Question

Topic: Strategy

Distribution To A Niche Marchet W/out Distributors

Posted by Anonymous on 5/22/2005 at 2:05 PM ET 125 Points
I work for a manufacturer of gourmet chocolate in
Canada that sell in Canada and the US. We have re-designed all our packaging and shifted our market to a niche market. We are marketing besides Godiva.

How can we maximize distribution to retailers without using distributors? Our plan is to go to direct accounts, however cost of shipping can be an issue.
The reason we don't want to go through distributors is to have control over our line and keep it in the right market.

Our target market: department stores, upscale grocery, basket companies, gift stores, specialty stores, hotels.
Our chocolate: Belgian and specialized in the making of truffles

Thank you,
Karen
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RESPONSES

  • Posted on 5/22/2005 at 7:17 PM Accepted
    If you don't want to use distributors and you don't have your own sales force, then your only remaining option is to use a rep network that serves this market. You could try to do everything yourself ... by showing up at the right shows and expos, but that would take a while, cost a lot, and yield only spotty results.

    You need to find a great rep who knows this market and then get him/her to point you to other reps in other states/regions/markets.

    Good luck. If you have no luck on your own, I have a client who is pretty well connected and may have some leads for you. Contact me privately, if/when you get to that point. (We helped a small company in Toronto do something similar about 5 years ago, and it worked out quite well. Not sure if we just got lucky or if this is the right strategy.)
  • Posted by Chris Blackman on 5/22/2005 at 8:24 PM Accepted
    Why not try truly "direct"? Where you and only you (i.e. your company) deal direct with the retailers you have selected to deal with.

    Once you have them switched on to your product ordering can be a simple fax, e-mail, telephone call to your orders dept, or handled online.

    The hardest part is getting them "switched on" to you. Two ways I will suggest:

    1. Identify the target retailers from the yellow pages. Call and ask for the person who makes the buying decisions in upscale confectionery. Send them a small package of your chocolates with ordering info. Follow up by phone.

    2. Roadtrip! Load up with loads of small packages of sample chocolates, hit the road and door knock the target retailers, introducing yourself, the firm, and the product. Leave behind the samples and the ordering info. Follow up by phone. If possible take orders on the spot, phone/e-mail them in, so the deliveries are occurring while you're still calling...

    You may need to set up a small (say 2 person) call centre function within the business to deal with the phone work, in and outbound, but the increased margin from dealing direct will easily (more than) cover the cost of this, and of the shipping costs...

    Hope this helps.

    ChrisB
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