Kelloggs Summer Intern Presentation

SUMMER
INTERNSHIP 2015
Transforming ISP Activities for Superior Results
Sponsor
Kenny Abraham
Intern
Sandeep Kumar JhaMentor
Veenesh Priyadarshi
Guide
Bharat Sharma

• Benchmarking withother companies to understand the in store
man power activation model
• Scan leanings from any other country
• Time Motion Studyof ISPs: Understand ways of working & off take
data trend analysis
• Understand and classifythe ISP roles as filler v/s active suggestive
selling
• Manning norms
• Better usage of MT mobilitytool for tracking ISPs’ activities.
• Build a ISP 2.0 plancovering all the parameters suchas ways of
working, incentive plan, Success parameters for such a plan,
including weeklytracking metrics
Stage 1
• Roll out of ISP 2.0 Program as pilot in 5
stores
• Tracking of results
• Incorporating learnings for the Scale-up
plan
Stage 2
PROJECT TIMELINE
Week 7-8
Week 5
Week 6-7
Week 1
Week 1
Week 2-3
Week 3
Week 4
Week 4
Week 3

FMCG
• Items that are quickest to leave the supermarket shelves
• Limited Shelf Life
• Usually low cost, high volume
• Include product categories such as food and beverages, personal care, household and
cleaning products, apparel and footwear, tobacco and pet food
• Major players in the world today are Nestle, P&G, Unilever, Mondelez, Kelloggs,
Coca-Cola, Pepsico among others
Basics

FMCG
Statistics
• India’s GDP is $1.877 Trillion or Rs.112.62 lakh crores (2013)
• FMCG market worth is $47.3 billion (28.38 lakh crores)which is 2.51% of India’s current GDP
• In the FMCG Industry, food products account for 43% share i.e 12.20 lakh crores

Modern Trade Vs General Trade
Basics
1. BCG Retail 2020: Retrospect, Reinvent, Rewrite.
2.KPMG: Indian Retail, Thenext growth Story
Modern Trade General Trade
Number of Outlets 67100 (by2016)2 88 Lakhs
Total Volume $60 billion $550-560 billion
Growth Rate 20% per annum1 10% per annum
Average Assortment
Average Sales/SKU
What’s the difference from the traditional ones?
Newer Organised Structure, Better product range and , better shopping experience in terms of deals, range of products and an attractive
shopping environment
While the traditional kirana stores are being visited by shoppers for topping up small and quick purchase, fresh product and cultural habits.
Hence, Modern Trade needs a differential treatment

Plan-o-gram
Basics
A visual diagram, or drawing, providing details where every product in a retail store should be placed
• Benefits:
• Assigned selling potential to every square foot of space
• Satisfying customers with a better visual appeal
• Tighter inventory control and reduction of out-of-stocks
• Easier product replenishment for staff
• Better related product positioning
• Effective communication tool for staff-produced displays

Modern Trade
Statistics
400
2000
9500
10000
Cash & Carry Super Daily
Store Numbers
Spencers 26 Hyper 21 Super
Reliance Fresh
Big Baazar
HyperCity
D-Mart 89
Easy Day
Metro Cash & Carry 16
Reliance C&C 32
Best Price C&C 20
Hyper

ISP
Basics
• In Store Promoters are the direct agents who interact with consumers in a Modern Retail Store
• Importance: Point-of-Purchase Advertising Institute suggest that 70 percent of supermarket shoppers and 74 percent of mass-merchant shoppers make their
purchase decision inside the store
• We have an spending of around 5 crores over 200 crores of modern trade business in the country
• Reaching the Store at the prescribed time
• Use the MT mobility tool to mark the attendance
• Wearing Kellogg uniform in no time
• Greeting the store Team
• Checking the product facing and bringing the product from the store inventory , filling the shelves
• Arranging the packs as per FIFO and cleaning them
• Follow the store Plan-o-gram
• Giving the Stock information and old products information to the TSI
• Try and negotiate with the store manager for more SOS (Share of Shelf) as well as additional display points
Instore Activity
59
29
12
Percetage Buying Behaviour
Plan
Reminded
Impulse

