Question

In: Operations Management

One of the biggest problems in using distributors as a market channel is to keep them...

One of the biggest problems in using distributors as a market channel is to keep them motivated to sell and promote your product. The distributors generally handle other products and your company may have to fight for mind share. What strategies would you recommend to you company, or to the distribution process in general, to keep your products and offerings rolling? Remember, everything has a cost, so some solutions may sound good but are cost prohibitive.

Solutions

Expert Solution

There are the following strategies the company can pursue to keep the products and offerings rolling:

1. The company needs to build a relationship with the distributors. Since distributors handle lots of products, building a relationship with them is one of the most cost-effective ways to keep them interested in your product or offerings.

2. The company should value its distributor in order to make them feel valued. A happy distributor is likely to give a big space to the company that takes care of it.

3. The company can roll out some bigger share or incentive in order to keep the distributor motivated.

4. The company can provide the distributor with a representative on a periodic basis who can handle the things staying at the place of the distributor. It will create a sense of bonding and the company would be able to generate a big sale with the help of its representative.,


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