Getting straight to the point
The current economic environment is increasing pressure across
industries and involving all players in the value chain from
primary producers to retailers and the many potential
intermediaries. Now more than ever it is crucial to understand in
which markets and channels to play and to prioritise investments
and resources accordingly.
The challenge for companies is to identify through which channels
to address which market segments and how these might differ in
various regional markets. Many experienced international players
have learned that regional and country market maturity strongly
impacts the preferred channel approach.
Developing a channel strategy for different levels of market
maturity has specific challenges. Often market intelligence is
poor, with data on market and channel structures being incomplete,
unreliable, only available over a limited time scale or
non-existent. Local business practices maybe very different from
Western standards with credit and payment terms not supported by
appropriate financial rigour or service agreements and standards
lacking clarity and appropriate covenants. Channels may be poorly
developed or non-existent with the number of players per channel
limited to a few potential partners with monopoly or duopoly
positions. These factors contribute to channel structures and
practices which are inefficient, unreliable and costly. The ability
to successfully navigate these landscapes can mean the difference
between success and failure for new and existing market
players.
For further information, download our report '
Channel strategy'.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
