DEFINE PLANOGRAM FULL
Groupe SEB: Getting full visibility on merchandisers deployed in Kenya Modern Trade To understand what is expected from a merchandiser in the modern trade, read our case study on how SEB Kenya used FieldPro to record the interactions in the shops. But it might be that the distributor has to report some merchandising KPIs to the brand who gave him the distribution mandate, in which case the sales representatives might also double down as merchandisers to collect such data points and prove their activity in the trade.Ī sales representative or a merchandiser is employed with a contract, he has a fixed pay and targets, on a daily, weekly or monthly basis to earn a variable pay. Whereas the distributor is usually more focused on pure selling, which give commissions. Sometimes the two can exist at the same time, if the manufacturer wants to control the sales relationship in a specific trade channel, say the modern trade, or for large accounts, like wholesalers, or on a specific type of products.Ī merchandiser is more often employed by the brands, as it is used to identify new retailers, check the quality of the presence in store, collect merchandising KPIs. Second difference: employed by the brand or the distributor (or the wholesaler)Ī sales representative can be directly employed by the brand or by the distributor. Typically merchandisers might focus on modern trade / key accounts, where the sales is done directly to the shop but through an order given at the group level. Note that the difference can be subtle, as most likely a merchandiser type of role seeing a lack of stock will most likely, or should at least, call the distributor in charge to make sure the retailer is supplied. There are various naming for each of this role based on the organization, but the fundamental difference lies in whether he is supposed to sell directly or facilitate a sales, with pre sales directly. But we cannot represent all the operational complexities that are witnessed on the ground in the FMCG distribution, so we have tried to make it understandable in that schema ! Or there can be multiple layers of intermediaries to reach the long tail of small shops in the traditional trade, meaning that in scenario 4, you will have a sub wholesaler below the wholesaler. For example, it happens quite often that a manufacturer decides to have both direct distribution and indirect distribution at the same time, if it wants to control the relationship with large accounts or on a specific type of products or functions like merchandising. It is important to keep in mind that there can be many hybridations based on the market realities. This schema aims at providing a simple to read conceptual view of the distribution models.
DEFINE PLANOGRAM HOW TO
What are distribution routes and how to define them
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Manufacturer / Distributor Relationship: it’s complicated
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Scenario 6: Indirect Sales - Modern Trade Scenario 5: Indirect Sales - Pre Sales / Orders and Deliveries Scenario 4: Indirect Sales - Direct / Van Sales Scenario 3: Indirect Sales - Walk in sales Scenario 2: Indirect Sales - Street vendors This post will review the different topics below: Each model has pros and cons, and is adopted based on the company’s unique capabilities, risk profile, culture and market assessment. In this article, we want to lay out the differences between the various distribution models that manufacturers and consumer goods brands use to supply their products to the end customers.