1. Channel strategy – Delivering
more from stores
Why channel strategy?

2. Let’s be clear about outlets and routes to market
Manufacturer
Distributor Wholesaler
Outlet Outlet Outlet Outlet Outlet
Channels are groups of outlets, not routes to market

3. The HUGE opportunity!
34% of all purchase decisions are
made INSTORE!
72% 66% 46% 20%
Locate brand and buy it Take
Shoppers who decide Select
some
what brand they want immediately
time
to buy before coming
into the store 6%
Buy
Trigger for another
change brand 34%
28%
In-store decision
Shoppers who decide their brand in-store process

4. The five key purposes of channel strategy
To define which
retail outlets the
company should
focus on
To ensure To identify
appropriate growth
investments are opportunities in
made priority outlets
Channel
Strategy
To define the
To direct the sales changes required
team in their to realize
activities opportunities in
those key outlets

5. The channel strategy process
Step 1
Portfolio or Brand opportunities
Step 2
Channel evaluation
Step 3
Channel prioritization
Step 4
Channel Objectives
Step 5
Channel Strategies
Step 6
Configuring trade investment

6. My view on – channel strategy
Modern trade and general trade
are customer classification NOT
channel segmentation.
Shopper insight is critical for
gaining competitive advantage and
ensure effective investment.
It’s critical to have the correct
channel classification and
database; they should reflect
shopper mission and shopping/
consumption environment.
Clear in-store blueprint is needed
to get the benefit of execution.