When a new product in introduced in the market (Ref Fast Moving Consumer Goods) it is imperative to understand that acceptance of the product in the market is a pre-requisite to quantum of sales in the same. In our bid to expedite sales, we only end up
- Increasing the Primary and Secondary Sales
- Chocking the sales pipeline
- No movement in Tertiary Sales
The vital question here is what strategy are we following to ensure that the product acceptance has started happening in the market. Most SME’s are not even bothered about this. They feel that the product that they are going to manufacture is so great that the same has to have acceptance in the market once it is placed properly with good distribution.
What can we do to maxmise product acceptance in the market?
- Introduce Product awareness and product trial
- Sampling (Target Group points of congregations) – Free / Heavily subsidized
- Exhibitions (Relevant to your product) – BTL (Below the Line) activities
- Shop in Shop promotions (Modern Retail Format)
- Place Very Small SKU’s (Sachets in case of food products) in the market.
- POP(Point of Purchase) merchandising should be visible and attractive
- Monitor effective sampling rather than cartons sold – Track feedback to learn, relearn and implement
- Facilitate product retrial as a first step towards habit formation
- First Time Users(FTU) database should be collated and tracked
- FTU customers should have a motivation to retry product through an effective redemption scheme
- FTU customers should be encouraged to roll in more FTU’s
- The volume of “Retrial of Product” must be tracked through an effective MIS(Management Information System)
- Quality control(QC) during Retrial phase has to be of topmost order
- Track “Retrial” till “Habit” is formed
- Visibility of merchandise in the counters
- Availability of stocks in all secondary counters
- Least count of distribution to be minimised (Daily Journey Cycles and Beat Maps)
- Push product schemes and work on pricing policy and trade policy
- Start ATL (Above the Line) promotions
Manufacturers of FMCG products need to have the patience and sustenance to go “Slow and Steady” in the market. If you dont do this , you are not even in the race forget about winning the same!