Setting up an effective distribution system in emerging markets requires considering many factors, such as fragmented markets with both modern and traditional trade, developing a clear channel strategy tailored to each market, and gaining an understanding of the potential outlet base including regional differences. It is also important to select distributors based on key criteria, define roles and processes, understand the true cost to serve, and establish key performance indicators to track success.
Outside The Box Distribution - Three Dimensions for Distribution ExcellenceMichael Hu
What allows certain companies to deliver best-in-class distribution performance while others turn in only average performance or fail altogether? Leaders in distribution consistently think outside the box for sustained competitiveness.
I genium sales manager sales person survey resultsplafonta
Presentation that defines the discrepancy between sales management and sales people and looks to define strategies companies can employ to narrow these gaps.
Outside The Box Distribution - Three Dimensions for Distribution ExcellenceMichael Hu
What allows certain companies to deliver best-in-class distribution performance while others turn in only average performance or fail altogether? Leaders in distribution consistently think outside the box for sustained competitiveness.
I genium sales manager sales person survey resultsplafonta
Presentation that defines the discrepancy between sales management and sales people and looks to define strategies companies can employ to narrow these gaps.
This is a partial preview of the document found here:
https://flevy.com/browse/business-document/consumer-driven-replenishment-87
Description:
This is a sales presentation example for Consumer Driven Replenishment (CDR) project work. CDR is an analytical approach to supply chain integration between a consumer goods supplier and its customers.
The Strategy accelerator - Business models with sustainable competitive advan...Alfred Griffioen
Innovate your business model to gain higher ROI. Determine your sustainable competitive advantage (market relevancy or a unique product) and choose your strategy: ally, combine, excel or consolidate. This presentation in English is based on the Dutch book 'De strategieversnelling'. See www.strategy-accelerator.com
My latest article has been published in APICS Magazine. We all know companies no longer battle other companies. More and more, it’s supply chains competing against other supply chains in the race to market supremacy.
Misalignment, which is often experienced by different silo’s/business functions, can now be methodically mapped.
For classic brick & mortar retail companies there has not been lack of warning about the growth of e-commerce in the last 15 years. The actual impact has been slower to materialise, but turns out to be more dramatic than expected. At first, only books and consumer electronics seemed to be affected. Now, in one category after another, new successful competitors are taking off, including shoes, apparel and even groceries. Whilst e-commerce advances, the next wave of innovation such as mobile shopping arrives, with Tesco and Ahold launching QR-based shopping channels.
This is a USAID handout that provides examples of the Cooperation and Competition for Upgrading. It is a framework to assess the current picture and frame a future vision for value chain upgrading.
Ever accelerating pace of globalization has opened a window of opportunity for innovative entrepreneurs to jump from spring board of their locally retained markets into promise lands of globally acclaimed high ranking business heavens. The other name of these business heavens is Emerging Markets. It is now a known fact that the growth advantage in emerging markets, if other things remain the same, is expected to translate into 62% of global growth. Multinationals expect about 70 percent of the world’s growth over the next few years to come from emerging markets, with 40 percent emanating from just two countries: China and India. In addition to growth rate advantage, expanding middle-class consumer base, impressive Doing Business regulatory reforms, more than half of $55 billion of global middle-class spending will come from Asia Pacific.
Gaming Technology for Emerging Markets - SkilrockSourabh Goyal
Splendid response to Skilrock Technologies at ICE, 2014
Skilrock Technologies are back to work in India after a hugely successful ICE Totally Gaming Event in London. This year marked the largest presence of Skilrock at ICE with added presence at India Gaming Summit, Picklive Stand, Skilrock’s own Stand and Partnering with FICCI.
The event was marked by fun and frolic with promotional Lottery draw where hundreds of participants were issued lottery tickets and many attendees were amongst the winners. Behind these light moments serious discussions around the wide range of terminals and our comprehensive gaming solution provided wholesome experience to our visitors.
Mr. Sujit Lahiry, Director said: "It’s just amazing that over 23,000 gaming industry professionals attended ICE this year inspite of 48 hour underground strike. What is just awesome is that we had hundreds of attendees connecting with us in some form or the other.”
