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    Wipro Consumer Care: Merchandising For Success: Submitted By: Group 9

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    The document compares two models for merchandising - the distributor model and the manpower model. It analyzes the pros and cons of each. Key parameters like total yearly costs, cost per store per year, number of merchandisers and team leaders required are compared. Two agencies - MarginDize and VisualLeverage are also compared on parameters like experience, reporting mechanisms, manpower costs and overall projected costs to the company. MarginDize is estimated to have a lower total cost per store.

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    Wipro Consumer Care: Merchandising For Success: Submitted By: Group 9

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    74 views6 pages
    The document compares two models for merchandising - the distributor model and the manpower model. It analyzes the pros and cons of each. Key parameters like total yearly costs, cost per store per year, number of merchandisers and team leaders required are compared. Two agencies - MarginDize and VisualLeverage are also compared on parameters like experience, reporting mechanisms, manpower costs and overall projected costs to the company. MarginDize is estimated to have a lower total cost per store.

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    WIPRO CONSUMER CARE

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    The document compares two models for merchandising - the distributor model and the manpower model. It analyzes the pros and cons of each. Key parameters like total yearly costs, cost per store per year, number of merchandisers and team leaders required are compared. Two agencies - MarginDize and VisualLeverage are also compared on parameters like experience, reporting mechanisms, manpower costs and overall projected costs to the company. MarginDize is estimated to have a lower total cost per store.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    74 views6 pages

    Wipro Consumer Care: Merchandising For Success: Submitted By: Group 9

    Uploaded by

    Try
    The document compares two models for merchandising - the distributor model and the manpower model. It analyzes the pros and cons of each. Key parameters like total yearly costs, cost per store per year, number of merchandisers and team leaders required are compared. Two agencies - MarginDize and VisualLeverage are also compared on parameters like experience, reporting mechanisms, manpower costs and overall projected costs to the company. MarginDize is estimated to have a lower total cost per store.

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    of 6

    WIPRO CONSUMER CARE :

    MERCHANDISING FOR
    SUCCESS
    SUBMITTED BY: GROUP 9

    F006 LAKSHIT BAHETI F009 DEEPIKA CHAUHAN


    F023 ABBAS JAMIL F026 VAIBHAV JINDAL
    F043 SANCHITA PANCH F063 AARZU WADHWA
    DISTRIBUTOR MODEL
    PROS CONS
     No direct benefits to distributors to monitor
    daily activities of merchandisers
     Minimal Investment  Indirect benefits like brand image,
    visibility are not important for distributors
     Recruitment of merchandisers is to
    be done by distributor  Distributors focus will be on sales rather
    on promoting company’s VM initiative
     Investment can further be decreased
    if distributor earns good amount of  Territory allocation and preparation of
    money by selling company’s products journey plan for merchandisers will
    increase workload of sales team
     Distributors may not be quick in finding
    merchandisers in case of attrition
     Inventory of POP materials may be left
    unopened at distributor’s warehouse
    resulting in losses for the company
    MANPOWER MODEL
    PROS CONS

     More effective hiring process as  Higher expenditure as compared to


    filtering will be done by third party Distributor model
    agency and then finalised by sales  Ownership of agency will be limited
    team to staffing and managing payroll
     Quick replacement of merchandiser  Operational tasks to be carried by
    in case of attrition or on company’s sales team which in turn will increase
    request
    the workload
     Merchandiser and team leader will be
    on agency’s payroll , thus facilitating
    the process
    Parameters Distributor Model Manpower Model

    No. Of merchandisers required 135 135

    No. Of Team Leaders required - 11


    - Team Leader salary/month - Rs. 20,000*11

    Cost
    - Merchandisers salary Rs. 7000 *135 Rs. 12000*135
    - Travelling allowance /month Rs. 800 *135 Rs. 200,000
    - sales kit bag / month Rs. 84*135 Rs. 84*135
    - Agency Fees - 15%
    - Service tax - 12.36%
    (Agency and Service Fees as a % of

    KEY PARAMETERS
    merchandiser and team leader’s salary)

    TO COMPARE
    Consumable Costs/ month Rs. 20,000 Rs. 20,000

    Total Monthly Costs Rs. 1084250 Rs. 2574764

    Total Yearly Costs Rs. 13011000 Rs. 30897168

    Total No. of stores 15000 15000

    Cost/store/year Rs. 867 Rs. 2059

    Cost/store/month Rs. 73 Rs. 171


    PARAMETERS FOR CHOOSING
    AGENCY
    MarginDize VisuaLeverage

    Experience in VM Programs Limited High

    Reporting Mechanisms - Can cover a large spectrum - Limited coverage


    - Expertise to leverage technology - No such expertise mentioned

    Manpower Pay Rates Higher than industry norms At par with industry norms
    Total Outlets: 15,000
    MarginDize VisuaLeverage
    Merchandiser Cost 13,000 11,000
    Team lead Cost 18,000 15,000
    TL:M Ratio 1:12 1:12
    Estimated Merchandiser req. 67 67
    Total Merchadiser Cost 8,71,000 7,37,000
    Estimated TL req. 6 6
    Total TL Cost 1,08,000 90,000

    Total Manpower Cost 9,79,000 8,27,000

    DEO Needed 5 8
    DEO Cost 10,000 10,000
    Total DEO Cost 50,000 80,000

    COST TO COMPANY PER


    OE Needed 3 5
    OE Cost 25,000 23,000
    Total OE Cost 75,000 1,15,000

    NMO Needed
    NMO Cost
    Total NMO Cost
    1
    18,000
    18,000
    1
    19,000
    19,000
    STORE
    Program Manager Cost 50,000 52,000

    Total Fixed Cost 1,93,000 2,66,000


    Upon calculating the proposed differential costing we can
    Average Monthly Expense 4,00,000 5,00,000 conclude that MarginDize would be the cheaper of the two options
    Total Cost 15,72,000 15,93,000
    Agency Fees 12.5% 15%
    Grand Total 17,68,500 18,31,950
    Cost to Company per Store 118 122

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