolution OTT: Over the Top

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References
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. SBD subscribed Forrester Reports SBD subscribed Gartner Reports SBD subscribed Ovum Reports SBD subscribed Discoverorg Reports SBD subscribed Crush Reports Personally subscribed S&P Reports LinkedIn (For getting contact details of CXOs) Annual Reports of MSOs Quarterly Presentation of MSOs SBD Internal Reports and Presentatio. The individual MSO websites Financial Reports and snapshots from: http://ycharts.com/ Blogs and Articles from: http://www.salesbenchmarkindex.com/

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