Pidilite Internship Report - Sales
Pidilite Internship Report - Sales
Pidilite Internship Report - Sales
Anurag Mishra
Indian Institute of
Management Indore
OBJECTIVE ............................................................................................................................................................. 3
ACTION PLAN ......................................................................................................................................................... 3
METHODOLOGY ..................................................................................................................................................... 3
SECONDARY FINDINGS........................................................................................................................................... 5
STUDY OF MARKET RESEARCH FIRMS AND INSTITUTES............................................................................................................5
Findings from Companies: .....................................................................................................................................6
PRIMARY RESEARCH .............................................................................................................................................. 7
Key Insights ...........................................................................................................................................................7
Pain Points ............................................................................................................................................................7
MAIN SURVEY FINDINGS MUMBAI & PUNE (N=122) ........................................................................................... 8
Classifications: ......................................................................................................................................................8
Exclusivity: .............................................................................................................................................................8
Product Usage: ......................................................................................................................................................9
Tenure: ................................................................................................................................................................10
Sports/quiz Participation Willingness: .............................................................................................................10
Social Initiatives: .................................................................................................................................................10
Festive Occasion Expectation: ..........................................................................................................................11
Competitions Willingness: ................................................................................................................................11
Training & Certification Programs: .....................................................................................................................12
FCCR (Snapshot): .................................................................................................................................................12
Knowledge about any other Loyalty Programs: ..................................................................................................14
Net Promoter Score: ............................................................................................................................................14
DISCRIMINANT ANALYSIS (IN SPSS) ..................................................................................................................... 15
ANALYSIS OF CONSUMER EXPECTATION - MUMBAI ............................................................................................ 16
Simple Average rating Method: ..........................................................................................................................16
Conjoint Analysis- Mumbai .................................................................................................................................17
Conjoint Analysis- Pune .......................................................................................................................................20
COMPETITIVE ANALYSIS....................................................................................................................................... 24
GAPS IDENTIFIED ................................................................................................................................................. 25
RECOMMENDATIONS .......................................................................................................................................... 26
COST ANALYSIS .................................................................................................................................................... 28
ANNEXURE........................................................................................................................................................... 28
To design a loyalty program under the name Golden Relationship Bond Program for a focused target
group of contractors (Super A & Class - A) and check its effectiveness.
Target
Benchmarking
Loyalty
Assessent
Practices
Development
of Plan
Recommendations
Understand
their Needs
and Wants
Mapping of
the practices
with the TG
Testing of the
plan
Secondary Research
Primary Research (in 4 stages)
Who is my
target
group?
Secondary
Findings
Stage 2
Stage 1
Loyalty
Program
Development
Stage 3
Target
Group
Insights
Analysis
&
Recommendations
Stage 4
HYPOTHESIS TESTING: The loyalty program findings by Market research firms, Benchmarking Loyalty
Practices prevalent in companies of various sectors, and our Target groups insights are studied. Based
on all these the following hypothesis are suggested:
NULL HYPOTHESIS: Either the loyalty program is not relevant to our target group (Super A & A
contractors) or the loyalty program is already in place in the company, then no changes are to be
made.
ALTERNATE HYPOTHESIS: If the above parameters are not satisfied, then the NULL HYPOTHESIS is
rejected.
INSIGHTS
FEEDBACK
2.
3.
Employee referrals
4.
Community Formation
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
Already in FCC
5.
6.
7.
8.
9.
Promotion of Vendors
10.
11.
Product Discounts
NULL
HYPOTHESIS
WHETHER TO BE
CONSIDERED?
YES
YES
YES
NO
NOT PRESENT
& RELEVANT
YES
NOT PRESENT
& RELEVANT
YES
NOT PRESENT
& RELEVANT
YES
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
Already in FCCR
YES
NOT PRESENT
& RELEVANT
YES
YES
NO
So from the above table, it is clear that 9 out of 11 insights can be incorporated in the development
of the new loyalty program. The reason behind that being, other 2 practices (or a modified version of
these) are either already present in our company or these are not at all relevant in our case. Further
research on the loyalty programs of various companies across different sectors gives more insights
such as:
COMPANY
LOYALTY
PRACTICE/PROGRAM
FEEDBACK
TRANSPORTATION INTERGLOBE
ENTERPRISES
MEDIA
RETAIL
IT
MANUFACTURING
& PRODUCTION
POWER
EDUCATION
IT
RETAIL
BEVARAGES
FINANCIAL
SERVICES
RETAIL
RETAIL
FINANCIAL
SERVICES
FINANCIAL
SERVICES &
INSURANCES
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NULL
HYPOTHESIS
WHETHER TO
BE
CONSIDERED?
