3D Distribution
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The document discusses problems with traditional geographical distribution approaches and proposes a 3D distribution model. The traditional model of appointing one distributor per territory does not fully explore market opportunities or target all customer groups. A 3D approach divides the market by geography, product lines, and customer groups. Distributors are chosen based on their ability to reach key customer segments. This helps maximize sales potential by ensuring all relevant customers in a region can be reached for each product line.
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3D Distribution
- 2. The problem lies The majority of producers build their distribution network using geographical approach by appointing specific distributor per specific territory In result these producers underperform in sales and are not able to explore all market opportunities that are available for them
- 3. Geographical approach in distribution Producer appoints distributor per territory E.g. one distributor per Federal district of Russia And then producer thinks that the mission is accomplished But it is wrong!! It is wishful thinking! 2 3 1
- 4. The problem lies In several years the producer will feel that competition is developing but own sales are NOT The hindrance is own distribution approach!
- 5. Imagine Imagine the company is producing chairs ordinary office chairs and they are sold through distribution network arranged on geographical approach The distributors are office furniture wholesalers who have showrooms overwhelmed with hundreds of office furniture pieces and dozens kinds of chairs Are you sure you reach all customers with such distribution network?
- 6. Customer groups.. Do you think state-owned companies are buying furniture by visiting showrooms? No they buy on tenders Do your distributors bid for tenders? No So you are losing state-owned customers
- 7. Special product group Your company produces bar chairs and due to your company has agreement with regional furniture wholesaler you sell bar chairs in office furniture showrooms Do your target customers , which are cafes & restaurants will get idea to visit office furniture showrooms to buy bar chairs? Never!
- 9. 3D distribution 3D distribution concept helps to 1. Explore full market opportunities geographical- wise 2. Explore full potential of your company product range 3. Target all customer groups that may consumer your company products
- 10. Customer groups Prepare the list of all potential customer groups that may consume your company product range being divided into product groups Build distribution network and appoint distributors keeping in mind their ability to target at least Key customer groups
- 11. Geographical distribution Divide the market territory into areas keeping in mind Populated areas Logistic routes
- 12. Product groups Divide your company product portfolio into several product groups and build distribution for each group separately
- 13. FAQ For detailed information please contact me Artem Mazaev Email: artem.mazaev@gmail.com Cell: +79031542482