You have a great product that is packaged and produced and has seen great success at your local grocery store. The store owner places a bigger order.
A month later, a couple of other grocery stores also want to place your organic peanut butter granola bars in their store.
So how do you get your delicious organic granola bars from Point A—their place of production and packaging to Point B of sales, where your customer finally receives them?
The path these goods take to reach your final consumer is retail distribution.
1. Understand Your Business And The Importance Of a Retail Distribution Strategy
Think of it like this. The retail distribution strategy is how you decide to ship your granola bars from your production area to the ten stores you said you would.
With ten stores covering one area or within a city, the path can be short a simple, short, direct distribution channels from the vendor straight to the consumer.
But let’s say as you expand your business, you now want your product at over 100 stores spanning different states. Now your path is longer and would probably involve wholesalers, distributors, or other agents who we call intermediaries.
And since the landscape keeps changing, how do you decide which way you should go.
2. Understand the three different retail distribution strategies
There are three types of distribution. The first is intensive distribution, the second is selective distribution, and the third is exclusive distribution.
Understanding these as well as consumer and industrial-focused distribution channels is also important before you move on to the next step.
3. Pick the retail distribution strategies based on your CPG brand numbers and category
To choose the right strategy, you as the business owner need to understand and know the demand, your production capacity, and other metrics like the size of the target market.
You will also need to consider pricing and promotion policies.
Remember, the more intermediaries involved, like a warehouse holding on to your products before shipping them, the higher the product’s price. But keep in mind that sometimes lengthy distribution channels cannot be avoided because direct sales are infeasible or impractical.
4. Hire a Sales Management Solution consultant like Emerge to help you with your Retail Distribution Strategy
Too much work? Or perhaps you are still facing problems after choosing the strategy you need? You thought it would be easier? Plus, it is not costing you more because your products are going to waste.
Well, it can be simpler and easier. Businesses like yours outsource their retail distribution strategy to consultants like Emerge natural sales solutions because not only do they offer the right management support to new CPG businesses, but they also have experience and knowledge about the CPG category.