What it is
Determine which sales and distribution channels should be used in the company’s growth and expansion strategy to reach customers who want quality products at the right time and in the right conditions: distribution, franchises, licenses, direct sales, own stores, e-commerce, marketplaces, and others.
Which channels will provide this client with greater proximity and intimacy, as well as greater convenience and a better experience? A strategic analysis of sales and distribution channels will support the entrepreneur in this definition, as it evaluates and compares its performance with the various alternatives of existing channels, with a technical and validated analysis of those that can allow a faster and safer expansion, at a lower cost and with greater control, in addition to evaluating how its competitors operate and how they operate.
The channel or channels that will be used as part of the company’s growth strategy must be structured, with well-defined processes and service methods, so that channel agents may achieve the intended results, both in terms of market occupation and remuneration for the work performed.
Defining the sales and distribution channel strategy that best meets each company’s control, cost, capillarity, and expansion objectives is a job that necessitates a thorough understanding of each channel and the effects it can have on the organization.
How We Do It
Economic criteria, such as which ones offer the lowest selling cost; control factors, also the ability to manage sales and service efficiently and without putting the brand in danger; and, finally, how much effort will be required to adapt to the new channel.
Furthermore, how will each new channel integrate with existing ones to give a consistent brand experience across all of them without causing problems in the customer relationship?
To answer all of these issues, a Strategic Assessment of Sales and Distribution Channels is conducted, comparing the benefits and drawbacks of each sales channel and identifying those that provide better opportunities for market share growth and brand enhancement. It also offers a proposal for the designated channel’s organizational structure and processes.
The entrepreneur will have a clear vision of the results achieved with the current channels, the strengths and weaknesses that impact the results internally, and the opportunities and threats that can positively or negatively affect the business in the coming years after conducting a strategic assessment of distribution channels.
Increased business capillarity, market gain, additional revenue, as well as taking advantage of prospects not yet explored by the company.
Furthermore, diversifying channels allows new customers to interact with the brand, making it a more consistent part of their everyday lives.
Learn more about it:
Economic Value: Integrated Channels Matter
E-book: Expand Channels, Generate Convenience, Boost Results (2016)