ABC Corporation - Tanmay

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ABC Corporation

TRADE MARKETING PLAN FY22 -23


Industry Overview
Global Household Cleaning Market The household cleaning products market consists of
various categories depending on product and
Size 2020 application such as –
Tools
$ 32.5 BN
•Mops, Brooms, Wipers, dusters
•Scrubbers, scourer, etc.
Total: $220 BN
Other Products
•Household cleaners, toilet and floor cleaners
•Laundry products, Dishwashing liquids, etc
Houselhold Cleaning Products Household cleaning tools •Vacuum cleaners, pressure washers

(*approx. figures)
Industry Overview
Gr Contributed by APAC 43%

Est. Incremental Gr: $8BN


40 APAC ROW

30 The total household cleaning industry is set to grow at a


20
CAGR of 4%+, while the cleaning tools industry(mops,
10
0
brooms, scrubbers) at around $30.25 BN(in 2020) is
YOY Gr% growing at a CAGR of 3.5% over next 5 yrs.
2020 2025
The entire market is Fragmented with equal number of
organised as well as unorganised players

(*approx. figures)
ABC offering with India Overview
ABC India “Hero Product Offering” Currently ABC India sits at an approximate
market share of 15% with a view to gain more
No dust brooms leverage over the market with the HERO range
of products

Spin Bucket Mop

Super Scrubber Kitchen But, A majority of the buyers prefer local


#metoo products and are not too worried
about the quality
With a promise of High Quality, Durability and Also the advent of the pandemic has made the
Ease of Use market volatile
With the HERO products perceivably placed under HIGH VALUE FOR MONEY, The following can be a
simple SWOT analysis for the range
STRENGTHS WEAKNESS
Innovation High Price
Technological Superiority Rural / Upcountry reach due to new local entrants
Ease of Use
OPPORTUNITIES THREATS
Trend of premiumization in the category due to A large bulk of buyers still prefer old school low
covid. Advent of Modern Trade and online value products, unbranded products
shopping(around 4cr nuclear family setups in India
with working professionals wanting good quality
products without being too price conscious)
Why is Covid an Opportunity?
Covid has reoriented us to the fact that “Health is Wealth and Cleanliness is next to godliness”
We have all experienced the three stages of covid -

FUN FEAR CHALLENGE

Abe! Yeh Chinese Aaj ka covid count Bhai! Haat


Virus hai kuch kya tha? Ye mujhe Sanitise kiye na
nahi ukhadega to nahi hoga barabar se?

People are ready to go out of the way to ensure their own and their loved ones health. Price is
no longer the ultimate dominating factor for decision making in case of hygiene
Where to Play
Product on offer Description / USP (Communication) Picture
No Dust Broom New generation broom made from advance
synthetic fibers with no dust.
Durable and hassle free
PREMIUM

Spin Bucket Mop Convenience of floor mopping, with no bending,


dry and clean hands. Ease of use

Kitchen Super Sponge with steel wire mesh which lasts longer.
Scrubber The workhorse with the power of two products
in one
Channel: Along with Mom-n-Pop stores, modern trade and online buying makes the mix for greater visibility thus
resulting in sales
Task: Gain share by displaying benefits such as product quality and value for money at point of sale using innovative
trade marketing / POS techniques
Pricing Strategy: 15-20% higher than current market available products
Channel and Challenges
Trade Sales/ Shopper
Marketing Marketing
ABC Corp Distributor / Retailers Consumers

Int & Ext Influencers


(Bloggers, Doctors,
sales team etc)

Most trade marketing initiatives fail when it comes to ROI because of less understanding of links between
various touch points and lack of innovative solutions to promote your products
Channel and Challenges
GENERAL TRADE MODERN TRADE ONLINE RETAIL
- for the simple reason of Consumers not being
- Lack of space on shop floor - as this category of products is not a impulse buy, brand conscious in this category and the easy
the space given at a supermarket for display availability of low cost competition products online as
- Too much clutter promotions is not the best for visibility well as offline is a barrier.
- Better Margins from Local Players

