Go-to-Market

Strategy
(GTM)
Simplified

Abdul Gafoor
A FMCG start up strategy is to launch a Toothpaste.
The below are company details.

• Company name: Color Bucks

• Toothpaste name: D-Care.
• Type of paste: Gel Paste.
• SKUs: 30G,50G, 100G,150G
• Manufacturing unit & office based at: Vizag (AP state in
India).
How to prepare a step by step
Go-to-Market (GTM) strategy
to launch toothpaste.
 Go-to-Market (GTM)

What is Market

• Market is a place to buy & to sell.

• Market is the place where shops are located.
• A Market is a place where two parties can gather to
facilitate the exchange of goods and services.
• The market be physical like a retail outlet.
Color Bucks wants to Go-to-market with Toothpaste launch.

But which Market

Whole world?
Only America?
Only Europe?
Only india?
Or
Any other market?

This 1st step in GTM Strategy to decide which market to launch

Based on market, purchasing power, logistics cost,
reachability etc. The company decided to launch in Andhra
Pradesh state first.

Now to decide to launch total AP state ? or some towns?

Urban market ? or Rural market ? Etc.

Company decided to launch in urban markets > 5 Lakh

population towns.

Now the GTM Strategy is ready to launch state, towns.

 Next step is what type of outlets to launch.
To launch all available outlets ? or
Only Modem trade ? or
General trade? Etc.

Company classified outlets as A class, B class, C class

and D class based on purchasing power.
Now the strategy is to launch in A, B & C class outlets.
Now Go-to-Market strategy is ready.

A B & C class
Outlets

Urban Market

> 5 Lakh
population towns

AP State
 The next question is

How to reach
these markets ?
 The below are the options to reach these markets
Option-1 Option-2 Option-3 Option-4

Factory Factory Factory Factory

Super
Super Stockist
C & FA
Stockist
Distributor

Consumers Consumers Consumers

Wholesale Retail
 Company’s strategy is to go with option-4

Now the question is how many Super stockiest and how

many distributors.

The strategy is to have:

One Super stockiest for every 5 towns.

Three distributors for > 10 lakh population towns
Two distributors in > 5 lakh population towns.
One distributors for < 5 lakh population towns.
 Now Go-to-Market complete strategy is ready.

Factory
A B & C class
Outlets
Super
Stockist
Urban Market

Distributor
> 5 Lakh
population towns

AP State
Wholesale Retail
Next strategy is to prepare

Route-to- Market

RTM
Route-to-Market
Strategy
(RTM)
Abdul Gafoor
 Go-to-Market strategy ends here.
Factory
A,B & C Class
outets
Super Stockist

Urban Markets Distributor

> 5 Lakhs Wholesalers Retailers

Population Towns
Retailers
AP State
Consumers Abdul Gafoor
Route-to-Market
(RTM)

Simplified

Abdul Gafoor
 The 1st step is to design RTM strategy to appoint
Super stockiest & Distributor

Financially Sound

Good infrastructure
Super Stockiest
facility
Required Profile
Minimum 5 Years
experience as SS

FMCG Products
experience
 Distributor plays very vital role in sales of Primaries & Secondaries.
Selection of right distributor is very important for success of a company.
If you can appoint a right distributor, think that your 50% target already achieved.

In this Route-to-Market (RTM)

I explained in detail how to get a good distributor.

For this I have designed a 4 “I” formula.

 Investment

Infrastructure
Distributor’s
required profile
Involvement

Influence
 Investment

Fixed Variable
Warehouse. Determinants of capital. Salaries
Office. Nature of Business - Size of Business. Wages
Fluctuations in Business - Rotations. Distribution Expenses
Furniture.
Turnover - Minimum Stock norms. Power
Racks. Fuel
Average market credit - New products launch.
Shelves. Rents
Terms of invoicing- Discounts.
Distribution Units. Repairs
Growth rate - Profit Margin - Payment terms. Maintenance expenses
Computers, Printers Company plans. Stationery & Courier
Office Automation Etc. Any other expenses. Etc
 Infrastructure

The infrastructure includes

Warehouse Space | Office Space | Furniture Tables | Chairs | Files and Racks |
Computers, printer | Shelves | Pallets | Mechanized Units Autos, Vans | Non-
Mechanized Units Rickshaws, Tricycles, Cycles | Personnel Sales Reps, Delivery
boys, Supervisors, Accountants, Managers, warehouse in charge. | Office equipment |
Phone | Fax | Computer | Printers | ERP. Etc.
 Warehouse
The location of the warehouse is an important factor. Because unsuitable location may result in waste of
efforts, loss of time, annoyance and inconvenience to the personnel, waste of money, more expenses Etc.
Factors to be considered.
Geographical and local siting | Accessibility to related trades | Nearness to service facilities | Nearness to
transport facilities |Availability of labor | Government and building restrictions | Warehouse layout |The
objective of the warehouse layout is to work at the low cost by improving the flow of work |Layout refers to
size, area, partitions, equipment, security Etc.

