How to make your Brand 3000 Cr+ (Breadth and Depth of Sales)
Having the privilege of working on the leading global brands in the area of consumer acquisition one was forced to travel and cover the breadth and length of the Indian market throughout the year for past 15 years . One thing that stood out was the reach of the brands which were doing more than 3000 cr in Packaged goods and OTC products category .And that was Presence in the smallest shops in deep down villages and small towns and servicing them every 15 days by the sales team period ! Case in point; During 2010, Cadbury spent 511 crore on selling & distribution, about 38% higher than it did a year ago. That, in turn, impacted its profit, which grew at its lowest-in-five-years rate of 6% at Rs 248 crore. But the company seems unperturbed. Why their sale is growing 40% YOY now.
“Profits have softened a bit due to step up in investments behind every brand,” says Kripalu. Volatility in cocoa prices and dip in rupee valuation are also adding pressure. While cocoa prices have softened a bit from its peak three years ago, rupee devaluation has negated most of the gains. The company is aggressively reaching out to more consumers. In 2011 alone, it increased its direct reach by 25%. – the extra breadth of brand has added to 40% increase in sales . Breath is the reach and Depth is the rotation on the counter by sales guy on that retail ( direct touch every 15 days )