MARKET-Tools

Formulate A Distribution Strategy

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Your distribution strategy should be a synthesis of the

  • types of markets
  • market locations and
  • methods of distribution.

 

Essentially, putting together a distribution strategy requires answering the “where, when, who, how, and what” of distribution.

 

 

How to formulate the Distribution Strategy

 

1. Prepare a Distribution Channels Map illustrating exactly how you intend to move your product or service from the point of origin to your customer.

(An example for TARTINA is given in exhibit 5R.)

 

2. Use the following questions as a guide in formulating your distribution strategy.

 

  • Where?
    Detailed plan for number and location of target markets.
  • When?
    Plan for time period (should correspond to business plan).
  • Who?
    Staff/contractors required to carry out distribution strategy.
  • How?
    Method that will be used to distribute product at every level of the distribution chain.
  • What are the budgetary implications?
    Cost to distribute product/service according to proposed strategy.
  • What synergies does your distribution strategy capture?
  • How does your distribution strategy contribute to achieving the overall marketing objectives?

 

Source: Managing the Double Bottom Line: A Business Planning Reference Guide for Social Enterprise; http://www.virtueventures.com/files/mdbl.pdf