While in the UK and US consumer goods producers can concentrate on relationships with a handful of multi-national supermarket chains, the retail outlet base in Africa and emerging markets is fragmented (Large number of stores with orders that are frequent and small). Reaching these large numbers of small outlets is a difficult, expensive and costly business for consumer goods manufacturers operating in emerging and developing countries – Unilever, Nestle, GlaxoSmithKline, Proctor & Gamble, Coca-Cola, and Heineken etc. Nigeria (Africa’s largest consumer market) has over 1 million of these small shops, thus making it very expensive for consumer companies to reach small retail outlets. Solution developed by our team was aimed to deal with the following problems:
• Fragmented retail sector
• Large number of stores with orders that are frequent and small
• Large number of delivery points
• Cash collected on delivery
• Large sales force needed for such large customer base.
• Risk of financial loss for manufacturers – credit sales to distributors