Managing and Planning

Retail Business
Apekshita Sheoran, Prasoon Agarwal, Raghav Saigal, Raktim Paul

WIPRO CONSUMER CARE: MERCHANDISING FOR SUCCESS

Executive Summary
Visual merchandising (VM) plays an important role in hypercompetitive product categories.
Though shoppers may be exposed to advertisements extolling the virtues of brands, they tend
to get swayed at the point of purchase due to an attractive display or simply because of the
prominence of a brand at the retail location. As such, companies must invest in processes and
infrastructure to make effective VM possible. Wipro Consumer Care and Lighting is among
the largest fast-moving consumer goods companies in India and has a wide range of products
across different categories. One of its sales development managers must choose between
several options for making certain that the companys strategic objectives are met through
VM. There are four options, including two models where either the company or its channel
partners manage the elements of VM, and two models where VM is outsourced to specialized
agencies. All models have their pros and cons and the manager must use the available
qualitative and quantitative information to compare the models across different parameters
and make a choice.
A well-designed visual merchandising programme involves three management functions:
1. Operational Management,
2. Analytics and Reporting, and
3. Human Resource Management.

Evaluation of Alternatives
Distributor Model
Pros: The investment required in this model is skimpy. The recruitment can be done by the
distributor himself. The investment can be further curtailed if the distributor makes a good
deal of business by sharing the expenses.
Cons: The distributors will not undertake initiatives as they are not going to reap direct
benefits. The indirect benefits are not so significant and palpable to the distributors. As sales
are the primary function of the distributors they shall not pay much heed to the promotional
activities. Territory allocation of the sales team will be a cumbersome job and quick
replacement in case of attrition doesnt seem likely.
Manpower Model
Pros: The hiring process will be easier as filtration is done by the third party. As the team of
team leader and merchandisers are in the payroll of the agency, the process will be easier.
The agency shall ensure quick replacement of merchandisers in case of attrition or complaints
from the company.
Cons: The expenditure will be very high. The agency may not take the ownership as its role
is limited to staffing. Territory division and other cumbersome operational works shall
remain the onus of the sales team.

End- to-End Merchandising Model

Pros: The project, in entirety, will be assigned to the third party. Sales team will have fewer
burdens to carry. As the responsibility of the whole project will be entrusted upon the agency,
a sense of ownership shall prevail. The agency will be accountable for results, and a perfect
MIS data can be maintained by utilizing their IT system and mobile app based real-time
reporting. The agency will take care of POP materials, right from the warehouse, so no
mismatch. The agency will take all responsibilities of training the team leader and the
merchandisers, and provide valuable inputs to the company for programme refinement.
Cons: The expenditure will be the highest, in comparison to all other options available.

Decision
The third alternative, i.e., the End-to-end Merchandising model is the most preferred
alternative. Albeit being the most costly alternative available, its efficiency, effectiveness,
technological precision, accountability, and convenience make up for the drawback. Being
one of the top ten FMCG brands in India apart from being one of the fastest growing, and the
FMCG industry expected to reach $100 by 2025, the other alternatives demand a lot from
Wipro. As such, carrying out, either or all the three management functions of the VM
programme, themselves, would be a herculean task.
The proposals from two potential service providers, MarginDize and VisuaLeverage, are to
be appraised on the basis of four key parameters:
1.
2.
3.
4.

Monthly fixed cost to the company per store,

Real-time data capture capabilities,
Relevant industry experience and
Reporting Mechanisms

MarginDizes app runs on low-end Android phones, which makes reporting hassle-free, and
the web-tool makes real-time reporting as easy as you please, thereby providing clients
premium services for an affordable price. The call efficiency per merchandiser per day is
higher for MarginDize. And its edge over its counterpart in terms technological
advancement, brings down the number of Data Entry operators and Operational Executives
required. Although MarginDize does a better job in terms of other charges and expenses,
comprising average monthly expense, real-time reporting cost, and agency fee, it believes in
the philosophy of paying its employees better than industry standards, to build loyalty and a
sense of belonging, which makes much sense. As it is comparatively new to the business, a
great sense of ownership shall rule, as much is at stake with the project.
Put in a nutshell, the average monthly fixed cost to the company per store may not project a
rosy picture, so far as MarginDize is concerned. At the same time, lack of relevant industry
experience, seems to be the Achilles heel, in their contendership. But as discussed above,
these factors might indeed be blessings in disguise. On the contrary MarginDize is way ahead
of its competitor in terms of real-time data capture capabilities and reporting mechanisms to
facilitate robust daily auditing mechanisms and superior operation control. Considering all
these nitty-grittys, MarginDize looks likely to gain the upper hand over above
VisuaLeverage, and win the project.