PERF RMANCE 04 - The Performance Portal - Ernst & Young

Competing for market share in
rural India
Figure 6. Recommended actions based on the dealer type
Action steps
BB
DD
Territories with good market share
2
4
1
Infuse funds
AA
Territories with high visibilty
CC
Territories with low visibility
1
2
4
2 Improve coverage
Total no. of territories
FF
5
3 Increase awareness
CC
Territories with low visibilty
Territories with good market share
GG
Territories with low market
share/vacant
1
3
5
4 Improve conversion
5 Enhance dealer network
2. Channel management
The second step in the assessment was
an evaluation of how the channel was
performing. Key to this approach was
tracking and monitoring how the channel
was being funded.
Figure 7. Channel management approach
• Should the network be self-funded, funded by
distributor/stockist or provided channel funding/CC?
• What should be liability borne by company in each case?
What rate of interest should channel partner be charged?
Again, specific action steps emerged
for each one of the elements shown in
Figure 7. For example, precise guidelines
for various funding approaches were
developed to enable mapping of optimal
funding options (see Figure 8) with the type
of dealer, the sales levels and the quality of
the market they were playing in.
• What indicators of the
channel partner’s funding
system should the
organization team be
actively tracking?
• How should dealer’s
fund in market/stock
be tracked?
Mode of funding
Network
funding
• How should dealer’s funds
be distributed among
sales/service/spares?
Monitoring
of funds
Distribution
of funds
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