Tag: business strategy model

route to market

Essentials for a Successful Route to Market Strategy

What is a route to market strategy?

A route to market strategy, also known as a sales execution strategy provides a roadmap for companies to get their products from the factory or warehouse to the end-users, customers, or distributors. The primary objective of a route to market strategy is to ensure that the products reach the clients/customers in an efficient and effective manner, thereby ensuring satisfied customers and increased sales growth.

Developing a high performing route to market strategy involves focusing on the right markets, with alignment to the behaviors and needs of the customers in those markets. Furthermore, it is vital to choose the right sales channels, products, and value propositions, which would consequently result in a company that delivers high revenues, profitability, and customer loyalty. Experts at Infiniti Research have provided some general guidelines for achieving a successful route to market strategy:

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route to marketStart with the customers

Route to market intelligence involves identifying the depth of understanding that a company has to its customers, their expectations, behaviors, and needs. All route to market decisions largely depends on this kind of detailed information. Businesses must only sell products that customers need and are willing to buy. To gain a better idea, they must interact directly with the customers through focused interviews, customer surveys, or prototype testing. Then, understand what makes the company’s products or services add value to the customers. It is also critical to evaluate the best channels to reach out to the target customers.

Low-cost channels for improved profitability

Sales is an area of business that can have the greatest impact on profitability, especially if it includes selling some of the products through lower-cost channels. The challenge here is to understand which channels can be used for which customer. While some products and sales transactions require more complex and expensive channels, others can be maintained by lower cost channels such as telesales.  Therefore, utilizing the correct channels can significantly affect profitability.

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Balance between market penetration and control

Using a global market coverage route to market strategy with a mix of channels can result in channel conflict, margin erosion, and even dissatisfied customers. This is especially true when channels are not closely controlled. To stay in control, it is important to identify these potential risks. For instance, several luxury brands maintain quality, stability, exclusiveness and, ultimately, high margins on a defined segment of the population. At the same time, they forgo the fact that they could probably sell ten times as many products as they manufacture, but at a cost to brand image and market position.

Products sold and channel should match

Businesses must ensure that the products that they sell and the channels that they choose are suited to each other. They must try to sell products through the channels that customers use to buy the product that is being sold. It is also necessary to resort to channels that give economic sense to the point of sale. Which means, avoid using expensive channels to sell cost-based products which are not unique from others in the market. An effective route to market strategy is to use low-cost channels for such products.

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5 Easy ways to Build a Powerful Growth Strategy

Growth is the ultimate aim for any business, but if you do not have the right strategies in place, chances are that things could go haywire. However, there’s no plug-in for growth. To improve your company’s growth rate, it is essential to tailor the strategies to your unique product, problem, and target audience. A business growth strategy framework includes product and customer diversification, integration, and regional expansion. Having a good growth strategy framework in place facilitates achieving a higher level of market share than you currently have.

Ways to build a powerful growth strategy framework for business

Establish value propositionGet More Info

In order to sustain long-term growth, businesses must understand what sets them apart from the competition. Identify why customers prefer your product or service. Finding answers to this comes handy in explaining to other consumers why they should do business with you. The unique selling proposition of your products or services is a great tool to pitch your offering to potential customers.

Define key indicators

Unless the growth strategy framework formulated is measurable there is no way of knowing whether it’s effective. While building the growth business growth strategy framework, companies must identify the key indicators that affect the growth of your business, then dedicate time and money to those areas. Also, A/B testing at definite intervals is essential to make the necessary changes over time.