Posts

Retailer Margin Reduction Strategy

To reduce retailer resistance and grow your sales while implementing the pricing changes you've outlined, consider these strategies: 1. Offer Retailers Additional Value Beyond Margins Retailers may accept reduced margins if they perceive added value in other areas: Exclusive Incentives : Offer volume-based incentives, such as bonuses, discounts, or loyalty rewards for meeting sales targets. Marketing Support : Provide promotional materials, shelf displays, or social media shoutouts that drive customer foot traffic to their stores. Free Samples : Offer free samples for in-store tastings, which can boost sales and customer interest. 2. Increase Product Turnover If retailers can sell more units even at a lower margin, they can maintain or grow their overall profit. Introduce Smaller Packs : Smaller or more affordable packaging can attract more customers, leading to higher volume sales. Bundle Offers : Pair your tea with complementary products (e.g., teacups or biscuits) to encourage h...
Post a Comment
Read more

Selling multiple brands of the same company in the same market

 Selling multiple brands of the same company in the same market requires a strategic approach to avoid brand cannibalization, maintain distinct identities, and effectively target different customer segments. Here’s how you can achieve this: 1. Clear Brand Positioning Differentiate Brand Identities : Define unique selling points (USPs) for each brand, focusing on distinct features, price points, or target audiences. For example, a premium brand could emphasize quality and exclusivity, while an economy brand could highlight affordability and value. Avoid Overlapping Target Audiences : Create specific customer personas for each brand to minimize direct competition. 2. Segmented Marketing Strategies Tailored Promotions : Design campaigns that highlight the unique benefits of each brand, appealing to its target segment. Distinct Communication Channels : Use different marketing platforms to engage with varied demographics. For instance: Premium brands might use luxury magazines and exclu...
Post a Comment
Read more

Multi Distributor strategy in the same town

 To classify your retail outlets and assign different distributors within the same town, you need a structured approach that balances market coverage, distributor efficiency, and retail satisfaction. Here are steps and criteria you can use: 1. Classification Based on Geography Neighborhoods or Zones : Divide the town into distinct geographic areas or zones. Assign each zone to a specific distributor to avoid overlap. Accessibility : Consider traffic patterns and ease of delivery when defining boundaries. Clustered Retailers : Group nearby retailers to streamline delivery routes. 2. Retail Size and Volume High-Volume Outlets : Assign outlets with larger sales volumes or frequent restocking needs to a more experienced or exclusive distributor. Small-Volume Outlets : These can be grouped and served by another distributor to optimize delivery efficiency. 3. Product Segmentation Product Lines : Allocate distributors based on product categories. For example, one distributor could handle ...
Post a Comment
Read more

LUP Distribution in Rural & Urban Markets

 The distribution strategy for low unit packs of tea in rural and urban India needs to be tailored to the unique characteristics and preferences of these markets. Here’s a breakdown of the key elements for each area: 1. Rural India Distribution Strategy: Rural areas in India present unique challenges such as limited infrastructure, low purchasing power, and fragmented retail networks. However, low unit packs are attractive to rural consumers due to their affordability. Here’s a strategy for distribution: a. Focus on Traditional Distribution Channels: Wholesalers and Distributors: Partner with regional wholesalers and distributors who have established networks in rural areas. These distributors often have connections with a wide array of small retailers like Kirana shops (local mom-and-pop stores). Rural Super Distributors: Establish relationships with super distributors who specialize in rural markets. They can help cover hard-to-reach villages by maintaining smaller stock points...
Post a Comment
Read more

Minister Goyal asks manufacturers, FMCG providers, consumers to work collectively to revive manufacturing

Image
 Union Commerce Minister Piyush Goyal on Monday asked manufacturers, fast-moving consumer goods (FMCG) providers and consumers to work collectively to revive Indian domestic manufacturing at scale, with high quality and at competitive prices, so that India once again provides a large number of jobs, work opportunities, business opportunities, and meets the aspirations of 1.4 billion people. Addressing the inaugural session of Massmerize 2023 in New Delhi, the Union minister said the government over the next two or three years hoped to significantly ramp up focus on quality by bringing in reasonably strict and compulsory but practical quality standards on many more products so that Indian manufacturing is able to withstand irrational competition, increase the scale of production and become more competitive. The minister said, “As long as we do not recognise the importance of quality in our country, we will not be able to stop this influx of low-quality produc...
Post a Comment
Read more

Can the Digital World Transform the FMCG Market?

Image
 https://quokkalabs.com/blog/fmcg-market-digital-transformation/ The coming era will be all about various 'New Normals. Technology and the increase in population and demands are pushing humans to search for ways to have easy, safe, and comfortable lives. Thus, "if consumer companies seek to thrive into the future, they must adapt to new business models to quickly transform challenges into opportunities. Digital Transformation is one of many business models that will be adequate to help the FMCG market grow like never before!!" Now, before jumping right into everything, let's see what this article includes for you: What is the FMCG market? Strengthen Brand Recognition Replace Offline Trading with Omnichannel Sales Automation in Production: A Necessity Understanding Consumer Behavior Win Loyalty via Customization Capitalizing on Immediate Demands Remote Customer Service: Chatbots & Voice Assistants Social Media & Digital Marketing: Personalized Ads Let...
Post a Comment
Read more

How is Digitalization Helping the FMCG Brands

 Decades ago, the consumer goods industry was represented by the local stores, malls, and sales representatives, but today's industry stands pervasive and pertinent, empowered by the latest technological advanced infrastructure. As a result, the sales environment of fast-moving consumer goods (FMCG) is undergoing massive alterations, and the brands that are quick to embrace the latest technology and data to reach their audience and optimize consumer experience will succeed. Tracking consumer behavior, face recognition augmented reality, and algorithm analysis is now part of modern advanced life and can be widely used to customize items presented by FMCG organizations or retailers. Digitalization has only picked up in the last few years and is still in the early stage of advancement in various FMCG organizations. Indeed, even notable brands are currently at an intersection of how they deal with the interface with the client. However, brands are certainly putting much...
Post a Comment
Read more