Achieving 20 percent growth by helping traditional Indonesian stores with a Traditional Trade makeover program
In a nutshell
Empowering small scale businesses in Indonesia by helping them transform their stores to improve the shopper experience and strengthen their business further. By April 2017, more than 1100 stores had benefited from Unilever Indonesia’s Traditional Trade Makeover Programme, reaping more than 20 percent growth.
What’s the issue?
So-called Mom & Pop stores and Family Grocers are amongst the most frequently visited channels in Indonesia (accounting for ~53% of the business). They give shoppers convenient access to their daily needs. These channels are usually managed by lower to middle class families, who treat this business as their main source of income. However, these stores tend to be messy and cluttered, making it difficult for both store owners and shoppers to find the products they need. This, in turn, decreases shopper visits, affecting the business entirely. Also, Unilever’s visibility in these channels was not strong enough owing to its low share of shelf space and poor visibility on shelf.
What’s the story?
To address these issues, Unilever Indonesia developed the Traditional Trade (TT) Makeover Programme. This holistic programme consists of:
- The General Trade (GT) Next Gen Programme, designed to help grow Mom and Pop stores by improving their layout and product displays and by integrating marketing to shopper merchandising principles. The team installed additional racks, arranged items per product category and created better branding visibility through efficient Point-of-Sales materials such as Header Racks and Product Hangers. These changes created a better look and feel for the store, thus increasing shopper visits and purchase. And it didn’t stop here
- The Family Grocers (FG) Iconic Programme improved the performance of Family Grocers as well. From its scattered and confusing state, the team revamped the store’s layout, improved assortment, facilitated better merchandising of categories and dressed the store to ensure clear navigation. This positive change is helping small scale retailers to create a better in-store shopping experience, improve space productivity and increase store revenue, so they can survive and compete with the rapidly growing small supermarkets and convenience store chains.
“By helping our customers’ business to grow, our business will grow. In Traditional Trade, customer loyalty is influenced by how many lives we help change as we build sustainable business growth,” Marlan Mardianto, Customer Development Director Unilever Indonesia.
What are the outcomes and impact?
These programmes have a direct impact on the store owners’ livelihood as it empowers them to continue expanding their business and gives them a chance to work towards a bigger and brighter future for themselves and their families.
By April 2017, already 600 stores have benefitted from the General Trade Next Generation Programme and 500 stores have benefitted from the Family Grocers Iconic Programme, showing more than 20 percent growth. Unilever Indonesia has been able to increase the number of products sold significantly, widening its shelf presence and consequently establishing a profitable, sustainable business model.
What are the future plans?
The great work isn’t over yet. More than 100 GT Next Gen stores and 1,000 FG Iconic stores throughout Indonesia will be included in the Traditional Trade Makeover Programme during 2017.
“We improve the livelihoods of small scale retailers in Indonesia by widening the reach of our sustainable living brands and leveraging our expertise in store operation and merchandising, thereby growing our business sustainably”, says Enny Sampurno, Vice President-Customer Development Unilever Indonesia.