ISP 1.0 Data Analysis
Man Power Behaviour Model
(Working Hours)
No. of
Hours
8am-9am 9am-10am 10am-11am 11am-12am 12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm
Kelloggs 9
Pepsico 9
HUL 9
PnG 9
Cadbury 8
CocaCola 8
Parle 8
Britannia 8
Baggerys 9
D-Mart
• Majority of the companies have a 9 hour working model here
• Companies like Parle and Britannia start early in D-Mart as they have a lot of smaller products to fill the shelves

(Working Hours)
No. of
Hours
8am-
9am
9am-10am 10am-
11am
11am-
12am
12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm 7pm-8pm 8pm-9pm
Kelloggs 9
Quaker 8
HUL 9
PnG 8
Cadbury 7
Nestle 8
Britannia 7
Parle 8
Saffola 7
Horlicks 8
Twinings 8
Big Baazar

(Working Hours)
No. of
Hours
8am-
9am
9am-10am 10am-
11am
11am-
12am
12pm-1pm 1pm-2pm 2pm-3pm 3pm-4pm 4pm-5pm 5pm-6pm 6pm-7pm 7pm-8pm 8pm-9pm
Kelloggs 9
Baggerys 9
HUL 9
PnG 8
PepsiCo 8
CocaCola 9
HyperCity
Since, during weekdays the concentration of shoppers is after 4 here, the ISPs start a little late here
compared to other stores

Man Power Behaviour Model (Experience In Months)
6
6
2
1
8
6
54
12
18
24
6
6
12
60
6
12
12
36
36
48
60
72
8
36
12
7
10
18
0 10 20 30 40 50 60 70 80
Kelloggs
PepsiCo
HUL
PnG
Coco Cola
Cadbury
Nestle
Britannia
Parle
Safolla
Horlics GSK
Twinings
Baggerys
D-Mart
BigBaazar
HyperCity
• The average experience is on a higher side in D-Marts and on a lower side in HyperCity
• As the education qualifications of an Average ISP in HyperCIty is more , they tend to leave their job for better career opportunities leading to low experience

Man Power Behaviour Model (Number of ISPs by competitors)
2
4
3
1 1 1 1 1
2
1 1 11
3
2
1 1 1 1 1 1 1 1 11
6
4
2 2 2
1 1 1 1 1 1
0
1
2
3
4
5
6
7
Kelloggs HUL P&G Cadbury Britannia Parle Baggerys Coco Cola PepsiCo Saffola Horlicks Twinings
HyeprCity
Big Baazar
D-Mart
• Companies having more product categories have more number of ISPs as in HUL,P&G
• Most companies have more ISPs in D-Mart as the frequency of product leaving shelves is high

Turnover In Lacs and Turnover per ISP per month (Big Bazaar) Vs Number of Bays
4
0.9
32
24
4 4.5 5
7
3 3
1
4
0.9
10.67
12
4 4.5 5
7
3 3
1
3
0.75
4
3
1 0.5 1 1 1 0.5 0.50
5
10
15
20
25
30
35
Kelloggs Quaker HUL PnG Cadbury Nestle Britannia Parle Safolla Horlics
GSK
Twinings
Turnover (In lacs per month)
Turnover Per ISP
Number of Bays

Turnover In Lacs and Turnover per ISP per month (HyperCity) Vs Number of Bays
14
4
65
48
35
27
7
4
16.25 16
17.5
27
7
2
6 5 6 5
0
10
20
30
40
50
60
70
Kelloggs Baggerys HUL PnG Pepsico Coco cola
Turnover (In lacs per
month)
Turnover Per ISP
Number of Bays

Turnover In Lacs and Turnover per ISP per month (D-Mart)
8.5
12.5
90
50
12
8
12
15
1
8.5
12.5
18.00 16.67
12
8
12
15
13 3 5 6
1
4
1 1 0.50
10
20
30
40
50
60
70
80
90
100
Kelloggs Pepsico HUL PnG Cadbury coca cola parle britannia Baggerys
Turnover (In lacs per month)
Turnover Per ISP
Number of Bays

