Distribution Strategy for consumer products

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Tata Strategic conducted a “voice-of-the-customer” exercise to understand deficiencies in the existing sales and distribution network. Tata Strategic suggested bifurcating the client’s unified distribution channel into two separate channels along core product lines: One for the core product and the another separate channel for other related products. The number of distributors was reduced by over 60 per cent to ensure consolidation and higher return on investment to distributors. Tata Strategic also restructured the client’s sales organisation based on a competition benchmarking exercise and revamped the compensation structure with greater emphasis on performance-based pay.

The client has implemented Tata Strategic’s recommendations and has considerably increased direct retail coverage. The new distribution strategy coupled with the new organisation structure has enabled the client arrest its fall in market share and get back on the path towards market leadership. The client has invited Tata Strategic to extend the study to other key markets as well.