PRODUCER DISTRIBUTION DILEMMA
As a producer, you’re required to consider an array of factors when distributing and promoting your product. Though you aim to reach those precise goals, most of the time you don’t end up with what you truly need. At Viachem, our goals align with yours as we aim to grow your market share. We design customized marketing and sales plans specific to you and your specialty chemicals, food additives and ingredients, a service hard to come by with other specialty chemical distribution companies. Are you ready to be rid of the distribution dilemma hanging over your head?
What You Look For…
- Sales and market share growth
- Reduced supply chain cost
- Existing customer relationship
- Appropriate logistics network
- Ability to identify new prospects
- Broad sales reach
- Focused and simplified processes
- Market transparency
What You End Up With!
- Limited sales efforts
- Misaligned objectives & outcomes
- Inefficient high cost supply chain
- Lack of transparency and control
- Inconsistent pricing and service
- Poor growth results
5 reasons your distributor sales channels are not getting results
As a specialty chemical, food additive or ingredient producer, are your distributor sales channels exceeding your expectations?
Many chemical, food additive and ingredient producers understand the benefit of leveraging a distributor network to grow sales and profitability. When aligned properly, distributor sales channels add value and produce great results.
Unfortunately, many distributors see additional products as another “arrow in their quiver” with little downside to not performing as agreed. Producers are not taking the time to fully understand their distributor’s sales processes, creating disappointing results and flat line sales performance.
Here are 5 reasons why-
- The distributor’s sales process is not well understood by the producer or aligned to add maximum value to the sale of your particular products. It is best to understand how the sales cycle of your product compares to the sales cycle of the other products the distributor sells. Distributor sales people gravitate to products with the shortest sales cycle.
- Distributor sales people are responsible for identifying and qualifying new customer prospects. Most distributors do not have a well-defined demonstrable process for finding and qualifying new leads. The result is, it is left up to each sales person to prospect AND sell. A distributor firm of 50 sales people will end up prospecting and qualifying new opportunities 50 different (mostly inefficient) ways.
- The producer does not understand how or what sales resources are allocated to their products, nor do they understand how their products compete with all the other products the distributor sales people are selling. A source of competition the producer does not see coming.
- The distributor and the producer do not take the time to sit down in the beginning and put together a comprehensive sales plan, with clear performance metrics, to be adjusted as needed, and include complete end-user market visibility.
- As a producer, you treat your distributor sales channel like you would any other customer, instead of a strategic sales and marketing partner.
Boston Consulting Group’s Opportunities in Chemical Distribution
- Optimizing marketing and sales channels
- Managing complexity
- Redefining the role of distributors