Mr. Kamlesh Vijay, Group CEO also shared his views about the potential of Gaming Industry in India during the fully packed “India Gaming Summit” at ICE.
Skilrock showcased its Gaming solution for Retail and Mobile lottery along with its Online Casino Technology and 70+ innovative games, which attracted a diverse audience. Skilrock’s emerging market solution was unique in ICE and it was very well appreciated by the visitors from such markets.
Mr. Abhishek Kumbhat, Head of Technology said: "Our CCH strategy is a response to the market needs and is based on requirement of clients especially in emerging markets. Our Technology will help operators be agile and move as per the market needs without being bound by CCH i.e Channel, Content, Hardware”
Having had a successful event, we are already looking forward to ICE 2015. See you soon and keep watching this space for more from Skilrock Technologies.
This is a partial preview of the document found here:
https://flevy.com/browse/business-document/consumer-driven-replenishment-87
Description:
This is a sales presentation example for Consumer Driven Replenishment (CDR) project work. CDR is an analytical approach to supply chain integration between a consumer goods supplier and its customers.
The Strategy accelerator - Business models with sustainable competitive advan...Alfred Griffioen
Innovate your business model to gain higher ROI. Determine your sustainable competitive advantage (market relevancy or a unique product) and choose your strategy: ally, combine, excel or consolidate. This presentation in English is based on the Dutch book 'De strategieversnelling'. See www.strategy-accelerator.com
My latest article has been published in APICS Magazine. We all know companies no longer battle other companies. More and more, it’s supply chains competing against other supply chains in the race to market supremacy.
Misalignment, which is often experienced by different silo’s/business functions, can now be methodically mapped.
For classic brick & mortar retail companies there has not been lack of warning about the growth of e-commerce in the last 15 years. The actual impact has been slower to materialise, but turns out to be more dramatic than expected. At first, only books and consumer electronics seemed to be affected. Now, in one category after another, new successful competitors are taking off, including shoes, apparel and even groceries. Whilst e-commerce advances, the next wave of innovation such as mobile shopping arrives, with Tesco and Ahold launching QR-based shopping channels.
This is a USAID handout that provides examples of the Cooperation and Competition for Upgrading. It is a framework to assess the current picture and frame a future vision for value chain upgrading.
Ever accelerating pace of globalization has opened a window of opportunity for innovative entrepreneurs to jump from spring board of their locally retained markets into promise lands of globally acclaimed high ranking business heavens. The other name of these business heavens is Emerging Markets. It is now a known fact that the growth advantage in emerging markets, if other things remain the same, is expected to translate into 62% of global growth. Multinationals expect about 70 percent of the world’s growth over the next few years to come from emerging markets, with 40 percent emanating from just two countries: China and India. In addition to growth rate advantage, expanding middle-class consumer base, impressive Doing Business regulatory reforms, more than half of $55 billion of global middle-class spending will come from Asia Pacific.
Gaming Technology for Emerging Markets - SkilrockSourabh Goyal
Splendid response to Skilrock Technologies at ICE, 2014
Skilrock Technologies are back to work in India after a hugely successful ICE Totally Gaming Event in London. This year marked the largest presence of Skilrock at ICE with added presence at India Gaming Summit, Picklive Stand, Skilrock’s own Stand and Partnering with FICCI.
The event was marked by fun and frolic with promotional Lottery draw where hundreds of participants were issued lottery tickets and many attendees were amongst the winners. Behind these light moments serious discussions around the wide range of terminals and our comprehensive gaming solution provided wholesome experience to our visitors.
Mr. Sujit Lahiry, Director said: "It’s just amazing that over 23,000 gaming industry professionals attended ICE this year inspite of 48 hour underground strike. What is just awesome is that we had hundreds of attendees connecting with us in some form or the other.”
Mr. Kamlesh Vijay, Group CEO also shared his views about the potential of Gaming Industry in India during the fully packed “India Gaming Summit” at ICE.
