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An Action Plan for Distribution and Sales
Objective: Establish a distribution and sales plan designed to achieve your five-
year revenue and geographic coverage goals
Outcome: A written, time phased rollout plan detailing the year-by-year
sequence of geographic expansion, addition of channel partners, and
the associated costs and revenues
Benefit: A clear action plan simplifies decision-making by detailing the steps necessary to achieve your revenue goals and, strengthens your position during negotiations with channel partners
You’re almost home. It’s exciting to see the first batch of a new product come off the production line or arrive from the co-packer. You’ve worked hard to refine your product formulation, develop creative marketing materials, and get your production set-up. It’s all important stuff. But it won’t make you any money; you’re not home yet. It isn’t until you start selling that your business sees money flowing into its coffers and right now all you have is a warehouse full of product.
It’s been said sales are the lifeblood of any business. It’s true. So the questions of who to sell to, where to sell it and how to get it there are critical. There are meaningful differences among market channels in the food industry. The decisions you make on product placement, distribution centers, store selection, and trade promotions are what will spin the meter on your sales gauge. If you’ve already indentified your ‘Profitability Vehicle’ then you know who your customers are and where they are located. Now, what’s the plan for getting the product to them?
There are several questions that must be answered:
- In what geographic areas and accounts do we want our product?
- How do we gain shelf placement in our targeted accounts?
- How are we going to move product to the accounts where we gain placement?
- Who is going to merchandise our product at retail?
- How are we going to drive sales at retail stores?
The combination of chain stores, independents, specialty stores, and foodservice accounts means you can’t use a one-size-fits-all approach to sales and distribution. Understanding this structure and the expectations of the channel participants is key to managing your marketing resources.
The Route is designed to give you a ‘turn-by-turn’ navigation plan to follow in building distribution and sales for your product. You will work with a Food Industry Consultant to do the following:
- Establish retail (or foodservice) rollout program objectives
- Matching distribution requirements with revenue objectives
- Gain understanding and evaluate marketing and distribution program structures
- What should you expect when working with different channel partners?
- What are rebates, spiffs, allowances, and gratis product?
- Develop time-phased, sequenced geographic rollout alternatives
- Where, when and how are we going to expand distribution?
- What are the pros and cons of each alternative?
- Develop sales strategies based on selected rollout alternatives
- How will you gain distribution and provide service to your targeted accounts?
- Develop cost and revenue projections for each rollout alternative
The Route is where the rubber meets the road in growing your business. Just as planning your route before driving to an unfamiliar address saves you time and frustration, so too does The Route save you time, frustration and, very importantly, money.
Call The FPC today to learn more and receive a customized quote for your business.