Marketing & Branding |
BattleGround for Sales Professionals |
Retail & Supply Chain Professionals |
19 more ...
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Activity:
148 views;
last activity : 03 23 2011 10:42:24 +0000
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Inadequate Distribution Network
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High competition between large and small players
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Tailor-made Product with attractive Packaging
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Collaboration & Partnerships do work !!!
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REACH, ROLE OF DISTRIBUTOR and PRICING
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Low price high quality,high price high quality or low quality equivalent to price
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Low Cost and High Quality
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Competent front end sales force
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still devoid of implentation
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Since majority of the Indian population live in rural villages, there is less presence of super markets and other retail networks in these regions. As a result, the reach of MNCs and bigger players to these rural areas has become restricted.
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OUR COUNTRY BEING VERY LARGE GEOGRAPHICALLY IT IS A HIMALAYAN TASK TO PENETRATE INTO ALL AREAS.MAY BE VERY FEW COMPANIES LIKE HINDUSTAN LEVER (NOW HUL),ITC,BROOKE BOND ,LIPTON BECAUSE OF THE EARLY MOVER ADVANTAGE THEY HAD WERE ABLE TO PENETRATE INTO NOOK AND CORNERS OF THE COUNTRY RESULTING IN NON AVAILABILITY OF MANY BRANDS ALL OVER INDIA.IT WAS A VERY EXPENSIVE TO ROLL OUT THE PRODUCTS WITH AN ALL INDIA NETWORK.THAT IS WHERE THE WHOLESALERS IN NEARBY MAJOR TOWN PLAYED A VITAL ROLE IN SELLING VARIOUS BRANDS TO RETAILERS IN SMALL VILLAGES.HAVING IDENTIFIED THIS WEAKNESS WHICH WAS ENCASHED AS AN OPPORTUNITY TO SELL BRANDS IN A SMALLER GEOGRAPHICAL AREA,MANY SMALL TIME PLAYERS CAME INTO LIMELIGHT.THOUGH THEIR PRODUCTS` QUALITY WAS NOT A MATCH FOR ESTABLISHED BRANDS PRICES WERE MATCHING THE QUALITY.EVEN TODAY WITH SO MANY DEVELOPMENTS,IN INFRASTRUCTURE,COMMUNICATION AND TECHNOLOGICAL ADVANCEMENTS IT IS REALLY DIFFICULT TO HAVE A PAN INDIAN PRESENCE FOR ANY MAJOR BRAND.A COMPANY OF HUL`S REPUTE IN SPITE OF HAVING NO MAJOR COMPETITOR IN THE PRODUCT CATEGORY IS OFFERING RIN THE BRAND LEADER FOR DECADES FOR A PALTRY RS.4/PER CAKE TO BE ON PAR WITH LOCAL MANUFACTURERS.ULTIMATE BENEFICIARY IS THE CONSUMER.JAI HO.
i agree with that because see p & g no 1 in every country why not in india its because of strong distribution network of over 2 million retailers belongs to one of the biggest marketing firm a joint venture between uniliver corporation and hindustan. even if we talk about bop markets below d pyramid mkt by c k prahlad hul has launched a toffee n u dont imagine total revenue cuming were 200 crores( source hbr article).hul has got dat penetration in bop mkt n see d result like wise if a co has got such a huge n managed distribution network a co can esily penetrate in to a mkt.
Agree with all,
Rural markets are still a challenge. low penetration, poor distribution network, poor awareness and people are looking for low cost options, hence tough competition from low priced local products . also low profit margin is putting pressure.
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Rise in disposable incomes and more young population have spruced up demands for products in the personal care, processed food etc segments. This has led to competition among the FMCG companies thereby putting the profit margins under pressure. |
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A tailor-made product helps to unearth the key consumers.
Indian consumers are fond of packaging that are re-usable and recyclable keeping the attraction and tag-lines that hits the emotions of the consumers targeted.
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Many of the companies whether in small scale or large have used the same idea.Such as Hindustan Unilever, P&G ITC etc. A thorough research on the products of these companies their target consumers and packaging if checked very minutely gives the answer.
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The basic challenge is the high distribution costs involved. To face this challenge, collaboration & partnerships between various corporates, between corporates & NGOs, between Government & the private players (PPP) need to be worked out. Worold over, when there are collaborations in wide range of business activites, I do think it is possible. ITC e-choupal has demonstrated to the world that it is possible !!! |
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I believe that these are the three major challenges. FMCG vertical is so named because of the nature of goods that are produced under this label. FAST MOVING. It means that these goods need to be in ALL areas of SALES, VISINILITY across all the counters and EVERYWHERE wherever there is a chance to sell these products. Also equally important is the CORRECT pricing. That is what makes it FAST MOVING!! Also important is the Distributors role.His sales team needs to be educated and trained to handle these goods and also become a part of the FNCG sales goals!! Good debate Hrudanand!! :)) |
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The funda is very simple sell 1 mercedez benz or 10 small cars,in the first less distribution cost more profit is expected in the latters more distribution cost less profit more hard work 4 ur sales force.In first one eating cream which is only 50 gms out of 1kg latter full 950 is urs with 5 more competietors. |
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FMCG is characterized by Fast Movement. Consumer goods are to be cost effective and Quality based. Rural market penetration can be done with the help of rural technics and goods only. Liril and Pears soaps do not move much where Lifebuoy and Hamam sell in rural market. |
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Competent front end sales force who understand company alignment in mkt and gap b/w company and market. normally while recruiting front sales force we dont give much importance to quality. alignment of these front sales forces has big role to play in field execution. |
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i think all are aware of the problem that are to be dealt with in first place but so far we 've looking for govt to do its job then our will follow rather then finding alternative.so,according to me challenge lies in our approach .wen we direct our efforts towards finding the solution and making it happen through implentation as intended than success will follow. |
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Absolutely right Basil , |
Thanks for the refferal Mr Ayan is a very good story to get inspiration and put it in action to enhance our life skills |
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