Why Retailers And Consumers

By the beginning of the 2000s and in the first years of the century, it became the norm when stores and retail chains began to contact the manufacturer directly. At that moment, the qualifications, efficiency of thinking and understanding of the aging role of distribution, by the owners and TOP management of manufacturers, dictated the need not to send such “self-propelled” to the distributor, but to try, if not work directly, then at least influence the quality of such contacts and service of such stores , retail associations and network operators. At this point, qualified trade management of suppliers and marketing teams of suppliers responsible for the promotion of goods and brands played a huge role. Naturally, if they are available.

Manufacturer Sales Teams

Realizing the distributor as a Colombia Phone Numbers commodity logistician and nothing more, manufacturers began to influence the sales channel “through the head” of the distributor, conducting and organizing:

having established, with the help of its own sales staff, active and independent work on the search for sub-distributors and on the inclusion of small intermediaries in the distributor’s sales network;

promotions for buyers of dealers and sub-distributors;

taking on the work of organizing high-quality distribution, group “A” for ABC-analysis;

incentive programs for distributor sales managers, forcing them to pay attention to their products and brands;

planned merchandising in retail outlets;

organizing sales promotions off the shelf;

All this in a short time gave the manufacturer and supplier control, not only of the distributor’s sales network, but also a stable market position, against those companies that still continued to rely on the distributor’s capabilities.

Colombia Phone Numbers

Indirect Mass Advertising

Seeing this state of affairs, supplier companies and brands from the TOP-5 list of the distributor joined the competition by launching mass advertising campaigns, using the media. Over time, combining such advertising with their own teams of sales representatives, brands simply bought out and absorbed the distributors’ businesses or created parallel distribution systems, very quickly squeezing the remaining distributors from the regional or industry market they previously occupied.

From the list of “killers” this is the most insignificant and the latest in time of occurrence, but at the same time, the most revealing. Private labels (private labels) of retail chains today have taken a tight place on the shelf. They are an example of direct communication between the retailer and the manufacturer. They are an indicator of not only desire, but also the ability of retail chains to work out comprehensively and directly control relationships with suppliers and reduce the marketing channel to a single level.

Leave a comment

Your email address will not be published.