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General Trade Distribution-Multi Mix Strategy for Growth

The decision We take about any distribution channel whether it Direct, Indirect will affect to our pricing, our products, our relationships with our intermediaries and our customers. There are E-Commerce channels who are stepping towards offline channels with innovative approach. Even competition going aggressive to tap the expansion through different strategy. Now General trade getting impacted – Trade should have Plan for different strategy for the expansion like Middle range Priced product for low spending areas, margin, manpower, marketing etc. Companies having good control and strategy at Tier-I but expansion & focus is lesser in Tier-II & Tier-III areas , where business can be planed with some different strategy to cater them the market.

Below are are the Multi Mix Strategy for growth of General Trade- FMCD focused :

*     Experience Center at Remote area to showcase brands for Entire Portfolio with Direct Center or Associated Center based on Display margin- this will help product for Expansion and availability of products. If it’s Single Product company then the budget always advise to go for associated Experience Center are Tier 2 & 3 cities where products have low presence with lower market share.
*     Direct Dealers - Connect in all the areas with right appointment, this should not disturb the existing distribution in all the existing serving area for better reach, share & availability.

*     Appointment of wholesalers-cum- Direct dealers-cum Big Size Retailers at Low Brand Potential market. This will help brand to improve the presence and customer reach.


*     More Associated Employees or promoters for increasing footprints strongly at competitive market based on Product type, Revenue, Opportunity & Competition at market. It can be based on seasonal also.

*     Upcoming opportunity where everyone stepping Rural & Tier II & II - Brand should have more focus by Interactive advertisement , Everyone is are looking for expansion reach but awareness of brands are very less in that areas so need Interactive advertisements ( based on product category)  support like Digital & Print ad , Display budget, Society activities , Auto Poster , Shutter Painting , Dummy ,Plumber & electrician meets budget.

*     Trade Margin & Connect Strategy –
Ø  Rural Channel –(Less turnover)  Low market share selling distributors having expectation of high margin then offer promotional budget for channel & manpower engagement this will help Tier II & III markets because lots of challenges in distribution of products at scattered areas  & lesser Pull demand of brands. Even market is wholesale oriented relationship based.
       
Ø  Urban Channel –( high Turnover ) Where brand have high market share then make sure compliance are followed like Stock norms , Manpower, SKUs So due to multi-band association leads towards more mix ROI for distributor , So it’s important to have enough investment on specific brand.
*     Manpower declaration form – every month should be signed to adhere the norms.

*     Team should be more focused and reviewed regarding the Distribution performance through tools & interaction. DSEs and Associates should techno-Friendly to use handheld and GPS to create strategic target monitoring.

The distribution decision could give product a unique position in the market, So Brand need combined approach for Sales Distribution.

Aazad Singh

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