The New Distribution Strategies Your Product Will Need to Succeed

Amazing changes in the retail marketplace over the last 15 years has created new, different obstacles to successfully launch a new product. Marketing romantics muse glowingly about the old days when there were supposedly multiple placement opportunities in every level of retail. True, there were. But on closer inspection, there are as many options now, if not more.

People and organizations are not usually open to change. Change is hard, requires a different thought process, imagination, flexibility. In the 1980′s there was a seemingly endless array of local, regional and national store chains, including department stores, drug, discount, food, hardware and mass merchandisers. Most are now gone. They did not change.

WT Grant, Montgomery Ward, Venture, Ayr-Way, Gold Circle, Hills, Super-X, Bambergers, B. Altman, Bonwit Teller and Wannamakers are only a tiny sampling of strong store brands that no longer exist. The new big box chains that have taken their place feature massive purchasing, merchandising and logistic assets. Certainly Wal-Mart, Home Depot, Macys, Walgreen and Kroger have earned their collective perches as dominating chains in their categories.

The question for small businesses and entrepreneurs is how to successfully place product in these retail behemoths. And if they can’t be penetrated what other options are available. The difficulties of selling a short line or a single item to Wal-Mart are daunting, but can be overcome.

To successfully sell the big boys, you have to adjust, change your terms and conditions to fit theirs. The key to the modern big box success is based on huge sales volumes, lowest price available and logistics that enable ever-faster deployment of inventory and resources. Software for shipping and receiving is as important as product features and benefits. You have to have the capacity to participate in these advanced control systems.

The inter-net and electronic media have created whole new sales opportunities that did not exist a generation ago. If Ebay counted all of the independent contractors they serve as employees, they would be the world’s largest employer. Over 700,000 entities now sell product through this vast, democratic, web community. Many make a full-time living from Ebay sales. This is an inter-net department store with an auction format. And there are dozens of other targeted web-based sites seeking inventory to sell as well.

Home Shopping Network, ANC, Shop at Home and QVC are simply electronic department stores and each has a huge appetite for new products. Every year these cable television retailers search locally and through on-air solicitations for fresh, creative, new products that can be demonstrated in this powerful sales venue. A product that sells successfully on HSN will soon be in demand on traditional retail shelves.

Years ago late night infomercials were the frequent butt of comic skits. Today major companies such as Proctor & Gamble, General Motors and Estee Lauder utilize this sales venue. Hundreds of products are launched in short format infomercials each year, and many succeed. These spots can be produced at amazingly affordable prices and test media buys mitigate financial risk. Most big box stores feature an area featuring the “As Seen on TV” logo. It is much easier to penetrate the bureaucratic maze of a national chain with a bit of proven success in hand.

Much as TV infomercials have revolutionized product marketing, an even less expensive strategy can be undertaken utilizing print media. Main stream newspapers, magazines and print supplements increasingly sell print
Advertorials. An Advertorial is an article that reads and appears to be non-commercial, but contains a specific product message. These have been extremely powerful guerilla marketing tools, inexpensive, easy to monitor and strong revenue generators.

There are many other potential avenues to pursue in order to create sales traction for a product. Publicity campaigns (have the advantage of being free), specialty catalogs, remittance envelopes, commission sales coverage, and a customized web-site with an online pay-per-click program are just a few.

The old days and stores are gone. We only have the new days and a whole raft of new opportunities to utilize. Maybe Lowe’s is not the place to launch your product. Successful pursuit of a guerilla option will enable a product to develop a sales base, sales, traction and growth. This will level the negotiating field when the big box presentation is made.

Is Consulting a Good Career Move?

Many people are unsure if consulting is a good move for them to make. Fears around security, being able to sell and market themselves, the need to work alone and be solely responsible for their own financial success. You may have some or all of these concerns.

Let’s start by having a look at the three basic options to make a living.

  • Having a job (working for someone else)
  • Contracting
  • Consulting

Having a job is the traditional “safe” approach. For many people it is still the best approach after all, if you’re not actually that good at what you do then it’s a lot easier to hide in a big company surrounded by other people who all have a part to play in your success (or failure).

If however you are really good at what you do then having a job can be frustrating and limit your freedom, creativity and earning potential.

What are the important areas for you?

Control of time

As an employee or a contractor you will have little control and will, in the most part, have to fit in with the professional working day’. As a consultant you be able to choose when you work..

Control over what you work on

As an employee there will be little choice over what you work on. You could potentially shape this by being selective about the job you accepted but it would still be down to what the company you work for wanted done.

As a contractor you may have slightly more choice as you could specialise in the areas that interest you the most however there would still be a lot of specific direction set by who you contract with.

The need to sell and market yourself

There is very little need to do this (with the exception of the actual job seeking process) if you decided to stay as an employee.

As a contractor you would need to do more of this but most contractors get their work through agencies so it would not be a massive requirement.

If you went the consultant route you will need to do a lot of this, developing strategies to get your business recognised, attract leads and turn them into paying clients.

Potential for higher income

Remaining as an employee offers the least opportunity, Contracting will certainly offer better potential but consulting is far and away the best opportunity to earn big money.

Benefits

Many people who are employees enjoy a wealth of company benefits (health insurance, company cars etc.) As a contractor or consultant the benefits will be next to none.

Job security

As an employee, particularly if you been employed by the same company for a number of years, you have a degree of job security and, even if your job is cut you may be entitled to redundancy payments. As a contractor or consultant you will have no such security.

Career security

While you have some job security as an employee your career is in the hands of other people. If your employers company merged with another, or if they suffered some other kind of major financial issue, you could find himself with no income. If you have your own consulting business you can arrange that your business was not linked to a single company and therefore you are in more in control over your overall career.