Excavating VLS facts in SPS

Presentation Flow

• Background• Historical Analysis

• Problem Statement• Current Stat of PLT

• By Point Analyzer• Way Forward

Background• SPS, a market with 55% rural concentration of its

DSS (Rural con. In Dhaka region 44%) depicts the geographic dispersion of a distribution even

within Dhaka.• Heavily rural condensed a market where basic

economic activity is mainly driven by Agriculture (Crops, Farming etc.) and therefore households

economy is solely dependent on Agro based outputs.

• Inflow of people (mainly laborer) during and pre season is very much dominant in this market. As

a result, traffic in outlets vary as well due to this income generating factor.

• Retail environment as well changes with the season in force and impacts both positively &

negatively on “buying-selling” duo.• For the means stated above, SPS shows an

erratic STT in a calendar year which can be asserted as follows :

• Growing 6: Jan-May • Struggling 4: July-Oct• Retaining 2: Nov-Dec

Keraniganj

Sutrapur

SrinagarTaltola

Nawabganj

Historical Analysis

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JAN.08

FEB.08

MAR.08

APR.0

8

MAY.08

JUN.08

JUL.08

AUG.0

8

SEPT.0

8

OCT.0

8

NOV.0

8DE

C.08

Jan.09

Feb.09

Mar.09

Apr.0

9May.

09Jun

.09 Jul.09

Aug.0

9

Sept.0

9Oc

t.09

Nov.0

9De

c.09

JAN.10

FEB.10

MAR.10

APR.1

0

MAY.10

JUN.10

JUL.10

AUG.1

0

SEPT.1

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OCT.1

0

NOV.1

0

STT(

in M

ln)

VLS Tk 1 B&H JPGL SRFT

• Historically SPS is positioned to a very close proximity to C&C hubs of the country, which actually put SPS sales into a deep trouble right after the budget. Huge de-hoarding at this time plays a negative role in regular Tm&D practice.

• To add more, till 2010 there has not been any distinguished offer from VLS brands in market which can cater latent market demands. Where as other competitors took their fair share through materializing kind /cash or both benefit for this no frill segment.

Growing 6: 2008

Strg. 4: 2008

Retain 2: 2008 Growing 6: 2009

Strg. 4: 2009

Retain 2: 2009 Growing 6: 2008

Strg. 4: 2008

Retain 2: 2008

VR

GFPLT

7% growth

Problem Statement

Retention in VLS segment in SPS has been a problem since PI 2010. PLT didn’t seem to recover a robust STT until

there has been a competitive/better offer comes in the market.Therefore reasoning the retention facts of SPS has been a key question.

Current Stat. of retention (%): Before (Trade promo & Pack redemption) vs. After.

After PI 2010, only 46% sections were above the retention level (80%) whereas PR & TP hits in the market SPS has flown with an astounding growth of 7% with 60% sections

retaining above that level.

By point Analyzer

Retention

Geo

grap

hic

Dis

pers

ion

Urban

Rural

Low High

Sutrapur

Taltola

N”ganj

Sreenagar

Keraniganj

After PI 2010, if we analyze SPS points in terms of geographic

dispersion and retention(%) the more we

go rural we had struggle in retaining the base.

Post TP & PR Retention

Geo

grap

hic

Dis

pers

ion

Urban

Rural

Low High

Sutrapur

Sreenagar

Taltola

Keraniganj

N’bganj

Further analyzing all points of SPS in terms of

geographic dispersion and retention(%) after TP & PR

hardly we see any significant difference on

the basis of “Rural-Urban” scenario.

Post

Point: SutrapurSections: 18

Pre

105% 121%

Market Responsiveness

Retention Stat. on the basis of PR & TP

Closest proximity to DCC.Indifferent to any kind of offer

from retail end.53% sections are above house

avg.(80%) retention. Going to a growth momentum due to portfolio

strength in urban areas.

Sutrapur

Post

Point: KeraniganjSections: 53

Pre

76% 101%

Market Responsiveness

Retention Stat. on the basis of PR & TP

45% sections are rural and therefore very much dependent

on seasonal issues.Massive urbanization is on the process helps

to pick the momentum for rest of 60% sections.42% sections are above SPS overall retention.

KeraniganjRetntion before discount

Retntion After discount

Post

Point: NawabganjSections: 36

Pre

63% 87%

Market Responsiveness

Retention Stat. on the basis of PR & TP

Major hit comes from Nawabganj as majority of the sections represent rural sections

and are very much cognizant to any kind of cash/kind benefit.

Seasonal impact is medium.42% sections are above the SPS overall average

retention level.

NawabganjRetntion before discount

Retntion After discount

Post

Point: SreenagarSections: 20

Pre

92% 116%

Market Responsiveness

Retention Stat. on the basis of PR & TP

Largely agro-based economy operates In Sreenagar with mostly rural markets

(74% rural sections), making this Market highly sensitive towards seasonality

impact and price changes. 5 sections are in close proximity with C&Cs.

50% of sections are above house average.

SreenagarRetntion before discount

Retntion After discount

Post

Point: TaltalaSections:18

Pre

80% 101%

Market Responsiveness

Retention Stat. on the basis of PR & TP

With a similar economic system and geographic situation to Sreenagar (83% Rural Sections),

Talata is the only Red market in SPS. Competition is more aggressive and market

is price sensitive. 4 sections are in close proximity with C&Cs and

39% of sections are above house average.,

TaltolaRetntion before discount

Retntion After discount

Way Forward

• Stick to Basic:– Basic TM&D best practice in the pitch aligning with RTM

objectives.

• Weaving Value Addition:– Rural Hubs penetration (occupational hubs).

» 1-2-1 & 1-2 many engagement in Keraniganj, Nawabganj.– Seasonal package for Retails.

» Connecting the need of retails at times of harvesting & seeding.– “Own your Consumer Platform”.– Competitive Trade promotion for a long period especially for 1 year in

rural areas.( a backend resource for transforming consumers)

is the answer from SPS team for sustainable retention claimant for Pilot right after PI

Thanks