Distribution strategy for new lounching products

Distribution strategy for new products should be obligatory and is distinguished by well-established product distribution strategy or product that has long been known to consumers. The marketing director or marketing manager rarely take the time and thought to formulate strategies for designing and distribution of new products. On the other hand, distributors are also almost never designing let alone develop new product distribution strategy. The reason, it already should be conducted by the principal / manufacturer.

As a result, if they do not accept the explanation of the strategy of the principals (marketing / product / brand manager), then the distributors will assume that the same way, a similar pattern as currently applied is the distribution strategy is used. This is why only 1 of 7 new products being launched to reap success. The remainder (86%), failed. A probability of failure is very high risk! Keep in mind, the distribution strategy for new product and law should be mandatory to distinguish from well-established product distribution strategy or product that has long been known to consumers. Just like handling a baby or toddler who is distinguished by the handling of ABG or someone who has grown up. This is one of the often fatal mistake made by marketers. No exception those who have already experienced.

As understood, the distribution strategy actually has 8 basic components which include System Sales & Distribution, Distributor Partner, Selling In, Through Selling, Spreading, Coverage, Penetration and Network.Dan, at the earliest stage, 'challenges' faced is the selection system sales and distribution. For example, if choosing direct system in which at least 70% of all sales made by the company's sales force / subsidiary / affiliate or indirectly use the system to record at least 70% of sales derived from an external distributor.

Beyond that, there are still other systems. Namely, aka hybrid combinations. In this combination, between 30-70% of the source of sales derived from self-owned enterprise / terafliasi or distributor. Secondly, should be established also if the new product will be sold via distributors who already deal with the current corporate product or chose another distributor.

As realized together, the determination can be based on distributor partners own a National Sole Distributor or 8-33 Best Regional Distributor / provincial or best 34-150 Area Distributor / 1-4 district. Another consideration could also be a territorially exclusive (but mix in the channel) or exclusively in the channel (but mix in the area) as well as exclusive product items / channel and mix area.

The third is the option of selling strategies in using the Top Down Strategy (from large wholesalers to retailers to own a small trickle) or Bottom-Up Strategy (from the bottom outlet flow up into small wholesale / semi-wholesale / star outlets / agents up to the big wholesalers). In addition, all three strategies Selling In earlier could also be based on Stand Alone (self / self a new product) or Product Add On (counterpart / affixed with an established product in the market) or Integrated Promo (mentoring / addition not only to the well-established product , but also from elements of price promotions and other trade promotion).

Furthermore, the strategy which saw deposits Through Selling products on the outlet. For example, how long should happen turnover of goods. It really depends on the cycle salesman's visit. Example, if the cycle is assumed salesman's visit was 2 weeks 1x, then within four months after the launch of new products, customers already have the message repeated (repeat order) minimum 7x. Calculation is a minimum of 55% x (number of weeks in a period divided by the number of weeks that were monitored in a cycle of visits reduced effective the first visit) to the nearest rounding calculations. That means, 55% x 13 weeks / 2 week visit per 1 cycle - 1) = 55% x 6.5 - 1 = 55% x 5.5 = 3x repeat orders within four months of assuming a two-week visit 1x cycle.

That is, if the new product is a new 1 or 2x repeat purchase order, it means the product has a high potential for failure. And, the monitoring period for frequency order (not the value of Rp or unit order) for a minimum be done in 3 months and a maximum in 12 month . therefore, that the probability of success of new products increases, there are some things that need to be looked at closely. First, using a system of distribution and sales of hybrid / combination.

Second, using a multi-distributor best at the provincial level (2-3 distributor of a province) exclusively or differentiated product items that are already on the market today, the channel / trade or items. more than product, selling in the Bottom-Up strategy with Promotion Integrated (holding other products, merchandising / POS, special pricing and promotions to traders in particular). Finally, a strategy based on the approach to sell through Sales Order Frequency or number of repeat orders within 6 months of conservative - meaning, cycle salesman's visit two weeks 1x and fastest visit longest is 1 month 1x.