2. The essentials of a successful route-to-market strategy:
1) Customer Wants & Needs:
1) Products – sell products that customers need and are willing to buy.
1) Focus on below 2 categories as our priority to build a valuable and profitable FMCG Distribution business alongside
with key partnerships:
2) Kitchen essentials.
3) Healthy products.
2) Channels – A class, B class, C class, Traditional Trade, HORECA & E-commerce.
3) Value Added – what makes your product or service add value to the customer? Low-cost channels will
have a positive impact on Bottom-Line profitability.
2) Low-cost channels will have a positive impact on Bottom & Top -Line profitability:
1) Low –Cost channels – C class, Traditional Trade, HORECA & E-commerce.
1) Products will only flourish in these channels, when they are successfully activated and launched in the A & B class
Universe.
2) Social Media penetration has a high impact along with visibility and availability.
3) Product and Channel should Correlate:
1) Customers – channels you choose need to be those that the customers actually use to buy what you are
selling.
2) Cost - channels that give economic sense to the point of sale.
3. Adopting the Right Distribution Method:
1. NUMERIC DISTRIBUTION:
i. Suited for a mass market strategy, with significant volume from several
channels with a focus to be in every outlet possible to make the product available to
the widest possible consumer base.
2. WEIGHTED DISTRIBUTION:
i. Suited for more specific niche market strategy, with a focus to be in a
smaller number of outlets that are frequented by specific and recurrent
customers that fit the targeted customer segments, i.e. “luxury” products.
Shooting Stars Distribution Team will be focusing of Mass distribution of its products
in the UAE Market – Numeric Distribution.
4. Defining Correct Solution for Distribution:
1. SELF-OWNED: The company owns distribution centers and vehicle fleet.
2. OUTSOURCED: The company outsources distribution center management and vehicle fleet
management.
3. PARTIALLY OUTSOURCED: The company outsources only parts of the operations,
either by distribution channel or type of operations.
Shooting Stars Distribution Team will be focusing of Partially outsourced distribution
of its products in the UAE Market:
1. Self Owned Distribution: A&B Class, Petrol Station, and E-Commerce
1. Not C4 and LuLu at the introduction stages of the products, as it carries high rish without knowing
which product is going to do well. Initially introduce the products in the market, shortlist the bestsellers
and then introduce it into C4 and LuLu.
2. Outsourced: C Class, Traditional Trade, HORECA & E-Commerce.
5. Pricing for all Channels:
• Having different pricing strategy and margins for a specific
channel:
• Key Accounts: High Cost / High Margins.
• Traditional Trade: Low Cost / Low Margins.
• HORECA: Low Cost / Low Margins.
• E-commerce: Low Cost / Low Margins.
6. Focus Areas:
• Transportation: Unnecessary transports that result in added cost and lower
productivity such as out-of-route stops or excessive returns management.
• Market Inventory: Any activity that results in excess inventory – or lack thereof -
being positioned in a location where needed. An example of this is pushing the product
into the distributor or the channel without considering the sell-out of the goods.
• Returns & Expiry: Activities that cause re-work, returns or adjustments, such as:
mislabeled orders delivered at wrong facilities, incorrect documentation or even wrongly
balanced loads that result in expired materials in the delivery vans.
7. Focus Areas – Contd...:
• Waiting & Delay: People, systems and material delays due to badly integrated
processes, such as delays of loading and unloading at the distribution depot or at the
customer site, e.g. sales van queuing in front of sales depot for being loaded / offloaded
due to poorly assigned time windows for sales vans. Loosing route time and customers
delivery on time.
• Warehousing:
• 3PL: Rent a warehouse in strategic location where the drivers don’t loose time loading,
unloading and have ample time for the assigned routes, i.e. Al Quoz, Qusais, Rashidya
etc.
• Own: Have own warehouse to save on storing cost in the long run and have no time
limitation of loading and unloading, i.e. DIP, DIC etc.
8. Focus Areas – Contd...:
• Lead Time:
• Implementing process changes, van loading and unloading times can drop to 50% of
the actual processing time, enabling a 20% to 30% increase of customer visits / drops.
• Optimizing the van layout may increase the van filling rate up to 25% and customer
order picking times by up to 60%.
• Correct classification of the outlets regarding their characteristics reduces up to 30% the
stock carryover and up to 80% the stock returns.
• Routes:
• In the initial stages, Shooting Stars will focus on Dubai under its own distribution team.
• As for Outsourced distribution, we will focus to spread the distribution in multiple
cities.
9. Initial Dubai Routes:
Routes # Routes No. of Customers Areas Covered
Route 1 Diera Deira 1 & 2 (including Murshid Bazar), Al-RAS & Hamriya
Route 2 Rashidiya Rashidiya, Qusais, Sonapur, International City, Mirdiff
Route 3 Bur Dubai Bur Dubai, Karama, Satwa, Jumeira, Business Bay
Route 4 Jabel Ali Jabel Ali 1 & 2, Al-Quoz 1 & 2, Marina
Total 0
Dubai Van-Sales
This is an Initial route plan for Dubai, which is flexible and will be amended in terms of # of outlets in each
Route.
11. Incentives:
1. Introduce Sales
Incentives plans at all
levels of the team –
supervisor,
merchandisers, pre
sellers, drivers and Key
account executives.
2. Incentivize outsourced
distributors on volume
turn over.
12. Team Incentive PLan
KA - Commision Plan
AchievementAmount
80% / + 2000
100% / + 2500
Supervisor Commision Plan
Achievement% of Overall Target
80% / + 1.25%
100% / + 1.25%
Merchandiser Commision Plan
Achievement25% of Salesman Commision
50%On 100% visits
25%Visibility
25%LPOs
Key Account Executive will receive AED 2000
upon 80%+ target achievement and AED 2500
upon 100% + target achievement.
Supervisor will receive 1.25% of Target upon
80%+ target achievement and 1.25% upon 100% +
target achievement.
Merchandiser will receive 25% of Pre Sellers
commission on completing the respected tasks in
the table.
Pre Sellers - Commision Plan
Achievement Amount
80% / + 700
90% / + 1000
100% / + 1300
110% / + 1500
Pre Sellers will receive AED 700 upon 80%+ target
achievement, AED 1000 upon 90% + target achievement,
AED 1300 upon 90% + target achievement, and AED 1500
upon 110% + target achievement
Editor's Notes
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