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How to Develop a Distribution Strategy

You need to get your products to consumers, and that means you need a distribution strategy. When you think about how to develop a distribution strategy, you need to consider the channel you want to engage. Distribution strategies can be either simple or complex, and a product distribution strategy consultant can help you make sense of it all.

A distribution strategy is the method you choose to get your products to your end consumers. Are you questioning how to develop a distribution strategy? 

Consider the two types of distribution channels:

Direct, which lets your customers buy straight from the manufacturer

Indirect, which lets your customers buy from a retailer or wholesaler

The channel you choose depends on your business and your goals. You might even select leveraging both distribution strategies to maximize profits and make the most of your business revenue.

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How to Develop a Distribution Strategy Step by Step

Make the most of your distribution strategy with a simple, step by step guide.

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Know your customers

When you think about how to develop a distribution strategy, you need to think about your end consumers. Do you know the needs of your customers? How your customers access your product? Do they buy online or in-store? What are they looking for in your product? How you answer these questions might help you develop a distribution strategy. It’s also important to know that the answers to these questions might not seem clear at first. You can learn more about your customers through trial and error, but it might be best for your business to skip this learning curve step and take advantage of product distribution consulting.

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CHOOSING A CHANNEL

There are two main types of distribution strategies. The first step is thinking about the channel you’d like to use to sell your product. This might vary, depending on the type of product you’re selling. Does your product need to reach your consumers through retailers or wholesalers? If so, you might select an indirect channel. If you’re comfortable selling your product or service straight to consumers, a direct channel of distribution might be for you. Remember when choosing to sell wholesale or retail, that the number of intermediaries between you and your consumer can reduce your revenue.

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Identify a Marketing Strategy and Intermediaries

After you’ve identified your end customer and figured out your channel, it’s time to hone your marketing strategy and identify intermediaries. If you’re choosing an indirect channel, you can look at intermediaries in several different categories to assist with your sales process. You might choose to work with:

  • Brokers and agents
  • Distributors and wholesalers
  • Retailers
  • Value-added resellers

Working with these intermediaries to develop a marketing plan for your product could lead to strategic partnerships that will benefit both your small business and their business for years to come.

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Analyze and Adapt

You’ll find that not all distribution strategies are created equal. Some strategies will work better than others. Your profit margin depends on the right strategy and is an integral part of the way you do business. Think about your business metrics and performance. This can help you figure out how buyers and sellers are taking advantage of your distribution strategies.

Partner with R+L Global Logistics

If you’re in the process of learning how to develop a distribution strategy, it is wise to partner with an industry leader who can offer you product distribution strategy consulting. The right consultant can help you get your product from the manufacturer and into your consumer’s hands.

You’ll find that consulting with R+L Global Logistics offers a perfect solution to get your goods in the hands of consumers, regardless of the strategy you choose. Regardless of whether you need assistance narrowing a channel, transporting goods or distributing from a warehouse, discussing your needs with our team of consultants can provide you with the answers you need to find the right fit for your business. From small startups to major corporations, R+L Global Logistics is prepared to offer a strategic partnership to help you get your products in consumers’ hands. Boost profit margins and grow your business with product distribution strategy consulting from R+L Global Logistics.

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Choosing the right distribution channels for your business can be a difficult and confusing process. Whether your business is a small scale custom t-shirt design company or a giant producer of goods, you will need a distribution strategy. Determining the right channel will impact your company’s marketing strategy, business model, and more. Will it solely […]

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