Question

Topic: Strategy

Direct Marketing - Direct Sales

Posted by Anonymous on 4/22/2006 at 11:01 PM ET 50 Points
I set up the plan to help my client approach their targets whom my client can not sell directly its product to. My company can ask the target consumers to buy the pack that inclue my client product and others that they need to take to the hospital as they deliver their baby. Please advise me how to deal with other manufacture such as Johnson and Jonshon, Lactacyd for baby wet tissue manufactuer and so on to join in this direct selling (I assume that joiners can share operation cost and we can offer the economy cost for consusmers commpared with they buy every piece of product seperately). Thanks for your advices in advance.
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RESPONSES

  • Posted by wnelson on 4/22/2006 at 11:26 PM Accepted
    From your terse description, I am at a loss to understand what your client's product is and don't understand the restrictions on direct sales - requiring sales of a package of products versus the client's product. Without this, it's hard to understand customer needs, competition, or the core competencies and unique selling points for the client company.

    With respect to partnering with other companies, what's in it for Johnson and Johnson, Lactacyd, and the other manufacturers to work with you and share your cost? Apparently, your client's product is not at a position to pull through its own product, let alone someone else's.

    Figure out what your client's advantages are - if you could market to customers, how would you do this? And then, given this, how can you use these points to give the partner companies some advantage in working with your client's company.

    I hope this helps.

    Wayde
  • Posted on 4/23/2006 at 1:12 AM Accepted
    Hi,

    My question is is your client a producer of the product?
    If so what are the current means of distribution?
    Or is it a mere distributor of a product produced for him by another company?

    In any casd what could be an option is to become the distributor yourself. You set up a concept of distribution within the current situation.

    This way you (or your client) could buy direct and in bulk from J&J and other manufacturers, you add your own product to the packaging (which could become something super creative if you ask me) and you go and sell the new combination product directly.

    J&J and others will be interested in partnering with any good distributor, not any new brand manufacturer that might be a competitor.

    I would go for distributing and carryin initially all the costs yourself (its an investment untill you get recognition as a viable way oif distribution) Then you will bear fruits of the initial work as all large comps like J&J are always looking into new ways of distribution.

    Regards,
    W
  • Posted on 4/23/2006 at 3:58 AM Author
    My client is a infant milk powder producer. In my country, infant milk powder producer can not do direct sales or telmarketing to its target. Its competitors took the advantage chance to advertise about the product in last two years ( my client products launched later than competitors). Therefore, I come up with the idea above to ensure that the target consumers can approach my client products beofore competitors touch them, please be noted that my client has database of their target and we can base on it to approach targets. I still wonder that whether this direct sales hurt other my client's ditributors? I appraciate very much all your advices even they are oposite. Thanks.
  • Posted by wnelson on 4/23/2006 at 9:09 AM Member
    OK, I understand a little more now. Let me sum up what I think you mean:
    1) Your client is selling an infant milk powder
    4) It is illegal to direct sale, telemarket, advertise, approach hospitals or doctor's offices concerning infant powder milk in your country
    3) He launched his product last - he has strong competitors who have been out there for at least two years
    4) Your client's competitors advertised before the "ban"
    5) You believe that if you partner with J&J and others, you can direct market/sale a "basket" of products and get around the "law." I am assuming you can advertise, direct sell, and telemarket these other products.
    6) The client has a database of potential customers

    You say you wonder if direct sales hurts your distributors...is this why the law is in place: Because it would hurt distributors if a powdered milk producer sold directly to the consumer? Or did you mean that if you began selling a basket of products in which was your client's powdered milk that this may hurt your client's distributors? If you are wondering about the basket hurting your client's distributors, the answer is yes, if you are successful direct selling through this basket approach, then you will hurt your client's distributors. In fact, this is the idea that woutkok was recommending: Become a distributor. You could sell the powdered milk, J&J, Lactacyd, and all of the other products. Also, as a distributor, if I understand you correctly, you can approach consumers directly and use your list to your advantage. Of course, J&J, Lactacyd, and the rest most likely all ready have distributors and their distributors probably already have lists like yours. So the issue with this idea is again, why would these companies want to partner with your client? What advantage or benefit does it bring them?

    I am assuming you are a separate company from your client - correct? If so, are you allowed to conduct educational seminars in your country? And if so, are you allowed to send out invitations to people to come to an educational seminar on baby care and follow up with telemarketing? If you are allowed to do all this, you can organize seminars on baby care and send out invitations. And in this effort, you can also partner with J&J and others - they would probably donate goods to your seminar. You can offer a "free gift basket" to those who attend the seminar. You probably can have nurses volunteer to talk about baby health care. You can have company representatives talk about their products and how they are good for babies - including J&J, Lactacyd, and your client. This isn't advertising or direct selling. Perhaps since the gift basket is not "purchased," then the expectant mothers will not consider this bad luck?

    Just a thought. I don't know enough about your country's laws or customs to know if this will work or not.

    Wayde
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