Supplements: Sub-Distributors

Overview

Sub-distributors are a distribution channel for the AdvaLife product range that is one stage after the distributor in the supply chain. Sub-distributors operate similarly to distributors, but just on a smaller scale. Some differences exist, but the main differences to understand are:

See:

Distribution Channels: An Overview > Sub-Distributors

Product Range: Which products apply to this channel and why?

Our entire AdvaLife range is positioned for the sub-distributor channel, but the sub-distributor is limited to the AdvaLife products that the distributor supplies to them. The same products will be sold to pharmacies, other retail stores and promoted to doctors. The dosage forms positioned for the sub-distributors will be identical as for the distributor, however it is at the discretion of the distributor for which products he sells to different sub-distributors because:

See:

Supplements: Pharmacies > Product Range: Which products apply to this channel and why?

Supplements: Other Retail > Product Range: Which products apply to this channel and why?

Target Audience

B2B: Primary Target Audience

As smaller sub-distributors cannot purchase large volumes of supplements to meet our MOQ per product, they will purchase smaller quantities from our distributors.

Also, it should be noted that many sub-distributors are smaller companies, and therefore have more limited financial capability and rely on credit payment terms from distributors who will give them products on credit (i.e. 30, 60, 90 days) that is paid back according to the terms of their agreement with the distributor.

The distributors are our customers, the direct purchasers of our AdvaLife products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

Sub-Distributors

First, see the difference between small and large sub-distributors to identify which type of sub-distributor the secondary target audience is:

Distribution Channels: An Overview > Sub-Distributors > Why don’t sub-distributors buy directly from AdvaCare?

Overview

Although the sub-distributor operates in much the same way as the distributor, they are technically still the secondary target audience - a later stage in the supply chain. The way in which they present AdvaCare and our products, provide promotional materials and keep relationships with their customers are mostly the same as the distributor. However, in some cases the sub-distributors might need more specialized promotional materials to meet specific marketing objectives. For example, if some distributors focus on gummies and syrups for kids, we might provide customized promotional materials, and perhaps even specific product packaging.

As the sub-distributor will sell our AdvaLife products to pharmacies, other retail stores and promote to doctors (who then drive sales to pharmacies that might or might not be the sales channel inside a clinic or hospital), the products must be well accepted by consumers and patients so that they will continue to take the same AdvaLife product, or even start taking other new AdvaCare products they have not tried before.

Pharmacies

See:

Supplements: Pharmacies > B2B: Secondary Target Audience

B2C

Consumers and patients are the end users of our AdvaLife products. And given that supplements are food products, and therefore highly retail oriented, the consumer is extremely important. This is due to the fact that consumers need to be convinced of our product quality, reputation and trustworthiness to continue consuming our products, a range which they have full decision making control, unlike pharmaceuticals and medical devices as the consumer is not always the decision maker.

The sub-distributor, sometimes being more localized and specialized than our distributor whom they purchase from, must cater to the needs of the consumer by supporting the pharmacies, retail stores and doctors. AdvaCare must support the sub-distributor, via our distributor, to provide promotional materials and other support to ensure that they have all of the tools necessary to make our brand successful in their market.

Supply Chain

Sub-Distributors are the third to last stage in the supply chain before the product is distributed to a pharmacy/retail store and ultimately used by a patient or consumer:

API Manufacturer > Finished Manufacturer > AdvaCare > Distributor/Importer > Sub-Distributor > Pharmacy/Other Retail/Doctor > End Consumer (patient/consumer)

See:

Distribution Channels: Introduction > Understanding Supply Chains

Promotional Materials: Which materials apply to this channel and why?

As sub-distributors sell AdvaCare products to the same channels as distributors, the promotional materials are the same, the only difference being that the sub-distributor does not have other distributors further down the supply chain. The kind of promotional materials we produce for our distributors to provide to their sub-distributors will ultimately be for the hospital/clinic and pharmacy channels:

See:

Supplements: Pharmacies > Promotional Materials: Which materials apply to this channel and why?

Supplements: Doctors > Promotional Materials: Which materials apply to this channel and why?