{"id":5723,"date":"2023-03-14T10:34:50","date_gmt":"2023-03-14T03:34:50","guid":{"rendered":"https:\/\/cleverads.com.ph\/blog\/?p=5723"},"modified":"2023-03-14T10:34:50","modified_gmt":"2023-03-14T03:34:50","slug":"modern-trade","status":"publish","type":"post","link":"https:\/\/cleverads.com.ph\/blog\/modern-trade\/","title":{"rendered":"Modern Trade: All you need to know about MT"},"content":{"rendered":"<p><em>What is MT (Modern Trade)? What is TT (Traditional Trade)? Distinguishing modern and traditional distribution channels, note 5 points when developing MT channels with CleverAds.<\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">1. What is Modern Trade?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">MT &#8211; Modern Trade (or modern distribution channel) is a term used to refer to present-day sales channels that sell different chains or groups of products. This channel has the participation of professional players such as:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">Hypermarket (Hypermarket):<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0a more advanced channel than a supermarket but not as good as a commercial centre, often with an entertainment area. For example, Aeon and Lotte.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Supermarket (Supermarket):<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0a self-service retail channel practice in selling food, household goods, etc. For example, Walmart and Mega Market (MM).<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Convenience Store:<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0Focusing on convenience, prices are often higher than in supermarkets, suitable for buying small quantities\u2014for example, Circle K and 7-Eleven.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">E-Commerce (E-commerce):\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">commercial transactions conducted over the internet. For example, Shoppee, Lazada, Tiki, etc.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Distributors in the MT channel are professionally managed inventory and purchasing to the supply chain.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5725\" src=\"https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1.jpg\" alt=\"modern trade\" width=\"2560\" height=\"1442\" srcset=\"https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1.jpg 2560w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-300x169.jpg 300w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-1024x577.jpg 1024w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-768x433.jpg 768w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-1536x865.jpg 1536w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-2048x1154.jpg 2048w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1-800x450.jpg 800w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><strong><span data-preserver-spaces=\"true\">2. Distinguishing MT (Modern Trade) \u2013 TT (Traditional Trade)<\/span><\/strong><\/h2>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><b><span>Criteria<\/span><\/b><\/p>\n<\/td>\n<td style=\"text-align: center;\"><b><span>Modern Trade<\/span><\/b><\/td>\n<td>\n<p style=\"text-align: center;\"><b><span>Traditional Trade<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><span>File<\/span><\/td>\n<td><span>Chain with multiple locations run by a trained management team\u00a0<\/span><\/td>\n<td><span>Primarily a shop run by one owner, family, or employees<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Decision makers<\/span><\/td>\n<td><span>\u2013 Multi-layered decision making process requires time<\/span><span>\u2013 Head office, in some cases individual branches<\/span><\/td>\n<td><span>\u2013 One or two decision makers<\/span><span>\u2013 Usually the owner or manager<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Relationship with customers<\/span><\/td>\n<td><span>Limited interpersonal relationships<\/span><\/td>\n<td><span>Focus on the interpersonal relationship between the customer and the retailer<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Demand<\/span><\/td>\n<td><span>Consistent demand<\/span><\/td>\n<td><span>More seasonal, stop selling certain products when out of season<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Customer base<\/span><\/td>\n<td><span>Large customer base and service areas that can include thousands of customers<\/span><\/td>\n<td><span>Primarily serving the neighborhood and local community<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>List of brands and packaging\u00a0<\/span><\/td>\n<td><span>Required and may include lengthy and detailed processes, presentations and documents, prior to receiving approval\u00a0<\/span><\/td>\n<td><span>Optional \u2013 negotiate with owner<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Product range<\/span><\/td>\n<td><span>Diversity with thousands of products<\/span><\/td>\n<td><span>Mostly limited to hundreds of products<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Economies of scale<\/span><\/td>\n<td><span>Retailers can bear low prices to sell multiple products, promotional discounts to promote purchases<\/span><\/td>\n<td><span>Commodities are traded mainly at the maximum retail price\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Out of stock<\/span><\/td>\n<td><span>Less common with improved inventory management<\/span><\/td>\n<td><span>More commonly, replacement based on wholesaler or distributor availability<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Promotion\u00a0<\/span><\/td>\n<td><span>\u2013 Provide ongoing promotions<\/span><span>\u2013 Sales promotion programs take place in a centralized and unified manner<\/span><\/td>\n<td><span>&#8211; Some promotional prices<\/span><span>\u2013 Negotiate promotions with individual owners or managers<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Location<\/span><\/td>\n<td><span>Usually in heavy traffic areas, strategic locations<\/span><\/td>\n<td><span>All locations, but some in crowded areas and small streets<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Financial