Distribution channels are important in growing any company. If we consider the analogy of a desert, we find that if we put a store right in the middle of the desert the likelihood of getting customers is really slim. We could wait for weeks to get any customers to our new store. Likewise if we build our store in a shopping mall that has millions of foot traffic per year, then we could reach a better result.
Distribution channels are an essential for growth. In the past builders would use the Yellow Pages and this was an adequate route for builders to get customers. Manufacturers would use shops, wholesalers and distributors to reach markets.
Recently purchasing a Tunnocks Tea Cakes box on the back there was a drawing of Tom Tunnock who built the Tunnocks brand from his bakery in Scotland. We find that the distribution principle applies when we look back to the beginnings of the Tunnocks brand and its flouring to see on packaging of another product that millions are made and sold each week. We can see these bars in shops all around not only the UK but around the world, even seeing arabic writing on the back of boxes.
Good distribution channels can help your business grow.
Though distribution channels is one set of solutions and it does bring a problem in production of goods and services, it is an essential that can help you reach global markets.
You can go from local distribution to national distribution channels to global distribution channels to reach global markets.
When Lord Kozan began a magazine near to the start of the millenium, he managed to get the distribution routes necessary to build the magazine to national reach, as well as reach in Ireland. There was options for global distribution. Though the magazine did not start, it showed that there are options for global distribution.
This also applies in the field of music where you could have a radio station in Australia play a song, and have the distribution solutions to reach a global market.
Though not all businesses need this kind of view to run an effective growing business, each business whether service or provider of goods can increase reach by looking at the problem of distribution.
It can be as simple as an advert in a popular magazine for your niche. Suddenly the orders and calls are coming in. It could be the radio advertisement, it could be the partner that makes it all happen.
Going back to the magazine, Lord Kozan found a partner who was going to sell ad space. This meant gaining access to a form of distribution for the ad space.
Distribution channels can work in a number of areas as can be seen. Not only in the distribution of products and services or gaining the sales but also in other areas such as meeting supply needs. You can find the manufacturers needed.
Let us go back to the food industry. Now you have this food product and gain access to the supplies needed to make the product (the output). The inputs require a certain level of need. If you need to produce millions of bars of a new snack, maybe you need tons of peanuts. And in this case, finding effective inputs to meet your supply needs then becomes the need to find the right distribution channels to make that happen.
Maybe your supplier can only provide a little amount of the inputs you need. Maybe the price can be reduced. Maybe the quality can be improved.
Distribution channels are important not only in inputs but also in outputs, getting your products and services out there.
Consider your distribution channels today and think about if you want to expand your business, how can you effectively meet input supply through finding the right distribution channels and also the outputs to get your products and services out there.