In the dynamic landscape of industries such as FMCG, CPG, and Pharmaceuticals, where margins are slim and competition is fierce, the effectiveness of sales efforts is crucial for sustained profitability. Manufacturers keen on thriving in this competitive arena must recognize that quality sales, especially in the realm of Secondary Sales, are the lifeblood that keeps the business engine running.
Understanding Secondary Sales
Secondary Sales occur when a distributor invoices a product to a retailer, following the primary sale from the manufacturer to the distributor. This transaction plays a pivotal role in shaping the success of businesses, influencing profit margins, and determining market share. To navigate the complexities of Secondary Sales effectively, it’s essential to employ the right strategies and leverage technical tools.
Key Players in Secondary Sales Management
Managing Secondary Sales involves a network of key players, each contributing to the smooth functioning of the supply chain:
Sales Reps (SR/TSI): Frontline employees taking orders from retailers.
Distributor Sales Reps (DSR): Hired by distributors, responsible for order fulfillment.
Area Sales Manager (ASM): Oversees sales targets and activities in a specific area.
Zonal Sales Manager: Oversees sales targets and activities in different geographical zones.
Regional Sales Manager (RSM): Accountable for sales in a defined geographical region.
National Sales Head (NSH): Manages sales on a national scale.
Distributors: Independent business owners responsible for transactions in their territory.
Factors Affecting Sales Quality
Various factors influence the quality of sales, including brand equity, stock availability, credit availability, promotion effectiveness, retailer awareness, and product visibility on shelves.
Importance of Secondary Sales Management
Secondary Sales management is critical for several reasons:
Coverage and Placement: Placing products in new outlets regularly boosts sales growth.
Product Availability and Replenishment: Ensuring consistent product availability and timely replenishment is crucial to meeting demand.
Product Positioning and Brand Recall: Maximizing product awareness among customers by strategic shelf placement is essential.
Retailer Relationship and Trust: Building and maintaining trust with retailers is vital for sales success.
Product Launches: Launching new products successfully requires careful consideration of factors such as location, retailer and distributor knowledge, and customer feedback.
Optimizing Inventory: Efficient inventory management is necessary to handle product throughput and address market dynamics.
Enhancing Sales Performance: Targeting underserved accounts and consistently improving the complete sales cycle contributes to long-term success.
Assessing Sales Team and Distributors: Regular performance assessments ensure alignment with business objectives.
SalesAssist DMS helps you to manage all of these secondary sales and distribution activities.
Best Practices for Boosting Secondary Sales
- Effective Sales Planning
- Sales call process Training & Product knowledge
- Art of Product Placement
- Understanding and servicing retail channels
- Optimal Marketing and Merchandising
- Trade Promotions
- Performance Monitoring KPI and KRA Tracking
- Work culture and people management
- Using the Right Set of Tool
Conclusion
While managing Secondary Sales may seem like navigating a maze of variables, adopting the best practices outlined can transform it into a powerhouse of revenues for any organization. By recognizing the importance of Secondary Sales and implementing the right strategies, businesses can establish an optimal sales and distribution infrastructure for sustainable growth.