𝐓𝐡𝐞 𝐒𝐡𝐨𝐜𝐤𝐢𝐧𝐠 𝐓𝐫𝐮𝐭𝐡 𝐀𝐛𝐨𝐮𝐭 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐎𝐟𝐟𝐭𝐚𝐤𝐞 I’ve noticed a lot of chatter lately about product offtake and why certain brands aren’t performing as expected on the shelves. It usually comes from leadership who think it’s simply about “pushing harder” on distribution. Here’s what they’re missing: In 2024, if a product isn’t moving, it often reflects issues with the product’s appeal, price, or promotion, not just distribution. Products don’t stay on the shelves if they’re priced right, have strong consumer demand, and are marketed well. Consumers always look for the best value. Brands should feel obligated to deliver the same. If you’re not investing in consumer insight and market relevance, they’ll choose a competitor who does.#FMCG #ProductMarketing #Retail #SalesStrategy Amar - Sales and Growth Mentor ProReach Sales Academy
Prashant Pandey
1mo
I don’t think this is 100 percent true - in many cases if you increase your distribution strength sheer presence can make you win. India is yet to get matured like US , European Markets and its vast population and retail presence ( penetration ) helps. This might be true for few metros in India what you have stated my POv there is still a good vast head room for distribution led growth
Ritu Mittal
1mo
It's rarely either or. Usually when a product is not delivering it's a combination of issues. Pointing in either direction without thorough analysis won't lead to any solutions. With the best of product propositions, if availability isnt driven visibly and meaningfully, it will be a disaster. With the best of distribution capability, if product is not relevant to consumers or differentiated, it won't sell. Been blessed to work with leadership who understood this.
P.V.S. MURTHY
1mo
Agree. Distribution expansion can take your products to the shelf, beyond which the product should talk. Today's era is all about being a differentiator. How is your product adding value for a consumer is what matters. A consumer is spoilt for choices and rightfully so. How you differentiate makes the difference for distribution to furrher grow. Having said the reverse is also relevant. Only product and brand makeover isnt enough. You need to ensure the product reaches the shelf so that the consumer can experience it. And this is where distribution comes into play. Both push and pull are critical for distribution and brands success.
Tilak Kangavkar
1mo
What leads to distribution - first is the face value of the brand/organisation, second is the face value of the distributor, and third is the face value of the Sales Person. If offtake is not there, the retailer would return the stocks to the distributor, when he comes to ask for the payment, he may extend some more credit, say instead of 7 days to 15 days, but again without offtake the retailer will not invest. On one side there is pressure to increase distribution, on the other side, retailers start returning the product due to poor or no offtake. Yes I agree that, may be in low value products or in remote rural markets, retailers may be able to push, but when it comes to bigger towns & higher value products, the retailer counts on the opportunity cost, and the price of the property per square feet. Also, without offtake, if the retailer returns the stocks once, it becomes highly impossible to re-enter the store again.
Biplab Pakrashi
1mo
You have a point Sunil S Devdhar, distribution is just a bridge or a carrier of the product if the product doesn’t create value for the consumer it gets expired on the shelves.. I have seen good fmcg company with with vast distribution strength could place the product on the shelves but found it difficult to move off the shelves. It is indeed necessary to invest in understanding the consumer well and it’s need before it’s put on the shelves..
Sarfraz Alam
1mo
Sunil S Devdhar , I see your concern but the fact is distributors / distribution is the most effective and efficient method to reach the consumers as you must have heard “ speed to market” being a national brand that’s the 1st thing … shelf through put is based on brand equity and product scarcitt not only product marketing .. hence every marketing team knows their brand strength and market share that they command…. On that basis the brand that’s the leap to jump into spending crorers on product launch and it is important to 1st use the most effective method that is reach the consumer and trade via distribution and on the response the marketing agency / team determines how to communicate ..it looks simple but is a very expensive affair .. Today Coca-Cola blindly sponsors FIFA it knows the brand strength but it won’t soend $ 1 on Coca Cola raspberry flavor … “Its all about long term sustainability not only activity “…
Subash Franklin
1mo
Good point. Value links back to cost structure. The cost structure links back to the supply chain, ingredients and OH. Now all this links back what price the customer is ready to pay, the options in the market, information that customers have...it can get pretty complex..so many variables. We are seeing a lot of big players struggling. The informed customers are really picking value now.
There needs to be a balanced Push and Pull. Pull created by Marketing efforts for brand and Push created by Sales and Distribution for width and depth of brand availability in market. If this balance goes out of sync, the efforts go in vain. I have witnessed these both. Great product demand but no availablity and A well sorted and multi channel placed brand but with no brand demand and brand awareness.Jo dikhta hain woh Bikta hain. Offline and Online both!
Mohammad Anas
1mo
Spot on, Devdhar! In today’s consumer-driven market, it’s not just about filling the shelves; it’s about understanding why the product should stay there. Price, appeal, and promotion form the trifecta for success, but I’d add that consistent innovation and adapting to shifting consumer preferences are equally critical. Investing in market insights is no longer optional ,it’s the cornerstone of staying relevant. Great insights!
30 plus years experience in Hard Core Fmcg ( Combination of GT &. MT)
1moIt all boils down to marketing. & Solution given to the Consumers which is not the case. Companies do not understand marketing & Sales function. They think everything is Sales function. Marketing function hoodwink the Senior management and in turn Senior management punish the Sales function. I would like to See marketing guys get Sacked for their failures which unfortunately does not happens. New SKU Launches Sucess rate 6% & failures 94%. The above is a testimony of IIM Brain.