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Challenges of rural market

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                                                                         Pls read this book 1.Number of outlets are low .   You will not find so   many outlet like   urban area, due to low population ,the number of retail or wholesale   outlet are also low . In some places you will find even 2 or 3 outlet.   2.Stock supply problem   . In rural area stock supply creates a problem. Due to low business volume ,stock supply from nearest town becomes difficult . Distributor or super stockist from nearest town face   difficulties while sending small quantity.   3.High margin product.    FMCG rural visibility Asking for high margin is common in rural area.   It may be retailer , wholesaler or rural distributor always they thinks for their own profit volume.   As quality product cannot give high margin , traders become reluctant to sell these product. 4.Difficult Communication.                                     

FMCG sales in rural market

Pls read this e book Definition of rural area. As per census govt. of India 2011,rural area means all the area or location except the following                 A.A place where minimum   population is 5000                                                                  B. At least 75% of male working population are engaged in non agricultural sector.              C. Density of population is at least   400 per square KM. Working in rural area. Rural market working is not like urban market . In rural market there are many challenges . First of all population for rural are low in   comparison to urban area. In rural area majority of   population   are not aware of quality product. In this area retailers play a vital role .   As the retailers are concerned about their own profit ,obviously they will sell high margin product. Quality products cannot give too much margin for retailers , here comes the challenge for low margin brands. Sale people working with low margi

Benefits of wholesaler.

1.Reduce overhead  cost .                                                                                                          Wholesaler purchase in bulk quantity and sell at their own effort. Hence manufacturer’s overhead   cost are saved.   Once a product is supplied to a wholesaler , it will be distributed in different location. Manufacturer need not to take any headache.   So   it is cost effective for manufacturer. 2.Supply to interior  place.  Manufacturer cannot reach to all the spread out and interior location, here wholesaler plays a vital role . Retailers from these interior location comes to whole sell market for their purchase. Wholesalers  are also gets business from these retailer. 3.Gives huge  volume .                                                                                                              Whole   seller purchase in huge quantity and sell in a small quantity to retailer. Since wholesaler sells to large numbers of retailer

Characteristics of wholesaler.

Characteristics of    wholesaler .                                               Pls go through the e book 1.They sells on trade price .                                They sell on trade price , ( Trade price is the retailer’s purchase price fixed   by the manufacturer) and earn a margin on it. In general manufacturer decides trade price   of a product and all the calculations of   FMCG are done on trade price only. Wholesaler gets a discount or margin on trade price. Normally wholesaler sells to retailer on trade price only.   2.Get together point of retailer .                               Retailers comes to the wholesaler point for their stock purchase   from different location. Manufacturer cannot reach to micro interior location, from these location retailer comes to the wholesale market. 3.They don’t manufacture .                                                    Most of the wholesaler don’t manufacture the   product they sell. They purchase from distributor

FMCG sales in Wholesale market.

FMCG sales in Wholesale market.                                                          Pls go through this book Working in urban wholesale market is a little bit different than retail market. Ideally you should start your working in wholesale market in second half of the day . In first half wholesaler remains busy with their customer , in this time you will not get   proper time to speak with wholesaler . So best time is second half of the day. Generally wholesaler looks for two things either high margin or high retailer   demand. If your products has any one of these then no problem at all, you can penetrate   easily   in urban wholesale   market.   But if your product can’t give neither high margin nor high retailer demand then there is some problem for penetration. You have to do tremendous hard work . You need to visit day after , try to build relationship with these wholesaler . Once you become familiar   them then you can penetrate easily. Each and every wholesaler n

Characteristics of retailer

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        Pls read this book                                                                                                                                               1.Retailer is the last point of FMCG channel .          In FMCG distribution channel, retailer is the   last   point . From this point products goes to consumer’s hand for their end use.   Consumer comes for their day do day purchase according their requirement.    2 .Business to consumer. This is the business to consumer point, all the product purchased by the consumer are generally for non commercial. 3.Interaction with end user. Consumer visits   physically in FMCG retail outlet, hence retailer can interact with consumer. Retailer can understand consumer demand, their choice, purchasing trend etc. 4.Point of promotion. Consumer comes to retail point for their purchase,   hence this is the best promotion point for FMCG industry. Using publicity material ,   display, merchandising can at

Definition of a retailer

I invite you to read this e book Retailer   is a businessman who purchase from wholesaler   or distributor and sell to consumer for end use of a product. It is the last channel of    FMCG product. It is the point from where the end user purchase for non commercial use.          According to American Marketing Association –   “Retailing consists of activities involved in selling directly to ultimate consumer for personal or non-business use. It embraces the direct to customers sales activities of the producer, whether through his own store, by house to house counseling or mail order business” .             According to Philip kotler , “Retailing includes all the activities involved in selling goods or services to the final consumes, for personal, non-business use. A retailer or retail store is any business enterprise wholesales volume comes primarily from retailing.

Admin work in FMCG sales .

I invite you to read this e book Once you have completed your first half of the day now it is time for some admin work and review . In first half you have worked with a single salesman in a single town .But you must be having multiple numbers of town/market/ salesman   and distributor. Here is your task for second half .You have to review each one of the salesman may within same town or in some other town, get the day sales figure from all of them and put together will be your   secondary for the day. After your market work and review completed now you need to report to your boss regarding your day target vs achievement , primary vs secondary all these. You can share any market related issue with your boss and request him for solution. If you need any help from the company you can ask   your boss   .

FMCG market working .

Pls read this e book Friends today I discuss about working in FMCG market. How to visit market ,how to   achieve daily target ? How to plan beat or route in a particular market ?How to give extensive coverage ?   Before starting your outlet visit you should do   product wise plan ,Daily value /volume plan. Ask your boss about any focus product, brand ,category .Also discuss with your boss about company’s ongoing agenda/activity /promotion etc. You should leave your distributor point by 9.30 to 10 am along with distributor ‘s salesman. Ideally you should work with a strong   salesman so that you can build your confidence. Now enter into outlet and seek his attention by greeting him in local language, like “Namaskar ,   Ram ram   ji or any other speech in bold” .Give your introduction , after introduction observe the type of outlet and promote your product accordingly. If it is your existing customer then find out which products are available and what quantity. Thereafter find

Sales channel in FMCG

          Pls go through this book                          Sales channel means the chain link from Manufacturer’s warehouse to   CFA, Super stockiest or distributor, wholesaler and retailer . By this channel products of a company moves to the end user and money from the end user moves to the company . The means to sell a customer is called a sales channel.. The sales channel is nothing but it is about closing a sale. Basically all the entities that do not work directly for the organization . Sales channel plays a vital role for a company to reach the products to the ultimate consumer . In my previous topic I have explained the features of FMCG and we know it is vast industry, manufacturer cannot bill to the consumer directly .                 Some features of Sales  channel                                                                                                                                                                                             1. Sales