Saturday, June 26, 2010

FMCG ----- it’s all about availability (which depend upon distribution)

“Organization spends a lot in the Brand building activities but once established, they reap the benefits life time”. It was then now market is very competitive especially FMCG market, many established Brand are struggling to maintain the market share. So you are bound to compete, or ready to be eliminated from the market. Even the market of black cold drinks there is a lot of competition; only two big brands are present there. Distribution has critical role in the success of any FMCG organizations, because of

· Buyers have so many options available in this sector as so many established brands are available.
· There is not much risk involved while switching the FMCG products, so if one is not available people may switch to other.
· Earlier distribution (logistics, supply chain, dealers) was designed in such a way to reduce the cost of the product, but now a days it is to have edge over the competitors.

So as FMCG company, be competitive too have good distribution system or else you will be a company to be studied as case in MBA colleges. “Distribution system --- A big failure for company ABC”, perhaps you won’t like it. This is my perception or point of view perhaps you people may have different one.

Sunday, June 20, 2010

Relations --- Problem for the researcher (In some cases)

I do not know why am I so much in relationship with relations, have already talked a lot in previous blog and again. Good relations results in excellent outcomes in almost all spheres of life but as a researcher it creates problems, as people are not ready to tell the truth because of one reason or other. Recently I have done a research on the distribution of the particular company, and found that people were reluctant to tell the truth because of fear of getting their relationship spoiled, especially with higher order members of the distribution channel.

· Sometimes retailers were suspicious that we are from distributor’s sides, and thought that anything against the distributor will be conveyed and they have to bear the consequences.
· Dealers and distributors were not willing to divulge anything against the company, fear of getting their license revoked.

As a researcher one may try their best to convince the confidentiality but it’s very difficult to change the perception of individuals. I am wondering to get a solution to deal with this limitation of the research, perhaps some of you may have ideas to deal with.