Establishment of Distribution Network

Distribution Network is very important to sell your product. However, sometimes Retailer, Wholesaler, Distributor, and Consumer do not take or sell your product.

The reasons are given below-

  • Product Quality– If you have a low-quality product
  • Product ROI– If they do not get any ROI from your product
  • New product – sometimes they do not take your product because you are a newcomer
  • Low Margin
  • Low brand buildings
  • Tough competitors


The Benefit of the Distribution Market


Distribution market helps you to build up a strong network without any expense so that you can build your sales in the market.

  • Low Sales Marketing and Distribution Cost– If you build up the salesman and shop throughout the country then the cost is increased. If you have distributer than the cost decreases and the sale growth rate increases.


  • Market Penetration – Market penetration gives a way in which entry is difficult for Mainly it acts as a green card.



  • Trust Worthy Partners – Peoples are like to purchase a product from trustworthy Because they have a reputation in the market and people feel safe to buy from them. As a result, the sale rate increases.


  • Rapid testing – By this way, you know what is happening in the market. From this way you can change the product when it is needed.



  • Efficiency – Efficiency is when the speed of the project increases. The time required in the expense would have been greater. The time required here is far less thus, increasing the efficiency of a project.


The Disadvantage of the Distribution Market


  • Risk of Distributor Brand – It is risky if the distributor brand is of low quality. People do not feel safe to buy any product as they have no reputation in the market.


  • Delay in payment– Sometimes the distributor take the product, but in return, they do not give any payment. So it is very important to know the personality of distributer before the hiring.



  • Lesser control– To know about the wholesale process is very difficult. If the distributor, wholesaler, and retailer are not trained well or they do not present the product perfectly then the sale is down.


  • Reduce Feedback Cycle – Sometimes actual feedback does not get from the market, so the sale rate decreases.



  • The Cost Rate is Increased– You have to be concerned about the cost of the distributor, wholesaler, retailer and also the customer purchasing rate. As a result, the cost rate increases.


How to find a new distributor


  1. Sales Representative– They are the person who sells the product to the market.


  1. Channels sales Executive– They are the person who builds up the channels partner. It is very important to build up executives in every city in the country. They help to build the distributor which increases the sales rate. So a highly trained and educated executive is very necessary.



  1. Join the Industry Association– Every industry has the association. You have to participate in the association because here you can meet with many experts who can be of help in the future.


  1. Trade shows– You should attend the trade shows.


By attending this program, you can meet:

  1. Vendors
  2. Partners
  3. Manufacturers
  4. Suppliers
  5. Wholesalers
  6. Retailers
  7. Consumers
  8. Buyers
  9. Exporters
  10. Importers

Here you can find out many support person, some big orders and also get the contract manufacturing.


  1. Meet the Existing Distributors– It can help you to get references. It may be one distributor is in-network touch with another distributor in another region. His reference helps to generate a new distributor. Thus, a ready market is earned in that particular region.


  1. Wholesaler and Distributor Websites– There are many websites of wholesaler and distributor. Here you can find out a big list of wholesaler and distributors. Through this way, you can find out.



  1. Subject Matter Expert– If you are a newcomer then firstly focus on yourself and make yourself an expert, and later you can hire the executive and representative.


Example – If you make the shampoo then first you have to know the market wholesaler and retailer and the supplier. You have to find out (15- 20) well-trained distributor. Then you have to find out who has the highest market penetration and sales rate. You also have to find out who has the highest level strength and also have the capability to take the new brand.


  1. Keep an eye on your competitor– You have to know about your product competitors and what they are doing. So, you are always up to date and get some new idea.


  1. Use your websites and social media to generate more leads– You have to make a page on websites and make a sheet about the benefits of distributer. Then you can put it on the websites. So distributer easily find out and count down in return they beneficial or not. You can promote it by social media like- SMS, what’s up, LinkedIn, Facebook, Tweeter, and YouTube.


  1. Meet alliance experts– They help you to buildup partners and distributors In returns, they take a commission.



  1. Outdoor advertising – You can also advertise the product by the outdoor.

It is two types—


  • ATL- Above the line
  • BTL- Below the line

By this two way, you can find out the distributors.

Pull Strategy

Case study

Karsanbhai Patel is the owner of the “Nirma.” At the very beginning, he did not get any payment from the distributors in returns of the product. One day he decided to bring all of “Nirma” from the market and told that he did not sell any detergent.

He decided to stop the supply of detergent as he did not get any payment. Some days later, he builds a very good advertisement on TV. This advertisement became very popular all over the country as a result customer demand increased.

People were all over the shops looking for washing powder “Nirma”. Retailers ask distributors to provide “Nirma”, which brings distributors to the “Nirma” Factory. Kharsanbhai Patel asks the distributors for his money. This strategy is known as the pull strategy.

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