Nowadays, Modern Market is growing fast to replace the Traditional Market.
Beside the Modern Market Environment is much - much better than Traditional Market,
the price that usually lower at Traditional Market : now you can find in the same level at the Modern Market.
Also the Modern Market now move closer to Residential Area, give people easy access to shop.
With a long operational hour ( sometimes more than 12 hours a day, even 24 hours like Seven Eleven and Circle K ), Modern Market has an advantage of security if you shop late or if you are not male.
This trend also effect the FMCG Company in Indonesia. For foreign Industry that had experience outside Indonesia's market, dealing with Modern Market probably not at complicated as local company felt.
Also the fact that global player in Modern Market now entering Indonesia aggressively made handling modern market more difficult. They have good system and capable human resources to penetrate the market. With so many people and good economic growth, Indonesia now is a major target market at south east Asia.
In this series of posting, I would like to share knowledge regarding above matters. I also want to invite everybody with the same interest to share their knowledge too. The knowledge I'll share came from both experience and training. Also some materials from the Internet that I read.
1. What type of each Retailer to your company.
From now, we will refer Modern Market Player as a Retailer. And the company that supply it as a Supplier.
First, let's see the supplier. In this modern age most of supplier applied the brand management strategy. Except if you are at commodity / non brand supplier or a home industry, brand management strategy is a key to become a key player at your industry.
Let's assume that the supplier do applied the brand management strategy.
Now we can go the next step and look to retailer around us.
So many of them .... From the small one like Indomaret, Alfamart, Circle K, Seven Eleven.
The medium one like Hero, Ramayana, Naga, Superindo, Yogya.
To the big one like Giant, Carrefour, Hypermart, Indogrosir etc.
We should treat each one of them differently.
We can divided them to four category like below :
1. JUST ACCOUNT
Just Account is a retailer that your company decided had a low level of importance to your company product port folio. And your survey find out that those retailer also had a low level of interest to your company or your product. Some aspect may consider here. Including type of store, type of shopper, your brand management strategy, retailer plan for the next 3 - 10 years and others.
2. FOCUS ACCOUNT
Focus Account is an account your company decided as an important retailer that can support your brand management strategy. But for them, your company is a not an important supplier. Maybe because no memorandum of understanding had been made between the two of you. Or you see that in the long term, this retailer can be very useful your product port folio.
3. MAINTAIN ACCOUNT
This is another type of account for you. The retailer consider your company as an important supplier. Because all your product is a fast moving SKU at their store. But your brand management strategy found that this type of retailer will not support your product port folio at the medium or long term.
4. KEY ACCOUNT
In this last type, both of you find that each of you are important to other. Important today and important for a long term.
Analyze each of your retailer as a group or individual and decide what kind of account they are for your company. Involving brand team, trade marketing team and key account team is crucial in this step. Also don't decide anything unless you have visited their stores and had a preview meeting with their merchandising/ buyer team.
See you again at the next posting...
Regards...
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