Distribution channel is one of the vital components of a business market strategy. It marks the midway path before goods and services reaches consumers. Hence, determining the right distribution channels is crucial in getting a product to the right target market, at the right time to maximise sales potentiality, profitability and business efficiency. This is particularly crucial for a new brand trying to enter the market.
Other than constantly reviewing internal distribution channels presence and performance, it is also crucial to be sensitive towards external market changes, should there be a horizon of new distribution channels to help expand business opportunities.
Understanding the market distribution channel strategy helps businesses to plan resources effectively. The strategic planning process has to be supplemented with internal distribution channel evaluation.
Below are the recommended steps for brands to formulate an effective distribution channel strategy using the dashboard:-
- Internal assessment: To review own brand distribution channel presence. For instance, the brand presence across multi-brand retailers’ platform and/or offline brick-and-mortar store.
- To review competitors’ online distribution channel presence and performance
- To identify new distribution channel opportunity
Research time is shorten in collating the brands’ distribution channel data insights from the dashboard, given the widespread of brands’ presence across multiple eCommerce platforms these days. Having clear visibility of your brand and competitors’ distribution channel distribution in the market allow brands to:-
- Optimise brand presence in the market
- Optimise SKU distribution across distribution channels
- Establish an alternative channel for discount distribution
- Optimize overall brand stock level and weeks cover
- Manage stock distribution effectively across multiple channels
- Optimise SKU sell-out across distribution channels
With the goal of promoting sales growth and business profitability in mind, brands would require to formulate a desirable strategy plan to work across different distribution channels. Product sellthrough could be optimised, brand awareness could be further strengthened should the brand leverage on the strength of respective distribution channels to reach the desired target market effectively.
We hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.