Question

Explain Presence, the aspect of physical availability. If you would be a manufacturer of fast moving consumer goods, which distribution channels would you prioritise in your marketing mix strategy? MARKETING

Answer 1

In traditional methods , Wholesaler models are a good distribution model for selling any sort of product that is in the low price range, whish is purchased every day, and has short shelf-life like Fast moving consumer goods . Working with wholesalers and retailers is usually a preferred distribution chain link because wholesalers and retailers do purchase the product from the manufacturer and therefore they take on the risk if the products do not sell well.

For Creating and maintaining the relationship with wholesalers , you should follow these strategies :

(1) Create a base :-
  
In addition to traditional wholesalers and retailers, companies can benefit from asking big buyers if they want to become a reseller for the brand. Give them an offer they cannot refuse.

(2) Relationship should be beneficial for both parties:-

Take an interest in finding out how well your resellers are doing and what their opinion is for the connection between their success and the products you are offering.

(3) Communication is the key :-

Ensure that your actions and strategies are fully complemented by your reseller efforts and workflow. Do not allow everyday business issues to ensure that products can reach the customer easily.

(4) Make relationship:-  

Regardless of the reseller's scope or profitability, allow them time to engage them to be part of your company's culture. Build trust and loyalty.

(5) Let your producers know your product :-

Resellers are often with the mentality they are in the sales business, not consulting. Prepare short, easy to summarize presentations or handouts they can absorb or redistribute to their customers.

(6) Gather feedback.  
  
Resellers and manufacturers have a common goal. To bring more products to market. Aggregation and processing feedback for producers can improve brand perception, development processes, and customer loyalty.

In addition with Wholesaler Model, you should also approach the E-Commerce Model which completely changes the game of distribution for several reasons.

(1 ) An e-commerce company, depending on their business model may see themselves as the manufacturer, a wholesaler, or a retailer. Those roles have become more fluid.

(2) E-commerce in general immediately makes products available for a large customer base and therefore less intermediaries are needed. Storage locations needs are limited, too.

(3). With predictive and prescriptive analysis of big data, e-commerce makes it possible that inventory management and shipment are predicted in advance and optimized.

So , For your FMCGs you should prioritize the Traditional Wholesale Model + Modern E-commerce Model as your Marketing Mix Strategy .