Mastering Multi-Market FMCG Distribution: A Framework for Excellence

Introduction

Welcome to the 23rd edition of the 'Route to Market Excellence’ newsletter.

Thanks to the 7,200+ newsletter subscribers for all your amazing interactions.

This 23rd Edition is focused on Delivering Multi-Market FMCG Route to Market Excellence.

The Challenge

Multi-market or global consumer goods companies must avoid a fragmented and siloed RtM approach, and they need to focus on a standardised and unified RtM framework, that aims to drive distribution and execution excellence at the point of sale.

These global consumer goods companies will have the goal of driving the Operating Companies (OpCo's) to deliver the best possible results. Many of these companies will have some form of above-market, regional, or global teams, who are given the responsibility of helping the OpCo's to deliver these results.

How Do Multi-Market FMCG Companies Deliver RtM Excellence?

They build a consistent global methodology or framework that allows OpCo's to review and strengthen their RtM, Sales, and Distribution Strategy. This creates a common process, language, and roadmap for the RtM teams to follow. It facilitates OpCo RtM freedom and entrepreneurship, within agreed parameters.

It allows for testing, capturing, and sharing of success easily from one OpCo to another, under a common framework. It facilitates faster and repeatable RtM Excellence, without adding additional red tape or bureaucracy. It also allows the regional or HQ teams to add value faster, and spot potential gaps in the OpCo RtM strategy or execution, due to this common framework and approach across the OpCo's. It facilitates familiarity with the presence, or absence, of RtM Excellence.

How Do We Build This Powerful Global RtM Framework?

We use a step-by-step 3-stage approach that can be adapted to each FMCG company depending on their industry and global setup.

The 3 Stages are:

Stage 1: RtM Analysis & Strategy

This is where we define 'Where and How to Play'.

We use our local expertise to understand the market, we conduct a channel and market analysis using Neilsen-type data to determine attractiveness, competitiveness, priority or mix for certain Channels, Category’s, Price Segments, Geographies, SKU types, Pack Formats, etc.

We combine this with consumer research to understand flavours, tastes, buying trends, etc, and then build the RtM product portfolio to win, based on this data.

We then map out the potential RtM Models for this scenario and agree on the best fit RtM Model based on the above. Within this RtM Model, we then define the ideal or model Distribution Partners (DPs)?to deliver success in this RtM Model.

Once we understand this ideal or model DP, we conduct Distribution Assessments to find the best-fit DPs.

Stage 2: RtM Pre-Launch Set Up

This is where we define 'Who to Play With'.

We map out the Total Cost to Serve (TCTS) structure to facilitate a win/win. We agree on fully transparent Trading Terms & Conditions with each DP. We appoint DPs with assigned territories, channels, geographies, etc., which deliver the required trade coverage based on a recent trade census/outlet landscape mapping. We then deliver a strategic Joint Business Plan and an operational Joint Action Plan with each DP, and jointly agree on a Distributor Scorecard to monitor and drive the delivery of agreed KPIs.

Stage 3: RtM Execution

This is where we define 'How to Win'.

This is where we implement a world-class Demand Creation campaign (ATL, BTL, Social, PR, POSM, Trade Tool Kits, Retail Execution, Activation, Digital Integration, Continuous Improvement, etc.).

Step-by-Step Approach

We break down the above 3 Stages into 13 easy-to-follow steps.

We use this framework for:

• Market Entry or Expansion
• Reviewing RtM Performance
• Building a Global RtM Framework for RtM Excellence

If you would like the details behind our 13-step approach, please click here .

What should you do now?

• Unlock 8 Crucial RtM Actions to Win in 2024 .
• Subscribe to my Newsletter on Route to Market Excellence .
• Subscribe to my Route to Market Blog Here .
• Take our free distributor management training course here .
• If you need specific help on RtM Training or any RtM issue, please reach out to me
• Use our 20 Steps to Route to Market Excellence model to guide you on your RtM journey.
• You can use the Enchange Supply Chain House to help with your Supply Chain Transformation.
• As we always say, NOW?is the time to review, build, and/or transform your RtM Strategy and Execution to reap the rewards. Do not wait. Feel free to use our 20 Steps to Route to Market Excellence Implementation Guide to help you.