We offer a lot more than a typical agent or broker, and describe ourselves as a full-service importer and distributor. We offer brand owners a full suite of complementary services, from sales and marketing, through consumer and category research, to logistics and IT solutions.
You’ve been on the food market circuit for a while and perhaps even have a couple of local retailers stocking your products, but how do you grow your stockists and reach new retailers potentially hundreds of miles away? The time might be right for you to start talking to food and drink wholesale distributors.
Working with food and drink wholesale distributors can be an effective way to reach a wide network of retailers and can significantly aid your business growth. However, there are several things to bear in mind before you start.
If you have been selling to a few local retailers directly you will be used to quoting them a trade (or buy in price) to which they will add on their margin to create the consumer (sell out) price. Working with a wholesale distributor adds a new element to the equation and the wholesale distributor margin needs to be accounted for. You need to have a really good handle on your cost price so you can calculate all the necessary margins:
We’re passionate about great food, and we spend a lot of time sourcing it and selling it, so we try to enjoy what we do. So if you want to know what we’re about, we can summarise it in three words: Family, Food, Fun.
We measure this by being first choice for all our major stakeholders – customers, brand owners, people, and our community.
marketing strategy will help you reach your business objectives
We know that taking time out of running your business to come up with a solid marketing strategy is difficult. That’s why work with business owners to create a marketing plan for you. Having a strategy in place will help you avoid wasting time and money on marketing activity that doesn’t work. Whether you want to grow, launch a new product, enter a new market or just outsmart your competitors, a marketing strategy can help you get there faster.
We need to get under the bonnet of your business; to understand your goals, identify your key sectors, profile your customers
RESEARCH
This where we take a ‘deep dive’ into your business. Researching your competitors, your brand and your offering will help us to help you stand out in a crowded marketplace.
PLANNING
Remove the guess work and inject some consistency into your marketing. Creating a 90-day activity plan that becomes your marketing ‘road map’ is just part of the process.
Marketing Collateral
Before approaching a wholesale distributor it is worth spending some time putting a simple sales presentation together covering:
Your brand – it’s ethos, vision, purpose and aspirations
USPs – any unique ingredients, flavour combinations or production methods
Products and usage – clearly list all available products and consider including serving or recipe suggestions
Pricing – depending on a wholesale distributor’s order quantity your pricing may vary but make sure you have some starting point calculations to discuss
Sales
Retail marketing has an extensive and highly capable sales team, covering the whole of the in every trade channel – multiple retail, impulse convenience, wholesale cash & carry, foodservice and…
Brand Management
Our product marketing team is the link between brand owners, and our sales team and customers. We allocate a dedicated product marketing manager to work with each brand, and be its champion within RH…
Category Management
Our approach is consumer and category-led. We have in-house expertise in providing customers and suppliers with all the necessary market insights to develop and execute strategies and tactics for…
Marketing & Public Relations
We provide a full range of solutions for both trade and consumer marketing, from in-store promotions and sampling, to advertising and PR. Our extensive experience running marketing and PR campaigns…
Logistics
Our base in High is the perfect location for distribution throughout . Brand partners and customers benefit from the environmental and cost efficiencies we generate through the supply…
Food Technology
Our team of in-house Technical Managers manage the technical relationship with all of our suppliers, overseeing all aspects of product safety and quality, while also responding to specific customer..
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Indian FMCG Sector Growth Drivers and Category Trends: 2008-09
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).This post will through some pointers for growth in FMCG Sector and update with the contemporary category trends.Growth Drivers: FMCG Sector1. Disposable Income: There is increase in disposable income, observed in both rural and urban consumers, which is giving opportunity to many rural consumers to shift from traditional unorganized unbranded products to branded FMCG products and urban fraternity to splurge on value added and lifestyle products. The increasing salaries, along with rising trend of perks in the corporate sector at regular intervals, have increased peoples spending power. As per some research, there is a high correlation between Disposable per capita and HPC per capita.2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people wont think much while buying and buy more.3. Distribution Depth – Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are focusing on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the growth engine for FMCG growth. Though the urban markets are growing too, the incremental addition in consumers households is much more in rural space as compared to urban markets. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term. 180 million rural and semi-urban peoples attention has already been diverted towards FMCG products, according to latest estimates released by industry chamber, Assocham in 2008. The estimated number of households using FMCG products in rural India has grown from 131 million in 2004 to 140 million in 2007, according to market research company IMRB. Over 70% sale of FMCG products is made to middle class households and over 50% of middle class is in rural India.4. Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was driven by new avenues of expenditure for growing consumer income such as consumer durables, entertainment, mobiles, motorbikes etc. Now, as many consumers have already upgraded, their income is being directed towards pampering themselves.5. Favorable Indian Economy & Demographics: 45% people in India are under 20 years of age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase). GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a total will supersede strivers and will be dominated by aspirers, as per NCAER.FMCG Category Trends 1. Underpenetrated Growth Categories: Within the Indian FMCG industry, there are few categories that will grow more than 20% during 2008-2009, like shaving cream, skin/fairness cream, shampoos, skin care & cosmetics, tooth powder. Some other growth categories will be hair colour, skin care, anti-aging solution, deodorants and mens products. Most of these categories are under penetrated and there is a huge scope for growth.2. Penetrated Growth Categories: Even mainstream categories with high penetration levels such as washing detergents, soaps and hair oils have shown strong underlying volume growth, despite sharp inflation led price increases in FY08. This is partly related to the growth in organised retail (3-5% of turnover for most FMCG players) that gives more visibility to national brands with strong brand equity.3. Anand Shah, an FMCG research analyst at Angel Broking, says most FMCG companies are responding to the new demand by concentrating on developing a big theme and building a portfolio around it. Nestle, for example, has identified ‘health and wellness’ as its focus area, while Dabur is positioning itself around ayurvedic (a traditional Indian system of healthcare), natural and herbal products. At the higher price end, companies are leveraging health and wellness trends by focusing on providing ‘experiential’ and ‘higher order’ benefits rather than purely functional ones.4. Health Food Categories: FMCG majors are widening their health food portfolio to cash in on the rich, urban, health conscious Indian. Sugar free Chywanprash, organic spices and multi grain pastas and biscuits are few examples. Urban India is high on health and FMCG majors are cashing in on the opportunity. Processed foods particularly juices that are based on the health platform would see stronger growth. Also, with the Indian consumer becoming increasingly health conscious, the demand for juices has witnessed rapid growth.5. Impact of inflation in 2008: Even if consumers don’t switch to cheaper substitutes during inflation, they normally switch from higher SKUs to lower SKUs of the same product. This is the reason the companies have come up with smaller SKUs. In line with this trend, Henkel has withdrawn its 500gm pack washing powder which was priced at Rs.46 and has replaced it with a new 400gm pack that costs INR40. A couple of months back, Amul introduced 25gm packs of butter. Not surprisingly, this pack is fetching more sales than 100gm and 500gm packs.In the first 10 months of 2007, there were 251 product launches, including 28 new brands, compared with 191 for the same period of 2006. Snacks and foodstuffs remain the category leaders, with recent launches of several health and beauty products, particularly in urban markets.Labels: FMCG Category Trends, FMCG Growth, FMCG Trends
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