FMCG SALES Career

http://fmcgsalesguru.blogspot.com/2020/03/challenges-of-super-stockist.html Challenges of super stockist

Every
channel partner have some challenge of his own , it may retailer, wholesaler ,
distributor or super stockiest. In this topic we will discuss about the challenges faced by the super stockiest.

1.Rural
transportation.





Transportation in rural area is a key challenge for a
super stockiest . In a country like India, road condition is very pathetic,
broken road, muddy condition, narrow space etc. Also in summer season roads
remain under water for three to five
months. Hence goods delivery in these situation is not so easy task for any
FMCG super stockiest.




2.Small quantity
delivery.

In rural area , the
sales volume is low in comparison to urban area. Some time order value becomes Rs10000 to Rs15000 for distance of 50 Kilometer. So delivery of these small
value order is not be cost effective. In this case , super
stockiest need to club two or more distributor’s order to dispatch , which is again
time consuming.

Pls read this book



3. Payment collection.

Payment
collection is also difficult in rural area. Due to poor connectivity and
limited bank access in rural area , collecting
payment is also difficult. In
some area , distributor prefers cash
transaction , which is not well at all . Super stockiest need to do follow up
on regular basis for payment. Mobile network remains out of order in maximum
time.


4.High cost delivery .

Super stockist’s primary job is
to supply to rural area. But due to poor condition of road and connectivity or
small quantity supply , rural area supply is costlier than urban area. Suppose
, if a super stockist need to supply in a rural area , where road
is in broken condition and muddy, then obviously fuel costing will be more than
a normal road.

5. High investment in credit.

Distributors
in rural area asks for more credit than
urban area. Money rotation in rural is very low . Rural distributor asks
for 20 to 25 days credit from super stockiest. In FMCG sector , credit more
than 15 days hampers ROI.



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Challenges of super stockist http://fmcgsalesguru.blogspot.com/2020/03/challenges-of-super-stockist.html

Challenges of super stockist Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

Role of a super stockist. http://fmcgsalesguru.blogspot.com/2020/03/role-of-super-stockist.html

Role of a super stockist. Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

http://fmcgsalesguru.blogspot.com/2020/03/role-of-super-stockist.html Role of a super stockist.

Super stockist is a business man who
purchase from company in bulk and sell to rural or urban distributor. In
general super stockist is supposed to supply to rural distributor only. But in
rare case some FMCG company allow super stockist to supply to urban distributor.

Pls read this book

1.Keeping stock.

The name implies that super stockist’s
main job is to keep company’s stock. Super stockiest keeps stock for further supply
to rural distributor , as a remuneration super stockiest earn some commission .
In some defined agreement super stockiest need to main a certain level of
inventory. He is also given a defined geography to supply some rural or urban
distributor. As the manufacturer cannot
supply small quantity to rural distributor,
so supply to rural distributor
has to be done from super stockist .

2.Supply to rural or
urban distributor.

Super stockiest need supply in small
quantity to rural or urban distributor. Normally super stockiest is local
person and familiar with small town or village, and hence he can supply to
interior place .

3.Payment collection.

Super
stockiest supply stock to distributor, also he need to collect payment from
them . In rare case distributor makes payment directly to company and super
stockiest supply stocks only.

4. Company’s
expenditure settlement.

FMCG company operates some discount and trade scheme in the market. All these market spending of company settled
through super stockiest. Also unsold stock
settlement done through super stockist.

Again some company keeps some off
role sales force to promote sales . Super stockist need to pay salary and
expense for these sales force and claims
to company.

5.Helps company product
to smaller town or village.

As I have explained already ,
super stockiest helps company to reach smaller town or village for further
distribution. Super stockiest remains in bigger town and he does supply in interior place, like tehsil or block level.
Company cannot reach directly in these places.

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Challenge of FMCG distributor . http://fmcgsalesguru.blogspot.com/2020/02/challenge-of-fmcg-distributor.html

Challenge of FMCG distributor . Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

http://fmcgsalesguru.blogspot.com/2020/02/challenge-of-fmcg-distributor.html Challenge of FMCG distributor .

1.Risk taking.

Distributor
has to give credit in market without any
proper legal agreement, hence high risk is involved in this process.
Also we have discussed that, in FMCG
there are large number of buyers and sellers, in this case doing agreement with
the buyer is not possible. Also in FMCG distributor has to acquire some new
customer every month and need to give them credit. He does not know the person whom he is offering credit.

