From idea to business idea
How the market supports my business idea
Getting ready for the market
Financing - Profit analysis
Do I need other skills?
Tools & References
Indirect distribution - strengths and weaknesses
Indirect distribution can be carried out through retailers, agents/ brokers/ representatives and distributors.
Retailers come with many positives such as already established infrastructures of stores, webpages, and aggressive marketing strategies. Retailers have their established brands that can provide a bolster to the already existing brand. There is also personal service and after sales services provided by the retailer, as well as being a source of market and consumer intelligence.
This channel leads to lower margins and loss of control. There is a disconnect from the end customer, and the retailer may be stocking competing brands side by side.
This is a complex channel that can be expensive for a new business.
Agents, brokers or representatives provide personal selling and have established relationships with customers. They have a broad network, lesser distribution costs and are a source of market intelligence. They also assume the role of promoting the product, as well as share the burden of overhead costs.
Distributors have a focused customer base, assume inventory risk, have a wider reach and are technically trained. On the other hand, they carry competing brands, have an opinion in the final pricing of your product and your company does not have control over the final look of the product to the customer. They also represent an additional investment.
Retailers come with many positives such as already established infrastructures of stores, webpages, and aggressive marketing strategies. Retailers have their established brands that can provide a bolster to the already existing brand. There is also personal service and after sales services provided by the retailer, as well as being a source of market and consumer intelligence.
This channel leads to lower margins and loss of control. There is a disconnect from the end customer, and the retailer may be stocking competing brands side by side.
This is a complex channel that can be expensive for a new business.
Agents, brokers or representatives provide personal selling and have established relationships with customers. They have a broad network, lesser distribution costs and are a source of market intelligence. They also assume the role of promoting the product, as well as share the burden of overhead costs.
Distributors have a focused customer base, assume inventory risk, have a wider reach and are technically trained. On the other hand, they carry competing brands, have an opinion in the final pricing of your product and your company does not have control over the final look of the product to the customer. They also represent an additional investment.
