Tag: route to market

route to market

Enhancing Customer Service and ROI for a CPG Company – Infiniti’s Route to Market Engagement

As digitization rapidly matures, consumer packaged goods companies are increasingly building and supporting a new route to market strategies. Although in-store retail sales will maintain its dominance in the years to come, e-tailing will continue to grow at a breakneck pace during this transitional period. This necessitates companies in the CPG industry to implement the best route to market strategy to ensure products reach customers in an efficient and cost-effective manner. Route to market intelligence deals with analyzing the market, understanding customers’ requirements, and their needs.

Choosing the best route to market can help your organization achieve higher targets. Learn more about our services portfolio and stay well-equipped to resolve your sales channel issues. Request a FREE brochure.

Business Challenge

The client is a well-known consumer goods supplier based out of Asia. The client served their customer base using traditional direct store distribution (DSD) model. But, this distribution model was expensive and was unsatisfactory from service level point-of-view. This further precluded the client from doing business with top-tier-organizations in the market. Also, as customers shifted between online and offline channels to make their purchases, the client realized the need to revamp their sales channel.

The client, therefore, approached Infiniti Research to implement a distribution model that will help them have a better relationship with their customers while reducing cost and increasing customer service.

Solutions Offered

The experts at Infiniti Research visualized the client’s distribution networks and identified inefficiencies in their channel selection. Also, the team reviewed sales activities and channels preferred by the top competitors of the client.

Infiniti’s route to market strategy engagement helped the client to identify the sales model to be used in each region in Asia. They also recommended the best routing system to be used for sales and delivery. The experts also helped the client to analyze the potential vulnerabilities and risks in distribution channels. This subsequently helped them resign and revolutionize their distribution channels.

In addition, Infiniti’s route to market engagement helped the client to achieve a much wider geographical scope at greater speed with methods such as franchising, licence agreements, network marketing models, and retail concessions.

Additionally, Infiniti’s route to market strategy engagement helped the client to:

  • Increase their market share by 13% in eight months
  • Enhanced CX by 2X
  • Provide significantly better service levels
  • Identify a scalable approach to discover new growth opportunities
  • Reduce cost-to-serve (expenses associated with product distribution process)

With evolving customer requirements and market entry of new players, the route to market strategy engagement is becoming an important requirement for businesses across industries. Request a FREE proposal to know more about the business benefits of route to market strategies.

What is route to market strategy?

Understanding distribution options in a market is essential for businesses. For example, if your target customer base does not engage with e-commerce, planning to sell your products through an e-commerce website will be futile. Conversely, partnering with international sales agents will be ideal while making a foreign market entry. A route to market strategy provides a roadmap for companies to get their products from the warehouse to the end-users. Determining the best route to market is not an easy task for companies. This involves identifying low-cost channels for improved profitability and balancing between market penetration and control.

2How to choose the right route to market?

Stage 1 – Identify customers buying patterns

Companies need to identify their customers’ buying patterns before choosing their sales channel. If target customers prefer online purchases, companies need to concentrate more on marketing online. Understanding the needs of customers is imperative for businesses to succeed in the competitive marketplace.

Stage 2 – Choosing the best sales channel

Today, organizations will need to shift from one channel to another frequently. While choosing a sales channel, companies must look for an inexpensive route to market. This can help them to reduce cost and enhance profitability.

Stage 3 – Measure result from each channel

Analyze all the sales channels frequently and identify the one that has generated more sales. Measuring return on investment can help companies understand the cost of implementing different sales channels.

Wondering how to evaluate the best route to market to maximize profits? Our experts can help. CONTACT US today.

route to market

Essentials for a Successful Route to Market Strategy

What is a route to market strategy?

A route to market strategy, also known as a sales execution strategy provides a roadmap for companies to get their products from the factory or warehouse to the end-users, customers, or distributors. The primary objective of a route to market strategy is to ensure that the products reach the clients/customers in an efficient and effective manner, thereby ensuring satisfied customers and increased sales growth.

Developing a high performing route to market strategy involves focusing on the right markets, with alignment to the behaviors and needs of the customers in those markets. Furthermore, it is vital to choose the right sales channels, products, and value propositions, which would consequently result in a company that delivers high revenues, profitability, and customer loyalty. Experts at Infiniti Research have provided some general guidelines for achieving a successful route to market strategy:

Are you leveraging the right and most profitable route to market strategy to reach your end users? If you are not sure, request a free proposal to know how our route to market intelligence can help.

route to marketStart with the customers

Route to market intelligence involves identifying the depth of understanding that a company has to its customers, their expectations, behaviors, and needs. All route to market decisions largely depends on this kind of detailed information. Businesses must only sell products that customers need and are willing to buy. To gain a better idea, they must interact directly with the customers through focused interviews, customer surveys, or prototype testing. Then, understand what makes the company’s products or services add value to the customers. It is also critical to evaluate the best channels to reach out to the target customers.

Low-cost channels for improved profitability

Sales is an area of business that can have the greatest impact on profitability, especially if it includes selling some of the products through lower-cost channels. The challenge here is to understand which channels can be used for which customer. While some products and sales transactions require more complex and expensive channels, others can be maintained by lower cost channels such as telesales.  Therefore, utilizing the correct channels can significantly affect profitability.

Identify gaps in your business process and formulate the best strategies to win in the market. Request a free brochure to learn how our solutions can help you achieve this.

Balance between market penetration and control

Using a global market coverage route to market strategy with a mix of channels can result in channel conflict, margin erosion, and even dissatisfied customers. This is especially true when channels are not closely controlled. To stay in control, it is important to identify these potential risks. For instance, several luxury brands maintain quality, stability, exclusiveness and, ultimately, high margins on a defined segment of the population. At the same time, they forgo the fact that they could probably sell ten times as many products as they manufacture, but at a cost to brand image and market position.

Products sold and channel should match

Businesses must ensure that the products that they sell and the channels that they choose are suited to each other. They must try to sell products through the channels that customers use to buy the product that is being sold. It is also necessary to resort to channels that give economic sense to the point of sale. Which means, avoid using expensive channels to sell cost-based products which are not unique from others in the market. An effective route to market strategy is to use low-cost channels for such products.

Ready to explore the best route to market strategies for your business? Get in touch with us to learn more.