The Same Product Should Not Be Sold the Same Way Across Every Channel
One of the most common assumptions I see from FMCG entrepreneurs is this:
"If my product already sells well in supermarkets or other retail channels, it should sell the same way in convenience stores."
Unfortunately, that assumption is often where the problems begin.
Over the years, I've met many business owners who believed the answer was simply to present their existing product to a convenience retailer. When they discovered the retailer's commercial requirements—such as minimum gross margin expectations, listing economics, and other trading terms—they immediately tried one of two approaches:
1. Ask the buyer to reduce the required margin.
2. Escalate the discussion to senior management hoping for an exception.
In most cases, neither approach changes the outcome.
The reason is simple.
Retailers don't build their commercial rules around one supplier. Their pricing, margin structure, portfolio targets, and performance metrics are designed to support the economics of the entire business—not a single product.
Instead of asking the retailer to change its rules, suppliers should ask a different question:
"How should we redesign our product and channel strategy to fit this channel?"
Strategic Channel Marketing is not about forcing every channel to accept the same product under the same conditions.
It is about designing the right combination of:
• Product
• Pack size
• Pricing
• Margin structure
• Promotion
• Customer value proposition
for each specific retail channel.
The key lesson is:
One Product ≠ One Channel Strategy
Winning companies don't simply distribute the same product everywhere.
They redesign their offering to match the economics, customer expectations, and business model of each channel.
Don't ask the channel to change the rules.
Design your strategy to win within them.
What has been your experience? Have you ever seen a great product fail simply because its channel strategy wasn't designed for the retail environment?
#StrategicChannelMarketing #FMCG #RetailStrategy #ModernTrade #ChannelManagement #GoToMarket #BusinessStrategy #Retail #ConsumerGoods
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