Distribution channel is a must for any product aspiring to become big. No matter how good a product or how competitive the pricing – it’s unlikely to grow big and reach sizeable market without distribution support. Its comparatively easy to drive marketing campaign and create awareness/demand through large spending in Electronic and Print Media – but sales is unlikely to grow if consumers do not find the product in nearby retail store. Online is surely an alternative – but is still in its infancy – accounting for only 2% of total Indian retail market.
So, how one goes about building distribution channel? In my view, there are 4 steps
1. Select Channels, Target Markets – Identify Potential Channel Partners
2. Prepare yourself with commercials, distribution contract, credit policy etc.
3. Negotiate like a professional
4. Execute Contract/ Sales
Please read following article – it explains in detail