We are an established small scale food/fmcg products distribution business in Pune district of Maharashtra. We distribute products of some of the well known food/fmcg brands to retailers, hotels, kirana shops in rural areas of Pune and Ahmednagar districts.
Recently we approached a major brand in the fmcg industry and requested for distributosrship of a couple of their products. The comapany replied saying – Presently we have no requirement.However,this sounds opposite to our knowledge.
Before approaching the company, we had carried out some study and identified the factors that prompted the existence of opportunity –
1. In most of the villages, which we cover, there is no supply of the products of the brand to which we approached.
For rest[around 10%], which are located nearby a major city, there is irregular supply of the products and most of the time retailers from these areas have to travel to nearby cities to buy the product.
In our existing business, for some brands we get the supply directly from the company/manufacturer, for rest, we get the supply from superstockists. As per our knowledge, based on the information we gathered from our customers, there is no supplier/superstockist in the area we cover. So, having been in the distribution business for over a decade, we stood a good chance to get the distributorship.
2. A few months back, a major competitor of the brand[to which we approached] started distributing their products through another agency. That has been successful so far. So, we could safely assume that, the market exists for products which come under the same category.
3. The market size for the given product in areas we cover would be comparatively less as compared to market size in city areas, but there is still a good scope. We could help the brand penetrate even in remotest rural areas.
Though we had mentioned these facts to the company, seems it hasn’t come across as effectively.
Also, in our first mail, we already had mentioned our strengths, some of which are –
1. Reach in over 72 villages and towns
2. Strong network and well-established relations with over 500 kirana shops, retail shops and hotels
3. 15 years of experience in product distribution in semi-rural and rural areas
4. Availability of own vehicles and manpower
5. Uninterrupted supply to retailers
6. Zero payment defaults – in 15 years of business, we have never failed to pay our vendors. Our vendors trust us with their money.
Seems, that also has not helped.
But that is not the end. We strongly believe in our capability and even in the opportunity for given product. As we plan to approach the company again, I request all the Rodinhooders to provide their input on how should we convince the company about the opportunity and what else could be done to build the
confidence that we can deliver successfully.
Thanks in advance.
Anshoo Grover
Your case sounds logical – its not clear why the company rejected your application. ‘Presently we have no requirement’ sounds like an excuse. It works for companies when they have to refuse buying a product/service, but never for a business request!
I can assume that you talked to one/two people, and that they might be:
Additionally, you are assuming that the company wishes to expand. Though highly unlikely, it might not be the case.
Ask for feedback – a little more openly, might help. Otherwise, if you are re-applying, do it via another route (not through the same people) – possibly as higher in the company as possible.
Nishant Agrawal
I suppose you contacted them through the normal route, and not through ‘inside connections’. I don’t think they even analysed your request. Try to get in touch with a manager at a higher lever; or someone who has a stake in the company.
Try to approach and present your case in person. Letters and emails are not taken seriously.
Sagar
Hi Anshoo, thanks for suggestions.
Otherwise, if you are re-applying, do it via another route (not through the same people) – possibly as higher in the company as possible. –> So far we used to approach companies via their official emails/phones and never had to approach through any personal contact. in fact, we never had any contact in the companies whose product we distribute currently.we followed similar way this time too and for this company also we do not have any other contact except their official email address/phone number mentioned on website. but will check whether i find any from linkedin.
thanks again.
Sagar
hi Nishant, we approached them via their email id mentioned on the website. this is what we had done before and got distributorship of some good brands. but , yes, i cant assume all companies to be similar.
will see if i find any contact from linkedin.
btw, when i reply back or when i contact some manager, do you see need to mention anything else apart from what we had mentioned in the initial proposal ?
thanks again.
Nishant Agrawal
Data looks sufficient. keep it brief.
Amar Shah
If the email has gone to a general box, firms do tend to ignore it or down play it foolishly. Getting a persons contact would be ideal way ahead.
Do try to call / visit them and get hold of the concerned person, it might be tedious but no company will say NO to business atleast.