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Role of distributor in FMCG channel.

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1. Investment.                                                                                                                                               For more details Distributor need to invest in a particular brand as per agreement with that company. At the time of appointment, company asks for investment as per sales volume . Different company has different investment norms. For example 15days, 21 days or may be 25 days. In general 21 days investment is commonly seen in Indian FMCG market. 2. Purchase from company or super stockist.             His primary job is to place order and payment to the super stockist or company. As he is a channel partner , he need to get the stock from super stockist or the company. 3. Maintain godown stock.         He need to maintain a certain level of stock at his own godown for day to day market requirement . Different organization have different stock norms , like 7days,   10 days or 15 days. In FMCG, distributor need to

FMCG distributor.

Definition of distributor.                                                          For more details Before we discuss about role of distributor , we must know the definition of distributor. Distributor means a businessman ,who purchase from company or super stockist   in bulk quantity and sells to retail or wholesale market in small quantity . In simple he is a channel partner,   acts as   middleman between company or super stockist   and the market. . The term distributor itself implies that,   he does distribution in a defined geography with some defined products.   He has exclusive distribution right of   a particular geography and some particular product. He plays a vital role in FMCG distribution channel. He is the key player to success in FMCG business. Either urban market or rural market , effective distribution depends a lot on him. He is the only source for wholesaler and   retailer for that particular product. He acts as independent business man,   deals with

FMCG advantages in rural market.

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1.Huge opportunity .                              Pls read this book As it is untapped market , opportunity is huge in this area . New village or Tehsil, even block level coverage can be given. Obviously giving coverage to new area will give additional business volume . 2.Last mile distribution. Rural is the last mile distribution point   for any FMCG company. Giving micro level coverage to rural market can create opportunity. This is the point where product can be given at consumer’s hand. As per census 2011 rural population in India is 68.84 %. It is big consumer base and no company can   ignore this big numbers of consumer. 3.Opportunity for value players. Rural market demands small pack and high profit margin for traders. So value players can play a vital role in rural market. Getting maximum quantity with minimum price is key character in rural market. Hence all the value players can gain from this market segment. Again we should not forget about quality pla