In the “Fast-Moving Consumer Goods (FMCG)” and Consumer Packaged Goods (CPG) industries, you’re only as good as your products, your distributors, and your points of sale or purchase (POS and POP).
So with the best product in hand, you must now be where your customers are.
And the good news is that there’s an extremely efficient way to get this information: data. More specifically, location intelligence (or location data).
In this fast-paced environment, data has repeatedly proven to be the most reliable guide for businesses as they navigate the complex and ever-changing landscape of consumer preferences and market dynamics.
And to identify the top distributors or points of distribution to reach those consumers, as a result.
FMCG products are those that are typically consumed or replaced frequently, such as food and beverages, personal care products, household cleaning products, and over-the-counter medications.
So how can you choose and filter through the myriad of distributors and keep on top of consumer preferences, emerging trends, and market dynamics at the same time? And how can you accomplish this more efficiently, with reduced time, effort, and costs?
In this blog, we’ll explore the necessary tools for qualifying and selecting distributors and points of distribution for your FMCG products through the most accurate method of data analysis: location intelligence.
But first, what is Location Intelligence?
Location Intelligence refers to the process of deriving meaningful insights and understanding patterns from geographic or spatial data.
It involves analysing various data points, such as Point of Interest (POI) data.
Points of Interest (POIs) are specific locations or landmarks, including businesses like restaurants, hotels, shopping malls, and retail stores, landmarks such as parks, museums, and historical sites, as well as places such as ATM machines, parking lots, co-working spaces, and any place with a physical location or presence holding significance within a given area.
POI data includes addresses, coordinates, and other location-based information to make informed decisions.
Location Intelligence combines geographic analysis with business data to provide valuable insights into areas such as market trends, customer behaviour, site selection, and logistics optimisation.
Sentiment data is how customers feel about a certain business, landmark or area.
Popularity data is how popular and well-frequented a business, landmark or area is.
By leveraging this information through Location Intelligence, you can gain a thorough insight into your (or any other business’) performance, as well as any growth opportunities or challenges.
Plus better your decision-making processes, improve operational efficiency, and gain a competitive edge in your industry.
And naturally, reach the perfect FMCG distributors and points of distribution.
How can Location Intelligence optimise the search for the best FMCG distributors?
Identifying and selecting distributors poses significant challenges for FMCG companies.
This includes:
- Finding reliable partners: Paramount to avoid issues like delayed deliveries and quality control problems.
- Understanding local markets: Crucial due to diverse consumer preferences and regulatory landscapes.
- Optimising distribution networks: Requires balancing coverage, cost-effectiveness, and service levels, a complex task exacerbated by fluctuating demand and geographical constraints.
- Consistent stock levels across diverse locations: to prevent stockouts or overstock situations
- Maintaining quality standards across different points of distribution
Location Intelligence represents a powerful strategy for enhancing FMCG distribution in a cost-effective manner.
More specifically, it’s the top tool used by businesses for streamlining their market expansion, site selection, and distributor qualification processes — ultimately saving both time and resources.
So which questions can Location Intelligence address for the FMCG industry?
There are many, but the most important ones are:
- Where should I start brand expansion and how can I optimise product positioning?
- Which venues, distributors, and territories offer the most promising opportunities for site selection?
- What are the primary areas frequented by my target audience, and when are peak and off-peak foot traffic times?
- Which establishments (e.g., bars, restaurants, hotels) enjoy the highest customer satisfaction and sentiment?
- How can I strategically place outdoor media and advertising to maximise product visibility?
- Where are the underserved locations for out-of-home market venues based on consumer demand?
- Which regions demonstrate a notable demand for food services but lack sufficient establishments for potential expansion?
In short:
How can my product be in the right place, at the right time?
Through location intelligence.
8 ways Location Intelligence can help you find the best FMCG distributors
1. Targeted distribution
To expand effectively, start by identifying strategic locations across cities, regions, and countries. This ensures targeted outreach to the right consumer personas while focusing efforts efficiently.
For instance, if you’re targeting young adults enjoying Friday evening aperitivo or families dining together, understanding and finding the target audience is essential.
Location Intelligence aids in assessing expansion territories, revealing insights such as peak popularity times and customer satisfaction levels at different points of sale. Analysing aspects appreciated by visitors of each point of interest based on nationality further refines targeting strategies.
Additionally, evaluating the sentiment of existing reseller bases helps ensure alignment with customer needs. By comprehensively understanding territory dynamics, brands can identify venues with the greatest potential for success.
2. Market insights
To thrive in a market, you need to know it well.
Location Intelligence provides crucial insights into local market dynamics and consumer behaviour, serving as the foundation for informed distributor selection.
By analysing data such as demographic information, foot traffic patterns, competitor presence, and points of interest (POIs), Location Intelligence helps businesses understand the preferences, trends, and behaviours of consumers within specific geographic areas.
Naturally, this information needs to be put into context with market knowledge.
Are people going to a place more often, especially after work hours? If so, why? Could it be because more people are returning to offices and engaging in after-work activities compared to before?
Is there a newly trending recipe circulating on social media, and if so, is it attracting a specific demographic to frequent a particular type of bar or restaurant?
This information serves as the foundation for informed distributor selection by enabling businesses to identify target markets, assess demand, and tailor distribution strategies to meet the needs of local consumers effectively.