Educational qualification & Filler Vs Suggestive Selling
<12th 12th Pass Pursuing
Graduatuion
D-Mart
Graduatuion
Big BazaarHypercity
Graduatuion
• Filler role and active suggestive selling for most
of the customers
• Requires complete insight of the product
• Decent communication Skills as mainly SecA
customers
• Suggestive Selling coupled with filler roleboth
• Communication skills required as mixture of
class A, B and C is there
• Educational qualification mostly 12th
pass
0%
40%
60%
• Mainly filler roles coupled with promotional
displays
• 40% of the time in shelf refilling almost
• No need of good education as well as decent
communication skills
• Product knowledge limitation
41%
47%
12%
0%
66%
34%

Time Motion Study (HyperCity)
2.38
17.86
3.57
29.76
13.10
33.33
1.04
17.71
2.50
29.17
9.38
40.21
3.13
21.88
2.50
18.75
14.58
39.17
5.95
21.43
5.95
28.57
10.71
27.38
4.76
27.86
4.76
25.00
17.86
19.76
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Morning Greeting Getting shelf Facing Shelf Refilling Customer Interaction Evening Updating and close Idle time (Non-
Productive Work)
Kelloggs
HUL
Coco Cola
P&G
PepsiCo
Customer Interaction and Idle time are the major chunk of the days time utilized

Time Motion Study (D-Mart)
2.12
10.59
34.96
3.18
7.42
8.90
32.84
1.04
9.38
40.63
5.21 5.21
10.42
28.13
2.38
15.48
33.33
8.33
11.90
7.14
21.43
3.13
6.25
35.42
8.33
7.08
11.46
28.33
2.17
6.52
39.13
6.52
5.43
8.70
31.52
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Morning Greeting Getting shelf Facing Shelf Refilling Noting Down Stock Customer Interaction Evening Updating and
close
Idle time (Non-
Productive Work)
Kelloggs
HUL
Coco Cola
P&G
PepsiCo
While customer Interaction just accounts for 7.42% of the days time, the idle time is 32% and shelf refilling is 34.96 percent of the days time

Time Motion Study (Big Baazar)
2.08
12.50
13.54
3.13
18.13
13.96
23.13
3.13
15.63
23.96
4.17
13.54
9.38
30.21
1.19
19.05
20.24
3.57
14.29
9.52
32.14
3.10
14.29
17.86
4.29
17.86
7.14
35.48
2.62
14.29
0.00
5.95
16.67
13.10
47.38
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Morning Greeting Getting shelf filled
morning
Refills MT App usage/Noting
down
Customer Interaction Evening Updating and
close
Idle time (Non-Productive
Work)
Kelloggs
HUL
Coco Cola
P&G
PepsiCo
In stores like Big Baazar, apart from the Idle time, the trend verifies that customer interaction time and refilling time are almost comparable

Salary Of ISPs
8500 8500 8600
10000
9000
12000 12000
12500
12000
9000
8500
11000
13000
8700
9000
8500
12000
8000
7000
8500
8000
1200012000
0
2000
4000
6000
8000
10000
12000
14000
HyperCity Big Baazar D-Mart
Kelloggs
Baggerys
HUL
PnG
Pepsico
Coco cola
Cadbury
Nestle
Britannia
Parle
Saffola
GSK
Twinings
Among the highest salary payers are P&G, HUL , Coca Cola and Twinings

Incentive Structure
Basically of two types:
1. On the Achievement of monthly target (followed by Kelloggs, Baggerys, Saffola, Twinings
2. On the Share of Shelf (SoS)
1. Audits being conducted and ISPs are rated on the basis of product Availability, Visibility and Shelf space
2. Ratings are given in the Audits which in-turn is converted into incentives
3. Companies Include HUL, P&G, PepsiCo and Coca Cola
3. There are other companies which have no incentive structure viz Parle, Cadbury
Kelloggs Baggerys Coco Cola Saffola Twinings
1200-1500 1200-1500
3000
1000
1800
On the basis of monthly Sales Target
HUL PNG Pepsico Britannia Nestle
1500 1500
1000
500
2000
On the basis of Share of Shelf

