1. Outlet Classification
&
Channel Definitions
Distributor
Wholesellers
Retailers

2. Channel Groupings
Ad Hoc Convenience
Planned Shopping
Channel
Classifications
Non Outlet Business
Specialty Food & Drinking
Partners

3. Channel Groupings
1. Planned Shopping 1.2 Large Groceries
1.2.1 Self Service
1.2.2 Counter Stores
1.1.1 Cash & Carry
1.1 Key Accounts 1.1.2 Hyper Market
1.1.3 Super Market

4. Planned Shopping
Large Store Formats
Wide Product Assortments
Shopper Mission – Weekly / Monthly Stock Up
Pre Planned Visits
Large Store with Selling Area more than 1000 sq ft
Must Have 2 or more cash counters
Normally Self Service but mixed type is also there
Wide Product Assortments

5. Key Accounts
Self Service outlets or chain of outlets with high sales
turnover, modern shopping concepts, large shopper
base
Wide Product Assortments
Shopper Mission – Weekly / Monthly Stock Up
Potential for growth & promotional activities
1. Planned Shopping
1.1.1 Self Service
1.1 Large Groceries
1.1.2 Counter Stores
1.2.1 Cash & Carry
1.2 Key Accounts 1.2.2 Hyper Market
1.2.3 Super Market

6. Key Accounts
Cash & Carry Hypermarkets
Supermarkets

7. Sales & Trade Marketing Strategies
Dedicated Human Resource (Dedicated Department in
companies, dedicated distributors or company direct
selling)
Paid Contractual Agreements on Shelf Spaces & Displays
Prioritized Service Levels (Service levels and reorder levels
discussed and locked in advance, for supermarkets
prioritized services through distributions)
Planned BTL activations
Major Focus is Weighted Penetration

8. Large Groceries
Stores with high Sales turnover & growth potential
Combination of self service & counter stores
Carry wide variety of FMCG products with selective imported items
Self Service
1. Planned Shopping
1.1.1 Self Service
Counter Stores
1.1 Large Groceries
1.1.2 Counter Stores
1.2.1 Cash & Carry
1.2 Key Accounts 1.2.2 Hyper Market
1.2.3 Super Market

9. Sales & Trade Marketing Strategies
Dedicated Human Resource (Dedicated Channel manager
from Nestle, Dedicated Distributor Sales Force)
Paid Contractual Agreements on Shelf Spaces & Displays
Prioritized Service Levels (Twice to Thrice Weekly Service
by the distributor)
Planned BTL activations
Major Focus is Weighted Penetration

11. Channel Groupings
2. Ad Hoc Convenience
2.1 Small Stores 2.1.1 Small General Store
2.2 Petromarts 2.1.2 Small Karyana Store
2.3 Tobacco Kiosks 2.1.3 Rural Small Stores
2.2 Petromarts
2.3 Tobacco Kiosks

12. Ad Hoc Conveniance
Smaller retail formats which offer convenience for
shopping with limited or selective range of products
Shopper mission is stock up, instant need or impulse
Primarily unplanned shopping
2. Ad Hoc Convenience
2.1 Small Stores 2.1.1 Small General Store
2.2 Petromarts 2.1.2 Small Karyana Store
2.3 Tobacco Kiosks 2.1.3 Rural Small Stores
2.2 Petromarts
2.3 Tobacco Kiosks

13. Small Stores
Stores which cannot be walked into.
Products mostly available in smaller formats.
Largest number in Pakistan
Serving the affordable consumer (BOP)
Small General Stores Karyana Stores Rural

14. Sales & Trade Marketing Strategies
Dedicated Human Resource (Dedicated Channel manager)
Mostly weekly service levels
BTL activities very limited which mostly involves display
incentives
Major focus is on Numeric Penetration as these shops are
the major chunk of trade universe

15. Petromarts & Tobacco Kiosks
Petromart Pan Shop

16. Sales & Trade Marketing Strategies
Extremely important for Tobacco, beverages and other
impulse / on the go categories
Mostly weekly service levels but for tobacco service levels
are high
BTL activities very limited which mostly involves display
incentives and shelf locking

