MARKETING AFRICA ISSUE 12/16 | Page 9

more. I asked him, “Boss, if we can grow sales from 30,000 units to 150,000 units within a month, do you think we would still be working for this company? If we can achieve that, we would be top-flight consultants showing companies all over the world how to grow sales by 500 per cent within a month.” After a long laugh he said he believed that if we sorted out distribution we would be able to at least achieve 120,000 units. I still believed that was steep. I started taking him through the logical, analytical path to disapprove his belief. Nationally, we had about 40,000 retail outlets. Assume, instead of wasting money doing other trade activities, we gave each outlet a full unit of our products. That would mean giving away 40,000 units and achieving 100 per cent distribution. That could be done fairly quickly but would we have achieved our target of 150,000 units? No! So, distribution was not the only problem. The problem was shelf off-take at the retail level. Outlets that had products took at least two weeks to sell out one unit. At that rate, even if distribution was at 100 percent, sales would cap at 80,000 units per month. To achieve the 150,000 units target, we ideally had to achieve 100 percent distribution with each outlet selling at least one unit a week. Achieving 100 percent distribution is quite difficult even for popular brands. To be realistic, at 50 percent distribution, we needed each outlet to sell 8 units a month to achieve targets. That’s possibly where discussions of strategies should have started. Anyway, we gave it our best shot but as you can bet, we never went beyond 32,000 units by month end. I’ve got information the numbers have not changed much to date. They are surely ‘non compos mentis’ and if you have come across others, the asylum for these managers must sure be enlarged. In such companies top management does not know what they are doing, and even if they know what they are doing, they do not know what they are doing is wrong and will never achieve what they want. They don’t have the capacity to interrogate strategy’s ability to deliver results. Herman Githinji is a Sales and Marketing Consultant in Melbourne, Australia. You can commune with him on this or related issues via mail at: [email protected] or read more of his articles in his LinkedIn account