ISP 1.0
Learning from other Companies
Magnum (HUL)
• They put a large 3D ice-cream at the top of the shelf of HperCity Malad for everyone’s view
• Large banners covered the background of the entire shelf space, eye catchy colors
• They put Ice cream boxes near the cash counters for end of shopping impulse buying
• ISPs were wearing Magnum Tshirts and detailing the cutomers about the quality of Belgium chocolate, and
how Magnum is made from selected ingredients
Lays (Pepsico)
• Converted the space between the aisles into a pitch with advertisings on top to emulate a match
like ambience
• Facing products were all the bigger Rs 30 packs in that particular aisle
• ISPs were standing on the very verge of the entry and asking customers to get in and enjoy the
match like experience
•

ISP 1.0
Learning from other Compaines
Lipton Ice Tea
• Creative ways of secondary displays as
shown
• Promoters wearing bright yellow T-shirts
screaming Ice Tea just for the particular
product
• Bottle of Ice tea made at store only from
the ice tea packs making a eye catchy
display
• ISPs were engaging the customers by
telling them the benefits of an Ice Tea
over a aerated drink and giving sample
for tasting
L’oreal (Paris)
• Groomed Store Merchandisers
• Giving free product sample experience
making customers engaged with the
product
• ISPs or merchandisers trained with
courses of soft skills and presentation
skills
• Merchandisers need to be complete
thorough with the product manual

ISP 1.0
What we did.
• Understood the current ISP model of Kelloggs as well as of other companies in the
market.
• Compared the timings and working hours of ISPs of Kellogg’s against other
companies
• Tried to find the ideal ISP per store by comparing Turnover/ISP and No. of Bays/ISP
• Benchmarking the number of ISPs by companies and understanding the number of
ISPs /
• Evaluated the roles of ISPs by store type and understanding the educational
qualifications required by each store type
• Benchmarked the salary and incentive structure against the other company standards
in the market
• Conducted time motion studies of the ISPs of different stores to understand their
working pattern and most time taking activities
• Suggested changes to be implemented in the MT tool for ISPs for making it more
effective

ISP 2.0
Stores Selected for Implementation
1. HyperCity Malad
1. Class A consumers account for 80%
2. 2 store promoters
3. Requires throughout product understanding
4. Suited for a Product category as ours
2. D-Mart Malad west
1. Accounts for most volume in accounts for Kelloggs
2. Completely different demographics compared to Hypercity
3. ISPmostly acting as a filler
3. Big Baazar, R city Mall
1. The demography is a mix of both with 66% from Sec A , 22% from Sec B and 12% from Sec C,D,E
2. ISPhas an experience of 4.5 years
4. Metro Cash & Carry ,Bhandup
1. Cash & Carry format
2. Different set of skills required for selling in B2B format
5. Big Bazaar-Mumbai Central
1. Needed two stores as it has a mixed demography of customers

ISP 2.0
The Team
Age: 26
Experience:3 year 8 months
Edu Qualifications:TYB.com
Suchita Raza Jay Sheetal Anjum Shobha
Age:24
Experience:4.8 years
Edu Qualifications:12th
Pass
Age: 23
Experience:16 months
Edu Qualifications:12th,
Pursuing Graduation 3rd
year
Age: 24
Experience:3 yrs
Edu Qualifications: 12th
Age: 25
Experience:3 years
Edu Qualifications: B com
Age: 36
Experience:2 years 3 months
Edu Qualifications:12th
pass

ISP 2.0
Issues Understood
• Lack of Motivation
• Hardly any proactive selling
understood
• Seen huddled together with even
competitors
• Lots of Idle time
• Less informed aboutthe company
products
• Untrained on how to approach and
talk to customers

