Cool Ways to Reach Customers

Embed Size (px)

Citation preview

  • 7/29/2019 Cool Ways to Reach Customers

    1/7

  • 7/29/2019 Cool Ways to Reach Customers

    2/7

    In the summer of 2010, the firm introducedChillicks, a semi-frozen popsicle sold in thermalice-boxes in compact $80 pushcarts.

    Chillicks' unique model helps it cut through the

    clutter on shelves and reach out to a niche group. The company set up dealers and micro-dealers

    across the city, gave them assets such aspushcarts, ice-boxes and the merchandise.

    On a Rs 10 product, 40 per cent of the cost goes

    on packaging, while 38 per cent is the margin forthe distributor and the salesman collectively. Thatleaves a tight 22 per cent for the product and profitmargin

  • 7/29/2019 Cool Ways to Reach Customers

    3/7

    eKOCool, a solar-powered refrigeratorpriced at Rs 45,000, supplied by Coca-Cola.

    The company has set up 20 eKOCool's invillages in and around Agra.

    The company is looking at a high volume

    sale that will help it break even the cost.

  • 7/29/2019 Cool Ways to Reach Customers

    4/7

    Godrej is subverting in-shop retail. In late 2009, it launched chotuKool, a refrigerator

    priced at Rs 3,450, in rural Maharashtra.Godrej sells chotuKool, a refrigerator priced at

    about Rs 4,000, through India Post and an NGO,Swayam ShikshanOver the past 18 months, Godrej gathered

    feedback from consumers, tweaked the productand introduced a new variant in February with a

    price of Rs 3,750-4,000. The company will look at similar tieups in the north

    by the end of this year.

  • 7/29/2019 Cool Ways to Reach Customers

    5/7

    In 1963, the Japanese company came up with asystem to distribute pro-biotic milk to the masses.

    Targeting mothers and children, the Japanesecompany appointed door-to-door saleswomen, YakultLadies, as their sales mascot.

    In 2006, when Yakult entered India through a joint-venture with Danone, it started with 30 Yakult Ladies.The number has reached 180 now.

    The company's scooter-based woman workforcefunctions as a business model separate from retail.

    This accounts for 40 per cent of its sales. The rest is through a 2,100-strong Yakult retail

    channel.

  • 7/29/2019 Cool Ways to Reach Customers

    6/7

    SSP in the past sold products for D'Lite (solar lamps) and HULPureit, too.

    Even though the Yakult lady system is more expensive thantraditional retail, we will continue to invest more into this. Globally, itis a successful model and a more focused way of creatingawareness and sales.

    Chillicks wants to stick to its current model. Its popsicles are not tobe sold at retail outlets. "We are focused on this channel and are notlooking to sell through the regular retail route. The unique sellingproposition of the brand is the pushcart. When consumers see ouruniformed sellers with their carts, it creates its own brand identity.

    Godrej is focusing on bulk-sales and anticipating a period of two

    years to reach an operational break even. For Godrej, regular urbanretail is a big no for now. "We are not eyeing the urban markets, butare looking at north India through NGO associations and India Post.

  • 7/29/2019 Cool Ways to Reach Customers

    7/7