2. Small transaction
value .


In FMCG , distributor has to do a
very small amount of transaction . Particularly in retail market, the sale
value may be Rs300 . Even some times distributor has to give credit for Rs300
only( This is my personal experience). How pathetic is a credit of Rs 300 in 21st century.
Also distributor need to maintain credit list of all the retailer and
wholesaler, which is again a headache.

3. Collecting unsold
goods. In FMCG all products have some best
before date. After expiry or in unsold condition, stock need to be collected from the market.
Also distributor has to count all the unsold stock , keep these, in
his own warehouse and prepare
claim sheet. This is a pathetic process.

4. Finding honest manpower is difficult.

Pls read this book

In
FMCG sector , distributor need to appoint RSA/PSR and these people are
responsible for collecting order from market and supply, cash handling etc. So
finding right people for all these
activity is not so easy.

5. Unwanted stock supply by the
company or super stockiest. All FMCG
company has some slow moving product and company or the super stockiest
push these product to the distributor. Hence distributor’s money gets block.

6. Product variant shortage.

All
FMCG company has multiple product or SKU. It has been observed in the real market, that
some SKU or products remains shortage
regularly and distributor faces customer complain.

7. Failing to cover all
the outlet.

In FMCG, distributor tries to cover all the outlet, but
always it is not possible , due to small transaction or outlet in a spread out
position or shopkeeper’s payment track record.


8.Under cut price.

Under cutting price
is common in FMCG sector. Suppose I am a distributor for my own
location. Now problem comes when my nearby distributor comes to my market and
sell on a lower price than me . As result I have to
loss my business for the month.



9. Distributor face any
product related problem before company. Distributor is the
local guardian of any FMCG product, he works on behalf of a particular brand .
If any quality related issue arises , distributor is the first person to face
it. Consumer comes to the distributor
for any quality issues .

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http://fmcgsalesguru.blogspot.com/2020/01/role-of-distributor-in-fmcg-channel.html Role of distributor in FMCG channel.

1. Investment. For more details

Distributor
need to invest in a particular brand as per agreement with that company. At the
time of appointment, company asks for investment as per sales volume .
Different company has different investment norms. For example 15days, 21 days
or may be 25 days. In general 21 days investment is commonly seen in Indian
FMCG market.

2. Purchase from
company or super stockist.

His
primary job is to place order and payment to the super stockist or company. As
he is a channel partner , he need to get the stock from super stockist or the
company.

3. Maintain godown
stock.

He need to maintain a certain level
of stock at his own godown for day to day market requirement. Different organization
have different stock norms , like 7days,
10 days or 15 days. In FMCG, distributor need to follow company
norms strictly. Distributor need to
supply to his market on daily basis, but company or super stockist cannot
supply him daily. Shortage of stock at distributor’s godown will hamper sales
figure for the month. Also consumer for that particular brand will shift to
competition brand .

4.Maintain hygienic
condition at his godown.



As the distributor need to keep stocks at his godown, it is very
important to maintain hygienic condition in his godown. Godown should kept neat
and clean, proper ventilation, and water should not come in during monsoon.
Godown should be germfree.

5.Distribution.

FMCG Distribution

Supply to market on regular basis, is
the key responsibility of a FMCG distributor. It may be retails or wholesale market
, he need to supply on regular basis . Company’s market share , sales revenue ,
sales volume depends on effective distribution. He need to find new outlet, new
area or new market.

6.Payment collection.

Payment collection is lifeline of
FMCG distribution business. Distributor has to give credit in
retail and wholesale market to get his desired sales volume. Hence timely
collection of outstanding from market is very essential, otherwise survival in
business is impossible . Normally
distributor appoints some sales man for sales and collection, he need to
monitor all these sales people.

7.Product visibility in
market.

Product visibility in market is
essential for FMCG product, Distributor need to focus on this . He need to use
POP /POS material , and any other
company provided material for product visibility( Some company
provides Rack , Hanger and Dispenser). If company provides some display
scheme , he need to use these properly.

8.Collecting unsold
stock.

Maintaining a good relationship with
trade channel leads a success in business. And to maintain a good relationship,
distributor need to give proper service in the market. Collecting unsold stock
from the market reflects the sign of good service. Also it reflects a good
brand reputation. Different organization have different damage collection policy, distributor need to follow
organization’s policy carefully .

After collecting unsold stock ,
distributor need to inform company personnel for claim settlement.

9.Market expansion .