ISP 2.0 Construct
Manning Norms
Qualifications
1.For Hyper, 12th Pass or Pursuing Graduation
2. For Super, 12th Pass is preferable
3. For Daily, Can manage with 10th pass too
4.Cash and carry also doesn't need to have much
qualified ISP, 10th pass would do
4. When more than 1, 2 ISP model is followed
The 2 ISP model
• 1st Suggestive seller,
under the grade
category, well
educated
• 2nd filler and on
contract, minimal
pay , 10th pass
Size
1. For stores having sales more than 16.67lakhs a
month, 1 ISP is enough
2. Extra ISP is needed for Pringles in Hyper Stores
3. Even for stores having sales around 1lpm, but
having Class A crowd like some Reliance fresh, we
should give an ISP which will interact and increase
the sales
Timing
1.For Hypercity or Stores having more crowd after 4, ISP should
start late and end late i.e 11 am to 7 pm
2. For D-Mart, the ideal time is between 10am to 6 pm as they
don’t allow ISPs to be in the late evenings
3.For all day Supers like Big Bazaar, the timing of 10am-7pm is
suitable as it takes care of majority of crowd

ISP 2.0 Construct
Special Teatment to Pringles
• A completely different category and comparatively less
penetrated in the country
• Need special merchandisers and aggressive suggestive
selling
• Merchandisers should be well versed with its peculiar
benefits against competition like Lays, Uncle Chips etc
• Eye catchy in-store promotions with Pringles t-shirt for
ISPs
• 70 ISPs approximately needed for all major stores having
sales of Pringles ≥3 lakh a month
• Creative Marketing Ideas as in creative uses for pringles
can as in Cupcake Liner Holder, Candle Maker, Pen and
Pencil holder, Lamp, Flower Vase
• For Eg, HUL has their ISPs and still they have one special
for Magnum
• Lipton has ISPs of their own and still have special
merchandiser which only promotes Ice Tea

ISP Job Description
0-2 hours
Greeting, Inventory
Management and
Shelf Facing
‘
• From ISP 1 studies , it was around 150
minutes across all the stores
• With mandatory 3 times/day of catalogue
viewing and a secondary display a week,
it will get reduced to around 70 minutes
a day
Idle TIme
It requies 3 hours to put up a 3 layered secondary
display
I had asked for 2 extra displays per months,
eAtleast 1 should be made compulsary
Secondary Displays
Should be fixed as the 5th hour of the day
Non regularised lunch hour leads to waste of
time as they wait to huddle together
Lunch Break
0-2 hours
Greeting, Inventory
Management and
Shelf Facing
7-8 hours
Filling the shelves entirely
Updating closing inventory
Asking store guy to fill in for
him
4-5
Lunch break
2-4 hours
Suggestive selling and putting
up secondary display
Going through the catalogue
in the Idle time
5-7 hours
Refilling the shelves for the
hour last
Going through the catalogue
and suggestive selling

ISP 2.0 Sharing in Complimentary company in
small stores
• Pringles could tag along with a beverage brand as both are
usually bought together
• Pepsi is our competitor and thus coke would be a safer bet
• Could capitalize on the market penetration of Coke which
would help tremendously in sales
• Have been done previously in 2001 also
• Cost of additional 70 ISPs per months is around Rs.6.3
lakhs
• Value saving will be around Rs. 3 lakh if this is done

ISP 2.0 Capability Matrix
Knowledge
Process
Skills
Attitude
Suchita Raza Jay Anjum Sheetal Shobha
Big Baazar
(R-City)
(D-Mart
malad)
Hypercity
Malad
Hypercity
Malad
Metro Cash &
Carry
Big Baazar
Product Knowledge 5 4 4 3 4 4
Competitors
Product Knowledge
4 5 3 4 4 2
Facing And
Shelfing Tasks
4 4 4 3 3 3
Refilling 4 5 3 4 4 3
Approaching a
Customer
3 4 3 4 2 3
Communication
Skills
5 4 4 3 2 4
English
Understanding
Skiils
2 3 3 3 2
Hygeine 4 3 4 3 5 4
Properness 5 3 3 3 4 4
Total (45) 36 35 31 30 30 29
Points Explanations
5 Excellent
4 Good
3 Above average
2 Satisfactory
1 Below Average

