Synopsis: Factory Automation – Channel Distribution Strategy
Our client was implementing a strategy to overlay a direct sales force on top of a traditional distribution network. Their objective was to develop the programs and tools to make both channels more effective. Through in-depth interviews with end-users, distributors and direct sales reps, we were able to identify the key requirements for success.
For the new direct sales force which had two types of sales, a market development role and a commodity intercept role, we identified the programs and tools needed to gain entry and build relationships with customers. Key to the market development role was the ability to provide technical support to customers. Customers required the following types of support:
Examples of how companies defined technical service are listed below:
- “Training and performance monitoring of equipment”
- “Sizing and modifying of system components”
- “Information on applications, the big picture on system operations, observations on what we are doing right, and what we are doing wrong.”
- “Any ideas on saving money and resolution of problems”
- “Sizing of equipment, resolution for specific equipment related problems.”
- “Application know how and information on materials and construction.”
- “Sizing of equipment, load capacity calculations, spec sheets.”
- “Provide seminar on maintenance procedures”
Thus a key requirement for success was that our client had to substantially increase the technical capabilities and availability of those capabilities in its sales / engineering group.
For the distributors, we identified the following key requirements for success: “partnering, not competing in their key accounts,” easily accessible remote technical support and joint sales calls to penetrate key accounts.
This framework which basically was built on increased technical sales capability supporting customers and a partnering model with distributors on key accounts allowed our client to expand direct sales efforts while maintaining and strengthening key distributors.