How to manage trade scheme in FMCG sales.                                                       For more details Scheme means the financial or non financial benefit given by the manufacturer to the distribution channel to promote sales volume.   Some   schemes are , discount , any gift, any free quantity or a   holiday trip.   Suppose a company may give 1 piece free against purchase of 20   piece   or some company may give 2 % extra against purchase of 10 carton or there may be a holiday trip against purchase of some value, like 500000   etc. Scheme operates for 4 channel partners   ,   like super stockiest, distributor, retailer and wholesaler .                           ...

How to appoint   distributor in FMCG Sales . Distributor is a key pillar   in FMCG industry. Finding a good distributor is key to success in FMCG. Almost all the urban distributor plays a very important role in effective distribution.   So I will discuss some tips to find a   distributor.                                                                                                             1.Relationship .     ...

Weighted distribution .                                      For more details Weighted distribution is the sum of value sell   of all the outlet for a particular product ,divide by total value sell of industry of that category. Formula for weighted distribution. Total sale of a   product   in all the outlet   X 100 Total industry sale of that category in all the outlet Let understand with the chart. Outlet Industry sale( Potato Chips) Yellow Diamond sale Contribution to industry sale Raju store 800 100 2 Shyam Store 300 0                                         ...

Numeric distribution                     For detail analysis   Numeric distribution is the number of outlet where my company’s product is present. Generally numeric distribution is expressed in percentage. For example in a market there are 250 outlet, among 250, only 150 outlet keeps my product then numeric distribution will be   150 X 100 = 60% 250 Numeric distribution counts the number of outlet sell my product. It does not bother about the quantity, even as low as one   individual unit. Simply it deals with quantity of distribution and not the quality .

Challenges of ROI calculation in FMCG 1.Accurate Data  collection                                                                               ROI calculation depends on accurate data . Accurate data gives perfect ROI but , if data is not perfect then ROI cannot be calculated perfectly. For example , in FMCG it is generally seen ,a distributor works for three different company and he uses common   infrastructure , common investment . In this case if is very difficult to separate   individual company investment and infrastructure used by three different company. So the distributor use these trick, he counts the total infra cost to your company to confuse you.     Hence we figure out on lump sump basis. 2.Bank interest .     ...

Benefits of ROI.                                                                                                                         For more details 1. Compare profitability   among different brand   or  sector.                                                                                          Suppose a distributor is ...

                                          ROI                   Details analysis Definition of ROI .  The full form of ROI is, “Return On Investment” . Distributor invest money for the whole year and the amount he earns at the end of the year is called return on investment. It is the remuneration for the capital invested through out the year. It is the difference between cash out and cash in . ROI is expressed in percentage ,   in a year to compare different types of investment. It is the process to measure efficiency of investment. It is performance of investment.                              Calculation of ROI Total...