Skilrock showcased its Gaming solution for Retail and Mobile lottery along with its Online Casino Technology and 70+ innovative games, which attracted a diverse audience. Skilrock’s emerging market solution was unique in ICE and it was very well appreciated by the visitors from such markets.
Mr. Abhishek Kumbhat, Head of Technology said: "Our CCH strategy is a response to the market needs and is based on requirement of clients especially in emerging markets. Our Technology will help operators be agile and move as per the market needs without being bound by CCH i.e Channel, Content, Hardware”
Having had a successful event, we are already looking forward to ICE 2015. See you soon and keep watching this space for more from Skilrock Technologies.
2017 Market Outlook - Emerging Markets DebtT. Rowe Price
Portfolio Manager Samy Muaddi, CFA, discusses his perspective on the current emerging markets debt environment and what investors could expect to see in 2017.
In the Business Perspectives for Emerging Markets 2012-2017 Report from GIA, 431 large and mid-sized companies reveal their true goals and intentions. This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP
1. 70% say they want to gain a foothold for long term success
2. 51% say they were keen to gain global market share
3. 4 out of 10 have followed their customers to Emerging Markets
4. A third are looking for growth outside established markets with lackluster growth and profits
5. 1 out of 4 are keen to diversify their risks, as well as tap into short to medium term profits and growth
6. Only 17% said it was to lower supply costs
Many still favor BRIC countries as their top focus between 2012 and 2017, with similar emphasis on individual markets across 10 industries.
However, 91% admit to wanting to have done things differently in their Emerging Market strategies. The main regrets are not adapting more to local conditions, not entering sooner and not acquiring better market intelligence.
Over half say that information on Emerging Markets is not readily available in their organizations, with three out of four doubting the accuracy and completeness of the information that they do have.
Download the Business Perspectives for Emerging Markets 2012-2017 Report (Global Results) from GIA, to find out how companies say they will tackle Emerging Markets and what they see as the success factors and threats for their individual industries. The wide ranging Emerging Markets survey covered questions such as:
- How do you define Emerging Markets in your company?
- Which are the top Emerging Markets for your industry over the next five years?
- What key factors will determine whether foreign companies succeed in Emerging Markets?
- What are the biggest threats to succeeding in Emerging Markets?
- What are your company’s main reasons for investing in Emerging Markets?
- What share of your company’s global revenue do you expect to come from Emerging Markets?
- Which one aspect of your Emerging Markets strategy would you go back and change if you could?
Industries covered include: Manufacturing & Industrial; Telecommunication, Technology & Media; Professional & Business Services; Financial Services; Consumer & Retail; Pharmaceuticals & Healthcare; Energy, Resources & Environment; Automotive; Chemicals; Logistics & Transportation.
A look at the shifts in focus in Silicon Valley as mobile has taken technology to a global scale. This presentation looks at the impact of mobile and emerging markets on how people consume and the disruption coming to traditional industries, such as food, CPG, and spirits.
Growth in emerging markets is slowing. This is concerning. Senior Economist Marcus Wright considers two questions. What are the problems in emerging market economies? Why does that matter to us?
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
Honors Thesis Presentation - "An Analysis of Emerging Markets"dre101
This is a PowerPoint Presentation of my Honors Thesis. I presented this in front of three Hofstra Professors, including the chairperson of the Hofstra Finance Department. I received High Departmental Honors as a result of my research.
How to Become a Thought Leader in Your NicheLeslie Samuel
Are bloggers thought leaders? Here are some tips on how you can become one. Provide great value, put awesome content out there on a regular basis, and help others.
Ebeltoft Group Global Cross Channel Retailing ReportMarisd1
Ebeltoft Group Cross Channel Benchmark Report 2012. Global Cross channel benchmarks from 144 retailers in 17 countries with analysis across 4 major industry segments. A good read for any Senior Executive charged with delivering the right cross channel customer experience.
Cross-Selling: five keys to success in bankingAlexander Huun
Cross-selling can help banks to improve their market penetration through the application of cross-selling techniques. PA’s ‘five keys’ approach has proven particularly efficient for new product launches.
