How To Build A Good Distribution Channel In Business Plan?

Direct Distribution Companies
Direct Distribution Companies
Distribution Channel In Business Plan
Distribution Channel In Business Plan

Haivng a distribution channel in your business plan is a key factor that can decide the success or failure of the endeavour, as it dictates the uninterrupted availability of products and services. In the past, this was a relatively simple process, you knew the products that were manufactured and was well aware of the end customers, shop or purchasing locations etc. Now, choosing distribution channels is a strategic and sensitive process; a slight gain can give you an edge over the competition. Read on to know how to ensure the success of your products by setting up proper distribution channels.

Points To Consider When Choosing Distribution Channel In Business Plan

The main points that must be taken into account are listed below.

  • Product type
  • Product pricing
  • Product positioning
  • Brand advertising

Steps To Identify Distribution Strategy In Business Plan

The best way to identify or define a distribution strategy for a business plan is to answer a couple of questions regarding your business and product. These questions will help in assessing where your business is and the right type of distribution policy required, and they are listed below.

  • What are the needs of your customer?
  • Does the customer require training for your product or service?
  • Will it require setting up or customisation, or is it for direct consumption?
  • Is it a stand-alone product, or does it require supplementary ones?
  • Can it be purchased directly in person or does it require shipping to home?
  • What is the current shopping experience and how can it be improved?
  • What are the distribution channels used by the competition?
  • On what channels of distribution does the competition receive most complaints?
  • What new products or services are required to meet customer demand?
  • What is the best positioning that satisfies customers?
  • What are the cost and resources required for a new distribution channel?
  • Are the intermediaries ready to receive your product information?

Basic Checklist For Building Any New Distribution Channel

The points listed below will help you to build a new distribution channel after you have identified the distribution strategy in business plan.

  • What is your product or service?
  • Where is the product or service distributed currently?
  • Where do you want to distribute your product or service?
  • Fine-tune your product or service information to distinguish it from the rest of the competition.

A distribution channel is the chain of steps required so that the product or service reaches its final consumer, and this is true for both online and offline businesses.

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