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Numeric distribution

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

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 .                                                       For more details  While calculating ROI , bank interest will be   included on expense side or not ? . It is big question for FMCG sales people. Simply it is the distributor’s expense and   should

Benefits of ROI.

Benefits of ROI.                                                                                                                         For more details 1. Compare profitability   among different brand   or  sector.                                                                                          Suppose a distributor is working with five different company , so without calculating ROI , he cannot say which company is more profitable than other. Also it helps a business man to determine earning ration in different sector. Like FMCG, electronics, construction, automobile etc. 2.Business  health.                                                                                               ROI can help in determining business. If ROI is in positive figure , that means he is making profit . If ROI is  negative figure that means he is making loss.              

Return On Investment

                                          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 income----total expense  x100                        Total investment Total income :-   Total income ia the year, total income like total margin , incentive   for distributor, any cash discount etc   .                                                                                   

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