The basis for any effective distribution model is knowing which customers to call upon and what volume coverage they are giving you as a percent of the total market. However ask any consumer based company and particularly any fast moving consumer goods (FMCG) company in Kenya about this information and you will be amazed how few know the answer and I am not just referring to Kenyan companies.
In fact if we take it back a level and just ask them do they know what is their numeric distribution at retail level, once again the number that know will be very few indeed.
So why do companies not see the need to invest in a retail census that will give them this information? I can only assume because they don’t know the true value of not having it, they’ve never had it so they don’t miss it.
However managing their business like this is like, in the words of one of my colleagues, akin to driving your car without any idea where you are trying to get to.
A retail census is an absolute minimum requirement in my book for any FMCG organisation. We are now in such a competitive environment that direct distribution to at least a proportion of your retail universe is absolutely critical to growing brand share.
Once a census is in place you can then plan effectively where you want to get to in terms of weighted distribution coverage, which outlets are going to give you it and what resources you require to do it.
So often these basics are bypassed in preference for investment in communications which, marketers are under the impression, will deliver greater results. Guess what, without the retail distribution they won’t! All you will do is frustrate your consumer base who, after seeing your communication, will go seeking your brand and won’t be able to find it. The two must go hand in glove – awareness & distribution.
John Dowd – Director
