Secrets of distribution: How to reach your buyer
After you have invented the one product that will change the lives of consumers, your next challenge will be how to reach them through distribution, marketing and sales.
The tragedy of many innovative discoveries is that they fail to hook up to the kind of distribution system which will deliver a product to the man or woman who needs it. There are several distribution options open to you. These include direct to consumer (targeting consumers individually and selling to them), selling via retailer, wholesale, mail order, or online. The method you choose will be determined by projected volumes and the requirements of the marketing plan you have in mind.
Your company can also open its own retail outlets in key locations, such as a clothing store for garments that you design and manufacture, or you can court an independent merchant who has the locations you seek, like a pharmacy chain for your books. You can also consider distributing goods yourselves, targeting retail outlets which have good foot traffic in the demographic of the consumer segment that you desire.
Other options used to attract consumers are product catalogues or flyers, telemarketing on your own or through a contract firm, television and cable direct marketing as well as home shopping channel.
A favourite option in Jamaica, for the food and beverages sector, as well as general consumer products, are companies dedicated solely to distribution. Distributors are often wholesalers who take product from a variety of sources and move them to preferred points of sale. You will need to research these distributors, question volumes needed, the businesses they supply such as supermarkets and corner shops, and their fees and payment arrangements, before you select one.
It is also advised that you secure an agreement over territories and other key issues with the distributor just in case future disagreement arises. Distributors will work harder and do a better job if you are a desirable brand. Outline your plan for brand promotions, marketing and advertising when trying to convince your preferred distributor to take you on board.
Meanwhile, consider that taking on a distributor who is a new boy or girl on the block might not be a bad idea, as they might work harder in order to make a name for themselves. Do not just send off your goods to the distributor and hope for the best. There is still more work to do. Target select locations with your marketing efforts in order to complement the presence of your product and get them moving off the shelf. Send sales staff to meet one on one with consumers in the supermarket and introduce them to your new macaroni and cheese. Online, TV, radio and print advertising is also effective and should be brought into the mix, but nothing beats face to face.
Of course, all of this would be for nothing if your product is of poor quality. Sales may do well at first because of excellent distribution and marketing, but the flow will certainly cease if the mac and cheese is not cheesy enough, or has poor shelf life, or some other fault. Refine and ensure product quality before setting your route to market in concrete.
When your product is on the shelf, you can think of ways of attracting consumer’s attention including price discounts, package promotions, cash back deals, prizes and surprises and so on. Make consumer reach personal. Make use of Facebook, Twitter, Pinterest, websites, Google Ads and other ways of reaching people who are surfing the Internet and may need your product.
To support all of this plan for distribution and sales, develop a market plan with a budget which is lined up with your sales forecast. And be prepared to make changes along the way, if feedback from your distributor or the consumer as to new ways in which you can meet consumer needs, or be more marketable, are made.