Have you been wondering as to Why your “route to market” (RTM) strategy is not generating desired results? Why does it take long lead times to roll out fresh RTM initiatives to the field? What is preventing a rapid store penetration in certain markets? If you are facing any such questions, it is probably time to take a closer look at how enabled the last man on the ground is - the distributor salesperson (DSR), who is expected to execute all that you planned for as your RTM strategy.
Serving well over three fourth of the total market, the general or traditional trade channel holds a critical share of the Indian Consumer Product Goods (CPG) industry. It is therefore prudent to analyze weather the distributor salesperson (DSR) has received due importance in your plan and have the below aspects been adequately addressed.
- Who is covering the channel: Traditionally, many Indian FMCG organizations left the appointment and upkeep of field sales force to the distributors without making any significant contribution. Many times, this has resulted in deployment of less qualified, inexperienced, and poorly paid feet on street with a sole mandate to collect orders and payment from the stores. Today’s RTM strategy demand much more from every store visit and would find such workforce out of place. It is important, therefore, that CPG organizations make investments to ensure DSRs with minimum qualification & experience, train them to adhere to RTM processes and be able to use sales force automation & other technology tools for an effective in- market execution.
Industry Considerations:
- Prescribe DSR experience and qualification guidelines to the distributors.
- Prepare DSRs to align with your RTM objectives through continuous training on processes & technology and change management to ensure its rapid adaption.
- How is the coverage represented: A single DSR representing entire product range visiting an outlet or multiple DSRs representing specific lines of businesses. Which is a more effective approach? Some CPG organizations consolidated multiple product lines to be covered by a single DSR as an effective means while many others taking a contrary view by effecting multiple calls to a single outlet by multiple DSRs representing specific lines product lines.
Industry Considerations:
- In view of diverse market dynamics across our country it cannot be a one size fit strategy for pan India coverage. A careful analysis of each region/state/city characteristics should determine whether a single salesman or multiple salespersons be deployed to perform outlet wise visits.
- Is the coverage well enabled: An effective in-market execution goes way beyond just collecting orders and outstanding. Each call made at the outlet should be generating valuable insights for your organization. It is essential to have technology and process that empower the sales force to become smarter and more productive. Below are a few must have DSR enablement areas to watch out for.
- A clear view of daily activity plan for each DSR at day beginning.
- A 360 deg outlet view enabling DSR to improve quality of call.
- AI/ML enabled store-wise suggested orders to maximize lines per order.
- Outlet specific product activations and merchandising activities.
- Capture competitor activities and market intelligence.
- Integrate DSR activity plan with ongoing market development programs like rural outreach and other marketing campaigns.
- Integrate DSR beat plan with alternate ordering channels like distributor app, tel sell, van sales etc. to maximize yield.
- Empower DSR with on-the-spot returns/ damages settlement etc.
Industry Considerations:
- Ensure sales force automation with a comprehensive use case coverage.
- Introduce incentive driven store NPS programs.
- Have robust sales force performance management systems in place.
