Case Study: Channel development

The opportunity: A business had strength in traditional distribution channels, but its presence in fast growing retail channels was weak and was a significant competitive risk.

The paths:

1. Identified customers as strategic or standard, irrespective of current size, and identified account-specific programs to gain shelf space and revenue for strategic customers.
2. Changed product philosophy from "second-hand products" to products "not better, not worse, but well-tailored" to the needs of retail channel customers. 
   
3. Structured analytics supporting Product Line Reviews, that enabled real-time ability to constructively counter proposals by customers that would damage profitability.
4. Proposed and executed marketing program with retailer customers that generated true growth at both the retailer and manufacturer level.
   

The results:  The four largest strategic customers grew from 20% to 72% over three years, with improvements in gross margin percentage in all customers.  The product differentiation minimized channel conflict with distribution channels despite the significant focus put into the retail channel.  After the line review process, the Sales team for the business became the "first call vendor" when the buyer or customer senior management wanted input from the vendor base.

See the potential benefits WisePath Strategy can help you achieve improving channel performance.