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?
cherry syrup Direct Marketing Plan
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
Indian Ice Cream Market
Industry Snapshot Market Size – 800 CroresIce Cream market is growing at 10 to 12% Ice creams traditionally are a low volume business Players Amul – Market Leader with share of 36%HLL – Kwality Walls – 2nd biggest player Mother Diary Arun – Chennai Based Hatsun Agro Product Metro Daily – Kolkata basedAavin – Tamil Nadu based Recent Happenings 1. HLL’s Moo (Nutritional Ice Cream) – targeted at Kids 2. As Mother Dairy has competency cold chain distribution as they have Safal brand ( frozen peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present size of Rs. 2800 Rs. Cr. 3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a low sugar variant of ice creams in the market. According to an official press release, the ice cream `without added sugar’ is ideal for diabetics and safe for children and mothers-to-be. This variant has just 80 calories and has 16 mg of sweetener against 8,000 mg of sugar in the traditional ice creams. The ice cream conforms to the US and domestic food regulations,the release said4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer beneficial health effects such as improving immunity and digestion and strengthening bones. It also introduced a sugar-free ice cream range and is planning a Web site on ice creams. There two ranges are – Amul Prolife and Amul Sugarfree. According to Mr. R.S. Sodhi, GM Marketing, Amul, Amul hopes to build the pro-biotic range into a Rs 100- crore brand within the next two-three years. While Amul had earlier tested this market segment through the launch of an isabgol-enriched ice cream, this is company’s first full-fledged attempt at capturing a good share of the pro-biotic enriched foods market in India. Both the brands are available in 125 ml (Rs 15), 500 ml and 1.25 litre (Rs 120) packs in five flavours, vanilla with chocolate sauce, strawberry, chocolate, shahi anjir and fresh litchi. On the retail front, it intends to hike its Amul parlours from 600 to 10,000 by 20105. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new range of ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest private dairy in India, plans to make available its range of dairy products at the conventional Arun ice cream outlets operated through franchisees. This network will also be expanded. The new range of outlets will sell ice cream by the scoop, `aggressively priced’ at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A feature of these parlours will be the wide selection of flavours, over 25 flavours with five new substituted for the existing oneseach month to ensure more variety. The company is investing over Rs 15 lakh in each of these outlets.Few Brands/ Target Consumers 1. YOuth Centric – Chillz 2. Kids – Moo 3. Teenagers – Cornetto 4. Health COnscious – Amul Sugarfree & ProLife This summer mother diary targeted children with the baseline `Jagaye Andar ka Bandar’ while it is luring adults with the message `Give In’.Interesting piece of information: Hawking is not allowed in Mumbai which makes 1/3rd of business for HLL. Rest is contributed by retail outlets Future of Ice Cream Market in IndiaIce Cream market will expand with increase in number of malls – HLL has been increasing their ice cream outlets – Swirl. Few years consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainmentprefer to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up with products specific for them… with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definately given a philip to the ice cream industry in India. FMCG Marketers Ice Cream Survey – Which Ice Cream do you consume & Why?Labels: FMCG, Ice Cream, marketing
