Fmcg salesmans 10 tips to increase orders from retail shops
How to increase consumer offtake from retail shops?
Offtakes (Tertiary Sales): These are sales from the retailer to the customer. While offtakes are not tracked by the company, trends of offtakes are tracked by market research agencies.
Consumer off-take refers to purchases by consumers from retailers, as opposed to purchases by retailers or wholesalers from their suppliers. When consumer off-take runs higher than manufacturer sales rates, inventories will be drawn down
FMCG industry is extremely competitive in nature.
The FMCG industry is at the edge of change. This sector is seeing some rapid changes in customer tastes and preferences- be it food & beverage sector, personal durables or household care. The evolution of purchasing habits and the rise of cutting-edge technologies are changing the way we communicate with customers.
The economic environment for FMCG Industry during H1 2018 was 40%. Increasing implementation of digitalization techniques along the procurement and distribution cycle, a growing e-commerce market, and changing lifestyles in developing markets drive the FMCG market.
Sales of an FMCG Business are similar to a see-saw, where both the side need to be balanced properly. Here the price and the volume are the main objects to meet the sales target.
The Indian retail market is predominantly offline as online retail just accounts for around 5% of overall retail business. Hence, offline retail research becomes extremely essential in order to formulate winning strategies. Retail research is important for start-ups to identify potential of a segment while for established firms, it is important to have awareness about the as-is scenario in order to maintain or improve their standing among competition.
Retailer channels across many retail segments and suggests the following 5 essential metrics to track:
Category Penetration: Category penetration is the availability of the category/segment in relevant retail stores. Low penetration does not necessarily mean that the category is unexplored and hence have potential, it might also be due to non-preference by target consumer or presence of alternate categories fulfilling the need of the consumer.
Competition Intensity: Competition intensity is the number of competitors present in the retail environment. The magnitude of category penetration (Penetration) and competition intensity (Intensity) can present various strategic directions for a product as follows:
High penetration, Low intensity: Increase availability
High penetration, High intensity: Introduce augmented product with advanced features
Low penetration, Low intensity: Increase availability & retailer push
Low penetration, High intensity: Increase availability
Share of shelf: Share of shelf is the space occupied by various brands present in a category. It is calculated by considering a brand’s width i.e. no. of variants present & depth i.e. no. of SKU’s present in each variant. Brands which either have strong consumer demand or good relationship with retailer enjoys reasonable width & depth.
Offtakes: Offtakes are sales – can either be category sales or brand sales. Offtakes are also measured with respect to share of brands present, share of variants, price segments, pack types and sizes.
Trade terms & Retail schemes: Trade terms & retail schemes is the most important driver in predominantly unorganized markets. Trade terms include minimum order quantity (MOQ), booking to delivery cycle, margins, credit terms (cash/credit), credit period etc. Retail schemes are quantity discounts, offers, freebies and are very common in segments with high competition intensity.
The above key metrics must be tracked regularly in order to introduce relevant strategies timely.
What are the best sales strategies for a FMCG product?
It is the basic of sales, M.A.D.
Assuming that you have already done a feasibility study and clearly outlined your product’s competitive edge, you have to tell your potential buyers about the virtue of your product through Marketing and Advertisements. Apart from conventional print or audio visual media, social media forum is also a huge platform for such marketing these days.
Distribution has to be one of the most important factor here, a strong supply chain management will ensure that your product is in within visual range of potential buyers across cities, town and villages.
Brand behaviour is very different and depends on various aspects like price, store location, store type, consumer profile etc. However, if you want me to be as generic as possible. I would suggest to follow these steps,
Simple but effective in the beginning. Work on getting outlet reach. Spend on sales team or network through which you are planning to sell. Spread you products in a large area or city.
Now that you have done this, do store sampling on weekends and put banners/posters etc. (POS). You can also do a little digital marketing in the locality (targetting) to support this. See the product offtake and learn from the process.
Now that you have learned from above process, expand to a larger territory. And now that you have a larger number of store do little ATL mixed with BTL to get sales. Use newspaper ads per locality, society activation, event sponsorship etc. To move the products.
In-store promotions include temporary price discounts, bonus packs, and special purchases such as buy one get one free. Point of sale advertising is also included here. These methods of promotion are generally good for increasing a brand’s market share quickly but will not sustain this growth in the long term. Therefore, it is important to focus on developing more sustainable sales campaigns once the initial surge has been achieved.
