Monday, July 18, 2011

Placement and other distribution tactics

Product efficacy is the core of marketing operations.
Illustration: Boy Bawang sells like hot cake using placement as a key marketing drive without the need for tri media.

Innovation supported by Speed in execution is a very effective drive against market leaders
Illustration: Oishi Sunday’s mango and melon placement is executed swiftly against Tang.

The product delivers the consumers perceived promise.
Illustration: Biolink papaya soap was pulled out from the trade last 2006 because it did not deliver its promise

Porter’s five forces captures the attractiveness of a particular market.
Illustration: Niche marketing of Silka papaya of  outmaneuvering Skinwhite and Nivea.

Ultimately, placement is the decisive blow in marketing operation.
Illustration: The placement skill demonstrated by Pop Cola against Brand Leader Coke in NCR was so menacing that Pop Cola occupied coke coolers all over metro manila.

Making the product available at the right place and at the right time for the consumer.
Tactics as determination of “purchase decision making process” provides impact on sales effectiveness.
Illustration: Selecta Distributor saturation drive, impulse triangle and Pay Day campaign was a decisive blow to Nestle leadership in the ice cream business ion the Philippines.

Installation of Key Sales Indicators controls marketing operations on a day to day discipline.
Illustration: Real time performance data on coverage, sales effectiveness, placement, visibility and availability reinforced Philip Morris leadership in the premium segment of Philippine tobacco business despite restrictions in advertising and anti tobacco campaigns.

PLOC is a highly recommended framework of approaching sales management.
Illustration: The do or die leadership of Selecta Walls in the year 2000 to 2002 was enough to take away the market shares from Nestle and Presto in less than three years.

Tactical moves as stock pressure and customer incentives.
Illustration: With the supermarket’s limited budget, once purchase budget is exhausted by a key supplier, it will be hard for a competitor to squeezed in his PO.  Thus, indirect competition exists in budget allocation and warehouse space.

Wars are not won by numbers nor strength, it is won by strategy.
Illustration: Ice Tea market leaders Lipton and Nestea could never catch up with the Gokongwei bold and skillful maneuver of C2. A strategy born out of entrepreneurial and marketing insightful analysis.

Sales and Distribution discipline can be a decisive tactic in FMCG marketing operation
Illustration: Selecta ice Cream motorcycle booking operation exceeded Nestle’s performance in terms of coverage and sales effectiveness. With the metro’s congested traffic,  Nestle’s glorified vehicle driving sales executive could never catch up with Selecta’s motorcycle booking operation coverage performance.

Leadership plays a very important role in sales and distribution operation
Illustration: Philippines, being a tropical country, rain and storms will come. The need for leadership and discipline is great. To maintain discipline in distribution – to be available the first time and all the time, there must be discipline in people.  Attitude and culture must be shaped and controlled to deliver the required results.


The genius of brand and benevolence of moral cause
Illustration: Despite attacks against its risks, Marlboro remains to be a multi million brand and maintains its strong following. No tv ads. No radio ads. No billboard. No newspaper ads. But its sales has never faltered. Why? First is Benevolence – individual choice must be respected.  A moral position which is at the core of human civilization. Second is Brand – Ferrari, Cowboy, Red, VAO and other promotional gimmicks.

“To respond to situation in an infinite variety of ways” The art of war, sun Tzu
Illustration: if I may quote my former VP a long time ago – “you must always have a thousand and one solution to a thousand problems”.  This concept dwells on attitude. One must have the experience and the moral capacity to sustain the drive despite what obstacles lie ahead. “Aut viam inveniam aut faciam” The great Hannibal Barca of Carthage once said. It means “ Either I shall find a way or I shall make one”. The leadership of Selecta many years ago under Kevin Hall and AJMB demonstrated this type of leadership. However controversial, the committed sales numbers were delivered.

Know thy enemy and know thyself and in a hundred battles you will never be in peril” The art of War, Sun Tzu
Illustration: Philip Morris upon ending its contract with La Suerte took time and effort to survey the market. Central Luzon, under Paolo Tan, developed the database of the region thru hard work never cutting corners. These database became the foundation of a winning team which got the 2004 Best in Performance per ASMS. Fortune Tobacco and key retailers were identified and detailed information was derived

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