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
Emami sinks its teeth into oral care !!
Article from Economic TimesEmami, the Kolkata-based personal care and cosmetics major, is marking its foray into the oral care segment by launching a toothpowder called Nirog.We are making investments of Rs 6 crore for marketing and R&D for the tooth powder and two other products in the wellness segment a blood purification syrup and a uterine tonic, said Aditya Aggarwal, MD, Emami group.The market size of the toothpowder category is Rs 250 crore approximately, of which, Emami is targeting a 10% market share in three years. It plans to grow its presence in this category to Rs 5 crore in the first year of launch. If successful with the test launch of the tooth powder priced between Rs 12 and Rs 15 for a 50-gm pack the company will introduce a tooth paste in the next 2-3 months. All three categories (tooth powder, blood purification syrup and uterine tonic) are not very big, but with marketing initiatives, we plan to grow the categories along with our brands, said Mr Aggarwal. Emamis other brands include Boroplus antiseptic cream, Navratna oil, Fair and Handsome and Sona Chandi Chyawanprash. The company has been growing steadily in its personal care category and faces competition from multi-national as well as domestic players. Its foray into the oral care category will help it to grow, provided the products are marketed in the right way, said an FMCG analyst.AnalysisI really dont understand why Emami in first place not gone for toothpaste. If Emami’s strategy is to be a regional player and target the rural India, it makes lot of sense. So then it will be in the league of Dabur Red Tooth powder.But overall i feel this is not the appropriate category to enter into at this point of time, as the growth rate os bleak and doesnt look promosing.But it makes huge sense to enter blood purification syrup, as there are not many players known and if Emami can create a brand for itself in this category, they can reap benefits.It looks as if Emami is getting desperate to get into any product category. No offense. I wish Emami huge success.
