Case Study

Case Study: How to Convert a Push Brand Into a Pull Brand

How to convert your push brand into a pull brand

Overview

The company is a young and upcoming confectionery and chocolate brand. The FMCG brand has product offerings in chocolate, confectionery, beverages, snacks and home care.

Challenges

Chocolates and confectionery are mass products with a big retail universe. Servicing such a universe is prohibitively expensive, and FMCG companies require a lot of manpower to place their products in the market. 

Despite the investments, the typical order size of a salesman per outlet is small. Often salespeople service the same route once in a fortnight. In rural areas, it is compounded by the inability of the salesperson to time his visits as per frequency. This impacts the availability of the brand which leads to loss of sales and poor customer satisfaction. For a retailer, certainty around delivery of orders is more important than brand name or  product quality while placing orders. That is also the reason behind creating a PJP (Permanent Journey Plan). 

Additionally, the confectionery brand is young and has limited resources. It needed solutions that could best optimise its resources while offering topnotch servicing to their customers. A highly efficient supply chain that is intelligent to the needs of their customers and ensures prompt demand fulfilment.

Bizom Solution

Bizom’s solution can be best described in the analogy of the on-demand content subscription provided by Netflix. By opening access to premium content which can be consumed at any time, anywhere, the brand created a cult of binge-watching consumers. It did not replace existing channels of content but created a whole new market for itself. 

Young brands struggle to make in-roads among retailers for many reasons, including product awareness, brand name, margins, etc. But the most important reason is lack of assurance of the next visit of the salesman. 

Bizom recognised this gap in the market and built a multi-brand application that allowed retailers to place orders as per their requirements and at their convenience. It solved two problems. 1) Brands gained instant access to vast, untapped markets. 2) Retailers could place orders and communicate with the brand. It created total transparency and increased visibility both for the brand and its retailer network. The platform also acts as a “Brand to Retail Outreach” platform to promote the brand’s entire range of products to the right audience.

Outcomes

Bizom Retailer App had a dramatic impact on the sales of the chocolate and confectionery brand. The app freed up the brand’s retailers to order for replenishments when the stock went low rather than wait for visits from the salespeople or distributor. Also, with increased visibility into the range of the brand’s products, retailers began to order various SKUs in larger quantities. The increase in orders had a direct impact on the brand’s range selling, which increased by 50%. The throughput increased by 135% for Class C and D outlets. 

With efficient management of its resources and salespeople, the brand can plough back the savings into incentives to the distributor for order fulfilment. The following example illustrates the benefits best: the average salary of a salesperson is 18,000. He typically gives an order of ~1.5 lakh per month. His expense to sales ratio is 12% which is a saving for brands with the adoption of the Retailer App.

In the case of the chocolate and confectionery brand, it utilised the savings to offer schemes to retailers for on-app orders. It backed it up with incentives to distributors for fulfilling orders within a stipulated time. 

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