Question

Topic: Strategy

Distribution Network In India

Posted by tahir.ahamad on 9/26/2010 at 9:46 AM ET 150 Points
Can some one tell me the best strategy to attract distributors in India ...especially for a small fmcg company.
Our product is good , packaging & other POS designs are too perfect but we dont belong to a millionaire group & thats the problem we are not getting the right distributors for our products. A class distributors (good credit report) are only interested in Multinational companies .

Can any one help????
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RESPONSES

  • Posted by Chris Blackman on 9/26/2010 at 10:57 PM Accepted
    Start out with niche distributors - pick distributors that service niches your product addresses very, very well.

    Approach them and offer them a period of exclusivity. As your product gains share (assuming it is good) you will have the big boys knocking on your door.

    You might also want to think about why the big distributors often don't want to deal with non-multinationals.

    There are risks they are trying to avoid - stock-outs, slow deliveries, quality concerns - what can you do to reduce their concerns in these areas?

    Stronger guarantees? Money-back offers? Overnight delivery guarantees?
  • Posted by tahir.ahamad on 9/27/2010 at 1:56 PM Author
    Thanks ASVP for your useful reply . Can I get some more risk points of a distributor ....I mean major problems faced by them so that I can strategically plan for avoiding such occurrences .
    Should credit period be extended for attracting good distributors.
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