“Sales Strategy: Build a New Distribution Channel

Jim Blythe writes in 100 Great Marketing Ideas: Sometimes distribution channels are so tightly controlled by competitors that entering them becomes extremely difficult. New or small companies often cannot easily access existing distribution channels.

🔹 This is why new and small companies usually have to make significant financial commitments to the owners of major distribution channels—such as renting shelf space for long periods or offering long‑term credit terms—to gain entry.

🔹 In such situations, the best strategy for new and small companies is to create a new distribution channel for their product.

🔹 For example, when Red Bull energy drink first entered the market in 1987, it was extremely difficult to get into traditional distribution channels like supermarkets and retail chains, because these channels had no understanding of what an “energy drink” even was.

🔹 Since Red Bull targeted young consumers, the company decided to distribute its product in places where its target audience regularly spent time.

🔹 As a result, Red Bull formed a marketing team of university students to distribute and promote the product in gyms and nightclubs.

🔹 When the owners of these venues realized what an energy drink was—and that it would likely appeal to young people—they welcomed the idea of selling Red Bull. This allowed Red Bull to enter the market without giving in to the heavy demands of supermarkets and retail chains.

🔹 So instead of trying to push your product into traditional distribution channels, look for places where your customers naturally spend time—and then work to turn those places into your product’s distribution network.

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