Writing a Business Plan: A Template (Part 4)

We will now continue with our discussion of business plan writing with two more marketing essentials – Distribution and Promotion.

Distribution. This is the step-by-step progress of your merchandise from the point of production to the end consumer. All products can be sold in the same manner or divided by product or product line. There could be certain market segments that could be more effectively served in a different manner or certain geographical regions that are more appropriately serviced through a different method.

You can identify the appropriate distribution channel that would work for the product or service you are planning to sell. There are two ways you can reach your market:

Direct sales. The process goes from the manufacturer to the consumer.

Direct sales

This type can be done through telephone, website, salespeople, a customer visiting an establishment, mail sales, or through an outlet or office.

Agents

Agents can organise the distribution of the product to the end consumer through wholesale or retail functions. Agents would usually offer additional services to help them in fulfilling this functions, among these are:

Sales promotion
Transportation
Forming a sales team
Opening a credit facility to clients
Access to an account facility
Giving valuable advice on the market

Distributors

You can also tap the services of distributors. These are companies that have the authorization or clearance to distribute products in certain predetermined geographical areas. They can then sell the products directly to large clients (usually retailers) or use wholesale or retail methods themselves if they have the capabilities to do it.

Wholesale

This is when people or companies buy your product in bulk and then sell it to other wholesalers or directly to retailers.

Retail

Retail would mean selling the product directly to the consumer. The end consumer can get access to the product through all of the previously mentioned channels. Retailing takes either of two forms; independent stores that have only one outlet or a few outlets and retail multiples that have many retail outlets that are distributed over a large geographical area.

Franchises

This is a process of applying a preset formula that has been formed by the franchisor and must be applied by the franchisee. The franchisor must provide support for the franchisee as he strictly follows the set plan. Additionally, regular royalties must be paid by the franchisee to the franchisor and there is usually an initial buy-in fee involved.

Don’t forget to identify your distribution strategy. Many products have failed simply because of a lack of organized distribution methods.

Promotion. These are the methods you will use to gain awareness for your product or service in the market place. There are four basic promotion methods that you can use for your business. These are:

Sales promotion.
Personal sales
Advertising
Public relations.

Don’t mince words, be direct in communicating your message to your audience. Immediately identify the product’s characteristics and how it could satisfy the market’s needs. Don’t be overly technical when doing this explanation.

Also, be realistic about your promotional budget, don’t overspend too much but don’t scrimp either.

Business Issues
Business Plan
Countries
Finance
Marketing
Start up
Strategies
Taxation
Technology


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