Printed in \'PA perspectives on European banking\' 1Q09
Many things can impact channel sales, but there are five core factors that truly matter in driving profitable growth via a network of channel partners.
Sales White Paper: Executing A Territory Sales ModelAltify
In our increasingly complex and competitive marketplace, managing the sales process is a critical success factor in the consistent achievement of revenue goals. Senior sales executives and management teams who implement standardized sales processes and reinforce best practices will increase pipeline visibility, sales execution, and overall performance, leading to more predictable and sustainable revenue growth.
Market fit is making products available in the market where customers start buying. but more than a product to market there are lots of synergies to build where things go with it.
A Practical Guide to Market SegmentationResearchShare
There are ten basic steps in finding unique segments in your customer base. Segmentation can be created by looking at factors such as purchase history, industry, need, and behaviour. B2B International shares their segmentation methodology in this white paper.
Most multinationals, across sectors, have long recognised the importance of the Growth markets to increasing their companies’ profits, however few have been able to develop distribution networks that provide them with the same levels of confidence and profitability that they enjoy in their home markets. The reasons for this are often related to the lack of basic infrastructure and then compounded by the sheer size of some markets and the need for local knowledge and strong local relationships. Identifying and effectively managing the right channel partner is key to overcoming these challenges profitably. More: http://pwc.to/1w5nPtc
The characteristics of most growth markets require companies to adapt both their go-to-market strategy and their operating model to address the ever-evolving consumer needs and segments within the limits of the country’s institutional voids and culture. Some companies have managed to overcome the Growth Markets’ voids they face by merely tweaking their existing operating model a fraction. However, most companies which are looking for longer term growth in these complex markets are finding that they need to make more far-reaching and bold changes to their operating models to bridge these voids which step away from the structured and efficient capabilities that have made them so successful in the developed markets.
2. Key Questions Setting up a distribution system in
What is the split between modern and emerging markets can be a
traditional trade?
challenging undertaking. Below are a
Which trade channels are strategic to
number of issues to consider:
our business?
Fragmented markets –Modern trade (e.g. Shoprite
How do channels function and
supermarkets) in most African countries, with the
operate?
exception of South Africa and Kenya, is still in the
very early stages of development. The
contribution is in the single digits. Reaching large
numbers of traditional outlets (e.g. Mom & Pop,
Dukas, Sooks) is a difficult and costly business.
Channel strategy - Organizations must map out a
clear channel strategy and identify which channel
the selected distributor will service. A poorly
defined channel strategy can severely damage any
distributor roll-out. One size does not fit all.
Distribution in Emerging Markets 2
3. Key Questions Outlet base - In most emerging markets,
Do we have a good understanding of determining the outlet base can be a challenging
the potential outlet base? undertaking. Organizations need to understand
both the existing and potential outlet base. A well
What are the regional, urban and rural
defined every dealer survey (EDS) is a key
differences in distribution?
component of any successful distributor roll-out.
How do products flow in the market?
Territory –Organizations must build distributor
Where do the 3PLs operate in the capability and schedule joined training sessions. A
country? detailed territory maps and a clear understanding
of the outlet density and regional differences, are
also important.
Product flow & reasons for purchase –Often small
groceries purchase product directly from the
wholesale channel. In some cases they might
purchase certain stock keeping units from modern
trade (e.g. consumer goods Thailand). The
wholesaler is often in close proximity to these
outlets (2-5km radius). They provide a basket of
goods, and in some cases credit, if they have a
good relationship with the small grocery.
3rd Party Logistics –3PLs often cover the major
roads well. However, in emerging markets they
normally have a limited footprint in rural areas and
secondary roads. Organizations need to consider
how they will service these areas.
Distribution in Emerging Markets 3
4. Key Questions Selection criteria – Many distributors fail because
critical components of the selection criteria are
What are the key components of a
overlooked. The selection criteria will likely include
successful distribution partnership?
important components such as capital, infrastructure,
What is the frequency of
warehousing, transportation and required
product replenishment and reasons organizational structure.
for the frequency? Service – Assess the service and delivery for each
Are roles well defined? channel and the service partners they work with.
