Play an important role in the chain of business activities. Manufacturers all want to bring products to users in the easiest and fastest way. One of the distribution strategies that businesses use effectively is exclusive distribution.
Exclusive distribution is a distribution strategy whereby a manufacturer sells its products or services only at one distributor in a specific geographical area. With this form, the manufacturer limits the number of buyers in the middle for the purpose of protecting the brand image, products and easy management of the business.
The proprietary distribution model allows businesses to take control of promotions, services, intermediaries’ prices, and a number of other factors. In addition, thanks to exclusive distribution, companies benefit from active sales from these stores.
Advantages
Increase sales and profits
Single branding or exclusive distribution can dramatically improve sales and boost your business. When brands put all their marketing efforts to exclusive distributors, they are likely to get high-quality results. Not to mention, retailer limits ensure that sales reps are well-versed in product features and other important details.
Attract the attention of customers
One of the most prominent benefits of exclusive distribution is that manufacturers can attract more attention.
Since there are a limited number of retailers or distributors, they may give special preference to special products. As a result, some retailers may feature exclusive products in store advertising and newspapers. Others may distribute coupon magazines.
Defect
Depends on exclusive distributor
If your brand is still immature, it will be difficult for you to position your business in the market without depending on an exclusive distributor.
Unlike big brands, small businesses don’t have the expertise to lead the way. Because of this, they can become heavily dependent on exclusive distributors for advice
May lead to disputes
With wide distribution you won’t have to worry if you have a dispute with a distributor. However, this can happen if you are implementing an exclusive distribution strategy. In extreme conditions, this can cost you the entire market or significant loss.
Exclusive distribution strategy
Planning is one of the important steps that is often overlooked when businesses choose an exclusive distribution strategy. Those who are directly in charge of distribution channels need to be visionary and careful in each distribution decision.
Here are some tips to help you develop an exclusive distribution strategy.
Market research
Before launching a new product or choosing a form of distribution, businesses need to conduct market research.
Some businesses do not understand the importance of market research, so it is done without too much effort on it. Therefore, causing obstacles in the subsequent implementation process and risks in the market
Businesses can conduct their own research by methods such as qualitative research, quantitative research or deploy through a number of consulting companies, market research.
Reference: Consulting and market research services for small and medium enterprises with a budget of 20 million VND
Identify target customers
Identifying target customers is very important for businesses in exclusive distribution. Through market research, we can easily narrow down the target audience and have appropriate strategies
Select exclusive distributor
Through the above 2 steps, you can easily identify which partner is suitable and will bring good results for your product. It is important that you consider and make the most profitable choice for your brand
If you have a product, expect your product to be available nationwide. Please CONTACT us to distribute your product:
Monitor and manage distribution channels
Monitoring and management is the last thing to do but has the biggest impact on the proprietary distribution process. Because during the implementation, there may be errors or unexpected incidents that the business does not expect. To minimize risks, businesses should come up with contingency plans as well as promptly handle problems.
Above are important contents about exclusive distribution strategy you can refer to. Hope to help you somewhat in choosing and conducting exclusive distribution.
