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Food Product Distribution.pdf
1. Food Product Distribution
Financially strong:
should be financially
strong as he needs to
invest in stock
infrastructure. His huge
sales are on credit basis
and if he is not
financially sound he
Food Product Distribution
Financially strong:
should be financially
strong as he needs to
invest in stock
infrastructure. His huge
sales are on credit basis
and if he is not
financially sound he
Food Product Distribution
he
strong as he needs to
infrastructure. His huge
sales are on credit basis
2. couldn’t sustain in the
market.
Experience: nrior
experience is necessary
for understanding the
process and steps he
should take for your
product it would also
help to build good
relation with retailers
fast.
Infrastructure: Infrast
ructure like warehouse,
vehicle, and manpower
is necessary to retain
3. the quantity and quality
of the product.
Market
reputation: Market
reputation is necessary
in terms of relationship
with retailers and
wholesalers this is
important as the
distributor reputation is
directly proportional to
the reputation of the
product he is selling.
Market
knowledge: prevailing
4. knowledge about the
competition, products,
market attitude,
retailers, competitors
this knowledge is very
important for getting
grasp on the market.
A business always aims
to improve and grow
day by day. A core
manufacturing company
main practice is
manufacturing and
packaging. If you are
5. any food processor or
food manufacturer you
would have felt lack of
sales strategy at many
point of time. In India
there are lakhs of
companies offering
quality food products. If
u feels your quality is
really superior and
wants your product to
reach customers then
you can collaborate with
distributors. This is now
a necessity for surviving
6. in this competitive
market.
Distributors acts as a
sales arm for your firm.
A distributor is
essentially an
independent contractor.
It has a highly
developed retail channel
for sales and promotion
of your product. usage
of distributors give your
product a wider reach to
the mass audience that
also without the
7. investment of any
company assets for the
development and
management of any
business network.
A distributor is a firm
that buys a product and
sells it to reseller
wholesaler or customers
directly. Most of the
distributors provide
various services like
warranty, technical
support, servicing
facility post to purchase.
8. We do not need to pay
distributors for that.
Though distributors
have many benefits but
the ultimate benefit for
which we choose a
distributor is that they
can sell our products
and help us in
generating revenue
quickly.
Establish customer
base: it’s the most
significant role of a
distributor. It helps to
9. establish a good
relationship with both
new and existing
customer base. That’s
very useful in case you
need to quick promotion
and sales of any newly
launched commodity.
Expertise sales and
marketing: Distributors
are exerts who are
experienced in sales and
marketing of any
product. They know
when to sell how to sell
10. and whom to sell. So
only they are able to
effectively bring up a
new product in the
market and achieve best
sales results.
Storage and
logistics: hiring
distributors saves your
money which would
have been spent in
getting storage space.
Distributors help in
extending your storage
area. They have reliable
11. and pre-established
logistics by help of
which shifting of
products becomes
quicker and cost
effective.
Wider distribution
channel: a distributor is
not only limited to a
specific place. Its
boundary can extend
from a small territory to
different states as well.
As large area it covers
wider will be the
12. presence of your
product. On one side it
increases your
consumer base and
along with it saves your
additional money which
would have spent on
premises and staff.
Quick rout to
market: sales are all
about fast delivery of
your products and
services to your
customer. A distributor
develops its distribution
13. network which ensures
your product reach from
its territory to national
and global level. This
vast coverage helps to
maximise sales and
profitability.
Now either you yourself
can form a distribution
and retail network or
take help of us in
formation of the above.
We provide an exclusive
service of providing you
with the best distributor
14. who is capable achieving
the targeted sales
volume in your niche.
We also assist you with
the establishment of a
strong retail channel for
an uninterrupted supply
of your product to
market. We have
experienced team who
with their experience
are able to judge which
retail channel you
should follow which kind
15. of distributors suits your
need.
Now before appointing
the distributors for your
company you must be
aware about different
type of distributors and
their job roles so that
you can have a clear
idea about what is going
on.
First classification is
based on the mode of
operation which
16. classifies distributors
into two types
Direct
distributors: this type
of distributor directly
sells to consumer. He
reduces the cost by
removing the middle
man in the supply chain.
Which generally eats a
large amount of profit?
However drawbacks are
that lack of large
physical storage
capacity, less marketing
17. exposure and high
marketing cost.
Indirect
Distributors: a
distributor cannot solely
handle all the sales
procedure rather he
need whole supply chain
to work hand in hand to
give good sales result. A
distributor needs a
network of retailer,
wholesaler and reseller
for the product
distribution. It facilitates
18. the manufacturers to
concentrate on
production while
generating sales
becomes the work of
distributor. This type of
distribution channel
depends on the size of
business product type
and volume sales
targeted.
Other classification of
distributor depends on
the need of customer
according to which the
19. distributors have
moulded themselves
Intensive
Distributors: you
should go for an
intensive distribute if
you want to sell out
your product as quickly
as possible and that also
through the largest
possible reach. They
work with large number
of wholesalers and
resellers and make huge
volume sales keeping
20. their profit margin low.
It’s good for mass
market product as they
developed quick routs to
market. Through this
distribution channel they
are able to quickly
supply and replenish the
consumer demand.
Selective Distributors:
here the specialised
distributors are
experienced distributor.
If your production
capacity is not too large
21. but your product quality
is superior then you
may go for it as these
distributors have small
number of wholesalers
and retailers. Here they
can effectively reach the
consumers. They
maintain high level of
service and consumer
satisfaction here profit
retained is more in this
case
Exclusive
Distributors: if you
22. are manufacturer with a
niche product and
market targeting a
specific target audience
then he should opt for
an exclusive distributor.
When we want to
maintain brand
integrity, image,
reputation exclusive
distributor is a necessity
then. There are very few
exclusive distributors
they sell only to their
suitable retailers.
24. • Retail is the end
part of every
supply chain.
The supply chain
starts from
acquiring raw
material and
ends on retailers
store to
consumer hands.
This dawn of
25. online era has
split the retailers
into two
categories either
online or brick
and mortar
based retailers.
• So are you a
manufacturer of
any food and
beverage
26. product in
India? And
wandering how
it will reach to
your customer
then you must
read this article
till end.
• Here we have
discussed
various retail
28. sold. So in this
sales process it’s
very important
to correctly
judge the
retailers and
frame retailing
channel strategy
accordingly. So
that the flow of
your food and
30. retail channels
options. This
retail channels
selection is
crucial as it will
decide the way
you will reach to
your target goal.
• Stores: types of
retail stores are
warehouse
32. the customer
needs. But the
customers don’t
get a lot of
options for
products as he
could buy only
those products
that are
available in that
particular store.
33. • Online: it’s a
vast medium
through which
we could sell our
product to
customers
globally. Here
low cost shipping
now days don’t
adds burden to
customer. The
34. product range is
vast and
customer can on
their need
customise their
searches and get
the products
according to the
needed
specification.
Only the demerit
35. is that
sometimes fraud
can occur and
instant
satisfaction
doesn’t occur.
• Catalogues
direct
sales: this is
more advanced
type where we