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 .                                  For more details pls read this book                                                                           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 tenu

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                                                    0 Ashok Store 500 100 2 J P Pan 600 200 4 Munna Store 400 300 5 G B Trading 100 0                                                     0 Hussain Store 1200 200 4 Pioneer store

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 .                                                       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.                                                                                                                         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.              

                                          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   .