Constructing Routes to Market

I don’t have any experience in constructing route to markets. But, this according to me is one of the most important factors in product and marketing management. I am just writing this blog based on some theoretical knowledge and framework of this vital concept.

To develop a Route-to-Market (RTM) plan, it is important to:

  • understand current position of the category and the brand in the market and in the target segments
  • know all your customer segments and their behavioral specifics
  • have an understanding of all the available sales and distribution channels to the customer segments
  • understand the adv/disadvantages of each of the channels for the brand to reach the customer segments

Steps:

1. Where and how will your customers would want to buy the product
2. Incorporate a supply chain perspective to optimize the customer value
3. Recognize the catalysts and obstacles to change and do a feasibility analysis
4. Understand the distribution contracts to address exclusivity, pricing, margins, and competitive issues.
5. Understand the components of the distribution
6. Recognize the strengths and weaknesses of each channel and align the products/services with the channel
7. Define the ideal distributor for you and how the existing disrtibutors are different
8. Outline the financial and non-financial motivators for the distributors
9. Recruit the distributors and resellers
10.Train the distributors on the products and build expertise
11.Implement effective programs like cross-promotions, deals, etc.
12.Engage the distributors in the advisory councils

A company’s RTM strategy will be based on the target consumer segments, channel dynamics, competition, internal capabilities and the business environment. After the decision is made, and the routes to market are decided, it is important to actively manage it and always look for new sales points, and channels to drive growth.

The primary challenge is for a company to make certain it has put the consumer first—that it is designing a go-to-market strategy that starts from the customer perspective. Many companies build their go-to-market model from the inside out. But there is a lot of leverage in constructing it from the outside in, or at least in modifying it on the basis of knowing what customers want to have change.

Advertisements

2 thoughts on “Constructing Routes to Market

  1. Dear B.K,
    It is easy to construct route to market
    *Understand the market in size and type.
    *Identify outlet base for the respective market
    *Asses the scope and availability
    *Plan for the gap vs Scope (outlets)
    *comprise 50 outlets/route
    *Gap/50 outlets give no of beats(Initially)
    *Plan beats in walking order for effective placement/sku
    *Once placed subject to incremental volume, again increase beats.
    *SERVICE VS FEASIBILITY NEEDS TO BE ADDRESSED.
    *Adhere to corrections/support when and where necessary.
    *Plan for a long term growth and SUCCESS will RUN BEHIND YOU.
    Though this looks very basic, its fundamental and essential.
    Assessment of Demand Vs Gap will be arrived and corrected with this.
    Building on strong fundamentals/foundations will never crack
    Good Luck,
    Bhanu.

    • Sir,

      Thank you very much for your comment and for your help in letting us understand this concept.

      I will touchbase with you in case of any queries in future.

      Cheers!
      Sai Krishna

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s