Why Distributing Through A Global Network Is Essential For Market Penetration
Right now there are customers looking online for your products or services. Are they finding you? At Acorn 2 Oak Group we use a variety of distribution techniques to gain market penetration.
Distribution is the process of getting your product into your target markets. You might handle the distribution process directly at the outset whether digitally or in person, but as your business grows, it may be more efficient to enlist a distributor to get your product to retailers who sell on your behalf.
Whatever type of business direct distribution allows products to be sold directly to customers. Keep in mind that while direct distribution may offer advantages, there are also pitfalls when not using middlemen including:
- Positive: Total control over how the product is marketed and sold
- Negative: You may have limited market coverage
- Positive: No fighting for shelf space with the competition
- Negative: More time consuming and expensive for some business owners
Choosing a distribution strategy
Determining the best method for getting your product to the consumer depends on what you’re selling and how much you’re willing to invest in distribution. New small businesses generally don’t have the capital to pursue multiple distribution avenues at the outset, so they need to choose one that fits, and stick with it while the business grows.
Generally, if your product is perishable or if you’re selling B2B, you’ll want fewer distribution channels between your point of manufacturing and your customer. In which case, direct distribution may be best. If, however, you’re aiming for a wider market, with hopes of getting your products in front of as many consumers as possible, you may need to sell to distributors instead, and let them do the legwork while you focus on making the product better.
If you do partner with distributors, do some vetting to ensure that they are capable of selling your products and finding the right market opportunities for them. Prioritize developing a long lasting relationship. You’re the product expert, but you’re leveraging their sales expertise. Lastly, the decision may not be whether to go direct or indirect, but when to favor one over the other to find your optimal mix.