A new producer enters the retail market with an innovative product. Because this market is dominated by a number of large producers, the new producer experiences resistance in introducing the product. A smart partnership and multichannel approach increase sales results for both producer and retailer.
An innovative product in a traditionally oriented market
A producer of innovative consumer products has launched a new product onto the consumer market. The relatively small player is hampered by an industry which operates along traditional lines, with retailers being the only sales channel and refusing to stock the innovative product. At the same time, opportunities arise to offer direct online distribution. The challenge for the innovative producer is to position itself in the market in a positive way and create a pull mechanism towards the retailer.
Multichannel approach inspires and motivates traditional channel
By positioning the product for a specific target group with a strong proposition and online & offline communication strategies by the producer, customers are motivated to go to the retail channel. In this way, the retailers experience the added value of the innovative product, which means the producer has become a lead-generator for the retailer.
Additionally, the producer develops its own online sales channel to supplement the traditional channel. By first testing initial customer experiences around the communication and the product in a structured manner, the producer has an ideal basis for providing its own online distribution.
Synergy delivers sales increases across multiple channels
The positive responses from customers and retailers result in an effective partnership between producer and retailers, and improves sales results for both. In addition, both the product and the communication have been improved in a systematic manner based on customer experiences, as a result of which the direct online channel can be deployed as a fully-fledged distribution channel.