Crisps & Snacks Manufacturer
Background: The Wholesale channel delivers a significant amount of the overall volume for this leading Crisps and Snacks manufacturer. However, some issues that had been identified within this channel were as follows:
The Brief: There was an on-going need to build on the relationship between the client and the Wholesaler with the aim being a win-win situation in terms of driving sales and volume. It was not viable from a cost perspective for a representative of the client to visit each customer who purchases via the Wholesale channel.
Lack of contact with certain customers meant the client could not ensure that their volume was being maximised as product activity was not being proactively communicated. The client could improve their customer service via increased contact.
The Solution: A Virtual Territory model was identified as a cost-effective solution to assist drive sales and volume within the wholesale channel together with increasing levels of customer service. This consisted of carrying out, in effect, the role of a field sales representative via the telephone.
This model has numerous benefits most of which relate to the cost effectiveness. It was an obvious solution for the client to viably contact customers that would not normally receive any contact.
A database of independent retailers was built all of which obtained their crisps and snacks via the delivered wholesale channel including Palmer & Harvey. These businesses were then contacted on a monthly basis.
The objectives of each call were:
- To maximise the sales of promotional lines
- To sell in new lines.
- To gather outlet information.
- To build a positive working relationship with the retailer.
- To take orders for non-promotional stock.
- To identify opportunities for equipment placement.
The Results: An average of 58% of businesses on the database contacted placed orders each month (The target was 40%). Of those that placed orders, the average order size was 6.5 cases (against a target of 5 cases). The trial has been successful as a cost effective route to increasing volume via the wholesale channel including Palmer & Harvey.