Here I will give few ideas for small companies or entrepreneurs who have limited source but they are passionate to initiate business. Certain rules are common for all marketers so they have to follow those rules in the primary phase.
Before you go to a new market first you have to make a detailed feasibility survey. Such a survey should be carried out by in-house team where you need to draft a questionnaire keeping few points relevant. Before drafting a survey questionnaire you should have the first detailed product knowledge and all measure related to food safety and other statutory compliance, packaging and SKU size and master packaging type. Once you finalise your product and it's complete product note then go to make a survey in the focus market. This survey will give you a detailed picture of market size, consumer base and retailers behaviour.
Once you have a detailed survey then you can easily make budget and sales planning.
For small enterprises, you should pick your focus market first. After that mode of supply chain system need to be aligned like you are going to appoint a distributor in that focus market or you as a company will do the direct distribution. If the focus market is your native place then it would be good to have direct market distribution rather go for seeking distributors. As soon as a Distribution channel is finalised go for recruitment of sales and marketing staff. Remember General manager of sales should be from the market or he should have experience of the product line you are having. Never recruit people from other streams. Sales officer or representatives you can recruit from different sales verticals but they should be properly trained before they go market.
Product knowledge, about company, promoters and policies should properly be given to them. Fill full enthusiasm and energy in them. Give them trust that your products are good in terms of quality, price and service will be of the best class. All such positive things should be given on daily basis as a routine diet.
Once primarily measures of the market are done then the time comes at your workshop or factory side where you start working on product manufacturing, labelling or relabeling as per the nature of your product.
Map your focus market in zones/Clusters and under zones make weekly beats for sales planning. Sales beat, market beat or delivery beats depend on the market size you are going to explore. Generally, a city like Delhi needs 20 sales beat if you are going to cater to the whole city whereas a city like Jaipur will need 10 sales beats.
Beats mean a dedicated area under a sales officer which help him to map retailer day wise. Do not target 20 shops per day and per week 120 shops under one SO or SE.
When your salesman starts exploring beats so there they need more time to interact with retailers. It helps them to introduce your product to them. So 20 shop per day for a SE is more than enough. In the first three months, there would be productive calls around 8 to 10 and slowly it will increase to 60 to 80%. Don't expect 100%.
If you have a marketing budget in big capacity then only choose your customer base otherwise you need to go by the following method.
There is a category of stores in Kirana segments like a store or outlet having per day 30000 to 50000 comes under A category and below 30000 it comes under B, C and D. Big retailer under A category or A+ category will not entertain you easily because they are well off in terms of customers footfall, business and they are having full attention from brands so they don't want to keep new brands or products so are more rigid. Here you have to select stores having reasonable sales, must be attentive and care about you. So here you will find Outlets under B, C and D category. Go with them and introduce your products to them.
This is the cheapest way of marketing your products in your target market because these small Mom and Pops shops have a direct connection with their customers and they can push your new products to them taking own reliability and trust. Within 1 year you can capture 2nd line retainer market.
No doubt this process is little bit time consuming but if you don't have a deep pocket for burning money in marketing then this is the best way.
I did this in many cities and without spending a single penny on marketing I could succeed to firm roots to their brands. Few of them are from Delhi, Hyderabad, Dubai, Singapore, UP, Rajasthan and many more. I will explain the name of those brands here but they now doing business of millions of dollars. Anyway, this is the easiest path to find the destination for your products and after one year you will find those big retailers from A and A+ categories will approach your salesmen and they will enquire about your products.
You know why because some of their customers demanded your products which they don't have. Remember retailer will not say no to their customer if one has demanded particular products. Here you have silently created demand among their vicinity so now you can step up to their counter and place your products.
One important thing to remember always gives a boost to your salespeople, your logistic team and your account team because they are the ecosystem of your distribution.
Always pay higher than your competitors, create loyalty by giving them special attention.
Especially to salespersons, give them quantifiable incentive plan, instead of giving annual appraisal make it half-yearly or quarterly. They are your brand ambassador.
In the very first day, all of your sales staff should have a proper uniform so they will feel energetic. Equipped them with the proper bag, stationery and try to make the system fully digital. Nowadays you can take a sales order on mobile so you should opt for such IT tools.
How to boost your sales team. It is a vast subject. I will write in detail on this.
Now in very first dealing with retailers you should make your payment, delivery, return policy very clear so that retailer can envisage the same in their routine and follow them. Never give credit beyond 15 days, yes in some products you have to choose this as per market practice but try to make payment term in your favour. You can give incentives to the sales team or collection team on timely collection of payment. There are many good retailers who make cash payment like COD so there you should give them extra cash discount and good treatment.
Always remember you should make a proper payment follow up and make it daily routine. Never let it open with your sales team. While setting up the market for your business you should bear enough patience and try to get a break-even after 18 months of start.
Once you attend BEP then you need to start ATL/BTL activities to create pull from the consumer end. It is then needed. First 18 month period you need to push your products to retailers and onward you have to make your marketing efforts to pull demand from households. If you do this way then by end of 2nd year you will have 10% either GP or NP as per the profitability of your products.
Now you are ready to expand your market. Here you need a different strategy. in my next blog, I will write on this. In case you need any immediate comments or advice you can reach to me at
First, make your self success, survive and sustainable
Sustainability is the key to our survival on this planet and will also determine success on all levels.
"Remember Retail is Detail"
This is just a brief about business development in Retail.
You may drop an email to me at
Bs Rana
Simranriceinc@gmail.com
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