No business can survive without a distribution strategy and corresponding distribution channel. A company's chosen distribution strategy and channels must be aligned with its overall business objectives to be successful. Every business has different ambitions and goals, so it is important to tailor the distribution strategy and channels to fit the company's specific needs.
What is a Distribution Strategy?
A distribution strategy is a plan for getting a product or service to market. It includes decisions about how the product will be delivered to customers and how the company will reach potential buyers. A distribution strategy can be tailored to meet the needs of a particular business or product. They may also vary depending on the target market, the competition, and the company's resources. There are a variety of distribution strategies that companies can use. Some standard methods include direct sales, wholesaling, retailing, and franchising.
Choosing the right distribution strategy is a crucial decision for any business. The wrong approach can lead to low sales and missed opportunities. It is important to carefully consider all options and select a strategy that will best aid in fulfilling the company's goals and satisfy its customers.
When selecting a distribution strategy, consider the following:
- The needs of the product
- The target market
- The preferences of the target market
- The ease of distribution
- The cost of distribution
- Company goals and objectives
What Is Product Distribution?
Product distribution is a method by which companies deliver their goods or services to the intended end-user or customer. Getting the product distribution strategy right is crucial. Depending on the customers or the product, companies generally use these standard distribution methods to increase their revenue:
Direct sales include selling products or services to customers by using the company's own sales force.
Wholesaling consists in selling products to retailers or other wholesalers, who then sell them to consumers.
Retailing is the sale of products or services to consumers through stores or online outlets.
Franchising is a type of distribution where a company licences its trademarks and business model to another party, who then operates the franchise under the terms of the agreement.
Importance of Distribution Strategy
A well-planned distribution strategy is important because it can help you reach more consumers and sell more products. If you can get your products into the hands of more people, you're likely to see a boost in sales. Distribution is the key to building a successful brand. A good distribution strategy can also help you ward off competition from rivals.
3 Types of Distribution Strategy