This document discusses market coverage and distribution channels for fast-moving consumer goods (FMCG/FMEG) companies. It notes that market coverage evaluates how much of the marketplace a company should target with their promotions. Distribution plays an important role by transferring goods from warehouses to retailers. The document then lists some common distribution channels like retailers, distributors, e-commerce, etc. and evaluates the advantages and disadvantages of different channels. It recommends that FMCG/FMEG companies use a distribution network that provides high market coverage and customer convenience to effectively deliver everyday essential products.
2. • Introduction to Topic
• Need for Market Coverage
• Ways of Reaching Retailers
• Advantages & Disadvantages of various Channel of
Distribution
• Recommended Channel of Distribution for FMEG/FMCG
3. MARKET COVERAGE is the evaluation of the marketplace and
determination of how much of it you should cover with your promotional
strategy of a product or business.
Companies have to take into account factors like the economy, culture,
buyer behavior, etc.
Once you understand your product's relationship to each market, you
will be able to make the right decision about your market coverage
strategy.
DISTRIBUTION plays a important role in the product selling.
The transfer of goods from the company's depots and warehouses to
the retail outlets.
An efficient distribution system is one where the depots are set up such
that it optimizes distribution costs for the company.
4. Every home these days is full of modern appliances that are available
in the market. These appliances have made our life a lot easier and
comfortable.
More importantly the lives of the people at the present are very much
fast paced.
Thus as if now the market coverage is very necessary for the company.
The market coverage can be measured by the reach of product to the
different channels and then to the end consumers.
The external and internal factors determine market coverage strategy
includes:
• Concentrated market coverage strategy
• Differentiated market coverage strategy
• Undifferentiated market coverage strategy
5. Company has to decide whether the whole market is to be covered with
a single marketing mix or different markets has to be covered with a
separate marketing mix.
6. Distribution (or placement) is one of the four aspects of marketing.
A distributor is the middleman between the manufacturer and retailer.
After a product is manufactured, it may be warehoused or shipped to
the next echelon in the supply chain, typically either a distributor,
retailer or consumer.
Selling direct, such as via mail order, Internet and telephone sales
Agent, who typically sells direct on behalf of the producer Distributor
(also called wholesaler), who sells to retailers. Retailer (also called
dealer or reseller), who sells to end customers Advertisement typically
used for consumption goods Distribution channels may not be
restricted to physical products alone.
7. Urban / semi-
urban
customer
Retail stockiest/
Kirana store
Carrying and forwarding
agents in a certain state
Manufacturing facilities
Redistribution
stockiest
E-
commerce
Urban
customer
Modern retailer/
Company outlet
Semi-urban/
Rural customer
Rural
customer
Semi urban retailer
Rural
wholesaler
Rural retailer
8. ADVANTAGES
• Cost Saving
• Time Saving
• Customer Convenience
• High market coverage
• Resellers help in boosting sales
• Customers receive financial
support
DISADVANTAGES
• Revenue loss
• Loss of Communication Control
• Loss of Product Importance
• More need of advertisements
and promotion.
• Less market coverage
9. • Fast Moving Consumer/Electrical Goods popularly known
FMCG/FMEG is as the name suggests is the most demanded
products in the market.
• In modern business distribution network has a great impact on the
success of any business. In the FMCG/FMEG segment the role of a
excellent distribution channel becomes even more crucial because
the delivery of FMCG/FMEG Product is confined to day to day basic.
• The distribution should be done with the help of channels of
distribution, because channels helps to increase the sales, and client
servicing.