The Definition of Excellence in FMCG Sales Execution

The Definition of Excellence in FMCG Sales Execution

Introduction

Welcome to the 22nd edition of the 'Route to Market Excellence’ newsletter.

Learn How to Skyrocket Your FMCG Sales, Distribution, and Route to Market Strategy and Execution.

Thanks to the 7,000+ newsletter subscribers for all your amazing interactions.

This 22nd Edition is focused on Understanding what good looks like in FMCG Sales?Execution.

The Good, the Bad, and the Ugly

Finding the right Distribution Partner (DP) is one of the fundamental RtM decisions a FMCG Producer will make. Depending on the producers' knowledge, understanding, and experience of the local market, they may not be able to separate the good from the ugly.

To help Producers on this journey, we have provided 15 Critical Areas to grade or assess potential (or even current) DPs against.

What Defines a DP with Excellence in Sales Execution?

The Definition of Excellence in FMCG Sales Execution

FIELD TEAM

  • STRUCTURE: The RtM Team has a suitable structure, organisation, time, and equipment to cover the entire universe allocated by the Producer.
  • RETENTION:?RtM Team staff turnover does not represent a major concern for either company.
  • REWARD: The field Team has effective incentives in place that focus on achieving producer KPIs.
  • NEW BUSINESS: DP shows a clear knowledge, willingness, and capability to gain new customers and increase Producer Numeric and Weighted Distribution.

POINT OF SALE (POS)

  • TOOLKIT: The DP RtM Team is equipped and trained for outlet execution and activation, including order capture, order method, POS material placement & management, planograms, portfolio & pricing process & initiatives, trade incentives & promotions, trade engagement options, etc.
  • CONTROL: Clear rules are in place explaining the correct use, and records, of POS Toolkit and other sales aids provided by the Producer, including sales asset placement.

OUTLETS

  • TRADE CENSUS: There is a living outlet database, regularly updated, which covers the market and splits the outlets by channel, and this matches Producer channel definitions.
  • SEGMENTATION:?The outlets are segmented based on criteria agreed with the Producer and this split corresponds to a service package for each segment.
  • TERRITORIES: The sales force has clearly defined, resourced, and performing territories.
  • ROUTES: Effective route planning is carried out and routinely refreshed for all Sales Reps. The route planning journey is aligned with the Producer.
  • FREQUENCY: Call frequency is aligned with customer sales patterns and operational and strategic goals.

SCORECARDS

Maximising FMCG Distributor Performance: The RtM Excellence Scorecard

  • SUCCESS: DP has relevant KPIs in place to allow measurement of success and reward per DP Sales Representative.
  • SUPPORT: The DPs KPIs support the overall key strategic, tactical, and operational requirements of The Producer, including investment and margin (front & back).

CONTINUOUS IMPROVEMENT

  • TRAINING: There is a real capability to participate in and deliver relevant training programmes to the RtM team, and this includes coaching by senior DP or external employees.
  • SHARING: Data and market intelligence is openly shared between DP and Producer to improve and sell more, including outlet sales data, pricing, margin, trends, etc.

The degree to which the above characteristics apply to each DP will determine the actions that need to be taken and the individual DP plan elements that must be put in place.

We have a very specific approach for identifying, assessing, improving, empowering, and driving FMCG DPs, to deliver shared goals.? If you would like to know more please click on our Distributor Partner (DP) Development Programme.

The 8 Step Guide to Drive FMCG Distributor Excellence

What should you do now?

Route to Market Excellence - Get the Basics Right in 20 Steps

20 Steps to Route to Market Excellence - A Guide to Implementation


Ross Marié

Supplies ?????????????????? ?????????????? Promotional Products ● Drives Brand Awareness ● RtM Strategy, Sales & Distribution Expert ● 25 yrs+ Global Success ● For BAT, Diageo, Danone, Spectrum Brands, Glanbia, Heineken+

9 个月

Thanks for the Repost Andy Dixon , hope all is well, cheers, Ross

Evert Boersma

Experienced Commercial Consultant

9 个月

Hi Ross, I am glad to see that you have included the last, but so very important part of the Route to Market. You can have structured the whole RtM and put in place all the necessary steps, but if the execution fails, it is all for nothing. I sometimes compare it to playing football; you can build a beautiful stadium, you can have the best seating and have the ticket selling process in place, you can have the advertisers place the boarding around the field and make sure that everybody knows the access routes to the stadium, you can even have the goals clearly on both sides of the field, But if the players don't know how to play, nobody will want to come to the stadium. Now football players are training every day for one match per week, Salespeople are very often left to their own devices. This last part will close the gap and will make all your hard work count. Well done!

Ross Marié

Supplies ?????????????????? ?????????????? Promotional Products ● Drives Brand Awareness ● RtM Strategy, Sales & Distribution Expert ● 25 yrs+ Global Success ● For BAT, Diageo, Danone, Spectrum Brands, Glanbia, Heineken+

9 个月

Thanks for the Repost Jordan Mitov , it is really appreciated, Ross

Boban Tomic (MBA)

International Market Development | FMCG | Leveraging global experience & networks to build international brands | Route-to-Market Strategy | MBA Sydney | INSEAD Singapore

9 个月

Another great article Ross! The topic and content goes to the core of achieving results through distribution partners! In the FMCG space, there is nothing more rewarding (read: sales results!) than a brand owner that takes a practical view, works immersively and consistenly with the DP in a given market. However, as you point out, the trick is for the brand owner to know 'how the game is played' and indeed to confidently distinguish between the good, the bad and the ugly! Well done with the content.

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