Why growth in FMCG outlet coverage is so critical & how to achieve it?

Why growth in FMCG outlet coverage is so critical & how to achieve it?

Has your sales team given up on growing the number of outlets that they sell to?

Do they go and dump stocks on a handful of #wholesalers and large kirana stores?

DISASTER waiting to happen.

The result. Poor market hygiene. Old Stocks. Damaged stocks. Poor productivity of the sales team - less productive calls. Wasted distribution coverage.



Having worked with so many #fmcg companies, we notice the average guys simply covering only the main outlets or dumping stocks on wholesale.

They sometimes do end up achieving their targets but destroy market hygiene in the process.

Why?

Let me give you your own house example.

Around your residence, in a radius of a km or two, there would be 10 odd kirana stores, right?

Question - does your wife, mom buy goods from all those retail outlets?

Chances are - No.

80% of the items purchased would come from ONE outlet.

And another 2-3 accounting for the remaining 20%.

So, in a way, I don't decide my #distribution strategy, my #customer has already decided it.

If you - my customer buys from Roman General store, my products have to be available in that store.

If not, you will simply switch to another brand.

And my crores of Rupees of marketing budget goes down the drain because last mile distribution was missing.

So how to drive #outletcoverage growth as a process in your team:

  1. Start measuring it - no of #billed #outlets. Active & inactive. This is from the market's point of view.
  2. Total calls. Productive calls does not measure that. That's from the salesperson's point of view.
  3. Discuss billed outlets in every monthly review meeting. Every field visit. every conversation with the sales team member.
  4. Incentivize - total active billed outlets for the sales team.

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Direction One



Bhawan Pandita

FMCG | Driving Sales Efficiency | Target Achievement | Strategic Sales Promotions | Dealer & Distributor Relationships | Retail Management | Wholesale Operations | Training & Development of Sales Team

2mo

Insightful sir Maneesh Konkar

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