![]() For example 12+1 free means that with this particular product an extra item (same product) will be offered to a retailer if he buys 12 items in a single invoice/memo. To create retailer's loyalty (trade advocacy) companies offer frees or bonuses with some of their SKUs for their retailers. Typically FMCG companies do have many SKUs in their product portfolio. Trade Promos can be of different types based on the needs of the company: Retailers/Wholesalers and the Distributors. Trade Schemes are designed for the trade i.e. Trade Schemes or Trade Promotions (Widely Known as TP): These are schemes that are given out in the market to boost sales from time to time. (Modern Trade is managed by the dedicated sales channel) Modern Trade: Super shops who mainly sell to premium customers e.g. Wholesalers: An outlet of a beat is considered as wholesaler if that outlet contributes more than 50% sales of that particular beat (this assumption may differ for different companies). not employed by company itself) DSR plays the role of SR/SO and in that case distributor employs a separate delivery unit for distributing products to retail. Where SR/SO concept is not practiced (e.g. Typically where SR or SO concept is available, DSRs are the deliverymen who are employed to deliver company's products to outlets according to previously collected orders by SR/SO. In Bangladesh usually local companies keep SR/SO on their own payroll but MNCs do not keep this layer with their own payroll.ĭSR: Distributor's Sales Representatives are employed by distributors but managed by TM/TSM DSRs are the salesmen who are responsible to make sales of company's products (SKUs) to retailers. Based on this collected order (summary sheet) product delivery happens on the next day by DSR or Deliveryman of distributor. After collecting sales orders from the outlets of his assigned route, a SR/SO makes a summay of this total order and submits it to the distributor for delivery. Sales Representatives (SR) or Sales Officers (SO): SR/SO can be employed either by company or by distributors depending on company policy who are responsible for collecting sales order from their assigned routes. For example, 100 gram Dettol original soap is an SKU of Dettol soap of Reckitt Benckiser (Reckitt Benckiser has other SKUs of dettol soap like 50 gram Dettol soap, 200 gram Dettol soap, etc.). Stock Keeping Unit (SKU): This refers to a specific product from a range of product of a company. ![]() If that 4 outlets contributes 75% of your total sales, in that case weighted distribution would be 75%. Numeric distribution gives you an idea of the reach of distribution whilst weighted gives you an idea of the quality of distribution. Weighted Distribution: The percentage of the total sales volume that comes from the served outlet.įor example, you have 10 outlets in a beat, now out of these 10 outlets if your product is present in 4 outlets then numeric distribution is 40%. at how many outlets a company's product are available is measured by numeric distribution. Numeric Distribution: The number (or percentage) of outlets where company's product is present (outlets that have at least one SKU of a product) e.g. ![]() Thus, he will visit the same outlet of his beat thrice per week. If the salesman visits his each beat on every alternative day, all the retailers/stores/outlets in his sales territory will be covered in two days. For example, beat on Saturday is Location X, and beat on Sunday is Location Y. While offtakes are not tracked by the company, trends of offtakes are tracked by some market research agency like Nielsen.īeat: This is the route that a salesman (DSR/SO/SR) follows on a particular day. Offtakes (Tertiary Sales): These are sales from the retailer to the customer. Usually, TM/TSM's targets are always based on secondary sales. Secondary Sales: These are sales from the distributor to the retailer. Normally Area Manager's and Regional Manager's targets are set on Primary Sales. ![]() the amount of product that a distributor purchases from the company. Primary Sales: These are sales from the company to the distributor e.g. Some basic FMCG sales terminologies for the freshers who are planning to start their careers in sales:įMCG: Fast Moving Consumer Goods, goods that moves faster from a retail outlet.
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