3. Points of Interest identification
Through location data, distributors can identify the top point of interests such as retail outlets, supermarkets, and convenience stores — giving them invaluable insight into consumer behaviour, foot traffic patterns, and competitor presence at these locations.
With this knowledge in hand, FMCG distributors can strategically position their products in high-traffic areas frequented by their target consumers, ensuring maximum visibility and accessibility.
This proactive approach enables distributors to adapt their distribution strategies dynamically to stay ahead of market trends and consumer preferences.
As a result, they can optimise their distribution efforts for greater effectiveness and achieve unparalleled success in the competitive FMCG landscape.
4. Proximity analysis
Location Intelligence facilitates a crucial component in FMCG distribution, and that is proximity analysis.
By leveraging location data, businesses streamline their distribution networks, by analysing the proximity of potential distributors to key target markets and population centres.
This analysis helps ensure that distributors are strategically located for optimal reach and efficiency in delivering products to consumers.
By identifying distributors that are geographically close to their target markets, businesses can minimise transportation costs, reduce delivery times, and improve overall operational efficiency.
Additionally, proximity analysis enables distributors to identify opportunities for expansion into new markets by pinpointing underserved areas that are in close proximity to existing distribution hubs.
Find out how an FMCG distributor leveraged location intelligence to distribute its products in Stockholm
5. Distribution network optimisation
Distribution network optimisation is a key focus area for FMCG distribution.
Through Location Intelligence, distributors can identify areas where their current distribution network may be lacking or inefficient, pinpointing gaps or inefficiencies in their network, such as suboptimal routing or underutilised distribution centres.
With this information, distributors can streamline their operations, improve delivery times, and reduce costs — and enhance their operational efficiency to meet the needs of their customers better.
For example, they may identify opportunities to consolidate shipments, optimise delivery routes, or strategically locate distribution centres to better serve their target markets.
6. Competitor analysis
Competitor analysis is a crucial aspect of strategic planning for FMCG distributors, and Location Intelligence provides invaluable insights in this regard.
By leveraging location data, businesses can comprehensively assess their competitors’ distribution networks.
This analysis allows them to gain insights into competitor strategies, understand their market share, and identify areas for potential differentiation.
For example, distributors can pinpoint geographic areas where competitors are more dominant or identify gaps in their distribution coverage.
Armed with this information, businesses can refine their own distribution strategies to capitalise on opportunities for competitive advantage.
This may involve targeting underserved markets, adjusting pricing or promotional strategies, or enhancing service offerings to better meet customer needs.
Ultimately, competitor analysis driven by Location Intelligence enables FMCG distributors to stay ahead of the competition and effectively position themselves in the marketplace.
7. Site selection
For FMCG distributors, selecting the right locations for distribution centres and warehouses is crucial for efficient operations.
Location Intelligence plays a pivotal role in this process by providing valuable insights into various factors that impact site suitability, and enhancing operational efficiency and customer service as a result.
By analysing location-based data, such as transportation infrastructure, population density, and proximity to target markets, businesses can identify optimal locations for their facilities.
For example, they can pinpoint areas with well-developed road networks and access to major transportation hubs to streamline logistics operations.
Additionally, Location Intelligence helps assess factors like labour availability, zoning regulations, and real estate costs to ensure that chosen sites align with business objectives and budgetary constraints.
8. Performance tracking
Tracking the performance of distribution channels is essential for FMCG distributors to gauge the effectiveness of their distribution strategies and make informed decisions.
Location Intelligence facilitates real-time monitoring of key performance indicators (KPIs) such as sales volumes, market share, and customer satisfaction across various distribution channels.
By leveraging location-based data and analytics tools, businesses can gain insights into how different channels are performing geographically and identify areas of strength or weakness.
For example, they can identify regions where sales are thriving and allocate resources accordingly to capitalise on opportunities for growth. Similarly, businesses can pinpoint areas where customer satisfaction is low and take corrective actions to improve service levels.
Location Intelligence in the real life: POI insights for global market growth
A major player in the global spirits industry sought to expand one of their liqueur products into new markets cost-effectively using data-driven strategies.
Data Appeal provided comprehensive datasets with over 60,000 POIs enriched with qualitative and quantitative information, including sentiment and popularity scores.
By leveraging Data Appeal’s solution, the client could filter POIs based on these scores, enabling them to identify promising areas for investment and marketing efforts.
This approach facilitated the implementation of the client’s international expansion strategy faster and at a lower cost, helping them gain a better understanding of their industry and target audience.
Ultimately, it allowed the client to enter new markets confidently and export their products successfully, resulting in steady demand.
Place your products in the right hands, today
Effective FMCG distribution may be complex — but possible, with the right tools.
Data Appeal provides POI data featuring quantitative information such as address, GPS coordinates, social channels, as well as a unique combination of geolocalised data enriched with Sentiment and popularity data for each single POI and territory.
With our global POI coverage, we mapped more than 251 million POIs (and counting) covering 180 countries and territories.
Our data is available via Data Pack (.csv/.xls file), API, Customised Visual Platform, as well as our all-in-one territory analysis platforms, D / AI Destinations and D / AI Locations.
Keen to learn more about how we can help?
Drop us a message today.
