Distribution & More’s Market Penetration Strategy for Savory Goods
- CLIENT
Savory Goods
Objective: To successfully penetrate the FMCG market for Savory Goods, a food company launching six high-quality food brands in Lebanon, targeting lower trade high-end Points of Sale (POS).
Challenges
1. High Product Costs:
Savory Goods offers high-quality products with a premium price point, making it challenging to penetrate the lower trade market segments. These high-end products needed to appeal to consumers who are often price-sensitive.
2. Targeting Lower Trade High-End POS:
The strategy focused on lower trade POS rather than key accounts, which were already established. This required identifying and securing partnerships with high-end POS that would be willing to stock and promote premium-priced products, and have a limited shelf-life.
Solutions
1. Strategic Market Analysis and Planning:
– Conducted a thorough market analysis to identify potential high-end lower trade POS that would be ideal for Savory Goods’ product placement.
– Analyzed competitors’ presence and strategies to ensure Savory Goods could match or surpass market availability.
2. Tailored Sales and Distribution Strategy:
– Developed a tailored sales strategy focusing on the unique selling propositions of Savory Goods’ products to justify the premium pricing.
– Created a robust distribution network to ensure efficient and timely delivery to identified high-end POS.
3. Exclusive Distribution Contract:
– Secured an exclusive distribution contract to ensure dedicated resources and focused efforts on achieving the target sales KPI.
– Leveraged the exclusivity to negotiate better terms and visibility for Savory Goods products within the selected POS.
4. POS Availability Initiative:
– Initiated a targeted campaign to create 70% POS availability in the first quarter, ensuring wide distribution and visibility of the products.
– Implemented a POS marketing strategy including in-store promotions, product demonstrations, and exclusive deals to encourage POS owners to stock Savory Goods products.
5. Overcoming Price Sensitivity:
– Offered introductory promotions and discounts to encourage initial trials by consumers and POS.
– Educated POS staff and consumers on the high quality and unique benefits of Savory Goods’ products, creating a perceived value that justified the higher price point.
6. Monitoring and Adjusting Strategies:
– Regularly monitored sales data and POS feedback to assess the effectiveness of the strategies implemented.
– Made necessary adjustments in distribution routes, promotional offers, and sales tactics based on real-time data to stay aligned with market demands and ensure KPI targets were met.
Results
- Achieved Target Sales:
– Successfully met the target sales KPI within the exclusive distribution contract period, establishing Savory Goods as a competitive player in the FMCG market. - POS Availability Goal:
– Exceeded the 70% POS availability target in the first quarter, with a strong presence in high-end lower trade POS. - Increased Brand Visibility:
– Savory Goods gained significant brand recognition and consumer trust, which helped in building a loyal customer base even in price-sensitive market segments. - Enhanced POS Relationships:
– Leveraged our strong relationships with lower trade POS (high-end and lower end), leading to long-term partnerships and ongoing support for new product launches.
By leveraging strategic planning, market analysis, and tailored distribution approaches, Distribution & More successfully navigated the challenges of penetrating the FMCG market for Savory Goods, ensuring both sales targets and POS availability goals were met.
