How One Tier-2 FMCG Brand Grew 3x Reach in 12 Months
The Starting Point
- Strong product, loyal consumers
- Growth flat for 3 years
- Depended on 2–3 large distributors
- Poor last-mile coverage → missed kirana stores in smaller towns
The Insight
- Large distributors weren’t interested in pushing lower-margin SKUs
- Coverage in Tier 3 towns was <40%
- Retailers trusted local suppliers more than distant big distributors
The Insight
- Large distributors weren’t interested in pushing lower-margin SKUs
- Coverage in Tier 3 towns was <40%
- Retailers trusted local suppliers more than distant big distributors
The New Distributor
Model
- Hub-and-Spoke System: Big distributor as hub, local stockists as spokes
- Micro-entrepreneurs onboarded in small towns
- Introduced digital ordering via WhatsApp to cut delays
The Results – in 12 Months
- Retail touchpoints grew 3X
- Active outlets increased from 5,000 → 15,000
- Reduced supply lead time by 35%
- Sales grew double-digits every quarter
The Results – in 12 Months
- Retail touchpoints grew 3X
- Active outlets increased from 5,000 → 15,000
- Reduced supply lead time by 35%
- Sales grew double-digits every quarter
The Takeaway
Lesson for FMCG leaders:
Don’t just chase “bigger distributors.” Design a model that fits your market’s trust networks and last-mile needs.
Tier 2 & 3 markets are India’s biggest growth lever. Smart channel design can unlock them faster than ad spends.
Want to explore this model for your brand?
Let’s talk at ZA Consulting.