Promotion allowances compensate retailers for their promotional efforts under a salary-type arrangement or by giving them a fixed amount per unit sold above a set target.
Coupons or cash-back offers
Coupons or cash-back offers have been used since the early days of consumer marketing to “sweeten” the deal for consumers by offering them something of value at no cost. In return, they are agreeing to purchase a product they might not otherwise have purchased. This strategy is most successful when targeting brand loyalists, who represent both more profitable customers and those most likely to spread good word-of-mouth advertising about your products.
Point of purchase promotions
Retailers can increase sales by displaying promotional materials near checkout counters, impulse bins, carts, and self-serve displays in high traffic areas within their – especially eye level (customers are more likely to notice something that is at the same level as their eyes) – these are also known as POP displays.
Public relations can help you generate interest in your product, engage consumers with your brand and boost sales by showcasing the positive impact your products have on society, communities, or individuals. A celebrity spokesperson can be an effective way to reach a high-demographic consumer who may not be aware of your product already, but the endorsement needs to come off as authentic for this strategy to work.
Offering giveaways, contests or samples are all great ways to attract new customers and incentivize them into trying your products for free or buying multiple units at once. The goal here is to give the customer a taste of your product whilst upping brand awareness, establishing trust, and encouraging word-of-mouth advertising.
Maintaining shelf space is essential to sales success; make sure you are visible by affixing signage above, below, or on the side of your competitors’ products. Placing your products at eye level will make them the most easily accessible for customers who like to grab items off shelves quickly without much deliberation, whereas placing them low down may help you resist stockouts once they prove popular with shoppers.
Whether co-marketing with another business or hosting an event at a local venue, this strategy can prove extremely effective in raising both brand visibility and sales numbers. The trick is to find new ways of promoting the products that will be accessible to both you and your target market.
Use social media to create brand awareness
From Facebook to Twitter, Pinterest, and Instagram, using the web is an important way for growing companies to share their message with a wide range of people. This can be done through paid or organic marketing, but whatever method you choose it’s vital that your company’s online presence reflects its market persona. You can learn more about creating effective social media campaigns here.
Get involved in local communities For growing companies who want to maximize sales while doing something different at the same time, this strategy could prove particularly attractive. Whether hosting an event on behalf of an associated charity or just participating in a local sporting match, involving yourself in the community will not only look good but can also be beneficial for your company.
Set up your own website If you are looking to sell any products or services online, it is vital that you have an official website of your own. Even if you don’t sell anything on this site, having an official domain name for your business will help customers to trust you and be more willing to engage with you.
There are many brands that have failed even after advertising. And there are many brands that are over 500 Cr. with advertising. This also goes to say is that Sales and Distribution is the key. Therefore, in my approach I am suggesting to increase the outlets first and then doing marketing activities.
How do we design a Route to market plan to increase sales in FMCG industry?
Create a DSR beat wise plan. Then create a DSR for product’s sku wise. Check it weekly for a proper implementation and execution. For next month, fill the infos in advance. Also keep your Primary Dispatch Plan ready for everyday’s working in advance. Be in the beat/market as per schedule.
Plan Of Action
Route to market – Meaning how to launch a product
Rout to market – Coverage of a certain area
Both require specialized experts to design them
Route to market (1) involves planning which markets to go, by understanding what category u are launching, what segment you are launching, who is your consumer, which outlets to go, what products to go, what strategy to adopt for the outlet, what support to the team, what support and margins to the trade partners, how many products etc.
Route to market (2) means how to cover the city, based on the products how much to sell, what days, which markets, treatment of wholesellers, what logistics, how many calls a day, what productivity so that you reach maximum outlets as planned.
You can not do it yourself if you dont have experience as each product is different, for different consumers & markets. Understanding that and devicing a strategy is not easy.
How can I boost my sales if I am in B2B sales?
Learn the ins- and outs of your product/service
Learn the exact problems that it can solve
Keep adding value – give a lot (unique, helpful/fun content, free consultations) to receive a person’s interest.
Listen more than you talk – less convincing and forcing, more listening and responding to what people tell you
Optimise sales cycles – removing unnecessary actions from your sales cycle and automating repeatable ones will hugely improve your performance.
Here’s a post about optimising sales cycles – Increase sales by taking 6 specific steps and there’s plenty more sales advice on our blog (like when should you meet your clients not to waste too much of your time?).
