The Bottom-up Drinks Newsletter
Setting targets with distributors can be challenging, especially when trying to grow your brand in a competitive market. However, after a decade of experience working with distributors in over 30 countries, I've discovered a more practical approach that can significantly improve your chances of success. In this blog post, I'll
The Bottom-up Drinks Newsletter
The drinks industry is a relationship business. We know it, we live it and that’s why it attracts so many new entrants every day. At the same time, we all know that it is also one of the issues in our industry. The informality of our business makes us
Targets & KPIs
You don't want new customers. You want NET new customers. Here's how: You can choose 2 approaches. 1. Aligned hunters and farmers 2. Competing hunters and farmers It depends on the objectives you set. It depends on the KPIs you set. If each of them thinks only about themselves, you
Insights
Wanna know the biggest mistake drinks brand do in the market? Procrastinate on jointly agreeing on targets with distributors. No matter how painful that is. Do it ASAP: Often companies require a swift pace of growth but, to avoid frustration among all parties involved, it is crucial to understand what
Targets & KPIs
Targets & KPIs
Outlet Segmentation
Targets & KPIs
Targets & KPIs
The marketing budgets agreed must not be “burned” in the first year(s) to avoid creating a hype, a bubble that will explode very soon. You should phase the spend of your marketing investments wisely to ensure having the funds to fuel the growth once consumer pull starts in the
Targets & KPIs
Define a clear set of KPIs and the picture of success for distributors or branches depending on RTM (not only volume and value but also the quality of distribution). They must be stretched but realistic; otherwise, it will just create demotivation with your distributors, wholesalers and their respective sales force.
Targets & KPIs
Often companies require a swift pace of growth but, to avoid frustration among all parties involved, it is crucial to understand what is the right full potential and growth pace. It is all about the targets and the KPI’s. The first mistakes that companies do are not to agree
Distributors / RTM (Route to market)
To avoid misunderstandings, you should agree on what type of investment (brand vs trade spend). Distributors will push for in-market spend, focusing on listing fees, advanced discounts and kickbacks, while brand owners will prefer investing in brand-building events, Social media and consumer activations. There has to be a right balance
Targets & KPIs
Ensure a fair share of the value chain is distributed to the various stakeholders to avoid a standstill when they realise there is not enough meat on the bone, and you will have to transition to another RTM. You might do the sell-in but not the sell-out. Also, pay attention
Targets & KPIs
Distributors / RTM (Route to market)
It is crucially important to align on the pace at which you want to grow your brand and if your ambition fit the ones of the distributor. They might have a different plan and relegate your brand to a secondary place. E.g. Often brand owners are overly ambitious with
Targets & KPIs
Estimate value/volume full potential as well as what realistically you can win in the market. Don’t pay too much attention to big numbers and market reports about the spirits and beer category. Skip the millions of Hectolitres and 9L cases. Focus on selling the first boxes instead. Do