Page 39 - Strategic Marketing Complete

SUPPLY CHAIN

have developed on the back of beware different markets “Replacing and refreshing
servicing this ever-growing sector It’s not a simple undertaking, merchandising can be a challenge
for clients, ensuring that effective however. As Page-Lee points out, in remote locations, and liaison with
merchandising drives higher on- the rules guiding merchandising retailers to manage this is often an
shelf awareness.” in one market may not necessarily issue between visits to the respective
be relevant in another one on regions,” says Page-Lee.
The benefits of integration the continent, as brand purchase Peter Kohlöffel, former head
Page-Lee points to the key benefits and consumption habits differ of sales for Africa at ProActive,
of integrating distribution and significantly from market-to-market. says its different route to market
merchandising as being: offerings are aimed not only at
“One of the biggest challenges keeping brands top of mind, but
Economies of scale: product any brand faces as it moves cross- also at ensuring their products
route-to-market through a border and cross-culture, is to reach various retail environments,
single supplier managing ensure that the intrinsics of the including spaza shops. (Kohlöffel
multiple brands and FMCG brand are understood in each has since taken up a role as national
manufacturers requirements; market, so that the merchandising channel manager at DHL Express).
permutations respond to this
Efficiencies: bulk distribution via accordingly,” he says. “Such “Traditionally, the store owner
a reduced number of deliveries understanding needs to be driven would make a trip to the closest
and setting product on-shelf to via the brand’s sales and marketing wholesaler and stock their store
the merchandising plan as the teams and should be part of the according to their regular brand
product is unpacked in-store, brand’s in-market strategic review.” purchases,” he explains. “Our

Distribution into Africa can be difficult due to

the dominance of independent trade – multiple small,
often unregistered operators – as well as political

and regulatory requirements.

thereby eliminating the need for The informal sector also presents offerings approach from both levels:
a secondary service layer post several challenges. For example, At point of purchase for the spaza
product arriving on-shelf; product supply is sometimes shop owner, we influence in-store
an issue in spaza shops; and with merchandising, permanent
Delivering associated competing products may end up on brand ambassadors and the like. At
merchandising elements, merchandising units intended for the spaza level, we go directly to the
whether gondola-ends, shelf another product. store, selling product, delivering the
talkers or other bespoke
designed and manufactured
marketing elements, at the
same time as the products;
Cheaper cost of production with
standardised quality control and
implementation; and
Brand consistency and
adherence to stringent brand
controls/guidelines that can
be applied globally, or in
any retailer that stocks the
respective product or service.
“As suppliers develop and evolve
their businesses to meet the needs
of their client, it is inevitable that
this service will extend across the
borders of South Africa and into the
continent,” he says.

Strategic Marketing - p37