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Distributor Management

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Learning From Our FMCG Consulting Experience
January 27, 2022
Published by skilltowill on September 9, 2021
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  • FMCG consultants in India
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Distributor Management starts with Finding the Distributor. Often I have seen that a Sales Officer appoints a Distributor in a hurry and then struggles to get adequate support from the distributor. So you need to find the right distributor for your FMCG business. There are some pre-requisites before you approach a distributor, they are:
  • Assess the market potential where you want to appoint the distributor
  • Assess the infra support required
  • Assess the expected ROI
Now, we will use the F.A.M.E model to discuss distributor management.

F stand for FIND

First you should determine the profile of the distributor. Writing down the profile gives you clarity about the kind of distributor that is most suitable for your business.

Then identify the location from where the entire market can be covered efficiently. Ideally this should be the distributor location, but practically you can find this might not be possible, so take call basis the best possible option available.

At this stage you are ready to do a market survey to create a list of prospective distributors.

After doing the market survey, shortlist the top 3 distributors who meets your criteria.

A stand for APPOINT

    You meet the top 3 distributors and do the following things:

  • Need analysis – understand why he/she wants to take your distributorship
  • Share about the Company and Products – Explain the product range and company profile
  • Margins – Explain the retailer margin and distributor margin, also share the estimated sale from the territory
  • Company’s Expectation – Things the Company is expects from the distributor in terms of support like finance, infra etc.
  • Company’s Support – Explain the support Company will give like ATL, BTL, trade schemes, incentives etc.

M stand for MANAGE

Once the distributor is onboarded, manage the distributor by:

  • Creating a coverage plan
  • Setting up the Distributor Infra according to company norms
  • Primary and Secondary processes
  • Organizing the sales team and training them
  • Calculating the ROI at least once in a quarter

E stand for EVALUATION

Finally, you should evaluate the distributor periodically on the following parameters:

  • Distributor’s primary and secondary achievement
  • Health of distributor’s infrastructure
  • Kind of market issues and how the distributor is handling it
  • Evaluate his his/her own involvement in business
  • Basis your evaluation, take the appropriate action
  • To learn more about distributor management, you can watch this video -

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