Objective and Scope:

The client, a global beverage company, wanted to understand the functioning of the canteen stores departments (CSD) value chain and benchmark the best practices against general trade (GT) and modern trade (MT) for FMCG products. For this, they wanted Benori’s support to:

• Identify key product categories and brands operating in CSD
• Benchmark CSD with GT/MT for margins, discounts, and promotional schemes
• Determine other best practices and cost elements impacting product prices

Approach:

Benori identified key product categories, brands, and their SKUs sold at CSD outlets, followed by deconstructing its value chain. Further, the distribution channels of the identified brands were mapped as GT and MT. Key data points captured product/SKU salience margins, schemes, discounts across the value chain, the role of seasonality, and the impact on profitability. The data was captured using secondary research followed by primary research with multiple stakeholders across the value chains.

Impact:

Our research helped the client analyze all three channels and understand:

• The discounts given to the end customers in the CSD channel for all the categories
• How the net realization on maximum retail prices (MRPs) is helping companies gain profits despite having discounts and offers
• Comparison of margins and offers on specific categories available across CSDs with those of GT and MT