How to appoint distributor in FMCG Sales .

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.                                 

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Using relationship while finding a good distributor can give you better result. If you know some business man , then you can approach them directly. Also you can approach a financial sound person , even if he is not in FMCG sector , you can  appoint him  as a distributor . Discuss  with your friend circle to get good party as a distributor. Personally I have been benefited with this technique. During my 15 years tenure in FMCG industry I have appointed more than 50 distributors.   

                     

2. Market survey.                                                                                    

Market survey is another tool for distributor appointment. You need to visit retail outlet and can get information about existing  distributor . Number of distributors working in a particular location, their service, market relationship, finance etc. You can ask some question to retailer, like which distributor comes regularly ? which distributor gives credit ? What is their damage collection policy ? etc. What kind of products are they dealing with ?  

 3. Take help from FMCG sales professional.                                                                      

  You can contact some FMCG sales professional and take some potential distributors list. As per the list you can approach them. There is high possibility of getting a right distributor for your product. Same industry professional have the knowledge of that particular market.

                                                                             

  4.Take help from your boss or senior colleague 

Obviously your boss or senior colleague have enough exposure of that particular market and they can guide you properly.

Things to consider before appointing any distributor.                                        

1. Finance.                                                                                                               

Finance is the blood of any FMCG distributor. Distributor’s business depends on finance . So you need to ensure that the distributor is a financially sound party. You enquire in the market about his financial stability also you can ask for account statement to check his transaction  and balance etc. Without finance he cannot offer credit to market , which results in business hamper. Also he cannot make company payment timely. Again godown stock also requires money . So , as a whole without proper finance you cannot achieve you goal.                                                                                                                            

2.Reputation .                                                  

Before appointment of a distributor , you need to ensure that the respective party is well reputed in that market. If the distributor is not reputed,  then retailer or wholesaler will not be interested for business with him.  Again some  time FMCG company removes some distributor due to not working as per company policy or non delivery of expected result. At that time you will find difficulties to remove him. Also you cannot remove any distributor if he is a local Don or dada or Gunda.

3.Infrastructure. 

 Infrastructure is  the body of a distributor. Proper infrastructure can give you business smoothly. Infrastructure mainly  A. Warehouse facility B. Delivery unit. C. Godown or office staff etc. D. Office space ( Office space is not necessary , one can operate his business from the warehouse also. Calculate your godown space requirement  as per your product .       Also discuss for godown staff,   sales staff and office staff if necessary.                                                                                                   

 4. Involvement.             

 Involvement in business is a heart of the distributor. Despite having all the above things,  but without proper involvement your business cannot run properly. Please check whether the firm is operated by the distributor himself or by any staff.  Active involvement of the distributor gives you a good business.                                    

5.Attitude . 

Distributor should have positive attitude and should be familiar with basic managerial knowledge and technology. He should be ready to experiment with new product, technology and new customer.                                                 

6. Future plan.

 Please check distributors future plan. Once appointed it should last for minimum 5 years or more. It should not be like that today he will  work leave  your business after six months. It will give a negative reputation for your brand and you will find difficulties while appointing another distributor. Again you should not appoint a distributor for your short term benefit. “This quarter my target is high, so by appointing a distributor I will get some additional business volume”. Today this step will give you some benefit , but in future you will suffer.