ISP 2.0 PerformanceMatrix
Incentive Structure Changes (Tried
as a pilot run in 5 stores)
Raza Suchita Anjum Jay Shobha Sheetal
(D-Mart
malad)
Big Baazar
(R-City)
Hypercity
Malad
Hypercity
Malad
Big
Baazar
Metro
Cash &
Carry
Share of Shelf as
compared to
competitor brands
3 3 3 3 3 3
Availability of the
product all
throughout the day
5 4 4 4 3 3
Visibility of the
product
4 3 3 3 3 3
Additional
promotional activities
3 4 3 3 2 1
Total (20) 15 14 13 13 11 10
Incentive % 100% 90% 90% 90% 80% 80%
Grade Measure
5 Near Perfection
4 Good efforts
3 Average
2 Laggardness
1 Unsatisfactory
Performance

ISP 2.0 Customer Lens
Some Observed Statistics
70% of shopper purchase decisions are made in store
1 in 10 will switch brands inside the store, given how many
different brands exists in different category
Even if they have decided which category they’ll buy from, the
decision on which brand to buy is made 28% time inside the store
Some Observed Behavior Pattern
• Typically, shoppers position themselves in the center of one
aisle and begin reviewing a 4’x6’ section at slightly below eye
level, close to the product that has the greatest visual contrast
• Pictures and Sign multiply the power of a price reduction by 6
times
• The Boomerang rate determines the capture rate
• POP is the most critical component of any successful
marketing campaign, at no other place, money, people and
products are together

Survey Results (Hyper city)
Surveyed 15 consumers each at the stores over 5 days on what qualities they appreciate in a GREAT ISP
77%
64%
54%
47%
Most likeable qualities
Product Details
Conversation
Skills
Clean Uniform
Greeting and
Smile
27%
18%
17%
10%
Least likeable qualities
Looks and hygeine
Offers and discounts
knowledge
Knowledge about
competitors product
Knowing product
whereabouts

Survey Results (D-Mart)
93%
80%
80%
67%
knowledge
Knowledge about
competitors product
Knowing product
whereabouts
Product details
40%
33%
27%
13%
Way of approach towards
a customer
Looks and properness
Clean Unifrom
English communication

Survey Results (Bazaar)
87%
80%
73%
60%
Communication Skills
knowledge
Product details
Knowledge about competitors
product
27%
20%
20%
20%
Knowing product
whereabouts
Clean Unifrom

Survey Results (Metro Bhandup)
85%
70%
70%
67%
knowledge
Knowledge about
competitors product
Way of approach
towards a customer
40%
33%
27%
27%
Clean Unifrom
Greeting & Smile

Survey Results (Overall)
0
10
20
30
40
50
60
ISP Qualities
51
45
42
39
36
31
18
14
12
knowledge
Product details
Knowledge about competitors
product
Way of approach towards a
customer
Knowing product whereabouts
Clean Unifrom
Greeting & Smile

ISP 2.0 Training Inputs
Basic Behaviour
ISPs should be trained on :
1. Basic Hygiene
• Dress, clean and ironed
• Shoes and Socks, Shiny and polished
• Hair and Shave, neatly done and tied back
• Mouth and Body,
• Nails, clean and trimmed
2. Response towards customers of varying mood type
• Actively walk towards them
• Smile
• Greet & welcome the customer with confidence [Good morning (before 12), Good afternoon (12-4pm), Good evening (After 4pm)
• Ask the customer “How may I help you Sir/Madam?”
3. Company Catalogue with every ISP, consisting of
• Entire product range in separate pages with detailed ingredients
• Its should state the advantages each product has over their competitors against price, components and size
• In Idle time, ISP should go through this always till they mug this up, as currently many are lacking this

ISP 2.0 Incentive Structure
Grade
Ratings
K1 K2 K3 K4
Value
Incentive
Focused
SKU
Value
Incentive
Focused
SKU
Value
Incentive
Focused
SKU
Value
Incentive
Focused
SKU
A+ 850 500 893 525 937 551 984 579
A 800 400 840 420 882 441 926 463
B 700 350 735 368 772 386 810 405
C 650 300 683 315 717 331 752 347
• After talking to around 70+ ISPs over 3 months, I figured out the incentives are the biggest motivating factor
• After 105%, there were no additional cash benefits for additional sales, which was demotivating
• Grade wise increment of 5% would attract them to achieve better grades and thus better sales achievement

