Do you know how your distributor treats you?
Posted: Mon Dec 23, 2024 8:37 am
Obviously, selling hair conditioner is not the same as selling beer, however, some executives blindly trust traditional marketing and distribution models to treat any product equally and without discriminating between categories.
Although the differentiation of categories and products may seem super obvious, in the real world it is not necessarily fulfilled according to the concept created by the parent company of the product in question. Large companies that manufacture a product are clear about the role of their brand and product, however, the entire journey that this product takes from the manufacturing plant to the final consumer can go through many paths that, sometimes, executives neglect and end up giving it the same treatment as their traditional distribution channels. To give just one example: a popular Chinese retailer, a classic in any Latin country.
These popular markets handle significant amounts of transactions and their clientele is as atomized as it is complex: specialized retailers, housewives, restaurant owners, re-distributors, etc.
There are many companies where their distribution channels are managed all contact number list with name by a third party (outsourcing) that can take care of everything from sales contact with retailers to final distribution. If this reality is not addressed by the parent company of the product with absolute clarity and follow-up, the outsourced company can distort the way of selling the product, since it will treat it as just another product to be placed and not as it was planned in its conception.
Imagine a Chinese retailer receiving a brand's salesperson-distributor to place an order and handle the delivery. Where is the advice on displaying these brands at the point of sale? How do they place the brand's advertising? How do these brands coexist with the competition? Not to mention where is the advice on promotions to specialized buyers, among many other variables.
These distributor-seller companies are founded for a specific objective: to sell and deliver the product where they are told. If the parent company that wants to place its brand-product does not guide them to fulfill the strategy, it will basically be a company that delivers the product and nothing more.
For many large companies, this sales and distribution model is almost the entirety of their model. For others, it represents a significant percentage of the sales model, making it essential to look after this sales and distribution force as if it were their own. Create complete plans for monitoring, training, technological adaptation, etc., if they want to integrate them into a harmonious model of incremental sales.
If you manufacture hair conditioner, be careful with your distribution company, otherwise they might be selling it next to the beers at the grocery store.
Although the differentiation of categories and products may seem super obvious, in the real world it is not necessarily fulfilled according to the concept created by the parent company of the product in question. Large companies that manufacture a product are clear about the role of their brand and product, however, the entire journey that this product takes from the manufacturing plant to the final consumer can go through many paths that, sometimes, executives neglect and end up giving it the same treatment as their traditional distribution channels. To give just one example: a popular Chinese retailer, a classic in any Latin country.
These popular markets handle significant amounts of transactions and their clientele is as atomized as it is complex: specialized retailers, housewives, restaurant owners, re-distributors, etc.
There are many companies where their distribution channels are managed all contact number list with name by a third party (outsourcing) that can take care of everything from sales contact with retailers to final distribution. If this reality is not addressed by the parent company of the product with absolute clarity and follow-up, the outsourced company can distort the way of selling the product, since it will treat it as just another product to be placed and not as it was planned in its conception.
Imagine a Chinese retailer receiving a brand's salesperson-distributor to place an order and handle the delivery. Where is the advice on displaying these brands at the point of sale? How do they place the brand's advertising? How do these brands coexist with the competition? Not to mention where is the advice on promotions to specialized buyers, among many other variables.
These distributor-seller companies are founded for a specific objective: to sell and deliver the product where they are told. If the parent company that wants to place its brand-product does not guide them to fulfill the strategy, it will basically be a company that delivers the product and nothing more.
For many large companies, this sales and distribution model is almost the entirety of their model. For others, it represents a significant percentage of the sales model, making it essential to look after this sales and distribution force as if it were their own. Create complete plans for monitoring, training, technological adaptation, etc., if they want to integrate them into a harmonious model of incremental sales.
If you manufacture hair conditioner, be careful with your distribution company, otherwise they might be selling it next to the beers at the grocery store.