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How to increase sales in fmcg

How to increase sales in fmcg  Friends , increasing sales in fmcg sector is not a very difficult task. You need to follow some basic principles. Thumb rule is that “ If want to increase sales in fmcg , then sell more to existing buyer or find new buyer”. By existing buyer we mean those customer who are currently   doing transaction with us. Like existing retailer, wholesalers and   distributor. How will you sell more to existing buyer ? You need to sell more quantity of presently buying products and also sell presently non buying product.   Suppose a retailer   presently buying 10 packets of biscuit only . Now you have to sell minimum 11packets of biscuits to that retailer and sell some chips or any other products of your company. This is called sell more to existing buyer. Find new buyer means those outlet in the market who are not buying from you currently. While working in the fmcg market you need to identify non buyer and make a list. With the help of this list you can

Challenges of super stockist

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Every channel partner have some challenge of his own , it may retailer, wholesaler , distributor or super stockiest. In this topic we will discuss about   the challenges faced by the super stockiest. 1.Rural transportation.                                                                        Transportation in rural area is a key challenge for a super stockiest . In a country like India, road condition is very pathetic, broken road, muddy condition, narrow space etc. Also in summer season roads remain under water for   three to five months. Hence goods delivery in these situation is not so easy task for any FMCG super stockiest .                                                                                                  2.Small quantity delivery .       In rural area , the sales volume is low in comparison to urban area. Some time order value becomes   Rs10000 to Rs15000   for distance of   50 Kilometer. So

Role of a super stockist.

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Super stockist is a business man who purchase from company in bulk and sell to rural or urban distributor. In general super stockist is supposed to supply to rural distributor only. But in rare case some FMCG company allow super stockist to supply to urban distributor. Pls read this book 1.Keeping   stock. The name implies that super stockist’s main job is to keep company’s stock.   Super stockiest keeps stock for further supply to rural distributor , as a remuneration super stockiest earn some commission . In some defined agreement super stockiest need to main a certain level of inventory. He is also given a defined geography to supply some rural or urban distributor.   As the manufacturer cannot supply small quantity to rural distributor,   so supply to rural distributor   has to be done   from   super stockist . 2.Supply to rural or urban distributor. Super stockiest need supply in small quantity to rural or urb

Challenge of FMCG distributor .

1.Risk taking.                                                                                                                            Distributor has to give credit in market without any   proper legal agreement, hence high risk is involved in this process. Also we have discussed that,   in FMCG there are large number of buyers and sellers, in this case doing agreement with the buyer is not possible. Also in FMCG distributor has to acquire some new customer every month and need to give them credit. He does not   know the person whom he is offering credit.                                                                                                                   2. Small transaction value .                                                                                                     In FMCG , distributor has to do a very small amount of transaction . Particularly in retail market, the sale value may be Rs300 . Even some times distributor has to give credit

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