Line<\/span><\/td>\n<td><span>\u2013 Payment through many forms including bank transfer and cash<\/span><span>\u2013 Long credit cycle\u00a0<\/span><\/td>\n<td><span>&#8211; Cash<\/span><span>\u2013 Short credit cycle<\/span><\/p>\n<p><span>\u2013 Usually gives credit to customers based on relationships<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Shopping<\/span><\/td>\n<td><span>\u2013 Buy directly from the manufacturer<\/span><span>\u2013 Mainly centralized shopping<\/span><\/p>\n<p><span>\u2013 Ask the sales team to provide detailed information, e.g. sales, pack contributions, trends\u00a0<\/span><\/td>\n<td><span>\u2013 Mainly buy products through intermediaries, such as distributors and wholesalers<\/span><span>\u2013 Purchase for a store<\/span><\/p>\n<p><span>\u2013 Owners or managers make purchasing decisions<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Delivery<\/span><\/td>\n<td><span>\u2013 Scheduled \u2013 delivered on time<\/span><span>\u2013 Delivery to specific stores or warehouses<\/span><\/td>\n<td><span>\u2013 More flexible on delivery time<\/span><span>&#8211; Delivery to each store<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Execution time<\/span><\/td>\n<td><span>\u2013 Longer but more structured\u00a0<\/span><\/td>\n<td><span>\u2013 Shorter cash flow management<\/span><\/td>\n<\/tr>\n<tr>\n<td><span>Trading equipment<\/span><\/td>\n<td><span>\u2013 Requires specialized equipment<\/span><span>\u2013 Multiple spots available for product display or cross-promotion<\/span><\/p>\n<p><span>\u2013 Equipment placement requires detailed negotiation with many stakeholders<\/span><\/td>\n<td><span>\u2013 Standard equipment, e.g. stand<\/span><span>\u2013 Limited space for equipment placement<\/span><\/p>\n<p><span>\u2013 Often use devices such as refrigerators to store personal items, for example: milk, butter<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5724\" src=\"https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade.jpg\" alt=\"modern trade\" width=\"1280\" height=\"720\" srcset=\"https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade.jpg 1280w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-300x169.jpg 300w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-1024x576.jpg 1024w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-768x432.jpg 768w, https:\/\/cleverads.com.ph\/blog\/wp-content\/uploads\/2023\/03\/modern-trade-800x450.jpg 800w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<h2><span data-preserver-spaces=\"true\">3. What are the notes when developing the Modern Trade channel?<\/span><\/h2>\n<h3><strong><span data-preserver-spaces=\"true\">3.1. Increase interaction with <a href=\"https:\/\/cleverads.com.ph\/blog\/what-is-the-target-customer\/\" target=\"_blank\" rel=\"noopener\">customers<\/a> with Modern Trade<\/span><\/strong><\/h3>\n<p><span data-preserver-spaces=\"true\">When using the MT channel to distribute goods, brands need specific tactics to bring products to customers quickly and impressively. Thereby helping sales activities take place effectively and bringing high revenue.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">3.2. Understand the product&#8217;s position in the market<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Understanding the position of the product in the market is very important. Because then businesses can have sales and marketing strategies suitable for each product type and achieve maximum revenue.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">3.3. Effectively apply the key shelf strategy<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">\u00a0The best way to help products attract customers&#8217; attention is to place them on the key shelf. Therefore, better use of the keys shelf strategy increases the competition of the product compared to other brands.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">3.4. Build and manage an effective human resource team<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Building and working with a team of sales staff at optimal and effective supermarket systems to help ensure the profit of sales activities.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">3.5. Combined with <a href=\"https:\/\/cleverads.com.ph\/blog\/digital-marketing\/\" target=\"_blank\" rel=\"noopener\">digital communication<\/a><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">In the digital age, customers don&#8217;t just &#8220;touch&#8221; the brand through offline channels. Combining digital tools to create a cohesive, personalized shopping experience helps businesses impress customers, boosting sales.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Combine distribution and communication to increase revenue with Digital Marketing expert CleverAds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3 style=\"text-align: center;\">If your business requires Digital Marketing solutions, contact us at\u00a0<a href=\"https:\/\/cleverads.com.ph\/blog\/tourism-and-hotel-marketing\/cleverads.com.ph.\" target=\"_blank\" rel=\"noopener\">cleverads.com.ph.<\/a>\u00a0for the fastest support.<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>What is MT (Modern Trade)? What is TT (Traditional Trade)? Distinguishing modern and traditional distribution<\/p>\n","protected":false},"author":4,"featured_media":5726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-5723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/comments?post=5723"}],"version-history":[{"count":1,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5723\/revisions"}],"predecessor-version":[{"id":5727,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/posts\/5723\/revisions\/5727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/media\/5726"}],"wp:attachment":[{"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/media?parent=5723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/categories?post=5723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cleverads.com.ph\/blog\/wp-json\/wp\/v2\/tags?post=5723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}