Increasing range selling in FMCG

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While productive calls are very important in sales, calls can be made even better. It is a no-brainer that more sales can guarantee profit, however, selling more through range selling would guarantee sustainability in business.

Range selling defined through lines per call is the number of a company’s product (skus) sold to a particular outlet during a productive call. It is a strategy whereby similar lines or products with close functions are sold to the same outlet. The strategy is to persuade customers to buy items that are connected to their original choice. Contrary to the opinion that sees range selling as manipulating customers, it is another opportunity for strategic value addition to both new and existing customers.

Why range selling?

Range selling is one of the key techniques to sell more. It is very important for a lot of reasons.

It is a “diversification” strategy

For a company operating in different categories, maximizing sales in each of the category/segment is best achieved via range selling. In days of economic instability as we have in Nigeria at present with fluctuating foreign exchange and scarcity of forex, one can’t tell with certainty which stocks the company would run out of supply of. The best way is to sell diverse skus so that revenues are not drastically affected in the absence of one or two skus or even major drivers or flagship brands.

Visibility is better with range selling

The more the merrier could hardly find a better means of expression than on a retailer’s shelf. In days where stores are trying to maximize sales, the best they can do is to put a representative of each brand on their shelf. The opportunity of having more brands from a singular parent source increases visibility for the brands and the chance of those brands being bought.

It increases traffic to stores

This is a major selling point for every sales rep to use in stores. With increase in the varieties that a store offers, the more is the expected footfall, other things being equal.

Synergy of time

In what other ways can synergy be defined than the opportunity to sell more in less time? The law of synergy says you spend less time in selling two items than you would have in selling a single item. Range selling undoubtedly maximizes salesman’s resources.

The above are few of the benefits of range selling. However, cut-throat competition is on the increase in almost all sectors of FMCG while shelf spaces of retailers have been fairly constant. This has been compounded by the fact that companies selling similar products are also on the increase with increased commoditization.

In what ways can companies increase range selling by both their primary and secondary salesforce?

Sales incentives

Few things bring commitment the way cash does. Primary and secondary salesforce should be paid incentives when they sell stipulated numbers of lines per call. Distributors/dealers should also be paid as they stock up more skus. Retailers on the other hand should be paid incentives with product combinations. The trick is to give discount that increases as the lines sold also increases.

Visibility drive

Using display and win and exclusivity incentives, retailers and customers who stock varieties should be encouraged to display varieties. The emphasis is not on what they “buy”, but what they “show”. This is likely to increase shelf uptake as shoppers are most likely to buy what they see. This generates a continuous stream as retailers are stocked up once reorder level is reached.

Leverage on your brand

It is easier to extend performing lines. If you sell evaporated milk to retailers under a popular brand such as peak, selling a sticky category/segment (especially in NPD) shouldn’t be a problem. Retailers are at ease with familiar brands and salesmen should endeavour to see to it that trial sales are encouraged for the new products based on the acceptability of the popular ones, leveraging on the power of both their brand and relationship with the retailers.

Getting to trade early

As one with growing experience in salesforce management, the possibility of selling more is for the taken for a sales force who get to the trade early and possibly first. It could be taken for granted that everyone knows that getting to trade early is important, but not everyone does, hence the need for the emphasis. Firstly, you block off direct competitors while you also have the advantage of cash or payment commitment in relation to indirect competitors who compete on the basis of the share of retailers’ wallet.

Have a target

I am not sure their could be any meaningful sales discussion without mentioning targets. Setting a lines per call target of say 10 gives a measurable objective to work with, inspect and reward.No one scores without a goalpost whether in a football match or a business enterprise.

In conclusion, seeing is believing in sales! The chance of sales rep selling skus not in their van is zero. Practical range selling begins with compliance to “range-picking” before there could be “range-selling”. It is also pertinent to note that range selling becomes problematic in the absence of product knowledge that properly dissects what the brand offers in terms of value for money relative to direct competing brands. The salesforce can rarely do better than the knowledge of what they have! Pushing for range selling without the accompanying knowledge is nothing more than a burden to a sales force as their vision of the big picture is blurred.

Salesmen need to be reminded that most, if not all retailers are not in business to propagate the vision and objectives of brands. Their drive is profit making! Success in range selling starts from making retailers see more of how they stand to increase their profit than how it is important for companies to sell more to them!

About the Author:

Atoyebi Oyelere, MCIM (BUSINESS DEVELOPMENT MANAGER at FrieslandCampina WAMCO Nigeria Plc)