YES
YES
YES
YES
NOT PRESENT
& RELEVANT
YES
NOT PRESENT
& RELEVANT
YES
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT
RELEVANT
PRESENT IN
FCCR
PRESENT IN
FCCR
PRESENT IN
FCCR
NOT
RELEVANT
YES
NOT
RELEVANT
NO
NIIT INDIA
AMERICAN
EXPRESS
Workplace initiatives
loyal employees
for
YES
YES
NO
NO
NO
NO
NO
In this case also, only 9 out of 15 insights are further considered in developing the loyalty program on the
basis of same criteria used for MR firms and institutes. On the other side, primary research was done to
understand the sentiment of the target group and following insights were found.
Key Insights
Most of the people in the TG are not concerned with Financial value, rather in emotional value
Referral Policy can be a huge success : 100% of the contractors recommend Pidilite to their
fellow contractors (Friends and Relatives)
There should be some incentive policy based on tenure, apart from just consumption
Public and private recognition may lead to an emotional connect
Contractors want product trials and demonstrations of new Pidilite products as a sign of
confidence
Very interested in the company financed trips (based on specific responses)
Instead of consumables and gifts, they suggest some professional help (training/skill
development/business leads) from Pidilite
The difference between Pidilite and its competitor brands is Price and Quality difference
Pain Points
Contractors are facing problems with the passbook system of FCCR points. They have multiple
carpenters working under them in various sites and the carpenters directly keep the pass book
with themselves. Plus the dealers doesnt bother to differentiate between carpenters and
contractors (or does not have the incentive)
The FCCR scheme is meant for contractors but what was observed that dealers accumulating
points and pasting it in the pass book of one of his contractors and redeeming the gifts
Then incorporating the secondary and primary findings in the questionnaire, the main survey was
conducted and the following findings were found out.
Classifications:
Mumbai 8
Pune - 3
Mumbai 25
Pune - 26
Mumbai 35
Pune - 25
Exclusivity:
50
40
15
30
20
46
36
10
5
6
0
Super - A
Class A
Class B
YES
0
Class C
NO
0
Class D
11%
73%
27%
1%
1%
2%
1%
Exclusive to Pidilite
Karpenter
Furnicol
Falcofix
Bullbond
3%
3% 3%
Jivanjor
Bluecoat
Yugcol
Kushal
Woodgrip
Product Usage:
MARINE
product, followed by
X and Heat-X
2%
SH, Speed-
FALCOFIX, JIVANJOR
KARPENTER
&
Tenure:
Average Tenure
= 17 Years
Tenure Wise
classification of Super A,
Class A and Class B
Contractors
Social Initiatives:
Class D 0
Class C 0
Class B
Class A
2
24
Super - A
36
19
0
10
32
20
30
YES
40
NO
50
60
70
Class C 0
Class B
11
Class A
52
Super - A
44
0
10
20
30
40
YES
50
60
70
NO
5-star Treat
most
preferred
Mumbai,
Gift
and
is the
option
Special
option in Pune.
Competitions Willingness:
50
26
40
30
20
46
34
10
6
5
0
Super - A
Class A
Class B
YES
NO
in
0
Class C
0
Class D
1%
12%
1%
2%
NO IDEA
Godrej
Century
Marine Laminates
Green
2%
Falcofix
Bajaj
3M
3.5
Months
Average Training
Frequency
Training Programs on a
Monthly basis
FCCR (Snapshot):
58%
Overall
aware of
program.
of the public is
the current FCCR
3.6/5
Average rating
of FCCR Program
75% of
Super A and 73% of Class-A
into groups, only
90%
34% in Super A,
40% in Class A, and 45% in Class
Low Satisfaction -
free system
3%
4%
93%
=
Its observed that the NPS of Pidilite is 90% which is very strong in any product category.
90%
The purpose of this analysis is to establish a relation between the OVERALL LOYALTY and independent parameters like
INTAKE, EXCLUSIVE/THREAT and TENURE WITH PIDILITE and to grade the respondents on the basis of this loyalty
function.
