Hi there,
I'm currently gathering requirements for a drinks manufacturer who I met recently. We are looking to deploy a sales and marketing solution, but the approach to their business is one that I have not come across before.
Essentially, they work by visiting resellers (e.g. bars, restaurants and supermarkets) and promote their brand and incentivise the purchase of their product. However, the twist, is that they do not sell the product direct to the reseller. That is purchased through wholesalers who sell both their drinks and that of their competitors. So the profit is essentially second-hand from the sales/marketing engagement they are having with the reseller.
Is anyone familiar with this business process? If so, please can someone direct me to some further reading; so I can understand this in more detail?
Regards,
R.
"However, the twist, is that they do not sell the product direct to the reseller. That is purchased through wholesalers who sell both their drinks and that of their competitors."
Like buying a car ... the manufacturer runs ads, has demos, displays at fairs, etc ... people can test drive the cars and get information ... but you have to buy your car from a dealer. If they sold directly from the factory, then they would be in competition with their wholesalers (car dealers).
Now for Liquor: In most states, the business is divided into: -beer manufacturers -beer distributors - delivery to stores -been retailers - sale to public And you are legally prohibited from being all three, or even two.
Here is something I found quickly:
https://www.quora.com/Is-it-legal-for-people-to-buy-directly-from-a-manufacturer-even-thought-you-are-an-exclusive-distributor
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