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
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Healthier Breads .. Can it work in India ?
One of the more recent trends has been the move towards low trans fats. Of the four types of fat commonly found in everyday foods, trans fat is potentially the most damaging to health. Interestingly, US government legislation has recently been passed to make trans fat labelling on food products compulsory by 2006, a trend which is likely to spread internationally as consumers become aware of the dangers of excessive trans fat consumption.In North America, Bimbo Bakeries introduction of a Sugar Free 100% Whole Wheat Bread under the Oroweat brandIn Canada, The Great Atlantic & Pacific of Canada, under its The Bakers Oven brand, launched Tortilla Wraps, made without hydrogenated oils or trans fat.For those looking for more intense internal benefits, there are now breads enriched with functional ingredients, such as the Omega group vital for cell formation and metabolising cholesterol, and prebiotics to help improve digestion and boost the immune system.These product innovations are working in NA, Canada and other developed countries.Can these product innovation work in India? Is India ready for brands SugarFree Breads where SugarFree of Cadilla is not picking up?
