Marketing channel management of fast moving consumer goods:In the field of fast moving consumer goods, if you have high efficient marketing channel and you can distribute high quality products to the end consumers fast and effectively, then you can dominate the market. This key factor has been acknowledged by manufacturers and marketing practice. High efficient marketing channel is depended upon the effective channel management. Therefore, marketing channel management has become a key to success of fast moving consumer goods.
The definition of fast moving consumer goods and purchasing features
Fast moving consumer goods refer to the mass consumer goods with short consuming cycle and high consuming frequency. Foods, daily use products and electronics are classified as fast moving consumer goods.
Purchasing features are shown as two aspects.
- The consumer would purchase the products regularly. The purchase process is easy and fast. The price of fast moving consumer goods provides relatively low price and the function difference is almost the same. People not pay great effort in products information research which causes the easy purchase.
- Low brand loyalty: During the purchase process, the consumer would always tend to other brands especially in favor of convenience. The brands of fast consumer goods would always easy to enter into the market, so there are many brands in the same products category and all of those products deliver the similar feature. The consumers would always have a lot of options. For example, you want to buy a coca-cola in a store, if it is not available, you would possibly change another brand. The changeover possibility between brands is high.
Marketing channel management of fast moving consumer goods
The purchasing features show that the consumer would not take too much time to find a special brand and they would change it if not available. As a result, there is high convenience demand for the consumers. Additionally, impulse purchase is very common. The brands owner should be good at communication with the consumers and build close relationship with the consumers so that the brands are accepted by the consumers. In conclusion, the marketing of fast moving consumer goods should mainly focus on the solutions of two questions.
Above all, you should put your products in front of consumers in fastest step. The consumers must be able to see and buy your products. Only high efficient marketing channels can achieve this purpose. High effective marketing channels needs scientific marketing channel management so that the channel members can put more efforts on the other aspects including improving service quality, products marketing, products distribution, improving distribution speed. s a result, he products can reach consumer’s scope with quickest motion with small expense. the contents includes choosing the channel member, evaluation and encouragement.
Secondly, to reinforce the acknowledgement of the products in consumer’s mind so that they are willing to buy from you.
Choose the channel member
The choice of channel member is the beginning of channel management and also the important factors on marketing result. Good resellers and retailers are the key to the success of enterprise. So you must be careful when choosing channel members.
In common sense, there are two rules when choosing channel members:
Target market rule: The basic goal of building of marketing channel for fast moving consumer goods is to put your products in the target market. The end users can buy your products in the nearest place. Therefore when choosing the channel members, we should never only consider the products feature, also we should choose based on the consumer (potential consumer).We should analysis the target market of the products (potential customer)and their buying habit and the place they buy so that make their purchasing easy and convenient.
In common case, canned foods are distributed through food store and grocery store. However, some companies choose to sell it through the hardware store near harbor. Through the investigation, local hardware stores sell hard wards only, but their customers are fishermen, and those stores are the supply source for the boat and the canned foods are the necessary supply for the fishermen. If the canned foods are sold in those hardware stores, it is easy and convenient for the fishermen to purchase all their supplies in one go. Their canned foods gain a complete victory in the market since their analyses the consumers buying habit and buying place.
High efficient rule: The marketing channel efficient is largely depended upon the management level of channel members, efforts for marketing and reseller’s behavior.
The operation efficiency of marketing channel is the ratio between commodity quantity through marketing channel and the expense of channel circulation. As to fast moving consumer goods field, the profits is low and the competition is fierce, if the channel operation efficiency is low, the increased cost would always lead to the reduction of price advantage. So when choosing the marketing channels, you have to improve the operation efficiency of the channels.
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