ISP Rewards and Recognitions
Two stages of rewards
1. ISP of the month (Highest percentage of sales target achiever)
1. Cash award of Rs 1000, highly motivating as they wait mainly for their incentive for
their entire month
2. Will earn a badge of honor (A+) which will be evaluated for future grade change
3. Badge of the honor of a feel good factor and the consumer response
2. Achievers of the month (upto 5 ISPs), 110-115% of the sales
1. Current incentive structure shows nil increment after 105%+, demotivating
to go beyong that
2. Cash bonus of 500 and a grade award of A
3. Badge to to worn throughout the month

ISP Grading Matrix
Four Stages of Grading
Grade/ Shift Criteria Experience wise Points
Criteria
Salary After Changes
K1 0-2 years 150 7000
K2 2-3.5 years 150 8500, or 1500 extra for promotion
K3 3.5-5 years 150 10000, or 1500 extra for
promotion
K4 5+ 150 11500 or 1500 extra for
promotion
Ratings Honor Points Target Criteria
A+ ISP of the month 20 Overall highest in the zone concerned
A Achiever of the month 15 105-110% of monthly target
B ----------------------- 12 100-105% of monthly target
C ----------------------- 7 90-100% of monthly target

ISP Grading Effects
Calculations
Earlier
No. of ISPs 400
Average Salary/month 8000
Average Incentive Achievers 300
Average Incentive Per month 1000
Total Spend on ISPs/month 3500000
After Implementation
Grade Number Salary Incentive
Grade K1 200 7000 1100
Grade K2 125 8500 1155
Grade K3 50 10000 1212.75
Grade K4 25 11500 1273.39
Total 400 3706847
Tentative Impact on Sales
No. of ISPs 400 400
Target per month per ISP P P
Number of ISP achieving 80-90% 150 25
Total Sales 370p 412P
Difference 11.3% increase

MT Tool Analysis
• New and innovative approach to Inventory management and reporting
• Followed by fewer companies only, Pencil and paper reporting still the dominated format
• Cant be followed in D-Mart as mobile phones are not allowed inside
• In my course of visit, I found it present in Kelloggs, HUL, PnG, ITC, Cadbury, Saffolla and Pillsbury
• Rest all had the procedure of noting down the data on a sheet and giving orders on that
Features (with any differences)
Company
Daily
Reports Other Reports MIS
Latest
Updates My Opinion Help Desk
Monthly
Target
Achieved
Catergory
Wise Sales
Promotion
Tracker
Visitor
Details
Kelloggs ✔ ✔ ✔ ✔ ✔ ✔ ✖ ✖ ✖ ✖
HUL ✔ ✔ ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✔
P&G ✔ ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✖
Saffola ✔ ✖ ✔ ✖ ✖ ✔ ✔ ✖ ✔ ✔
Pepsi ✔ ✖ ✔ ✖ ✔ ✔ ✖ ✖ ✔ ✖

ISP 2.0 Recommendations
• “Centre of the ISLE” is the new big thing, rather than focusing on
capturing more end caps, we should also focus on getting our product in
the middle
• Training programme is a must. A new ISP should at least be guided for 7
days for making their behavior shopper friendly
• The concern area is knowledge about their own products as well as
competition product. Consumer lens shows these are the most loved traits
for an ISP. Hugely effective in boosting sales
• As any other human, ISPs also get motivated the most by monetary
rewards. Explaining them effectively the monetary benefits against
increase in sales would drive them like nothing else

ISP 2.0 Way Forward
• Implementation of the inputs in MT tool analysis as already discussed with
Mr. Bharat
• Getting catalogues printed having an exhaustive product information and
every details of edge over competitor product in a simpler language to equip
the ISPs
• Categorizing the entire ISP of the country under the Grades K1, K2 , K3 and
K4 on the basis of their past performance and experience in company
• ASMs should make them understand the new Reward Rules and Incentive
Structure in a way that they are motivated to achieve those rewards and thus
better sales
• Recruitment of ISPs for Pringles in K1 grade and providing them with
aggressive training and promotional tools

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