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
Fascination for FMCG – Part 1
A mother’s feed is paramount for a newborn. But gradually, mother has to rely on nutritious food for the better health of her baby. Now, she is ready for a branded diet – a Ceralac. This is one of the first few experiences with FMCG which may have had happened to us.At very stage of life, one is in constant touch with one or other FMCG brands. The first instance with FMCG in daily routine is a visit to bathroom to brush ones teeth. One is ready for a Colgate wash with an Oral-B brush. Other looking for freshness buy a Close Up. Now is time for my face, to remove a day long beard. Ready to wet the face, zip off the shaving kit to have access to Park Avenue shaving Cream & Gillette blades, to have a smooth shave.Mother as her kid to use dettol soap to fight against the unwanted germs. The kid ask for a Horlicks in south India and Bournvita in North, before he sets off for a hectic day. Here the bells rings and everyone of them are set for Maggi Noodles Recess break or a Sunfeast biscuit. Now is the time for a Thanda break in summers. Some adventure freak guys love mountain Dew and others game for much like Coke. Standing in front of them are set of faculty members prefer an adult drink (non-bacha drink) – Thumps Up, taste the thunder. Here comes a lady faculty willing to consume not more than 1 calorie, goes for Diet Coke.The experiences and touchpoints with FMCG brands end with an All Out or a Good Night – a ,mosquito repellent.Everyone of us are linked with a portfolio of brands, which we consume every month. Consciously or unconsciously, we use these brands as vocabulary in our discussions. A few instances:1. Confirming packets of Lays before leaving for an expedition2. Comparison of Aashirwad and Shakto Bhog Atta (discussion in Kitis)3. Royal Challenge vs Seagrams Scotch4. Two smokers convincing each other their set of brands – Is Wills Classic superior than Gold Flake Filter Kings?And the list is endless. Throughout the days we are connected to all these lovely brands.EXERCISEJust while reading this book, have a look in your surroundings and observe the portfolio of brands. Just make a list of FMCG brands. Now move in your surroundings and observe more closely – roads, gardens etc and make a new list.After making this many of you will find that its actually difficult live without them. THATS THE POWER OF FMCG.