A full-fledged Analysis was done taking the sample collected. The tenure, exclusive/threat and consumption was taken
from the responses directly. These are the independent variables. The dependent variable is the Loyalty Number.
Firstly, the loyalty was assigned defined as a categorical variable i.e. divided into three categories Most Loyal,
Loyal, and Least Loyal and the various respondents were divided into these three categories. These are given
respective weights and fed into SPSS along with the independent variables. The following results snapshots are taken.
The 87.7% figure shows that a fairly correct execution of data analysis with 83.3% sensitivity and
95.7% specificity.
Two procedures
1) Simple Average rating Method
2) Conjoint Analysis
Headings
Gifts & Discounts
Knowledge Differentiation
Family Incentives
Rewards & Recognitions
Business Lead Generation
The rating of these categories are calculated by taking the average of all the sub options under it.
For Example; for any respondent, Gift & Discounts rating is the average of ratings of Option 1 (Product
Discount), Option 2 (Gifts-FCCR) and Option 11 (Gifts for carpenters specifically)
Mumbai (N=68)
1. Average rating for a small sample of N=68, for the above 5 categories was constructed in tabular format
2. Depending upon the average rating of these 68 observations, the following bar-graph is constructed.
Attributes
10
Ratings
Adjustments done:
To reduce the number of combinations, the ratings 1-10 are divided into three groups (Ratings 1-3, 4-7
and 8-10). This reduces the number of combinations from 105 (i.e. 10 lakh) to 35 (i.e. 243)
Number of Combinations = No. of rating combination Number of Categories
= 35 = 243 combinations
On performing, the conjoint analysis (Dummy variable method), and the following summary Output
follows:
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
0.43208054
0.18669359
0.13008555
1.29850205
243
ANOVA
df
Regression
Residual
Total
Intercept
Gift (45)
Gift (67)
Gift (810)
Knowledge (45)
Knowledge (67)
Knowledge (810)
Family(45)
Family(67)
Family(810)
Rewards(45)
Rewards(67)
Rewards(810)
Business Lead(45)
Business Lead(67)
Business Lead(810)
15
232
247
SS
89.79423868
391.1769547
480.9711934
MS
5.986283
1.686108
F
5.325534
Significance F
3.88052E-09
Coefficients
0.33744856
0.12345679
0.49382716
0.0012
-0.7037037
-0.5679012
0.4588
-0.3950617
-0.0987654
0.334
-0.1728395
0
0.49382716
-0.0617284
0
0.71604938
Standard Error
0.276271346
0.204039912
0.204039912
0
0.204039912
0.204039912
0
0.204039912
0.204039912
0
0.204039912
0
0.204039912
0.204039912
0
0.204039912
t Stat
1.221439
0.605062
2.420248
65535
-3.44885
-2.78329
65535
-1.9362
-0.48405
65535
-0.84709
65535
2.420248
-0.30253
65535
3.509359
P-value
0.22316
0.545729
0.016279
#NUM!
#NUM!
0.005825
#NUM!
#NUM!
0.628807
#NUM!
#NUM!
#NUM!
#NUM!
0.762518
#NUM!
#NUM!
Lower 95%
-0.206872833
-0.2785512
0.09181917
0
-1.105711694
-0.969909225
0
-0.797069719
-0.500773423
0
-0.574847497
0
0.09181917
-0.463736386
0
0.314041392
Upper 95%
0.88177
0.5254648
0.8958352
0
-0.301696
-0.165893
0
0.0069463
0.3032426
0
0.2291685
0
0.8958352
0.3402796
0
1.1180574
This summary output table above, shows the regression table result, for the 243 observations.
The highlighted coefficients shows the weights of the respective components and their contribution in the responses. This
takes into account the ratings given to these parameters on the Likert Scale, as well as the frequency of these responses.
