New marketing plans to increase percentage of profit for a manufacturer

Dealers and distributors share a huge percentage of profit in any product. This plan aims to increase percentage of profit for a manufacturer and reduce the role of dealers & distributors. To achieve this objective a manufacturer can directly do marketing and sales of product. If a manufacturer directly does distribution then profit percentage of manufacturer increases.

How to achieve this objective ?

                   

Manufacturers can start online sales of products just like that done by e-commerce companies e.g. Amazon, Flipkart etc. Transport companies can be hired to deliver product at the doorstep of customer and retailer. To further reduce the cost of transportation; product can be transported over long distances by Rail freight transport & then over short distances by road. Rail freight transport is cheaper than road transport. 

                      E.g. if product from a plant in Madhya Pradesh ( state of India ) has to be sold in Andhra Pradesh  ( state of India ) then product can be transported from plant to some major railway stations of Andhra Pradesh by Rail freight transport and then over the rest of Andhra Pradesh it can be transported by road. Furthermore, since product is being sold directly by plant, so even if maximum retail price (MRP) is reduced a little bit as compared to its initial value even then also plant will have a higher percentage of profit. Lower MRP will attract more customers.

Advantages of this plan

1.     increase in percentage of profit for the manufacturer.

2.     Increase in number of customers.

3.     Customers and retailers can get product at a lower price.

SHANTANU AGRAWAL Email-id agrrshantanu@gmail.com

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