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Scale Building in Distribution
A big challenge in executing availability strategies in prime locations is retaining the commitment and focus of distribution partners.
- Distribution partners deliver the best results for a brand-owner when its products deliver high growth rates or large volumes.
- Relatively few brands have the certainty of large volumes year-in and year-out (and those that do are often distributed directly).
- While many brands initially have high growth potential (often off a low base), growth rates tend to fall over time and the commitment and focus of distribution partners tends to fall with them.
- In order to maintain the effectiveness of sales and distribution to prime locations, brand-owners need to keep building scale with:
- Additional flavors, package sizes and types.
- Line extensions and new products.
- Additional brands obtained from other brand-owners.
- The key to building scale in distribution and growing effectiveness in serving prime locations is to find the optimal products for the consumers in these accounts, such as brands marketed to children and young adults for schools.
- Outside sourcing of product can help to achieve scale in primes, so long as the external brands fit the availability strategy.
Auctive helps to optimize product portfolios for prime locations.