Supply Chain Blog

FMCG Route To Market (RTM): Talking Heads Discussion – Part 2

Posted by Dave Jordan on Wed, Apr 04, 2012

Same small table, same two blokes, same close up camera shot.

In the last RTM talking Heads episode we ended with Jeff  hurriedly departing for the corner shop to see if the M&Ms Route To Market was intact or in trouble!

Mal: Why the long face?

Jeff: Mr Patel did not have any M&Ms. Not one packet. Not even a fun size packet.

Mal: Well, there you are then.

Jeff: I know, I’m here.

Mal: No, no, no what I mean is that you have just experienced the result of a failed Route To Market.

Jeff:  Have I? I just didn’t get my favourite sweets.

Mal: Exactly, you eat lots of M&Ms and when you went to get more the shop was out of stock. Mr Patel loses his profit and the producer loses his profit and they both have an unhappy customer, you!

Jeff: Well, I’m not that unhappy as I bought Smarties instead.

Mal: Even worse for the M&Ms producer, in that case.

Jeff: Is it, how’s that then?

Mal: You spent your hard earned cash on a competitor product and you might find you like Smarties and buy them again even if the M&M shelf is full next time you cross Mr Patel’s step.

Jeff: They are rather yummy, I have to say but I am an M&Ms man.

Mal: So the next time you pop to the shop and the M&Ms shelf is still empty will you buy something else?

Jeff: Yes, Smarties.

Mal:  I rest my case m’lud. Anyway, precisely why didn’t Mr Patel have any M&Ms?

Jeff: He said he ordered 4 boxes but only 3 arrived and he knew they wouldn’t last long enough.

Mal: And did he do anything about this?

Jeff: Of course he tried but he couldn’t get through to the Customer Service number. Too many buttons to press before a human answered and he had to hang up to serve someone in the shop.

Mal: Customer Service, pah!

Jeff: When he eventually got through he was told that the factory was concentrating on production for Easter and would not be able to re-supply immediately.

Mal: Well Easter has been around for a few years now so you would think they were prepared for this chocolate-fest by the 21st century!

Jeff: So, because of that he put an extra display box of Smarties on the shelf so it didn’t look empty.

Mal: A disaster for M&Ms! Lost profit all round, lost shelf space, lost sales and possibly a lost customer and consumer. You know what this means then Jeff? Do you realise what this means?

Jeff: No.

Mal: Perhaps “only Smarties have the answer.”

To be continued………

 

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Tagss: Brewing & Beverages, FMCG, Route to Market, Dave Jordan, Pharma, CEE, Distribution, RTM Assessment Tool