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
FMCG Wholesale Industry
One of member of FMCG Marketers, Gaurav asked me put some insights on Wholesale industry in India, its operation, key factors etc. Let me give you some pointers which may help you guys.For any product category which is high selling will have wholesalers. Take the case of biggest FMCG product category – cigarettes or the next family of product categories – Personal products, all have a combination of wholesale and Retail Sale. The only difference between the two is the offtake levels, financial capacity and sometimes infrastructure to deliver to retailers.Normally the rates for wholesale is cheaper than retail, as it is in bulk. This sometimes lead to price cutting in market. Both retail and wholesale have a role to play. Its always good to have high retail thruput (Total Retail Sales/ Total Sales) to have higher control of organization over the retailers. This will help the organization to launch new brands in future, increase visibility at the outlets, which is just because of relationship of organization saleman with Trade.At the other end, in case of insufficient supply from factories or C&F, there will be sufficient stock to deliver to outlets to serve the conserve. Also, there are many markets which is practically and financially not possible for many organization to cover like less than 10K narkets, Here these small retailers in smaller markets get the stock from these wholesalers which are located at some distance from them.Its really interesting to see wholesale mandis in some pockets in different areas.
