The document provides guidance for small companies and entrepreneurs on entering new markets with limited resources. It recommends conducting a feasibility survey of the target market to understand size, consumer base, and retailers. It suggests starting with a focus market and direct distribution if local. Set up sales beats and start with B, C, and D category stores that have direct customer connections to introduce the product and capture the second-line retailer market within a year without spending on marketing. Provide good treatment and incentives to the sales, logistics, and accounts teams as they are key to distribution success. Be patient and aim for break-even in 18 months before expanding marketing efforts.
How to introduce new products in market new enterpreneurs
1. Here I will explain how companies will go in new market with their new product
line. Introducing new product in market is a lengthy and hardcore job.
Companies having deep pockets has that much capacity to use market tools
and accordingly they come to market armed so for them product placement
strategy is little bit different.
Here I will give few ideas for small companies or entrepreneurs who has
limited source but they are passionate to initiate business. Certain rules are
common for all marketers so they have to follow those rules in primary phase.
Before you go to a new market first you have to make a detailed
feasibility survey. Such survey should be carried out by in-house team where
you need to draft a questionnaire keeping few points relevant. Before drafting
a survey questionnaire you should have first detailed product knowledge and
all measure related to food safety and other statutory compliance ,
packaging and SKU size and master packaging type. Once you finalise
your product and it's complete product note then go for make a survey in the
focus market.This survey will give you detail picture about market size,
consumer base and retailers behaviour.
Once you have a detailed survey then you can easily make budget and
sales planning.
2. For small enterprises you should pick your focus market first. After that mode
of supply chain system need to be aligned like you are going to appoint
distributor in that focus market or you as a company will do direct
distribution. If focus market is your native place then it would be good to
have direct market distribution rather go for seek distributors. As soon as
Distribution channel is finalised go for recruitment of sales and marketing
staff. Remember General manager of sales should be from the market or he
should have experience of product line you are having. Never recruit people
from other stream. Sales officer or representatives you can recruit from
different sales verticals but they should be properly trained before they go
market.
Product knowledge, about company, promoters and policies should
properly given to them. Fill full enthusiasm and energy in them. Give them
trust that your products are good in terms of quality , price and service will be
of best class. All such positive things should be given on daily basis as a
routine diet.
Once primarily measures of market is done then time comes at your workshop
or factory side where you start working on product manufacturing , labeling or
relabeling as per the nature of your product.
Map your focus market in zones/Clusters and under zones make weekly
beats for sales planning. Sales beat, market beat or delivery beats depend
on market size you are going to explore. Generally a city like Delhi need 20
sales beat if you are going to cater whole city whereas city like Jaipur will
needed 10 sales beats.
Beats means a dedicated area under a sales officer which help him to map
retailer day wise. Do not target 20 shops per day and per week 120 shops
under one SO or SE.
When your sales man start exploring beats so there they need more time to
interact with retailers. It help them to introduce your product to them. So 20
shop per day for a SE is more than enough. In first three month there would
be productive calls around 8 to 10 and slowly slowly it will increase to 60 to
80% . Don't expect 100%.
If you have marketing budget in big capacity then only choose your customer
base otherwise you need to go by following method.
3. There are category of stores in kirana segments like a store or outlet having
per day 30000 to 50000 comes under A category and below 30000 it comes
under B , C and D. Big retailer under A category or A+ category will not
entertain you easily because they are well off in terms of customers footfall,
business and they are having full attention from brands so they don't want to
keep new brands or products so are more rigid.Here you have to select stores
having reasonable sales , must be attentive and care about you. So here you
will find Outlets under B, C and D category. Go with them and introduce your
products to them.
This is the cheapest way of marketing your products in your target market
because these small Mom and Pops shops have direct connection with their
customers and they can push your new products to them taking own reliability
and trust. Within 1 year you can capture 2nd line retainer market.
No doubt this process is little bit time consuming but if you don't have deep
pocket for burning money in marketing then this is the best way.
I did this in many cities and without spending a single penny on marketing I
could succeed to firm roots to their brands. Few of them are from Delhi ,
Hyderabad , Dubai, Singapore, UP, Rajasthan and many more. I will explain
name of those brands here but they now doing business of millions
dollar. Anyway this is the easiest path to find destination for your products and
after one year you will find that big retailers from A and A+ categories will
approach your salesmen and they will enquire about your products.
You know why, because some of their customers demanded for your products
which they don't have. Remember retailer will not say no to their customer if
one has demanded for a particular products. Here you have silently created
demand among their vicinity so now you can step up to their counter and
place your products.
One important thing to remember, always give boost to your sales people,
your logistic team and your account team because they are the ecosystem of
your distribution.
Always pay higher than your competitors , create loyalty through giving them
special attention.
Specially to sales persons, give them quantifiable incentive plan , instead of
giving annual appraisal make it half yearly or quarterly. They are your brand
ambassador.
4. In very first day all of your sales staff should have proper uniform so they will
feel energetic. Equipped them with proper bag, stationery and try to make
system fully digital. Now a days you can take sales order on mobile so you
should opt such IT tools.
How to boost your sales team . It is a vast subject. I will write in detail on
this.
Now in very first dealing with retailers you should make your payment,
delivery, return policy very clear so that retailer can envisage the same in their
routine and follow them. Never give credit beyond 15 days , yes in some
products you have to choose this as per market practice but try to make
payment term in your favour. You can give incentives to sales team or
collection team on timely collection of payment. There are many good retailers
who make cash payment like COD so there you should give them extra cash
discount and good treatment .
Always remember you should make proper payment follow up and make it
daily routine. Never let it open with your sales team.While setting up market
for your business you should bear enough patience and try to get break even
after 18 month of start.
Once you attend BEP then you need to start ATL/BTL activities to create pull
from consumer end. It is then needed. First 18 month period you need to
push your products to retailers and onward you have to make your marketing
efforts to pull demand from households. If you do this way then by end of 2nd
year you will have 10% either GP or NP as per the profitability of your
products.
Now you are ready to expand your market. Here you need a different
strategy. in my next blog I will write on this. In case you need any
immediate comments or advise you can reach to me at
retailkirana@gmail.com
First make your self success, survive and sustainable
Sustainability is the key to our survival on this planet and will also determine
success on all levels.
"Remember Retail is Detail"
5. This is just a brief about business development in kirana retail.
You may drop an email to me at
Retailkirana@gmail.com