…how and where to reach your customers
The choice of the route to market is often a fundamental matter of survival. It depends on many factors, not only on the stage of the product life cycle of the product/ service, but also on structural issues, including the balance of power between distributors and suppliers.
Who will win the fight for power between distributors and suppliers? We can all see how the supermarkets dominate the grocery sector, but will the same happen in the construction industry? Some producers are worried about whether their merchants will be in business next year. But others are more concerned what will happen if the merchants they deal with are taken over by another that stocks a competitor's product. Many want to know what would happen if they dealt directly with their customers. It would certainly save costs, but at what risk?
Choosing the right route to the market is crucial, because of both the opportunities and the threats involved. The longer the distribution channels, the more they cost, so they must add measurable value.
This is why we use proven distribution models to help our clients establish the optimum distribution strategy. Often we will need to do same desk and field research to get the information we need to feed into the models. Typically, we use our own consultancy staff for this type of research, because they already have the necessary understanding of the dynamics of the industry.
Case Study - Distribution
A manufacturer of both commodity and speciality products, who sold directly to installers, was concerned about the growing dominance of his market by powerful speciality distributors. Leading Edge was asked to undertake a market mapping and distribution channel selection analysis to help them decide how best to respond to the changing scene. This included an analysis of these distributors' individual strategies, including what they had done in parallel market segments and how other manufacturers had successfully responded.
What our clients have said when using us for Distribution Channel consultancy
"Understand the market place and present information well"
"John Pratt seemed to listen, understand and react rapidly and accurately to a slightly off beat job"
"Intimate understanding of the construction industry"