What are the best sales strategies for a FMCG product?
Take time out to evaluate and analyze.
The most effective answer relies heavily on the type of product, and the market it’s in. to try and summarise this in a post, let’s go back to the 4 P’s:
A lot of the larger FMCG companies invest a lot of time and effort into understanding competitor products in the market place. What they (sometimes) neglect is a deep understanding of what makes their product different to others, and exploiting these nuances.
How does the product make your consumers feel?
What is the brand message?
Does it perform a different role to others?
Does it get consumed at different occasions?
Understanding who your customer is, how they interact with your product, and why they purchase it is very important. This analysis then informs…
One CRITICAL principle in pricing is that pricing is RELATIVE. The price you sell at needs to match your customers expectations of what they would pay for something of that quality. Price it too low and you devalue your brand. Price too highly and nobody will buy. FMCG companies tend to adopt one of 2 pricing strategies: HILO and EDLP. HILO is putting a product at a high shelf price, so you can promote it down to a lower, more attractive price when it matters, to drive impulse purchases. EDLP is having your product at the same price all the time (it stands for every day low price). Examples of products that work well on HILO include chocolate, biscuits, and wine. Examples of products that work well on EDLP include garbage bags, milk, and home basics
If you think your product can drive incremental volume if it goes on promotion, then you also need to consider your promotion strategy. Deciding what time of year, how often, for how much, and what pricing mechanic to use are all very important to the success of your promotion. Your promotion strategy should also be aligned with your brand strategy (e.g. don’t use 60% discount on a luxury product!), as well as your customer use case (e.g. don’t offer a 2 for $x if your average customer only buys 1 a year!)
Distribution is VERY important. Getting your salesforce out to the most profitable, AND the largest channels of distribution is not only critical to growing your product sales, but also in increasing your brand presence, which will in turn drive demand. Ways to get your product stocked on shelves include:
Offering freebies. Works particularly well in impulse channels, where independent stores like the idea of getting things for free (e.g. a branded fridge)
Undercutting your competitors (in price, or in margin, or both). Works particularly well in price sensitive channels such as the discount channel. The key here is to play the portfolio game, so that margin loss on some products are counteracted by profit gain in others, that form part of the deal with your discounter
Fulfilling a purpose. If you’re the only player in the market that fills a particular use case, then you can drive incremental value for your retailer, which is highly attractive
Getting consumers to shout about you! The voice of the consumer is very powerful. Getting people to talk about you, and create a buzz around your product, will make buyers far more likely listen to your sell in story
Is increasing fmcg sales with digital marketing easy?
Digital marketing is probably the best way to connect to your customers as there are more than 3 billion users of the internet. Therefore, it is quite easy to increase the sale of your business. To reach customers through traditional marketing, in today’s world, demands much more effort and is not cost-efficient.
Digital Marketing helps to increase sales in various ways which are very easy to implement:-
Target the particular set of the audience: You can target the audience on the basis of Age, Gender, Region, Interest.
Data and Result can easily be recorded: You can check on your campaigns at any time with Google Analytics and the insights tools offered by most social media channels.
Real-time result: You can see everything through Google Analytics including a number of visitors, the most active time of the day, conversion rates, bounce rates. When you have the result handy in real time, you waste no time taking action.
Higher exposure: An online advertisement reaches out to the maximum audience, therefore, you aren’t missing out on anything.
Higher engagement: Internet marketing allows you to engage your audience in real time. You can chat and discuss a lot about your brand or Company with the actual audience immediately. Yes, this demands more engagement from your side too. You need to invest that much time or a dedicated public relations team into the marketing budget.
Quicker publicity: You get prompt publicity due to the real-time results of internet marketing. If you don’t, you at least instantly know that this particular ad isn’t working for you.
How Fmcg Distributors work in the e commerce world today ?
Wholesaler-Distributors Guide To Ecommerce. Through these tough times when traditional...Read More
How entry level merchandisers grow top fmcg brands,newbies guide
Fmcg Sales and Merchandise: How Are They Related? The way...Read More
How Top communication of schemes improves distributors sales coverage
How much should you spend on marketing and how do...Read More
How fmcg sales job interviews can be cracked,newbies guide
What is an Hul Itc Nestle Parle Britannia Sales Trainee...Read More
One thought on “Fmcg salesmans 10 tips to increase orders from retail shops”
Pingback: Customer Compares Reviews Quality Price Service Savings