Distributor
need to find new outlet, new market and new customer. Also he need to place new product to
existing and new customer. That means distributor
need to pe*****te optimum quantity into the trade channel.

10.Keeping ground level
data.

Distributor keeps ground level data
and provides them on demand. Ground level data like number of
retailer and wholesaler ,number of beat , daily and monthly sale figure etc.

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Role of distributor in FMCG channel. http://fmcgsalesguru.blogspot.com/2020/01/role-of-distributor-in-fmcg-channel.html

Role of distributor in FMCG channel. Role of Distributor in fmcg business

FMCG distributor. http://fmcgsalesguru.blogspot.com/2020/01/fmcg-distributor.html

FMCG distributor. Definition of Distributor

http://fmcgsalesguru.blogspot.com/2020/01/fmcg-distributor.html FMCG distributor.

Definition of
distributor.

For more details

Before we discuss about role of
distributor , we must know the definition of distributor.

Distributor means a
businessman ,who purchase from company or super stockist in bulk quantity and sells to retail or
wholesale market in small quantity . In simple he is a channel partner,
acts as middleman between company
or super stockist and the market.. The term distributor itself implies that, he does distribution in a defined geography
with some defined products. He has
exclusive distribution right of a particular
geography and some particular product. He plays a vital role in FMCG
distribution channel. He is the key player to success in FMCG business. Either
urban market or rural market , effective distribution depends a lot on him. He
is the only source for wholesaler and retailer for that particular product.

He acts as independent business man, deals with some company’s product. He appointed and authorized by the company to
sell company product, but he cannot use company’s brand name. He works on
behalf of company. Generally in FMCG ,
distributor cannot work with competitive brands. Maximum company prefers legal
agreement with distributor.

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http://fmcgsalesguru.blogspot.com/2020/01/fmcg-advantages-rural-market.html FMCG advantages in rural market.

1.Huge opportunity. Pls read this book

As it is untapped market , opportunity
is huge in this area . New village or Tehsil, even block level coverage can be
given. Obviously giving coverage to new area will give additional business
volume .

2.Last mile
distribution.

Rural is the last mile distribution
point for any FMCG company. Giving micro
level coverage to rural market can create opportunity. This is the point where
product can be given at consumer’s hand.

As per census 2011 rural population
in India is 68.84 %. It is big consumer base and no company can ignore this big numbers of consumer.

3.Opportunity for value
players.

Rural market demands small pack and
high profit margin for traders. So value players can play a vital role in rural
market. Getting maximum quantity with minimum price is key character in rural
market. Hence all the value players can gain from this market segment.

Again we should not forget about
quality players also , day by day
development of electronic media can bring opportunity for them. As a whole, rural market is the key to success for value players
and quality players in future.

4.Increasing income .

Due to Govt. initiative, rural income
is increasing day by day. Also population in rural area are becoming aware of
new life style . As result future in rural India is bright for FMCG company.

5.Low competition .

In rural market competition level in
low . Because of communication and transportation problem ,all the brands cannot reach to the
rural market , so it is the opportunity for some brands. Also some products are
costlier than other products and not
possible to sell in rural market. Again some brands focus exclusively on urban
market and never goes to rural market. Overall,
rural market gives more opportunity and less competition.

Pls read this book

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FMCG advantages in rural market. http://fmcgsalesguru.blogspot.com/2020/01/fmcg-advantages-rural-market.html

FMCG advantages in rural market. Advantage for fmcg in rural market

http://fmcgsalesguru.blogspot.com/2019/12/challenges-of-rural-market.html Challenges of rural market



Pls read this book

1.Number of outlets are
low .

You will not find so many outlet like urban area, due to low population ,the number
of retail or wholesale outlet are also
low . In some places you will find even 2 or 3 outlet.

2.Stock supply problem .

In rural area stock supply creates a
problem. Due to low business volume ,stock supply from nearest town becomes
difficult . Distributor or super stockist from nearest town face difficulties while sending small quantity.

3.High margin product.

FMCG rural visibility

Asking for high margin is common in
rural area. It may be retailer , wholesaler
or rural distributor always they thinks for their own profit volume. As quality product cannot give high margin ,
traders become reluctant to sell these product.

4.Difficult
Communication.

In a country like India ,
communication in rural area are not very good. During rainy season most of the
villages are not accessible . In some places even we don’t find any mobile
network.
5.Payment realization .

Already explained in some above
points, that due to communication challenges , payment realization from rural
area becomes very difficult. If you need to go to any place for payment ,you
will face difficulties due to communication problems. Also businessman in rural
area don’t prefer electronics money transfer process.

