Posts

Increasing FMCG Distribution on launch

 Gradually increasing distribution is about sequencing reach without destroying cash, service levels, or brand discipline . Most FMCG failures happen not because distribution was slow, but because it expanded too fast, in the wrong order . Below is a proven, low-risk, India-appropriate rollout framework . PHASE 1: PROVE THE PRODUCT (0 → 100 outlets) Objective: Ensure repeat purchase before expansion. Actions Focus on 1–2 micro-markets (one city or cluster) Personally onboard 50–100 high-velocity outlets Limited SKUs (1–2 only) Daily/alternate-day replenishment if needed Collect feedback on: Price resistance Taste / quality Pack size Metrics to Track Weekly repeat orders Days of inventory at retail Offtake per outlet per week Do not scale if repeat is weak. PHASE 2: DOMINATE A MICRO-TERRITORY (100 → 500 outlets) Objective: Become visible everywhere in one geography. Actions Appoint 1 committed distributor Define tight beat ...
Post a Comment
Read more

Cadburys Distribution Strategy

Cadbury’s (Mondelez India) distribution strategy is a textbook example of high-velocity FMCG execution , optimised for impulse, temperature sensitivity, and absolute reach . Below is a structured, India-specific breakdown , focusing on what actually makes it unbeatable. 1. Core Distribution Philosophy “Be available everywhere, at the moment of impulse, in the right condition.” Cadbury does not chase margin first; it chases reach, freshness, and visibility . Margins are engineered later through scale. 2. Multi-Tier Distribution Architecture A. Manufacturing → CFA (Carrying & Forwarding Agents) Regional CFAs across India Hold inventory, manage GST, service distributors Ensure rapid replenishment and stock rotation B. CFA → Super Stockists / Distributors Territory-based exclusive distributors High throughput, low inventory days Focus on route coverage, not SKU push C. Distributor → Retail Unmatched width & depth 1.8–2.0 million outlets Cover...
Post a Comment
Read more

Cadbury vs Amul vs ITC Strategy

  1. Core Distribution DNA (One-Line Summary) Company Distribution DNA Cadbury Impulse-led, micro-reach, high velocity Amul Supply-led, daily replenishment, cold-chain muscle ITC Portfolio-led, leverage-and-cross-sell machine 2. Network Scale & Structure Parameter Cadbury Amul ITC Retail reach ~1.8–2.0 mn outlets ~1.0–1.2 mn outlets ~1.0–1.1 mn outlets Distribution model CFA → Distributor → Retailer Cooperative → Union → Federation → Retail CFA → Distributor → Retail Ownership Fully private Farmer-owned cooperative Corporate conglomerate Control intensity Very high Very high High 3. Product–Distribution Fit (Why Each Model Works) Cadbury Small SKUs (₹10–₹40) Low weight, high turnover Impulse purchase No daily replenishment required Result: Maximum width of distribution. Amul Perishable, cold-chain dependent Daily milk and butter movement Heavy capex in chilling, transport Result: Absolute trust and availability in staples. ITC Large, d...
Post a Comment
Read more

ARCOR SALVADOR PAGANI STRATEGY FOR INDIAN FMCG STARTUPS

 Below is a clear, India-specific FMCG startup framework derived directly from Fulvio Pagani’s playbook , adapted to Indian market realities (price sensitivity, channel fragmentation, regulatory complexity, and inflation cycles). This is written as a founder’s operating doctrine , not theory. The Pagani Framework for Building an Indian FMCG Company 1. Start With a Product Indians Can Buy Daily (Non-negotiable principle) Pagani logic In volatile economies, daily-affordable indulgence never collapses . India translation Choose products where: Consumer can buy ₹1–₹10 per unit Purchase frequency is daily or weekly Consumption is habitual, not aspirational Strong categories Candies, toffees, gums Biscuits, rusks Sachet beverages (tea premix, glucose drinks) Savoury snacks in ₹5 packs Avoid initially Large packs Premium-only SKUs Products requiring refrigeration 2. Design for Kirana, Not Modern Trade (Distribution-first thinking) Pagani ...
Post a Comment
Read more

FMCG SMART NOTE TEMPLATE (Decision-Grade)

 1. Core Insight (One sentence only) Claim: (Write one clear, testable business insight.) Example: Eggless mayonnaise delivers structurally higher margins than egg-based variants in India. 2. Commercial Relevance (Why this matters) Answer at least one : Margin impact Capital efficiency Scalability Risk reduction Competitive advantage Example: Lower cold-chain dependence and longer shelf life improve working capital and reduce distribution risk. 3. Evidence / Basis Keep this factual and short. Source (report / interview / plant visit / calculation) Year Assumptions (if any) Example: Trade interviews (Delhi, Mumbai) – 2024 Oil cost as % of COGS: ~60% Shelf life: 6–9 months vs 3–4 months (egg) 4. Cost Structure Impact Tick what is affected and add numbers if known: ☐ Raw material ☐ Packaging ☐ Utilities ☐ Labour ☐ Logistics ☐ Working capital Example: Reduced refrigeration lowers logistics cost by ~₹X/k...
Post a Comment
Read more

Smart Notes System for FMCG / Industry Research

  Objective (FMCG context) Create a decision-support knowledge system that helps you: Identify attractive product categories Compare cost structures and margins Build business cases, capex notes, and pitch decks Avoid re-researching the same questions 1. Note types (FMCG-adapted) A. Fleeting notes (during calls, articles, plant visits) Use for: Distributor comments Plant manager insights Trader pricing signals Competitor observations Example: “HORECA mayonnaise buyers extremely price sensitive; brands rotate every 6–9 months.” Process these within 24–48 hours. B. Literature notes (reports, articles, conversations) Convert each source into multiple short notes , not one long summary. Example (from a market report): “India mayonnaise market ~₹X Cr, growth driven by QSR and cloud kitchens.” Always add: Source Year Applicability (Retail / HORECA / Export) C. Permanent (Smart) Notes — the core asset These are decision-grade no...
Post a Comment
Read more

HUL’s Structured Goal-Setting: “Must-Win Battles”

  HUL’s Structured Goal-Setting: “Must-Win Battles” Hindustan Unilever Limited (HUL) uses a very disciplined strategic planning model. Although HUL does not publicly release every detail, their approach is widely known in leadership and FMCG circles and aligns closely with Unilever’s global performance rhythm. Below is the distilled structure: 1. What Are Must-Win Battles (MWBs)? MWBs are the top 3–5 strategic priorities that a business must achieve in a given year or cycle in order to win in the marketplace. They have three characteristics: ✔ Decisive These goals unlock disproportionate growth or prevent major risk. ✔ Non-negotiable Leaders commit resources and time; failure is not an option. ✔ Cross-functional Sales, marketing, supply chain, R&D, finance — all must work in sync. 2. How HUL Defines an MWB (Framework) HUL uses a structured sequence: (1) Business Diagnosis Category health (penetration, frequency, premiumisation) Market map (competitive sh...
Post a Comment
Read more