Marketing and selling in tough economic conditions:

Creative distribution strategies

Series by Prasanna Perera, Marketing and Management Consultant, Chartered Marketer, CIM UK

Distribution or Place is a often neglected element of the marketing mix. However, in difficult economic times, creative distribution strategies can be beneficial for growth. In this brief article, I will provide some insights, which I am certain will be useful.

1. Look out for new dealers aggressively. Visit all by roads, mega towns and mini towns. New dealers could be the one’s stocking the type of product or even new dealers who do not traditionally stock the product. For example, electrical goods could be sold in hardware shops, in addition to electrical goods shops.

2. Regular visits to existing dealers and customers. The objective is to maximise sales by keeping the competitors out of the door and also by building close relationships.

3. Develop new channels, to expand the width and depth of distribution. For example, in FMCG products, direct distribution channels to end users online and off line. In consumer durable products, Hypermarkets and modern trade (supermarket) channels could be used.

4. Identify new geographical areas and penetrate same like the Northern and Eastern provinces.

5. Reduce dependency on wholesalers and concentrate on intensive retail distribution. Wholesaler power is dropping, due to the rapid growth of retailers, as well as door to door sales and delivery.

6. Concentrate on online (e-distribution). This is possible for certain types of products and services. E-distribution is cost effective and provides great reach. Many Sri Lankan organizations are experimenting with e-distribution.

7. Decentralize distribution as much as possible like deports, sub-depots and regional centres. The objective is to get closer to the market and respond speedily to market requirements.

8. Distribution channels on wheels (mobile distribution). Many organizations in Sri Lanka have successfully adopted this strategy. When embarking on such a strategy, you will come across strong resistance from dealers so do not be disheartened by such objections, but build up dealer confidence based on the long term mutual benefits.

9. Do not be afraid to radically demarcate or re-demarcate selling territories. The geographical terrain in the country is under going rapid changes, with new highways, townships and housing projects being developed.

10. Manage distributors and agents not only for sales but also for profitability and productivity. Provide distributors or agents avenues to enhance their profits, whilst enhancing organizational performance. Above all, manage trade intermediaries effectively. (Keep the balance of power with the organization).

11. Concentrate on a multi channel strategy in order to penetrate markets effectively. However, all market channels should be evaluated regularly for efficiency and effectiveness.

Distribution is a critical element of the marketing mix for any type of product or service.

Harness the power of effective distribution, for competitive advantage.