Route to Market is the route to money.
Customer is king, they say. No matter how great your product is; your main goal is to get it to your customers in exchange for their money. If you don’t sell the way your customers expect you to sell; they will not buy the way you expect them to buy; pretty simple. So what is route to market?
Route to Market is how you sell your product or how you plan your sales which is a potent methodology for driving profitable growth
One of the 4Ps of marketing mix is “Place” which defines the location of my customers look for your products and services. If I know the location my customer would look for my product; wisdom demands that the channel should be where I put my product e.g supermarket, online, open market etc.
For instance, if my customers are everywhere in the market; my distribution needs to be Intensive. If they are concentrated in one place, “it is pointless putting it everywhere” my distribution will be Exclusive “1 location”. Lastly they could be also be in designated places; then it will be Selected “limited number of locations”
Route to market will align your Marketing, Sales and Distribution departments to drive profitability. Will minimize waste of energy, transportation cost, eliminate out of stock situation and overstocking.
You will begin to lose market share if your customers have moved to modern trade and your distribution is very strong in traditional general trade with all your concentration. This is will show in your market intelligence.
In Modern trade, you have Hypermarkets, Pharmacy and Supermarkets.
General Trade is made up of Open Markets and neighborhood stores.
Food Services consist of B2B, Horeca (Hotel, Restaurants, and Catering services).
Mark you territory:
Your business may not have the capacity to be everywhere, but you must choose your battles. The battle ground where you are strongest. Even if you are selling bread, everybody cannot be your customer because we have several types of bread nowadays and people are diverse in their preferences.
In “Direct Selling” you pay visits to your customers, build relationship with them and the quality of visits will show in your sales figures. If you have chosen “Online selling” your availability online must be 100%. Clearly spelt out as KPI for your ICT to prevent potential loss of business. You cannot afford to lose data and cannot afford any down time. If you have chosen to sell to Modern trade, you must have large heart for “Credit Sales” you cannot treat them like cash customer. If General trade channel suits your customers; the numeric strength of your sales force must be strong for effective coverage. Lastly you can choose combination of channels, but result is the name of the game in the end.