Distribution channel management
Our client, a privately-owned manufacturer of luxury leisure products, was selling its products through a network of distributors benefiting from a territorial exclusivity agreement. Certain distributors in its network opted for a discount-model, requiring very limited investments both in premises, marketing materials and staff. Other distributors, who were heavily investing in promoting the products to the target clients (looking for high-end, luxury products), were seeing their sales decline as prospect customers would visit their outlet and then purchase at a discount-model distributor. To then return to the first distributor for support and after-sales services.
Scale-Up Partners was brought in, and together with the logistics, supply chain, finance, and sales and marketing executives, Petra’s recommendation to opt for a selective distribution network was implemented, leading to the retention of only distributor who complied with a well thought-through set of qualitative criteria. Free-riding on other distributors was no longer an option, the clients’ brand image improved exponentially, compliance with competition laws was no longer a headache, and the client’s various distributors started competing on customer satisfaction rather than price – exactly the way our client wanted to be positioned.
Services provided:
Contracts
Compliance & Risk Management
Corporate Governance