Question

You’ve just joined the Halifax Electrical Products Company as VP Sales and Marketing. As your first assignment, the president of the firm asked you to review the three distribution channels through which it sells its products. You are to recommend strategies to improve efficiency, motivate channel players, and increase sales.

Channel 1: Manufacturer’s Representatives who sell to mid-sized OEM customers.

Channel 2: Industrial Distributors who sell to small OEM customers.

Channel 3: Electrical Wholesalers who sell to dealers who sell to MRO customers.

How would you build more efficiency into the channels? What would you have to do to encourage channel partners to spend more time selling Halifax products? What performance goals would you consider? Examine the key players in the channels along with their wants and needs. Let’s discuss these and other ways to meet the president’s request.

Answer 1

More efficiency into the channels can be built by defining goals for each distribution channels. Reviewing past performance of channel partners, their contribution to the business, growth potential for each channel, competitor strategies and the changing market trends are some of the factors to be considered for building more efficiency. Supporting the channel partners with marketing resources like catalogues, presentations, training materials and promotions can create interest for the product and long term relationships. Timely review of their performance and strategy can make the process more efficient along with training for better supply chain management and forecasting of market demands.

To encourage channel partners to spend more time selling Halifax products, company can take initiatives like rewarding their performance and providing certifications. Commissions and incentives paid to them proportionate to sale targets can encourage them to spend more time selling and growing the sales. When the partners find the business attractive for making profits and long term growth compared to competition and other products, they will be motivated to spend more time.

Performance goals to be considered will be increasing the market share, customer conversions, more market visibility, increase in sales revenue, better customer service, on time ordering and delivery.

Key players in the channels are agency account managers who directly deal with Halifax products, owners of distribution companies, regional managers, wholesalers, dealers, type of consumers like industrial, governmental, retail or personal consumption groups. Their wants and needs will be quality products supplied in time and at prices which are similar across channels and competitive in the market. They will benefit by training, data support and relevant supports, marketing campaigns and promotionnal offers, regular communication and feedback on their performance. Customer service support for replacements and defects will help them.