Achieving successful distribution in emerging markets
Manufacturers essentially determine their sales volume and success in a given market through the distribution channels they choose to sell products and services to clients. Many foreign companies operating in emerging markets, however, seem to lack basic knowledge about designing efficient distribution channels for these very specific markets, which limits their commercial potential.
Ipsos has created a general model to help overcome this problem. It draws on the common characteristics of emerging markets to create a “best-fit” distribution strategy solution for companies, both new-entries and established manufacturers.
This model analyses key aspects of the market, distribution options and the company itself. Market analysis provides an overview overview of the market in terms of size and development, assesses its channel structure and evaluates key competitors including their positioning, pricing strategy and sales breakdown. The channel section conducts in-depth analysis of distributors, assesses commonly-used management measures and examines the distribution strategies of key competitors. Client analysis assesses the company itself – both its internal processes and external market and distribution efforts – weighs up its strengths and weaknesses and determines the optimal channel strategy based on the client's individual needs, targets and resources.
These three elements combine to provide broad and deep insights that enable the client to better understand the market and provides them with an optimal distribution/channel strategy and a short-term model which makes the most efficient use of the company’s existing resources to create effective distribution channels focused on delivering immediate sales growth.