Safety and security | Loading facility | Sufficient as per requirement | 20% extra space for peak and promotion
season | Well ventilated | Good approach to road | Avoid upstairs | Entire warehouse in one building | Away
from traffic roads to avoid delays | Long term lease |Pest and water leakage free | Free from physical hazards |
Economical |Water and power supply | Near to his area of market.
I gave here the details about warehouse. Same analysis must be done for all infrastructure facilities
 Involvement
The Owner involvement in the distribution business is particularly important. Because the investment invested
in the business and the infrastructure must be maintained properly.
The right use of investment and infra-structure will give fruitful results. The distributor should know the stock
levels in the warehouse, order booked with the company, C&FA, damage stocks in the warehouse etc.
The owner should know the market credit, good payers, and bad pay masters etc.
The distributor should know the claims to be raised, claims already raised to be submitted, already submitted
but not cleared etc.
The distributor should know the proper usage of infrastructure also.
Keeping business in manager’s hand or some employee is very risky for distributor as well as for a company.
Stocks stolen, outstanding collected from market but not deposited, fake invoices made etc will affect the
distributor’s business and company performance also. owner or partners must look at the figures regularly to
ensure healthy running of business.
 Influence
In distributor business with the involvement, the influence in the town also an especially important point.
To get more profits, business must grow and leads to increase in turnover and profits. The distributor must
be known person in the area the business is operated. Because the distributor can use influence to collect
bad debts and tough pay masters | Getting government approvals etc Road shows, trade offers any
promotions etc.
To stop infiltration of same products from other towns/states etc.
To use influence to increase the sale to increase stock pressure.
To bargain shelf space for products displays, brand image windows etc.
To solve any issues with government departments like, weight & measurements, consumer courts etc.
• To borrow funds when required for special activities.
• information, to borrow the money in peak times etc.
 Company must assure a ROI to Distributors
I have designed a ROI Case study to explain how the ROI changes in every change of figures.
 Distribution &
The 2nd step is to prepare a strategy Coverage
for below things
Coverage- Width Coverage frequency
Key accounts & Depth & Retail mapping
Modern Trade
Wholesalers
Retailers Range selling

Callage & Route plans

Productivity
Product Displays &
Merchandising

Reporting
 Distribution Preparing distribution plan | areas | Beats | outlets etc

Coverage mode How to do the coverage | order booking | Mechanical Units | Non mechanical units Etc.

Preparing coverage frequency plan. Weekly | Fortnightly | Monthly | coverage frequency as

Coverage Frequency per classification of outlets.

Route plan Preparing coverage route plan as per the coverage frequencies.

Outlet's classification and minimum range selling strategy |Productivity strategy

Range selling

Displays Product displays | Merchandising plan | POP Usage | Merchandiser’s Kit Etc.

Reporting Preparation of reports | Daily report | Callage & Productivity report | Coverage report |
Analysis Report Etc.
 Company's Profile Turnover | No of Employees | CEO | Sales manager Etc

The 3rd step is to do

the competitor analysis Total Turnover | Competitor's companies’ turnover |
Distributor Profile Experience | How many distributors in the area |Market
Reputation | Strengths | Weakness Etc.

Competitor’s product range | All the range is with one

Product Range distributor or more | Fastest running product Etc

Competitor price comparison | Pack sizes | Difference

Competitor Analysis Product Pricing Etc

Distributor’s Margin Competitor distribution margin. ROI Assurance Etc

W/s & Retail Margins

Wholesale | Retail | Modern Trade | Key accounts etc.
the margin | profit comparison of each product.
Modern Trade offers
 Is the planned distribution and coverage are giving
Distribution & Coverage results or any changes needed?
The 4th step is to do the
analysis complete RTM Coverage frequency Is the planned coverage frequency is giving results or
Strategy more coverage required some class of outlets?

Is the planned route plan is ok? Is there any repeated and

Route plan double frequencies and route plan.

Is the pricing strategy is ok ? Need some revisions.

Analysis Product Pricing
Regular check-ups about competitors price.

Is the distributor happy with his margin, business,

Distributor market outstanding, company’s support, media support?.
Is he happy with company people working and training
his salesman.

Are the reports providing complete information ? Or any

Reporting
changes required in reports, frequency etc.
Thank you very much

Abdul Gafoor