Sunday, October 5, 2014

3 Critical "I's" of Business

In today's world of sales we speak in and out daily on how to increase sales along with our sales teams and how to increase market shares?One word which syncs all of us... its Distribution for any product to succeed!To make it simpler on Distribution, the key factors involved are as follows while appointing distributors, super-stockists etc.The most important critical factors are 3 "I"s...Investment, Infrastructure & InvolvementInvestment - The first important "I" determines the health of the business, the distributor needs to be financially sound (excellent assets most importantly liquid cash and own funds and not borrowed funds from bank and private investments) and needed to have a long term outlook of the organization to have better yield in reaping benefits, mean (ROI) Return On Investment. They need to be more convinced in not to diversify with different organizations which filters is investment in order to have focused funds to us.Infrastructure - The second most "I" determines proper coordination of all human resources (Staff & Field force) and processes and operations (Warehouse - Proper storage of products & Vehicles - to connect deliveries in time for retailers) necessary to ensure and manage profitable growth. Regardless of the size of the business Infrastructure facilitates our business and services to width & depth of the markets in a way to a positive consumer experience resulting in increased sales. It also drives economies of scale.

Involvement - The third "I" determines the effort and relationship built over the years in business along with retailers etc. The geographical knowledge and the experience of personal involvement play a very vital role informally & formally over competing products to understand in terms of influencing them on reaching products to retailers and also knowing the depth of retailer's relationship with his consumers to tap accordingly.These three are different prospective on the role of Investment, Infrastructure & Involvement and are interdependent in en cashing the business prospective of the assigned territories for the distributor/stockist in expanding in accordance with the organization's priority and thereby expanding larger canvas of operation.The above 3 critical "I's needs to be measured & checked periodically to keep the health of the distributor by the organizations representatives and always keep motivated at all times along with the back-up in the ordnance of failure of any one of them.These checks would ensure to gain better on leadership in distribution expansion of retail outlets leading to gain market shares consistently.

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