While scaling offline distribution in GT/MT, founders should never forget the interdependence of demand and supply A brand irrespective of how good it is, won’t sell if consumers don’t find it at their preferred point of purchase And irrespective of how strong its distribution is and how widely available it is, consumers won’t buy it if the product- price-brand proposition isn’t strong enough It takes both demand and supply to fire at the same time to achieve sales There are 2 problems that can happen if brands aren’t able to maintain the balance and why sales don’t scale up a) Poor Distribution : While the product proposition is strong and the brand creates demand, but the product wasn’t available and visible in places where consumers were buying the category. This renders marketing spends useless. Distribution and visibility problems will have to be solved by sales and trade marketing teams b) Poor Demand/Pull: This is the more common and bigger problem for new brands. The products are available and visible in stores, but the product price brand proposition isn’t great (could be lack of PPCMF or brand awareness problem ) and offtakes are low. This triggers a vicious cycle. Retailers hate slow moving items with poor stock turnover. So brands that don’t sell much lose shelf space and even gets delisted from the shop. In this sales, field sales team can’t do much to influence or increase numbers. Demand problems have to be solved by product and brand marketing teams So, any brand looking to scale offline in General Trade or Modern Trade have to balance supply and demand and ensure both grow in tandem. Second chances also don’t come easy here And that is what makes it very difficult. The consumer tech equivalent of this is the difficulty in scaling 2 sided marketplaces
Great Insight.🤔 Adding to create demand, weave content spells, sweet-talk SEO, and cozy up to influencers. Seduce with personalized emails, bedazzle with online ads, and parade promotions. Host events, flaunt testimonials, innovate, partner up, research, and strut that brand swagger!
Well clarified, Arindam! One new age brand that comes to my mind that pretty much aced this was Mama Earth. Shilpa Shetty ads all over that created demand and their products shining through the MT entryway display that ensured visibility / supply - synchronously executed.
Absolutely true!! Arindam Paul can you share some insights on what all you are doing to create demand/pull and what is working well?
Great insight! Scaling offline distribution in GT sounds challenging but definitely rewarding.
Awesome inputs sir.. I am about to start my entrepreneurship journey. And your posts are like my mentor. Thanks a lot Arindam Paul . I really wish to connect with you
Very helpful!
Interesting! Excellent one Arindam Paul
Absolutely agree with you on this! Very similar to how Physical availability & Mental availability both are needed for a brand to be successful Arindam Paul 🙌🏻
Consumer Connect Specialist | Enhances engagement between brand and buyer on-ground and on-line | Ideates well, implements better |
3moShola anna such hai , just adding my doh anna to your post Arindam Paul We need to understand that it is critical that brands are able to positively impact the last 3 minutes of consumer indecision in their favour. All other things being equal, what happens is it is a one zero game at the point of sale. She either buys your brand or she does not. There is no third choice and that's where brands need to be able to create an impactful connection between the brand and the buyer. This is where truth happens and why it's critical to be able to do something innovative that makes the channel partner give the brand the appropriate space and the display needs to be able to impact the buyer in a positive manner. At the end of it all, the brand has to be able to connect, engage and enhance the connection with the 2 most important stakeholders , the channel partner and the ultimate buyer.