The companies with the widest strategic distribution are often the most successful because that distribution system gives them access to so many potential customers.
Regularly the easiest way to grow your sales and profits is to improve your strategic distribution system. Adding retailers and increasing your accessibility in the web are two good ways to expand distribution.
If you sell to other businesses, then you can expand your network of salespeople in order to increase the reach of your distribution system.
When you think about strategic distribution for your business you have to decide how broadly to distribute your product or service. For this you must have a firm grasp of the myriad distribution choices available to you. After you understand the different options, you can take a strategic approach and select the strategy that’s right for your business.
- Selective distribution strategy:“stay small and keep it all” if your marketing strategy fit this model of distribution congratulation you can create a great brand with the sense of scarcity allowing you to have a higher price and a prestige brand.
- Exclusive distribution strategy:this is extreme selective distribution, but your product or service must be very unique and special so that customers will come to you. You can choose selective department stores for the distribution or just in your website, this will reduce the cost of operation and increase profitably.
- Intensive distribution strategy:this is the complete opposite to selective distribution just because it’s massive and is about make your product available in the major retail stores, if you sell retail of course. Be careful, depending on the stage of your business you may consider having a talk with a big retail store because you may need to meet some requirements and if your product gets a high demand, you have to be ready for it, start small and work your way up.
- 80/20: this strategy applies for distributors. You get 80 percent of your sales from just 20 percent of your distributors. Taking care and giving excellent customer service is a good strategy. You want to develop a strong personal relationship with them because if they know you, they’re more likely to get in touch with helpful news or ask for your assistance with a problem. You should invest in dining and gifts so they feel you take personal care of them, help the ones that have low-production so you can move them to the next level.
Remember, if you feel your advertising methods, marketing efforts, or just simply your strategic distribution plan seems to not work, give us a call we are definitely here to help!