Why more than 60% time manufacturer loses money at battle field

Dear New Incumbents,

I wish you are very good.

It’s been observed that manufacturer loses money at retail while promoting brands. There may be nothing wrong with the promotion. Still manufacturer stands hand to mouth…. Easiest way to carpet such problem is “ These retailers are always screw manufacturer” OR “Retailers are overly greedy” OR “ Retailers think we got $ machine”. To an extent a truth. (If so, we have to be genius to eye our due gains). I generally find such conventional statements spoken by many of my clients. If bargaining power shifted, learn new ways of business instead of beating the bush. In fact this is an ostrich way to take up things. This approach shall never ever, ever never, never ever never produce you green bottom line.  Yeah, but one thing for sure, promotion budget should be rock bottom before the year closing. This is mainly because we go blindfolded.

 Obviously, shopping is mindless activity, to build upon this mindlessness one has to be mindful

During my extended career, I observed few things what may lead manufacture to join 60% lose league.

Wrong Channel Selection:

You can not sell everything everywhere likewise you can’t replicate same promotion or promotion tool everywhere. While designing a promotion surface channel inside out. Channel understanding is imperative. Question yourself: Does that channel compliment the promotion ? If answer is Yes, then REASSURE….

Right channel selection may only lead you go deeper inside the channel partner. It never guarantees the off take.

Unidentified Shopper:

It’s not channel partner determine the destiny of your promotion but Shoppers. Your channel partner may provide you arena to perform. Melodious compositions is your responsibility.  You cannot create melody unless you sync instruments. Which shopper you are intended to engage. Make sure you understand the shopper mission. You might not need an extensive shopper research as there is a shopper in every individual.

Untrained Handler:

While executing at retail consider your field team is sensory. You MUST graduate them for even a tiny things. You should possibly train them on three basic question:

·        Why are we going to do

·        What are we going to do

·        How are we going to do

 Purpose should not be engaging sales team but flawless execution of your promotion for augmented results.

  I wish this one pager adds value to all of you.

With love and regards

Atif A. Farooqui

MAK blue..