Challenges for marketers with modern trade by bhawani nandan prasad iimc

1. Challenges for Marketers with Modern Trade:-
 Rapid Growth Channel – High customer service by providing specific managers to handle
such organized trade customers, High fill rates to be given to customer, reserve stocks
for customer, higher credit terms to be provided to customer,
 Customer more Demanding- High Service expectation, Hard Negotiations on promotions
and margins, High Trading terms and Higher cost to serve
 More Competition Brands- Market Share is volatile as any manufacturer can enter the
customer by offering differential margins, Consumer has more choice of brands and can
feel the product at store
 Customer direct interface- Product to stand by itself by communicating directly to
consumer, Experiential Marketing is a big opportunity but comes with an additional
cost, Higher Point Of Sales material cost as compared to general trade.
 Accelerated Go To Market – Advantage on Speed of launches as quick execution will be
visible so Customer will be more demanding on listing new products, Quicker
penetration will demand more activation hence cost goes up.
 Conflict Management – Modern Trade which is currently only 10 to 12% of total
consumption but since growing fast will force marketers to invest higher than that in
general trade so it raises conflict vs money spent on general trade
 Retaining existing Consumers – High cost to retain loyalty
Challenges for Marketers with growing Information Needs
 More aware consume coping up – hence information will be compared, increases
complexity and pushes marketers to be on toes to update information thru various
media tools.
 Competition – Has more information will lose confidentiality
 Cost to provide information- the costs of adding information thru communication mode
will go up as more frequent updating of information.
 Speed to market has to go up for marketers with Consumer being more updated on
latest trend
 Social media will become most important tool– Needs more, can make a product big
success or a big failure
 Product life cycle will shorten– Catching up with newer trends