Distribution Channel Strategy – Direct, Indirect
There are many issues and opportunities that influence distribution channel strategy choices. These vary significantly from industry to industry. Methods can differ between commodities versus high value products, but not always. They can vary between companies that are selling almost identical products. The creation of a sound distribution channel strategy – direct, indirect, and the strategic thinking behind such choices, is complex. Choosing the wrong channel or channels can be costly and present many problems in other parts of the business, such as in pricing, customer perception, and cost containment.
The addition of each new product amongst multiple company products should influence a revisiting of distribution channel strategy for new products, rather than continuing on with what is already in place.
Williams Aviation Consultants Inc. offers assistance to companies and organizations by following a check-list process to review existing distribution channel choices or to examine other options that might not be considered. For example, direct distribution enables greater control, but can lack reach. Indirect distribution can add cost and complexity, and result in loss of control over price relativity and brand consistency. Complex distribution requirements can also become a distraction from the core business. But indirect distribution may meet other needs such as increasing competitive advantage, better meeting customer preferences, and providing resource and expertise in areas not currently available or achievable.