Interim Summer Project Review

HUL-Vijeta: The Wholesale loyalty program

Objective

To study the HUL-Vijeta Program for To study the HUL-Vijeta Program for wholesalers wholesalers & recommend a wholesaler

loyalty program for ITC.

Why Vijeta?

Wholesale channel contributing almost 45% of the overall HUL sale (Baroda)

The most successful loyalty program in FMCG running for the past 6 yrs.

Well executedAt a very mature stage

Completely integrated into the HUL ERP system

Similarity of product categories between ITC and HUL

STUDY Schedule

Gathering information about VijetaGain insight at various levels

HUL TSI/TSOs HUL distributors HUL salesmen HUL Vijeta Wholesalers

Study other similar programs for better understanding of loyalty programs

How: The Methodology

Personal Interviews for HULSales beat with HUL salesmanResearch Methodology

Exploratory Research Secondary Data Collection Questionnaire Design Data Collection & Analysis

Presentation

HUL Vijeta: Overview

A target based incentive program – for the wholesale channel

Purpose Drive growth through higher circulation Substitution of competition

Wholesaler earns points on every purchase and redeems them for rewards

Vijeta Presentation: Microsoft Office

PowerPoint 97-2003 Pres

Exploratory Research

The exploratory questionnaire revealed the following factors for study Level of understanding of the program Benefits – Actual V/s Perceived Evaluation of Rewards Impact of program Target related information Program specific activities

• Mela• Power SKUs Microsoft Office

PowerPoint 97-2003 Pres

Secondary Data

Standard evaluation criteria for loyalty programs

Medium & Large size wholesalers of ITC which would be Vijeta members

Vijeta targets for current MOC Baroda

List of Power SKUsOther company program details MOC = Monthly Operating Cycle Sources:

Internet, HUL Target Sheet Baroda, Vijeta Print Material

Questionnaire: Demographics

Average age of a Vijeta outlet owner is around 36 years 36 years (Young & Enterprising)

Membership

Sales/Target Average

Level Particular Amount

Platinum Average of Dets+PP 8,49,000

  Average of Foods 2,00,000

  Average of Lakme 2,11,667

Gold Average of Dets+PP 2,12,273

  Average of Foods 87,500

  Average of Lakme 63,750

Silver Average of Dets+PP 1,07,818

  Average of Foods 40,000

  Average of Lakme 65,000

Target Achievement

Brand Preference

Rewards

Letters / Pamphlets

Outlet Profile

Other Observations

94% 94% of the outlets redeem their points annually. They do

so in the annual redemption Mela organized by HUL.

62% 62% of the Vijeta members surveyed believe that they are

earning fixed additional margin over other non-vijeta

outlets.

82% 82% of the outlets prefer hanging sachet strips over

display window as a part of the Vijeta display requirement.

Most preferred reward is Money On Card with 72% 72%

respondents liking it. 2nd most preferred reward is Gold

with 22% 22% of respondents liking it.

SWOT

Thank You