FMCG Glossary

What is Route to Market?

Route to Market (RTM)

Definition

Route to Market (RTM) describes the strategic path a product takes from producer to end consumer. In FMCG, RTM strategy defines which channels, customers, and distribution methods a brand will use to reach its target shopper.

Examples of Route to Market in FMCG

  • Direct to retail (selling direct to Tesco, Sainsbury's)
  • Wholesale distribution (selling via Bestway, Nisa, Spar)
  • Foodservice distributor (selling via Bidfood, Brakes)
  • DTC / e-commerce (selling via owned website or Amazon)

Route to Market in the FMCG Industry

RTM decisions significantly affect margin, control, and reach. Selling directly to the top-4 grocery multiples maximises visibility but requires significant investment in NAMs and trade spend. Wholesale channels offer broader geographic reach at lower cost but less control over in-store execution. Most FMCG brands use a mix of channels with different RTM strategies per channel.

Why Route to Market Matters for Your FMCG Career

RTM strategy is central to senior commercial and sales roles. Commercial Directors and Sales Directors spend significant time evaluating and optimising RTM to maximise profitability and market penetration. Understanding RTM is also important for NAMs when structuring trade investment and pricing.

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