17. Channel Groupings
3. Specialty Food & Drinks Bakeries
Chain
Fragmented
Chain
Pharmacies
Fragmented

18. Bakeries & Pharmacies
Bakery Chains
Pharmacy Chains

19. Sales & Trade Marketing Strategies
Bakery channel is rapidly growing in urban with huge opportunity
for FMCG companies
The service level varies from weekly to thrice weekly depending
upon the sales turnover.
For Bakeries vast opportunities for BTL activities as customer traffic
is high and includes higher SECs and all gender types
Pharmacy is very important for pharma and nutrition related
companies
Mainly driven by prescription from doctors
Very low opportunities for BTL and branding as certain restrictions
by government and WHO codes

20. 4. Non Outlet Business
Partner
Wholesale
Channel Groupings

21. Wholesale
These stores act as an intermediary in the distribution
chain
Buy product in large quantity and sells it into smaller
quantities to small retailers
They operate as RTM where 80% of their sales are made
to retailers
Limited counter sale to end shoppers

22. Wholesale Channel Playing
Dominant Role in Untapped
Trade Universe
Distributor
Wholesellers
These wholesalers supplies product to rural
Retailers retailers. Products supplied included branded &
loose (unbranded items)
Traditional Rural Distribution System

23. Sales & Trade Marketing Strategies
Focus is on increasing weighted penetration through targeted
loyalty programs
Wholesale invests in items with high sales turnovers as the model
focussed on absolute profit and not percentage profit
Many companies are leveraging wholesale as an RTM e.g. local
juices and beverages model like Maza, Gourmet etc relies heavily
on wholesale for numeric penetration
IMTs has strong penetration in wholesale due to their competitive
pricing and bundle offers

24. Managing Channels Strategically

25. Channel Prioritization – Why Do It?
• Prioritise channels where we best
can connect with target shoppers
• Focus resources and time towards
the biggest channel opportunities
• Invest in channels with profit and
growth potential
• Maintain our business in channels
where we are strong
• Manage our resources in channels
with no future

26. Prioritize Channel – Attractiveness &
Ability to Win
Channel size
Attractiveness of channel
Channel growth
Zone
Suggested template –
Channel profitability
Premiumness (Backup)
Europe
ILLUSTRATIVE BACKUP
Premiumness Dehydr. /pasty mix fix
Premium Value
(~60%) (~40%)
3.5
25 M units
3.0 Average price branded products
Price per unit
2.5 Price spread branded
11.3 M
products vs. PL (70%)
2.0
14 M 13 M
1.5
1.0
0.5
0.0
Knorr Nestlé PL 1 PL 2
Volume (in units)
36
Ability to win in the channel
Relative Marketfor culinary products
Relative market share Share Relative growth Relative profitability
Relative profitability Capabilities
Recipe mixes
Mashed potatoes
Flavour solutions
Hot & cold sauces
0 1 2 3 4 Pasta
Soups
Others
RMS 2006

27. Prioritize Channel – Attractiveness &
Ability to Win (Example)
Channel size
Attractiveness of channel
Channel growth
Small
Stores
Zone
Suggested template –
Channel profitability
Premiumness (Backup)
Europe
ILLUSTRATIVE BACKUP
Premiumness Dehydr. /pasty mix fix
Premium Value
(~60%) (~40%)
3.5
25 M units
3.0 Average price branded products
Price per unit
2.5 Price spread branded
11.3 M
products vs. PL (70%)
2.0
14 M 13 M
1.5
1.0
0.5
0.0
Knorr Nestlé PL 1 PL 2
Volume (in units)
36
Ability to win in the channel
Relative Marketfor culinary products
Relative market share Share Relative growth Relative profitability
Relative profitability Capabilities
Recipe mixes
Mashed potatoes
Flavour solutions
Hot & cold sauces
0 1 2 3 4 Pasta
Soups
Others
RMS 2006

28. Developing Channel In-Store Vision
Define excellent in-store execution standards that
will positively influence shopper behaviour
Giving shoppers:
o What they are looking for
o In a way that is easy to shop
o At a price that reflects value to them

29. Channel Planning
Product
Price Placement Promotion
Assortment
POP Communication

30. The Lever’s of Channel Planning (4P’s)
Product
Assortment Placement Promotion Price
A range that meets Make the category Implement the Offer the range of
the needs of most easy to shop right promotions products at a price
of the shoppers through optimising that will positively that represents
most of the time the availability and influence the “fair value” to the
and gives choice visibility of targeted change in shopper
products shopper behaviour
Communication of key .... awareness,
POS interaction and
category (brand &
Communication purchase of the
segment ) messages to
drive ….. category