When business need to expand, one of strategy that management would like to implement is to wider distribution in GT/TT channel, especially local distributor is often prioritized.
Thus, the selective of middle man in route to market is often to be “Local distributor” who play an crucial role to distribute product and service in response area.
The way to setup this model that the writer had experienced are consist of 3 steps
1. Business proposal : there are many analysis and dimension in both inside and outside factors to make project success and outcome must met business proposal in determined period. Most of view analysis that we should consider are
– Market size – to seek demand gap and opportunity
– Market competitive – to verify and plan product assortment to fight in market
– Route to market(RTM model) – to match category role to targeted customer
– Strategy house – to know our strategy and tactic to meet objective
– Local distributor infrastructure – to check their profile that meet our requirements
– Remuneration – to convince enough comparing to average net profit in industry
– Tools – to clear tools to hit target together
– Product mix, trade promotion by channel (pipeline&3-6 months)
– Rollout plan – possible plan by phasing
– Source of growth – roadmap to grow business for short-moderate-long period
2. Feasibility :
This part will reflect how long to make project meet breakeven point as well as return on investment, what indicators that we must be addressed to meet KPI, resource planning, how and when we get active customer as planned, etc.,
3. Implementation plan :
More safety and saver spending, it usually implement by phasing by prioritize where is strategic area, targeted consumer, faster cash generator, etc. The importance mindset for this part is to “make it happen”
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