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03.06.2015
Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
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Over the past few years consumer packaged goods companies have achieved significant growth in developing countries, concentrating their sales in top-tier cities and through modern retail chains such as Wal-Mart and Carrefour. We call this vast, hard-to-serve retail channel “fragmented trade,” and in China it consists of more than ten million outlets across more than 15 different formats. The sheer size and complexity of the fragmented trade channel in China, with so many outlets of different types in different regions, is daunting to many consumer goods companies. To understand fragmented trade, we have conducted in-depth market research and testing in more than 25 countries around the world.
Using this global framework as a foundation, we emphasize different aspects of it according to the characteristics of each country’s retail environment.


Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The “Global Food and Grocery Retailing, 2013-2018” report, published by Conlumino, provides an analysis of current and forecast market data of retail sales in the food and grocery categories across different channels globally. Clipping is a handy way to collect and organize the most important slides from a presentation. According to Digital Trends, sharing data grew nine times larger from 2006-2011 and projections indicate that by 2015 people will be creating and sharing 8 zettabytes of information. She lives in Detroit, Michigan and can be contacted for consulting or comments via email at [email protected]. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. Read this guide and learn to build an integrated Business Execution System from Six Sigma Master Black Belt Frank Adler, co-founder of Operational Excellence Consulting. China, the largest of the emerging markets, has been in the forefront of that growth—so much so that the market for consumer goods in its top-tier cities has gradually become saturated, with 115 hypermarkets in Shanghai alone.
These range from the traditional types of retailers—independently owned mom-and-pop stores, small corner groceries, and local restaurants and bars—to those smaller chains (ten or fewer outlets, with more modern layouts and more sophisticated business practices) that often evolve from traditional shops. Those that can figure out how to manage in this environment, engaging effectively and profitably with distributors and with the people who own and operate these small retail outlets, will gain a significant competitive edge as they secure precious shelf space and attract consumers to their products. These include not only China and other developing countries, such as Brazil, Mexico, and India, but also developed markets such as the US. In this paper, we will focus on the three elements of the framework that are the most challenging in China: distributor management, sales-force optimization, and the retailer value proposition. Also provides, food and grocery data by categories food, drinks, household products and tobacco. These campaigns start with the premise that their role is to anticipate and satisfy customer needs, wants and desires, while the customers subordinate role, is simply to learn, spend and be grateful.
At these small chains, decisions about pricing and logistics are handled by store managers.
From this we have developed a new approach to win in fragmented trade that calls for the development of nine elements, from targeting the right outlets to developing a culture that will sustain the changes.
Interpersonal communication, on the other hand, is a two-way process in which the brand and the customer learn to anticipate and satisfy each other’s needs, wants and desires together, where the flow of information rewards both parties for facilitation and engagement. They are quickly realizing that beyond China’s largest cities lies a vast consumer market for consumer goods, one that is less attractive for large retailers, which often struggle to serve it, but a great untapped opportunity for manufacturers. These outlets are a force to be reckoned with, as more than two-thirds of total consumer goods sales in China are made through them.


It is based on the fundamental lessons about fragmented trade we have gleaned through our research and experience, and is applicable to all regions of the world.
Its value, though, can only be captured by finding the right way to serve small or midsize independent shopkeepers in the smaller cities. Consumer goods companies using this approach have achieved 20 percent to 25 percent profit growth, 5 percent to 15 percent revenue improvement, and 10 percent to 25 percent cost reduction. You’re not listing your actual strengths, you’re listing what you think your strengths are. Oreo, gives us a memorable jingle, utilizing Electro-pop sensation Owl City. This automatically engages the younger demographic. Our work also shows that these companies have been able to build a distinctive and sustainable platform for establishing new brands. You’re not listing your actual weaknesses, you’re listing what you think your weaknesses are, and so on…That’s why I want to present an alternative approach at writing a business plan. If you’re listing a new product of yours, make sure to mention its main features and characteristics.Depending on the nature of your business, you may just have a single item to offer, which is fine. Surely not anything a small business owner can afford.Besides, not every business has an audience that is so specific. If it turns out that your main audience is actually someone entirely different then nothing bad will happen, but you need to be ready and accept such a situation.Element #3: Why would they buy?What makes your product better or just as good as your competitors’? Or what’s some other reason someone would want to work with you?Just be honest and not overly promotional. Or just standard marketing methods (which are completely fine, by the way)?Actually, the exact methods are not important here.
No matter what you’re going to end up doing, you need to have a plan for the initial couple of weeks. Treat it as your getting started approach.Pick a handful of methods that have the most potential in your opinion and start executing them.
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