Insights

How Market Research Agencies Can Help Brands Build a Distribution Network?



The Indian retail market is predominantly unorganized as organized retail just accounts for close to 10% of country’s annual retail business. All the major industries like FMCG, Pharma, Building material, Plywood, Sanitaryware, Tyres etc. are primarily unorganized and require state or region level distributors to penetrate their products, given the way the markets are structured and operated. So be it new brands which plan to enter market or existent brands which plan to diversify into newer cities, a distribution network is essentially required.

Channelplay is a market research agency which can help brands across industries to build a distributor network by way of retail research. Channelplay visits retailers and identify & analyse the distributors involved in the supply chain of target product category. The same is done in a scientific manner by way of:

  • City Clustering: Dividing the city into various areas based on pin codes/relevant markets for target product category’s trade in order to cover all important areas of the city
  • Retailer Sampling: Shortlisting all types of stores from each of the important areas/relevant markets to establish scalability of the research
  • Distributor Appointments: Scheduling appointments with distributors to gather relevant information parameters like:
  1. Distributor Profile:
    • Reach/Penetration – No. of POS
    • of years in Distribution
    • Strength regions/areas
    • Average Turnover
    • Infrastructure – No. of salesperson, no. of vehicles for logistics, no. of warehouses for storage
  2. As-is scenario:
    • Product categories & brands distributed
    • Trade terms with brands – Margins, Payment terms, Credit period, Trade discounts/ incentives etc.
  3. To-be scenario:
    • Bandwidth & preference to distribute the said brand
    • Expectations from the engagement

Once the above information pointers are gathered on the longlist of distributors, then a shortlist of distributors is derived basis most important parameters to the brand. Channelplay can further help in scheduling interviews with such shortlist or the same is explored by the Sales & Distribution team of the brand to explore opportunity of an engagement.

If you are a brand which is looking to extend its distribution network, then kindly fill the form at the bottom of this page or visit our website.

Topics: Market Research