The color coding followed Green to Red means Maximum to Minimum. A more meaningful deduction from this
summary output is as follows:
Attributes
Business Lead(810)
Gift (47)
Rewards(810)
Knowledge (810)
Family(810)
Gift (13)
Gift (810)
Rewards(13)
Business Lead(13)
Business Lead(47)
Family(13)
Rewards(47)
Family(47)
Knowledge (13)
Knowledge (47)
Sum
Coefficients
0.7160494
0.4938272
0.4938272
0.4588
0.334
0.1234568
0.0012
0
0
-0.0617284
-0.0987654
-0.1728395
-0.3950617
-0.5679012
-0.7037037
Absolute Value
0.716049383
0.49382716
0.49382716
0.4588
0.334
0.12345679
0.0012
0
0
0.061728395
0.098765432
0.172839506
0.395061728
0.567901235
0.703703704
Percentage
15.50%
10.69%
10.69%
9.93%
7.23%
2.67%
0.03%
0.00%
0.00%
1.34%
2.14%
3.74%
8.55%
12.29%
15.23%
100.00%
Explanation: This means that, for example: Number of people giving (RATING 8-10) to Business Lead category
have the highest proportion of 15.50% and similar results have been calculated for other categories.
The graphical representation of the conjoint analysis for Mumbai region is as follows:
Attributes
2.00%
4.00%
6.00%
8.00%
Percentages
Pune (N=54)
1. Average rating for a small sample of N=68, for the above 5 categories was constructed in tabular format
2. Depending upon the average rating of these 68 observations, the following bar-graph is constructed.
Attributes
10
Ratings
Adjustments done:
To reduce the number of combinations, the ratings 1-10 are divided into three groups (Ratings 1-3, 4-7
and 8-10). This reduces the number of combinations from 105 (i.e. 10 lakh) to 35 (i.e. 243)
Number of Combinations = No. of rating combination Number of Categories
= 35 = 243 combinations
On performing, the conjoint analysis (Dummy variable method), and the following summary Output
follows:
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
0.41382972
0.17125503
0.11398154
1.15585208
243
ANOVA
df
Regression
Residual
Total
Intercept
Gifts(13)
Gifts(47)
Gifts(810)
Knowledge(13)
Knowledge(47)
Knowledge(810)
Family Incentives(13)
Family Incentives(47)
Family Incentives(810)
Rewards(13)
Rewards(47)
Rewards(810)
Business Lead(13)
Business Lead(47)
Business Lead(810)
15
232
247
SS
64.04938272
309.9506173
374
MS
4.269959
1.335994
F
4.794137
Significance F
4.70302E-08
Coefficients
0.09876543
-0.2222222
0.11132009
0.44454944
-0.5925926
-0.5185185
0.5644485
-0.1481481
-0.1111111
0.33856744
-0.0246914
-0.022234
0.61728395
-0.0493827
0.1223009
0.5308642
Standard Error
0.245920915
0.181624633
0.181624633
0
0.181624633
0.181624633
0
0.181624633
0.181624633
0
0.181624633
0
0.181624633
0.181624633
0
0.181624633
t Stat
0.401615
1.223525
2.447049
65535
-3.26273
-2.85489
65535
-0.81568
-0.61176
65535
-0.13595
65535
3.39868
-0.27189
65535
2.922865
P-value
0.688337
0.222373
0.015146
#NUM!
#NUM!
0.004695
#NUM!
#NUM!
0.541294
#NUM!
#NUM!
#NUM!
#NUM!
0.785945
#NUM!
#NUM!
Lower 95%
-0.385758268
-0.135622246
0.086599977
0
-0.95043706
-0.876362986
0
-0.505992616
-0.468955579
0
-0.382535826
0
0.259439483
-0.407227184
0
0.17301973
Upper
95%
0.5832891
0.5800667
0.8022889
0
-0.234748
-0.160674
0
0.2096963
0.2467334
0
0.3331531
0
0.9751284
0.3084618
0
0.8887087
This summary output table above, shows the regression table result, for the 243 observations.
The highlighted coefficients shows the weights of the respective components and their contribution in the responses. This
takes into account the ratings given to these parameters on the Likert Scale, as well as the frequency of these responses.
The color coding followed Green to Red means Maximum to Minimum. A more meaningful deduction from this
summary output is as follows:
Attributes
Rewards(810)
Knowledge(810)
Business Lead(810)
Gifts(810)
Family
Incentives(810)
Business Lead(47)
Gifts(47)
Rewards(47)
Rewards(13)
Business Lead(13)
Family Incentives(47)
Family Incentives(13)
Gifts(13)
Knowledge(13)
Knowledge(47)
SUM =
Coefficients
0.61728395
0.5644485
0.5308642
0.44454944
0.33856744
0.1223009
0.11132009
-0.022234
-0.02469136
-0.04938272
-0.11111111
-0.14814815
-0.22222222
-0.29259259
-0.51851852
8.22%
2.97%
2.70%
0.54%
0.60%
1.20%
2.70%
3.60%
5.40%
7.10%
12.59%
100.00%
Explanation: This means that, for example: Number of people giving (RATING 8-10) to Rewards &
Recognition category have the highest proportion of 14.99% and then so on & so forth for other categories.