Review the key issues with service and delivery and
map out the distribution models employed.
Role definition –It is important to review the
organizational structure and how the company will
support the distributor. Ensure that each profile (e.g.
salesperson) has a clear understanding of his or her
role.
Distribution in Emerging Markets 4
5. Key Questions Account development –Not all accounts are equal.
How should account development be In most cases, organizations need to prioritize and
managed? focus their attention on high value or strategic
customers. They also need to determine how they
Do we understand the value and margin
will split the account development activities
of partner in the system?
between the company and the distributor.
What is the true cost to serve?
Cost to serve – The true cost to serve is sometimes
How will new systems impact on the underestimated and organizations must have a
existing warehouse? clear understanding of the cost to serve for both
What is the required service frequency the distributor and the company. In many cases in
taking into consideration cash flow? emerging markets, financial cost centers provide
limited data and financial modeling is essential to
determine the true cost to serve. Many distributors
fail because the remuneration is set too low and
not adjusted for inflation on a periodic basis.
Warehouse –The warehouse function is sometimes
overlooked when a company implements a new
route-to-market system. Organizations need to
anticipate how the new system will impact on the
warehouse function and what changes need to
take place.
Stockholding –Outlets in emerging markets often
have limited cash flow and, in some cases, limited
space to stock product. Review the required
service frequency and the need for micro supply
depots or wholesalers.
Distribution in Emerging Markets 5
6. Key Questions Key Performance Indicators –By focusing on the
What are the key performance drivers? key performance drivers of your business, avoid
Are processes and systems well defined overextending yourself. Sometimes less is more.
Include key performance measurements in your
and standardized?
business planning process and evaluate on a yearly
What skills need to be recruited or
basis whether you are using these measurements
developed?
to track and improve your business. There is no
Can the distributor handle the level of point in tracking something just for the sake of
complexity in the business? tracking.
How will we share information with our Processes- Always aim to eliminate non-value
distribution partners? adding activities where possible. Standard
Operating Procedures (SOPs) simplify your business
procedures and help to ensure the same quality in
all operations.
Skills – Emerging market operations often lack
critical skills. It is dangerous to make assumptions
about what people can and can not do. For any
principal working with a distributor, conduct a skills
gap analysis to determine the training recruitment
needs.
Complexity –In many cases distributors that
distribute all SKUs to all channels fail. Always aim
to reduce the complexity in the business.
Collaboration –Too often critical information is
only available at distributor level and not shared
with the company. Also consider the role that can
technology play in information sharing.
Distribution in Emerging Markets 6
7. Key Questions Appropriate technology –Evaluate mid tech solutions
and identify the “appropriate technology” for your
What technology is required?
operation. Don’t overdo it.
What is our timeframe for success?
Patience–Ensure you have management buy-in. A
Which regulatory issues do we need
Route-to-Market roll-out requires patience and a
to consider? continuous improvement mindset. Small incremental
What are the culture issues we need changes can sometimes go a long way.
to consider? Legal issues –It is also important to understand if there
Are you taking the necessary steps to are any regional regulations impacting transportation
and supply depots.
adapt to change?
Culture – Take time to understand culture issues and
don’t assume anything. Change your thinking when
working in other markets.
Take note of the evolution –Too often supply chains in
emerging markets evolve without any strategic plan.
Modern trade and retailing are expanding and middle
class consumers shopping patterns are
changing. Consider how these changes in the market
will affect your business. 7
Distribution in Emerging Markets
8. ABOUT THE AUTHOR
Tielman Nieuwoudt is Principal of The Supply Chain
Lab and has extensive supply chain and operational
experience, covering more than twenty-five
emerging market economies in Asia and Africa
The Supply Chain is a group of supply chain
improvement specialists with a focus on emerging
markets. The Supply Chain Lab provides factory to
village supply chain solutions.
www.thesupplychainlab.com