Tuesday, July 04, 2006

Product/ Brand reaching the end consumer

Just think of Rs. 1800 crore confectionary market in India.

Now think of any grocery and convenience outlet in your vicinity. Do you see one of Mint-O, candyman etc. You guys must be thinking how they reach the end outlet. I must tell you - ITS NOT EASY. Covering millions of outlets everyday/ weekly is a monumental task.

Let me give you some insights. There are different levels in the supply chain which make the stock reach the end consumer. They are:

1) Factory: Production is done in few factories in India.
2) Warehouse service provider: Using all the fundas of Supply Chain Management - mainly operation optimization - or route optimization. So there are number of WSPs at strategic locations. I am not going deep into it.
3) Wholesalers/ Distributers: Now every section/ circle will have different distributors. This guy must have the financial capacity to buy the stock from the company without any credit and must have the manpower to sell the stock in a particular market.
4) Secondary Wholesalers/ Distributors/ Retailers: They have warehouse space to cover the smaller towns nearby ... to lessen the task of WDs.

So either the Sales Guys of WD or the SWD will send the product/ brands to the retailers which is the closest point to consumer in the supply chain.

The stock can take around 3 to 4 weeks to reach to the retailer from the production @ Factory.


Blogger noni said...

very nice site!!!!!!
aftr the role of supply chain is over....atr products reach the kirana shops....what kind of promotion activities can be planned for food & beverage segment..????....so at customer acceptability increases

July 17, 2007 10:49 PM  
Blogger Nitin Kochhar said...

i still remeber the sampling of catch spring water launch ... where free trials were done to consumers

I think for niche F&B like gatorade or powerade which is still not launched in India which are health drinks ... should go the sports people and make them try their product ... may be target a sporting event ... or run some good offers for consumers where they get involved

actually it will vary from segment to segment .... u can ask specific for a brand which has its own segment

July 18, 2007 7:29 PM  

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