6.Collecting unsold
goods.

If any stocks becomes unsold , it
will be pathetic to collecting these back to nearest town. You need to go to
that area for damage counting and collecting.

7. Low per capita
income .

Per capita income is low in
comparison to urban area. Also low per capita income leads to low purchasing
power. More ever the rural income depends on agriculture ,which is again
depends on monsoon . So the demands in rural area is not stable.

8.Transportation.

In rural area road conditions are not
proper , in some places transportation facilities are not there. During monsoon
season roads remains under water. Rail
communication is very poor in rural area.

9.Language problem.

In rural area we find some language
problem also . Different tribes, different community ,different culture are big
problem for sales people.

10.scattered market .

In rural area people remains
scattered in a large area. So the
outlets are also in a scattered position. In this situation
,giving them proper service becomes difficult.

11. Sales force
management.

Sales force in general don’t like to
work in rural area. Due to lack of proper communication and transportation,
less facilities available. Pathetic travelling condition is another headache.
Also hotel accommodation is almost nil in rural area. You will not find any
hotel for proper food .

12.Poor literacy rate.

Literacy in rural area are poor in
comparison to urban area . Hence people don’t understand the difference between
a good product and a bad product. Life style in rural area are tradition bound
and less interested for new development.

13.Small pack product.

In rural area due to low purchasing
power, people generally likes low MRP product. Which gives you a low business volume .

14.Limited banking
facility.

Unlike urban area , banking facility
in rural area are limited. Hence collecting payment from rural area are
difficult . Having no options, you have collect cash only.

Pls read this book

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Challenges of rural market http://fmcgsalesguru.blogspot.com/2019/12/challenges-of-rural-market.html

Challenges of rural market Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

FMCG sales in rural market http://fmcgsalesguru.blogspot.com/2019/12/fmcg-sales-in-ruralmarket-definition-of.html

FMCG sales in rural market Definition of rural market

http://fmcgsalesguru.blogspot.com/2019/12/fmcg-sales-in-ruralmarket-definition-of.html FMCG sales in rural market

Pls read this e book



Definition of rural
area.

As per census govt. of India 2011,rural
area means all the area or location except the following

A.A
place where minimum population is 5000

B. At least 75%
of male working population are engaged in non agricultural sector.

C. Density of population is at least
400 per square KM.

Working in rural area.

Rural market working is not like
urban market . In rural market there are many challenges . First of all
population for rural are low in comparison to urban area. In rural area majority
of population are not aware of quality product. In this
area retailers play a vital role . As
the retailers are concerned about their own profit ,obviously they will sell
high margin product. Quality products cannot give too much margin for retailers
, here comes the challenge for low margin brands.

Sale people working with low margin
product finds some difficulties in this area. Convincing traders becomes very
challenging. In this case it is recommended to promote a comparatively high
margin product. Once you enter in a outlet with comparatively high margin
product , step by step you can place other quality product. But it will take
time. In rural area, always focus on traders profit first ,and quality second.
In rural area retailers are king , because number of outlets are low.



For more details read my e book

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Benefits of wholesaler. http://fmcgsalesguru.blogspot.com/2019/12/benefits-of-wholesaler.html

Benefits of wholesaler. Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

http://fmcgsalesguru.blogspot.com/2019/12/benefits-of-wholesaler.html Benefits of wholesaler.

1.Reduce overhead cost.



Wholesaler purchase in bulk quantity and sell at their own effort. Hence
manufacturer’s overhead cost are
saved. Once a product is supplied to a
wholesaler , it will be distributed in different location. Manufacturer need
not to take any headache. So it is cost effective for manufacturer.

2.Supply to interior place.

Manufacturer cannot reach to all the spread out and interior location,
here wholesaler plays a vital role . Retailers from these interior location
comes to whole sell market for their purchase. Wholesalers are also gets business from these retailer.

3.Gives huge volume.

Whole seller purchase in huge
quantity and sell in a small quantity to retailer. Since wholesaler sells to
large numbers of retailer, he can give a big volume. Also it is beneficial to the manufacturer that he
gets big business volume from wholesale
market.

Pls read this e book

4. Promotes product.

Wholesaler can promote any product very effectively. Retailer from
different location comes to wholesaler and wholesaler can push any new product
to retailer . As both retailer and wholesaler are well know to each other , it is very easy to
close a deal.

