Will your products sell successfully in another channel? It’s a common question and perhaps a tempting option to pursue if your products are nearing the mature stage of their lifecycle. Before you invest in a new channel initiative and get your team working on campaign materials, you might think first about how your business model would fare in another channel. If your company and brand strengths don’t transfer well, it’s likely that your products will need more than a marketing push.
There is a discovery process we typically suggest to clients that are interested in going outside their normal distribution channels. And while it may seem like pretty basic stuff (It is), going through the process might reveal some critical needs to address before you take further action. And even more advantageous, the discovery process may also uncover some allied channels that offer particular opportunity or suggest ways to breathe new life into your products within their existing channels.
The process consists of three basic steps that will help you better understand your company’s position within the market(s) it currently serves, and help you judge your preparedness to serve another (new) channel. Included are a thorough competitive analysis, a complete market review and in internal SWOT evaluation. Engaging in detailed homework of this type prior to product strategy development will provide clarity for next steps and set the groundwork for enhanced internal cooperation.
While the steps can be implemented internally, partnering with an outside marketing firm is advantageous. The discovery process is time consuming and depending upon the scope of this analysis, your time and staff resources should be considered. A qualified outside marketing source can conduct the research for you, interpret the data and provide valuable insights and tools for new market penetration.
Learn more about the types of information you should collect and evaluate to develop a successful New Channel Strategy: