In the The Fast-Moving Consumer Goods (FMCG) to gain a competitive edge, companies must go beyond traditional selling. In this article, we will delve into why companies are doubling down on AI-powered SFA and how AI is transforming the future of field sales operations. We will also explore real-time use cases of AI in FMCG Sales, boosting efficiency and decision making.
Introducing the AI-Driven Product Recommender to Maximize Basket Size at Every Outlet
We are thrilled to introduce our latest innovation, the Product Recommender, designed to transform the way businesses optimize their product offerings and enhance sales productivity.
The sales process for FMCG and CPG companies isn’t a one-step transaction from point A to point B. Products move from manufacturers to distributors, sometimes through wholesalers, then to retailers, and finally to consumers. Most often, this journey is divided into three stages:
Each stage plays an important role in keeping shelves stocked, meeting demand, and driving revenue. A great product alone isn’t enough — you need a smart sales strategy to ensure the product flows smoothly through the supply chain.
In this article, we explore each sales stage in detail, along with how FMCG and CPG brands can leverage technology to optimize these stages to maximize sales and minimize losses.
Primary sales mark the first transaction in the supply chain, where manufacturers sell products in bulk to distributors or stockists. As a B2B sale, it helps FMCG and CPG brands track initial demand and is usually reported as revenue before consumers even make a purchase.
Let’s look at this with an example: Nabati is an indulgent snacking brand with a strong presence in over 25 countries. And their most popular product is their wafers. So primary sales for Nabati would be selling these wafers in bulk to distributors in different countries and regions. The amount they make from selling to distributors is also their net new revenue — irrespective of whether it’s bought by a customer down the line.
However, a high primary sale does not guarantee strong consumer demand. Unsold stock can remain in the supply chain. And consequently, if a distributor finds a product unprofitable or slow-moving, they may hesitate to reorder, affecting future primary sales.
Apart from revenue generation, primary sales are important for two other reasons:
Some key factors that can influence primary sales are:
Use DMS software to analyze data from secondary sales and forecast demand more accurately. This can help you manage inventory better and reduce stockouts or overstocks.
Secondary sales is the movement of goods from distributors to retailers. This is the second stage in the FMCG & CPG supply chain and one of the best indicators of product demand in the market. Because, unlike primary sales — which depend on a distributor’s stocking preferences — secondary sales reflect actual retailer demand based on consumer purchases.
Going back to the example in the above section, this is where Nabati’s distributors would sell the product to individual retailers. This is still in bulk, but varies based on existing stock and demand in each retail outlet. Also, during secondary sales, the quantity of each product flavor sold can vary based on demand, giving companies a clear picture of which flavors are popular. These insights help manufacturers analyse product demand and success, fine-tune production, and keep inventory in check.
This also means they directly impact future primary sales. If secondary sales slow down, there would be no purchase orders from distributors — meaning a higher risk of product returns, potential losses due to expiry, and reduced cash flow. This, in turn, can impact your net revenue and overall market competitiveness.
Some key factors that influence secondary sales include retailer demand, consumer behavior, and seasonality. For example, Haldiram’s — an Indian snack brand — saw a 12% increase in its Kaju Katli sales during the Diwali season in 2024.
Similarly, a retailer’s decision to stock and promote a product depends on its profitability — higher margins, incentives, or attractive trade schemes can all help here.
Now for the tricky part — here are some challenges that manufacturers and distributors may face with secondary sales:
But the good news: DMS software — like Botree DMS — can help brands support distributors and address most of these challenges:
Learn How Botree DMS Can Help FMCG Brands Provide Distributors with a Better Experience and Drive Sales Growth
Tertiary sales refer to the final stage where retailers sell the products to consumers. This is the ultimate measure of consumer demand and product reception, as it reflects actual market consumption.
Returning to Nabati’s example, this is when consumers buy their wafers from retail outlets.
Unlike primary and secondary sales, this stage is exclusively B2C and the most unpredictable — dependent entirely on consumer preferences, shopping habits, and spending power.
Another factor that influences tertiary sales is want vs. need. Consumers make quick purchases for everyday essentials like toothpaste or rice, but something like a premium skincare product or an energy drink would require stronger brand positioning to drive demand.
Some marketing strategies that brands can leverage to stay visible and relevant are running promotions (like Buy 1, Get 1), optimizing merchandising, and building brand loyalty. One example of brand authenticity and relatability is Patanjali Ayurved leveraging its founder, Baba Ramdev’s credibility to build brand trust.
When it comes to merchandising, here are two things you can do:
You can do this with a sales force automation tool like Botree SFA. And if you integrate it with your DMS solution, you’ll also get a central system with consolidated data on your primary, secondary, and tertiary sales.
Manage shelf placement and planogram adherence with Botree SFA
Explore How SFA Can Boost Sales Efficiency for Your CPG Business (with Examples)
Each stage feeds into the next, and neglecting one disrupts the entire system. What you need is a balanced strategy to drive demand, maintain stock flow, and maximize profitability across primary, secondary, and tertiary sales.
Here’s a quick table summarizing the key aspects of each stage — and how interconnected they are:
Aspect | Primary sales | Secondary sales | Tertiary sales |
Seller | Manufacturer | Distributor | Retailer |
Buyer | Distributor/Stockist | Retailer | End Consumer |
Tracking | Production and distribution | Inventory movement | Consumer demand |
Impact on brand | Affects company revenue | Determines market penetration | Reflects actual brand success |
Impact on next stage | If distributors are overstocked, they may slow down orders; if understocked, retailers won’t get the supply. | If retailers don’t stock enough, consumers won’t find the product, leading to lost sales and reduced reorders. | If consumers don’t buy, retailers won’t restock, leading to lower distributor orders and excess inventory. |
Now let’s look at how you can optimize each sales stage.
By doubling down on primary sales, you can maximize revenue potential right at the start of the supply chain. It also increases your cash flow and reduces losses from overproducing (locking in capital) or underproducing (losing sales opportunities).
How to sell better — from brand to distributor:
Leverage your DMS system’s analytics dashboards to break down sales by store and region and find actionable insights to increase revenue.
Get distributor sales data in Botree DMS to understand their performance
Secondary sales drive product availability at retail outlets, ensuring consumers have access to your brand. Poor optimization leads to lost sales, stockouts, and weaker brand presence.
How to sell better — from distributor to retailer:
Leverage AI tools like Botree SFA’s AI Product Recommender to analyze the products in-store and at nearby outlets to fill the gaps and expand the product range at the store
Suggest new products to retailers with Botree SFA’s AI Product Recommender
Learn How DMS Revolutionizes Inventory Management for FMCG Distributors
Read more
Optimizing tertiary sales drives consumer demand, accelerates stock movement, and increases retailer reorders—giving your product the best chance to reach consumers and become a success.
How to sell better — from retailer to consumer:
Simplify operations further by giving retailers a direct communication link to your brand with an app like Botree’s Retailer App. With this app, retailers will be able to:
From predicting demand to amping up retailer engagement, DMS and sales automation plans can help FMCG and CPG businesses streamline operations and maximize profitability. Here’s how tech can help your sales grow —
Learn How Botree DMS Discover how FMCG and CPG brands can execute their sales strategies better with automation.
Optimizing sales is the foundation of a successful FMCG or CPG brand. It ensures your products move efficiently through the supply chain, keeping distributors and retailers engaged while meeting consumer demand.
Here are some benefits of optimizing your FMCG sales strategy:
When your products are consistently available, you don’t give competitors the chance to steal your customers. A strong sales optimization strategy ensures that your brand remains visible and accessible, increasing trust and better customer experience. The result: your market share grows, giving you a stronger foothold in the industry.
When your supply chain is smooth — offering seamless ordering, real-time stock updates, and attractive trade incentives — partners are more likely to push your products. This means better shelf placement and stronger brand loyalty across the distribution network.
When customers can consistently find your product, they’re more likely to stick with your brand instead of switching to a competitor. Sales optimization ensures that stockouts don’t drive customers away and that your brand remains a favorite — and always available — choice, encouraging repeat purchases.
Sales optimization helps balance supply and demand — reducing both overstocking and stockouts. This means you’re not losing money due to unsold (or expired) inventory or missed sales opportunities. Plus, a streamlined sales flow keeps products moving efficiently through the supply chain, cutting operational costs and boosting overall profitability.
Put simply, optimizing your sales strategy allows you to hit your short-term goals while building a sustainable business in the long term.
Sales optimization isn’t just about selling more—it’s about selling smarter. Whether it is securing bulk distributor orders, keeping retailers stocked, or addressing consumer demand, a profitable primary, secondary, and tertiary sales strategy is key to sustained growth. And without the right tools, brands risk inefficiencies, missed opportunities, and ultimately, losing market share to competitors.
Botree’s DMS and SFA solutions help FMCG and CPG brands optimize every stage of the sales process with real-time insights, AI automations, and complete control over their distribution and sales channels. Plus, it integrates with your ERP, CRM, and POS solutions, ensuring data consistency and a single source of truth across your entire business ecosystem.
Book a free consultation today and talk to our product experts about how Botree can help you scale faster, sell better, and stay ahead of the competition
