Channel characteristics – Key issues to consider

When assessing your Route-to-Market in emerging markets take into consideration the following channel and retail issues:

 

  1. Product flow– Have a good understanding how products flow in the market. Review markets, channels, shopping malls and open markets.
  2. Service – Assess the service and delivery for each channel and the service partners they work with. Review the key issues with service and delivery and map out the distribution models employed.
  3. Frequency – Understand the frequency of product replenishments and reasons for the frequency.
  4. Direct or Indirect – Assess if brand owners are serviced by channels directly or through intermediaries, e.g. wholesalers.
  5. Channel experience– Assess the channel experience in each market. What are the reasons that consumers shop there? Also understand the channel layout, decision making process, size and growth of each channel.
  6. Channel Profile – Design a channel profile for each strategic trade channel. Also include the sub-channels.
  7. Size – Determine the size of the prize in each channel.
  8. Categories – Review the categories and reasons for making purchases. Also assess their stockholding policy.
  9. Packs and prices – Get a good understanding about the pack size and price points they stock. Review the value chain and determine margins.
  10. Regional differences – Understand regional, urban and rural differences.

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