Solution – Solution –
Solution –
- Demo Kits, Shopboards, display units and other - Website promotions, Youtube AVs, demos and
- Innovative small POS with use of strips, danglers, elements Infomercials for educating consumers
poster, etc creating good visibility
- Shop in Shop modules engaging in trails of products - Cured sample kits for trails sent via direct target
- Demo Kits, Shopboards, display units and other at POS marketing through emails and phone numbers
elements
- ensuring “EYE LEVEL IS BUY LEVEL” - Use of external influencers such as bloggers who
- ensure quality and availability can talk about our products
- Cured sample kits for trails
- ensuring “EYE LEVEL IS BUY LEVEL” - Plannogram
- Use of SEO / SEM
- Demo AVs
How to tackle the problem?
- Play on the basic fundamentals of trade marketing – Distribution – Display – Promotion - Price

- Trade promotions and trade events: Participation in shows like Clean India Show. Consumer activations such as
Kitty party society meets to seal the last link of the targeted consumer the home maker. Tie-ups with deep
cleaning service providers such as Urban Clap in Tier1 cities.

- Strategic Partnerships: Brands like Dettol, HUL, Ghadi Detergent, have extended their marketing thoughts to
associating with movements like Swacch Bharat

- Digital Marketing: Effective usage of tools like Youtube Infomercials, AVs, SEO/SEMs could lead good traffic to
online sales of quality products on offer. Tie-ups with online influencers promoting benefits of hygiene and smart
product placement.

- In Store Advertising: Innovation in POS to engage the end customer in understanding strengths of the product
thus justifying the value for money and in turn cementing confidence in trade.
QTR-wise Marketing Plan
IMP QTR 1 QTR2 QTR3 QTR4

Ensure that the new FY Implementing trade Installation of POSM, Shop Going the last mile for
has ample POSM at all events/ promotions in Shop, demo kits shop driving sales in the
Primary

physical touch points through sales team boards. Also increasing closing QTR by cross
footprint on digital space. promotion and other
Start conducting Sales Initiation of design, Running attractive trade schemes like BOGO.
trainings to boost discussion, printing and campaigns with input for One last round of POSM
confidence in our internal installation of POS. Also, the network hence communication that
influencers and tie-ups with influencers strengthening the company speaks for the HERO-
Quality, Durability, Ease
Secondary

conducting small and service providers for trader relationship


influencer meets across maximum visibility during of use, value for money
important markets season and the success of the
year gone by
The prime season of deep household cleaning is the festive season starting prior to Diwali and lasting till New Years eve
The budgets for the spends will be hence highest during late second quarter and the entire third quarter
Times are changing
“Jinsei ga Tokimeku Katazukeno Maho” this Japanese proverb translates to “The life changing
magic of Tidying up”
Real world examples – Even after a long and busy time working from home during covid, a
friends maid Shantabai showed up only to demand exorbitant pay rise. During the same time
the family had already take interest in the art of TOKIMEKU. Along with the kids, the entire
family takes pride in tidying up their own space and have an eye for good product quality and
packaging.
Another friend took the proverb to heart and brought a premium branded Japanese vacuum
cleaner.
The category like paints 20 yrs back is slowly but surely turning from a

Low Involvement / Rational High Involvement / Rational


Way ahead…
- The cleanliness space is moving out of the household and moving towards facility
management, cleanliness and hospitality services
- These marshals are a “HERO” without cape and can be great brand ambassadors for BTL brand
activations

- Though the category might still be evolving on the consumer involvement front but a few
examples have shown us how a continuous ATL bombardment can do magic to brand value
POSM

Shop in Shop
Eye Level displays Danglers
Strip Displays

Online Merchandising Standing Units Organised display Units Wobblers


Trade marketing done right

Influencer Activities

Informative POSM Consumer Offers


Return on Investment
Return on Investment for creating visibility for our brand at a particular store/channels
Will be a simple calculation of
Total Revenue from the store / Money spent on the activity

In large format retail the monitoring would be done basis


Returns / Sq.Ft
&
Footfalls

For Example – if for a 3 month display setup in a super market you spend around Rs.500/month
trying not to exceed a 7-8% scheme budget. The ASP of the product displayed is
Rs.200 then you have to sell a minimum of 100 SKUs of the product to justify the activation.
Branded broom display Hanging Mop Display
Also, a matrix can be developed
to track the post culmination of activity and verified if it is worth another shot
THANK YOU

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