A detailed distribution Strategy is guaranteed to help you get more sales.

Any company that wants their products to reach all corners of the Earth while fetching them good money needs to figure out a solid distribution strategy for their business.

They can use direct selling, which involves using direct marketing to get their products straight to their consumers
They can also sell through intermediaries, e.g., affiliates, retailers, sales agents, etc.

Companies can do a dual distribution (using both strategies at once). The bottom line is to figure out a distribution strategy that will work for your products and work around them.

Why?

A company will not be able to sell their goods or services if they do not the proper distribution strategy. The distribution strategy here involves transportation, packaging, and delivery.

Once a company has been able to find the right distributor, it goes a long way to enhance their exposure. This in turn gives them an edge in terms of speed, and efficiency.

For a start, a company needs to understand their product distribution channel, and this means being involved with the manufacturer and the consumer.

There are two channels involved here, the direct and indirect channels. The direct channel works with the consumer directly, while the indirect approach is central to the intermediaries.

Right now, there are four levels that constitute the flow between the manufactures and the consumers. And any company who wants to expand into new markets or change their distribution strategy has to get in touch with all four levels.

Each level is categorized as follows;

Level 0: This involves direct sales from manufactures to consumers with no intermediaries.

Level1: This channel had one intermediary between the producer and consumer. E.g., a retailer

Level 2: This channel constitutes two intermediaries between the manufacturer and the consumer. E.g., a wholesaler who sells to the retailer and the retailer finally gets the product to the consumer.

Level 3: This channel makes use of agents or brokers. They work on behalf of the companies and deals with the wholesales directly.

Distribution strategy solely depends on the type of products sold. Companies need to know which type is perfect for their overall growth goals.

Manufacturers often choose either of these three methods of distribution for the dispersion of their goods in the market.

Intensive Distribution: The goal of this distribution strategy is to penetrate as many markets as possible.

Selective distribution: This provides a customized shopping experience, so companies choose a specific location for their goods.

Exclusive distribution: this chooses limited outlets, and it helps maintain a brand’s image and product exclusivity.

In order to have effective distribution strategies, companies have to observe the process and prevent execution errors. These errors could be out-of-stock errors and distribution voids.

To avoid this, they have to set up clear lines of communication between managers, sales teams, and distributors. These will help to disseminate information quickly and clearly as possible.

Companies should also endeavor to form better relationships with their distributors in order to open up opportunities for expansion.

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