5.Understand market
trend and market behavior.

Wholesaler remains well informed about market trend , retailer behavior
, seasonality etc. Accordingly he plans his purchase and keeps information
sharing between retailer and distributor.

6.Facilitates small retailer.

Providing
smaller retailers access to products they cannot acquire without wholesaler
help offers a benefit for suppliers as well since it opens additional market
opportunities for suppliers. Namely, suppliers can have their products
purchased and made available for sale across a wide number of retail outlets.
More importantly, for a company offering a new product, convincing a few
wholesalers to stock the product may make it easier to gain traction in the
market as the wholesaler can yield power with the smaller retailers convincing
them to stock the new product. Considering a wholesaler can serve hundreds of
small retail customers, the marketing efforts required to persuade the
wholesaler to adopt a new product may be far more efficient compared to efforts
needed to convince individual store owners to stock the new product.

7.
Facilitates small manufacturer.



For small manufacturer
, it very difficult to expand their own distribution system. Their business
size is very low and in this situation
they cannot afford sales support. Hence they can take advantage of wholesaler. Wholesaler
can give them big volume within short time and also gives them cash flow .

8.Ready access to goods .

Wholesaler
provides ready access to goods for retailer. Wholesaler always keeps stock at
their own godown for reselling purpose. Anytime retailer can purchase goods
from wholesale market. In one side it is convenient for retailer, in other side
wholesaler gets business volume.



Pls read this book

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Characteristics of wholesaler. http://fmcgsalesguru.blogspot.com/2019/11/characteristics-of-wholesaler.html

Characteristics of wholesaler. Sales In FMCG Industry , Definition, features, advantages,disadvantages of FMCG Sector, retailer, Wholesaler. Challenges and benefits of Sales career

http://fmcgsalesguru.blogspot.com/2019/11/characteristics-of-wholesaler.html Characteristics of wholesaler.

Characteristics
of wholesaler.

Pls go through the e book

1.They sells on trade price .

They sell on trade price
, ( Trade price is the retailer’s purchase price fixed by the manufacturer) and earn a margin on it.
In general manufacturer decides trade price
of a product and all the calculations of
FMCG are done on trade price only. Wholesaler gets a discount or margin
on trade price. Normally wholesaler sells to retailer on trade price only.

2.Get
together point of retailer.

Retailers comes to
the wholesaler point for their stock purchase
from different location. Manufacturer cannot reach to micro interior
location, from these location retailer comes to the wholesale market.

3.They
don’t manufacture .

Most of the wholesaler don’t manufacture the product they sell. They purchase from
distributor and focus on sell and delivery. Also it is not possible for a
wholesaler to manufacture all the goods they sell. Hence it is better to
purchase from manufacturer/distributor , and focus on sale only.

4.Buy
in large quantity.

Wholesaler in general purchase in
large quantity from the distributor/manufacturer.

5.
Deals in a few types of product.

Wholesaler deals in a few types of product, but in large
quantity.

6.Does not sell to the
end user.

In general wholesaler does not
sell goods to the consumer, because they prefers in large quantity sale . Individual consumer need
small quantity, hence wholesaler don’t
prefers them.

7.They provides credit
facility to the retailer.

Wholesaler provides credit facility to the small
retailer. It gives extra business volume to the wholesaler /distributor and
retailer. Some retailer’s financial position are not strong , so they get
benefited from wholesaler. These retailer can run their business smoothly with
the help of wholesaler’s finance.

8.Low profit margin.

Wholesaler in general operates on
low profit margin but high volume. This channel is lowest margin earner in the
entire distribution channel. They plays
with big volume , rather than on big margin percentage . Also because of high
rotation they earn a good profit volume.

9. Market information.

Wholesaler collects market information about new product, trade
discount, trade scheme and promotion and passes it to the retailer.

Again he collects information
regarding consumer demand, market trend, competitor’s activity and passes it to manufacturer.

Also all the company sales persons,
like ASM and Sales officer, visits wholesale market frequently and exchange information.

10. More competitive
than retailer.

Generally wholesaler face more
competition than retailer. Because wholesaler operates their business from
whole sell market ,or in a same location there are multiple wholesale outlets are found. In other side retailer
remains in spread out position and face
less competition. Suppose in a retail shop if the shopkeeper asks a little more
price than market, the consumer will not move to the nearby outlet. But in a
wholesale shop , if shopkeeper asks for
slight more price than the market, the retailer will move to the nearby outlet.



PLs read this e book

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