Question

Topic: Strategy

New Product Distribution

Posted by tahir.ahamad on 12/1/2009 at 7:57 AM ET 125 Points
Hello Sir,

I am From India , & soon going to launch our branded Atta in the country. We would have a monthly production capacity of 2000 tonnes. We would procure wheat directly from farmers in western U.P. As Flour milling is our ancestral business raw material or product quality would not be an issue. We have already tested the finished product in our labs and its quality is up to the mark. For retail package design we hired designers from Canada ( of a reputed brand designing company ) , the outcome is awesome & in package design we are far better than our competitors like ITC & Pillsbury. We have planned to launch our product with a lower M.R.P than our competitors. For promotion we are planning to use Radio, Best Bus & Brochures. For launch date we would introduce a special launch offer i.e flat 20% off if you buy 2 packs of 5 kgs.

Now the problem is we are not able to convince distributors to agree on our terms & condition i.e advance or on delivery payment. How to form a good distribution network ?? Also please provide us any other method of promotion or marketing that could help us compete with the multinationals. Give me your mail address so that I can provide you with more details of our project. Actually the main problem is I am afraid of relying on these distributors, whether they would able to present my product to the consumer exactly in the way as I want?? What is the best method to convince distributors for our terms ??

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RESPONSES

  • Posted by Jay Hamilton-Roth on 12/1/2009 at 8:52 AM Member
    If you're an unknown manufacturer, then distributors are taking a chance working with you. Will you provide products with a high quality, in time, in a format they can distribute, a demand high enough, and at a price that's attractive to them?

    Also - how do you know that your presentation of the product will be better than theirs? The best way to show the way is to do it yourself - selling it directly to consumers, selling it to small stores, proving the demand/presentation/pricing, then show the distributors your proof, and let them do what they do best.
  • Posted by tahir.ahamad on 12/1/2009 at 9:13 AM Author
    Actually here in india its very difficult getting debt cleared, also how could i directly supply to the retailers , with such huge volumes and vast area to cover. how do i present myself to the distributor as a big company. Also tell me some advertising ideas for print media. how do i compete with the multinationals. I require a innovative promotion technique to shift the consumer from them. Also i require to give a touch of tradition to my Wheat flour. As here in india there is still a lot of consumers who prefer to buy wheat & get it ground at the local chakkis . how do i make them to buy my Atta . This can only happen when the message of our traditional style grinding technique & our honesty is conveyed to them properly .
  • Posted by Frank Hurtte on 12/1/2009 at 9:13 PM Accepted
    Tahir,
    I have a few ideas for your product and will share them off line...
    Frank
  • Posted by ranjanpaul on 12/2/2009 at 10:56 AM Member
    You could try to talk to some of the organized retail markets who have started promoting store brands in India.
    Alternatively, focus on geographies that you can manage and then scale up.
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