Saturday, May 22, 2010

Relationship does matter even in distribution

Health, Relationship and Achievement are three most important things in the life of human being. Relationship does matter a lot in real life but it’s amazing to see it’s important in the marketing and distribution of the products. Here are few of the facts which will indicate its importance in distribution of the products especially in FMCG products.


· In my previous blog I mentioned that Dabur has problem with less production capacity of REAL JUICE. Demand of this product is more than supply, especially in the metros so every retailer tries their best to have it in their shop but few succeed. When I observed I realized that those who are having good interpersonal skill and hence relation with distributor are getting it easily, rest are complaining about the system i.e. company, distributor and themselves of being small scale.
· Now coming to the credit policies decided by the distributors. Frankly speaking most of distributor decides credit policies on the behavior of the individual retailers. For new retailers they provide the product after receiving the cash. With long term retailers they decide the policy upon the credential of the individuals.
· If one party is good they try to understand the problem of other if they have any. I know one of the distributors of Allahabad and was amazed to see that none of the retailer has any issue with the particular distributor. Even though he sometime fails to fulfill the demand of the individual but he is there to explain the reason.

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