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The Indian Distribution Model: Lessons for African Businesses

The big idea India's distribution system was built for an unusually difficult environment: 1.4+ billion consumers • thousands of towns • fragmented retail • multiple languages • weak infrastructure in many markets • enormous price sensitivity. Yet Indian companies built distribution networks capable of putting products into millions of outlets. The lesson for Africa is not to copy India's system wholesale. It is to understand the principles that made distribution work in a fragmented emerging market . 1. Why distribution became India's competitive weapon For decades, an Indian company could have a good product and still fail because it could not get the product: from factory → distributor → wholesaler → retailer → consumer. Large Western-style organised retail was limited. The winning companies therefore developed extraordinary capabilities in: distributor management wholesaler relationships retailer coverage route-to-market design credit management sales-force productivity...

Multilayer B2B Channels in FMCG Industry

  Multilayer B2B Channels in FMCG Industry   Identifying Channels -Factory -Office -Hotels -Restaurants -Caterers -Office -Railways -Colleges -Airlines     Assessing Demand -Number of heads -Consumption per head   In case of service industry like hospitals it will be a combination of staff , patients , visitors Identify Purchase Procedure   -Tendering  -Enlistment  Identifying Decision Making Person Questions to be asked to DMU -Methodology of purchase  -Whether FMCG product of interest is purchased there -Quantity and Quality of product consumed  -Rate at which pursued  -Delivery method , frequency and profile of supplier partner  -Whether open to new supplier   Setting up the Supply Chain  -Direct Purchase  -Through Distributor  -Through B2B Ecommerce    Feedback -Quality  -Timely delivery  -Rates     Repeat Orders B2B e - Commerce is short for business -to- busines...