Distribution
5 things that characterise a ‘best in class’ setup
The key to growth lies in having a lean distribution platform with the right dedicated partners. Our experience shows that there are 5 specific elements which characterise the distribution setup of the most successful brands.
Are you on the threshold of entering new markets? Or are you preoccupied with getting more out of the market you are already present in? Then there is a lot to gain by looking at some of the things that other, successful Nordic brands do really well.
When we help companies to expand or develop regions such as Japan, Australia, Russia, Africa, Asia, India, the Middle East, South America and Eastern Europe, we often have particular focus on 5 elements, as we know from experience that this is where the key to success and acceleration is found:
Distribution
5 things that characterise a ‘best in class’ setup
1
The right partners
Are you working with the right partners? Do your partners have the financial strength, the right organisational set-up and the right experience and knowledge of how to perform in precisely this market? Because this is simply a precondition for being able to develop the market. The product may be unique, proven and perform well in the domestic market, but none of this will help if the partner does not perform or have the strength needed to execute.
2
Cultural knowledge
Are you aligned with the way things work in professional work cultures around the world? If you are not used to operating outside of Europe, you can quickly get into trouble: How formal is the tone? How is work structured? Do you have senior employees with experience of this particular region? Which cooperation models are most often used? This may vary from region to region. You can introduce all the KPIs in the world and also achieve much – but you will accelerate faster if your plans are based in and on the culture of the market in question.
3
Strong commercial plan
It is important to have a clear direction to aim for internally in the company. When you develop a strong commercial sales and marketing plan, you can benefit from input from the distributor regarding obstacles and opportunities in the market. The course you set must be completely clear – not only for you, but also for the distributor, so that you have the same focus on growing the business on all fronts. A strong commercial plan is a must for developing a region.
4
Focus on KPIs and performance
Make it completely clear to the partner which indicators you use to measure cooperation, e.g. revenue per quarter and per month, marketing activities held by quarter, product launches held per quarter. Of course, you must prepare an annual commercial plan, but in our experience, if you want to maximise the cooperation with the individual distributor or partner, you need to implement quarterly bonus targets. This gives sharper focus and attention from both sides.
5
Consistent follow-up
It is important to implement a structured way of working in cooperation with the partners, so that you are constantly in-line with market developments. For example, create the weekly telco status meeting with a fixed agenda, focus on KPIs, budget goals, sales team status and other daily challenges. These weekly status meetings will ensure the distributor maintains the proper focus. We recommend holding a quarterly F2F meeting with the distributor and reviewing the commercial plan, status for the previous quarter, updated sales and marketing activities for the next 12 weeks, etc.
Can we help you?
ORDO specialises in helping Nordic companies enter global markets and regions in Japan, Australia, Russia, Africa, Asia, India, the Middle East, South America and Eastern Europe. Our consultancy is based on up-to-date experience in the field and tried and tested best practices. We can draw on our large global network to find just the right partner, and we can help trim your distribution platform, motivate your partners and increase your sales.