Extending the number of the distribution channel of your beverage portfolio is an important factor to increase the opportunities in selling your product to new and potential customers. By doing so you are able to identify key customers and target markets that help you reach other new and unexplored channels.
Even for the most successful companies, operating distribution channels can turn out to be difficult, that is due to the fact that there are many factors you need to put into consideration. If you don’t have a good and thorough plan to administer and manage your distribution channel, you might end up with bigger costs and a bad business strategy.
In order to remain competitive in the beverage market and supply chain, distribution has become essential. So how exactly should you make sure your distribution strategy increases the level of productivity, improves consumer engagement, and boosts sales?
Select the best distribution channel
When choosing the best distribution channel, you need to consider how different these channels affect the position of your product as well as the potential profit growth. Once you have got the sense of which distribution channel is right for your business and customers, you would need to choose more than one depending on where your customers are located.
Consider you competitors
You need to consider what strategies your opponents are using and whether or not they have proven to be effective as well as determine which distribution channels your competitors have monopolized, and then devise options. So for example, if your competitor has been focused on online distribution, you should focus on distributing your product on retail brands to acquire a competitive advantage.
Focus on the industry’s primary channels
The beverage industry’s primary channels include supermarkets, vending machines, convenience stores, gas stations, and more. Supermarkets and other retail stores are one of the biggest channels when it comes to the beverage industry, where you can find a variety of beverages. When it comes to people who enjoy alcohol some tend to carry with them a hip flask as a drinking companion wherever they go.
The total market value of grocery retailing in the United Kingdom was estimated to be around 205 billion British pounds (GBP) in 2020. Supermarkets, with a market value of 90.2 billion pounds, have the highest share of the five main sales channels. This means that the beverage products industry has the opportunity to extend in these primary channels.
Keep track of your performance
At any stage of the sales process, you should know who your top salespeople are. You can detect and enhance underperforming partners while keeping top performers satisfied by monitoring orders, volume, and total revenue at each point.
Increase your sales by improving your distribution with go-to-market
A distribution system that is flexible enough to adapt to consumer preferences and needs is more likely to support sales growth efficiently. Furthermore, having the right distribution channel for your beverage product increases your visibility in the target market. It takes a lot of effort to develop and enforce an effective distribution plan where there aren’t any easy answers, however careful investments, and thorough planning definitely pay off. Keep in mind that is it important and necessary to evaluate and reevaluate the efficiency of each channel on a regular basis, since consumer’s tastes continuously change.
When it comes to selecting a distribution channel, it is important to remember to consider and analyze your options before making a decision. In addition to that, don’t just choose a channel because you think it might be the most convenient choice for your company. If you question yourself and try to keep an open mind about other alternatives, you might uncover missed benefits, overlooked disadvantages, or new ways to reach your customers on a budget.