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
Harish Manwani … President, Asia Africa – Unilever
Harish Manwani is an honours graduate from Mumbai University and has a master’s degree in management studies. He also attended the Advanced Management Program at the Harvard Business School.He joined Hindustan Lever (HLL) in 1976, becoming a member of the HLL board 1995 as director responsible for the Personal Products business. As category leader for Personal Products, he also held regional responsibility for the Central Asia and Middle East business group.In 2000, he moved to the UK as senior vice president, Global Hair Care and Oral Care, and in 2001 was appointed president, Home and Personal Care, Latin America business group. He also served as chairman of Unilevers Latin America Advisory Council.In 2004, he was appointed president and CEO of the HPC North America business group, and in April 2005 joined the Unilever Executive as president, Asia Africa. He is also non-executive chairman of Hindustan Lever and is currently a member of the Executive Board of the Indian School of Business.Harish is married and has two daughters. He spends his leisure time with his family and enjoys playing golf and an occasional game of bridge.Career Summary1976: Joined Hindustan Lever1994: Divisional vice president marketing, Detergents1995: Joined board of Hindustan Lever Ltd; director for Personal Products2000: Moved to UK as senior vice president Hair Care and Oral care categories; executive vice president, Latin America business group2001: President, Home and Personal Care Latin America2004: President, Home and Personal Care, North America2005: Appointed president Asia & AfricaSir, all hats off to you for ur splendid performance in last 30 years !!