The graphical representation of the conjoint analysis for Pune region is as follows:
Attributes
Rewards(13)
FamilyIncentives(810)
FamilyIncentives(47)
FamilyIncentives(13)
Knowledge(810)
Knowledge(47)
Knowledge(13)
Gifts(810)
Gifts(47)
Gifts(13)
0.00%
2.00%
4.00%
6.00%
8.00%
Preference Percentage
1. FCCR (Fevicol Champions Club Rewards) Program stand alone is not sufficient to cater to the needs of Super A
And A contractors
Specially in Mumbai, substantial percentage of contractors (28%) of contractors are unaware of and (10%)
are uninterested in FCCR
2.
3.
Good Loyalty Programs in other companies attract contractors i.e. certain contractors specifically
mentioned other companies loyalty initiatives
A Total-Stitched Loyalty program that encompasses the following aspects will attract contractors
4.
5.
6.
Contractors expect assured gifts or involvement from the company on special occasions like
Vishwakarma Jayanti
Holi
Diwali
Ganesh Chaturthi
Social Initiatives: (Certification + merchandise to be given to each participant for each event)
1. Afforestation
2. Visits to blind schools and orphanages (twice in an year) Pairing with an NGO
3. Blood donation
4. Visit to old age homes
5. Certification with the tag Sabse Zimmedar Nagarik to make him feel good socially
6. Ganesh Chaturthi beach cleaning activity
7. MORE
Empowerment (takes care of personal, geographic preferences):
1. Offer choice of Vaishno Devi trip/ 5 star treat/ consumable gifts like refrigerator to the contractors for their
family every 2 years
2. A colorful form asking to family members of all existing and new contractors in an interesting way to decide
their gifts (every Quarter)
3. Inviting suggestions on designing loyalty programs and rewarding the person whose suggestion gets
implemented (every Quarter) include his name in the banner, gift him the same prize
Business leads:
1. Develop a helpline portal for the builders and clients, where they browse for the contractors of their
choice/ priority ratings given by Pidilite company
2. Gift them folders with their names and specifics on it- encourage them to use the folder to keep the
pictures of their sites
Communication:
1. Send letters/credible documents to contractors every quarter to communicate about development in
loyalty programs, new schemes, incoming offers and events
Referral Policy: To incentivize the contractors to recommend other contractors
1. Ensure the new candidate is not registered on FCCR portal
2. Add a field in FCCR form as Reference ID where referrers contact number is to be entered
3. So the referrers membership number is noted
4. After the referred candidate redeems at least 100 kilos, the referrer starts 10% of the points henceforth
5. Joining bonus (5%) to referred candidate till an year
Focused Approach:
1. Using the ranking from the Discriminant Analysis, a more focused approach can be done i.e. top 20 or top
50 contractors of an area and treat them specifically (MORE)
Passbook replacement:
1. Barcode scanner installed at dealers counter and he can scan the barcode of the items against the
contractor name
Some incentives (Family trips) on completion of 5/10 tons of Pidilite PWG
2. Ownership transfer suggestion To make the FCCR passbook in the name of the contractor, along with
that of supervisor who would give the purchase updates
Costing:
For all the recommendations that are proposed above, the detailed costing has been included in the Excel File.
Costing
Grand total Annual cost summing up the costs for all the initiatives = INR 38,000
For a SUPER-A contractor, monthly Intake is greater than 400 Kgs.
Let us assume Intake = 500 Kgs
Annual Intake = 500 x 12 = 6000 Kgs
Therefore investment required/kg = 38000/6000 =
INR 6.33/Kg
Overall Data.xlsx
Draft_Questionnaire.d
ocx
3.5% of MRP
Data_Mumbai.xlsx
Overall_Pune.xlsx
Conjoint Analysis.xlsx
FinalQuestionnaire.do
cx
Pune-BlindSchools.do
cx
Mumbai-Blind
Schools.docx