Just happy to be here!
Updated: 4 days ago
I follow a number of amazing entrepreneurs with great! business concepts. I wish these people all the success in the world. Over and over again I see posts about new distribution and how many new locations they've achieved. As if "Mike's Seaside convenience store" is going to catapult their sales velocity into the stratosphere. In my head, I call this group the "just happy to be here" segment.
You've done all this great background work to create a brand and marketing position to target key customers that you feel resonate with your brand. Let's say a premium health drink for this example. You achieve banners like Whole Foods, Fortinos, and other premium banners out of the gate but the velocity isn't where you need it to be so we stray off course. The next obvious step for most entrepreneurs is to target the entire retail universe. Next, we get into Food Basics, tucked down the pop aisle, bottom shelf, with non-alcoholic beer. While you can make your sales agency jump through hoops to get things moving, we should start with the business questions before moving ahead.
Have we maximized the opportunities in front of us?
How does the new opportunity benefit your business? Is it part of our plan?
How does this impact the perception of my brand in the eyes of the consumer?
How much of an investment is this retailer expecting and would those dollars be better spent somewhere else?
Does the volume projection here meet my min requirements?
---------Just because you can doesn't mean you should.----------
A distribution strategy for a consumer packaged goods (CPG) company typically includes the following elements:
Channel selection: The company must decide which channels to use to reach its target audiences, such as supermarkets, convenience stores, online retailers, or direct-to-consumer sales.
Category Placement: Where is my "picture of success" placement in the store? Pizza sauce? Do I want to be beside the dough in the bakery or in with the sauces and why?
Coverage: The company must determine how widely to distribute its products, whether through selective distribution, intensive distribution, or exclusive distribution.
Logistics: The company must plan and manage the transportation, warehousing, and inventory of its products to ensure they are delivered to the right place at the right time.
Sales and promotions: The company must develop and execute sales and promotion strategies to increase demand for its products.
Partnerships and collaborations: The company may form partnerships or collaborations with other companies or organizations to expand its distribution network and reach new customers.
Service and Support: The company should also plan for after-sales service and support to retain customer loyalty and encourage repeat purchases.
Monitoring and Evaluation: The company should regularly monitor and evaluate the performance of its distribution strategy, making adjustments as necessary to ensure that it is aligned with the company's overall business goals and objectives.
It's important to note that the specifics of the distribution strategy will vary depending on the company's target audience, industry, and overall business goals, but these elements are typically a part of any distribution strategy.