Marketing Case Studies: Channel Distribution Strategy

Synopsis - Steam Equipment Manufacturer – Channel Strategy Development

Our client turned to us to evaluate their existing channel structure’s ability to deliver long-term growth. Through primary research with end-users and the distribution channels, we pinpointed end-user needs and categorized them into segments based on buying behavior and the type of purchase: new construction, retrofit and MRO. Using this segmentation model and an understanding of the capabilities of the channels, we developed a channel strategy that enabled our client to grow their business.

 

 

Synopsis: Environmental Products – Channel Conflict

A road construction accessories manufacturer was experiencing a tremendous amount of channel conflict from its distributors. Our research revealed the client’s 300+ distributors competed 40% or more of the time with other company distributors. We decided to make 30 distributors "full line partners." Our client saved money by not servicing and selling to smaller distributors. As a result, several larger distributors that previously worked for the competition switched to our client's products. Since we initiated this program, the channels are more successful at capturing business since they no longer bid against other distributors carrying our client's products.

Synopsis: OEM Electronic Components – Channel Strategy

We recently completed an assignment for a high-tech firm. QDI identified the channels that would deliver the most sales for a new product with very little recognition in the marketplace. Through in-depth analysis, we pinpointed the channels that would maximize the firm’s limited budget by delivering the highest return.

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. 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 allowed our client to expand direct sales efforts while maintaining and strengthening key distributors.

Synopsis: Building Materials - Vinyl Siding – Channel Strategy

A building materials manufacturer wanted to grow its share within existing distribution channels. The manufacturer needed to understand the types of programs and support distributors and contractors value most. Our consultants interviewed both large and small contractors and the company’s existing distributors as well as competitive distributors. We identified key programs for each segment of the market – those required to compete and those required to differentiate. With this information, the manufacturer designed effective, new marketing programs and ultimately grew its share.

Synopsis: Concrete Construction Chemicals – Channel Strategy

Our client was looking to develop programs to more profitably focus efforts on existing distributors who could and would help grow business. To this end, our consultants conducted in-depth, often face-to-face, interviews with a broad cross-section of our client’s distributors. From these interviews, we segmented the distributors based on growth potential, business model and support requirements. Each of these segments had its own key support requirements, ranging from faster delivery to more intense training. Using these findings, we developed programs that were targeted at the highest potential distributors who could help our client increase sales revenue.

Synopsis: Maintenance Coatings -- Channel Expansion

Our client had a product category that could be sold almost anywhere. Their traditional channels were industrial supply and consumer mass market channels. Several specialty channels provided significant growth opportunities. We helped the client identify the channels, size their potential and determine how well our client's offering would fit within these channels.

 

Synopsis: Gasket Manufacturer -- Channel Partnering Strategy

A manufacturer developed a new technology gasket to bring to market. As a component supplier to a tier-two automotive marketer, the company had to determine how to use its technology advantage to build market power. Initially, it could not partner with each tier-two supplier, but instead had to choose the partner who would optimize its long-term opportunity. We led the manufacturer through an alternative evaluation, using QDI's alliance partner marketing model to frame each dimension of strategic opportunity. Based on this analysis, the manufacturer was able to prioritize its partnering opportunities and ramp up new product sales.

For solutions to your Channel Strategy challenges, contact Steve Bassill or
Mike Barr at QDI Strategies, Inc.

Steve Bassill -- 847-566-2020 Ext. 229

Mike Barr -- 847-566-2020 Ext. 225