Sales channels to reach your customers
Selling through retailers, wholesalers and other distributors
Selling through an intermediary may be a more cost-effective way of reaching your end-customers than selling to them directly.
If you are targeting business customers who prefer to deal with large suppliers, selling directly to them may not be a realistic option. Instead, you might aim to supply wholesalers who have existing relationships with those businesses.
If individual consumers buy low value quantities of your products, the best option might be to target retailers that sell similar products. Or you might choose to focus your efforts on a relatively small number of wholesalers who can in turn supply your products to many retailers.
Other distribution channels may also reach your end-customers. For example, technology suppliers often sell to resellers who can configure and install the technology to suit end-users’ particular needs.
Managing your distributors
You need distributors who will value your product. If they sell competing products, what will make them push yours?
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Think about how you set your prices. Distributors will be more enthusiastic if they can make a large profit – but setting too low a price will eat into your own margins.
Effective advertising and promotions can be vital. As well as marketing to the distributor, you can promote your products directly to end-customers. Distributors will be keener to stock and sell products that their customers are asking for.
The key terms of the supply relationship should be covered in a written contract. Key issues might include:
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how much stock the distributor will hold
what the distributor will do to promote your products
how quickly you can resupply and minimum order levels
whether the distributor has exclusive rights to your product (for example, in a particular territory)
what happens if either you or the distributor want to end the relationship
Business ideas, Marketing and sales , promotions and advertising ideas , articles
Marico Bangladesh acquired a toilet soap – Aromatic
Marico Bangladesh (MBL) – the Bangladesh-based wholly owned subsidiary of the company – has acquired the toilet soap brand, Aromatic, from Aromatic Cosmetics Ltd (ACL) for an undisclosed consideration.The soap brand, Aromatic, had an aggregate turnover of about Taka 300 million in Bangladesh with a market share of around 5%. Aromatic’s brand equity owes its strength to the quality of the soap and its positioning based on the “halal” concept, which has a strong recall amongst consumers, a Marico statement said.Earlier this year, MBL had acquired another soap brand, Camelia, to signal its entry into the toilet soaps market in Bangladesh. The acquisition of Aromatic will now enable MBL to strengthen its presence in the soaps category that is estimated at about Taka 6,000 million.Marico currently enjoys market leadership in the coconut oil category in Bangladesh through its brand Parachute. A strong distribution network that reaches about 290,000 outlets supports this.Marico operates in the consumer product, skin care services and ayurvedics segments in India.Marico has done well over the past few years when the FMCG industry was facing bad times. For Q1 June 2005, Maricos consolidated net profit jumped 22% to Rs 20.77 crore (Rs 16.99 crore). Sales rose 12% to Rs 272.85 crore (Rs 243.94 crore).Its a global village !!
