Issue

FSP’s client, a global supplier, wanted to identify the key decision points within retailers’ buying strategy in order that it could best allocate its selling resources.

Solution

FSP discovered that the retailer perception of the global supplier was that it had no unified distribuion strategy.  In the retailers’opinion, the distribution was determined, not by brand development criteria but by cutting deals.

The effects of this were far-reaching, precluding the supplier from being seen as a suitable strategic partner for retailers.

A further problem of unreliable product supply was also brought to light.  This had caused retailers to be attracted on a deal basis only, showing reluctance to offer the supplier a more integral role within their business.

Results

Historically, focus had been on devoting resources to product development and continuing its positioning as a low cost supplier, but the client was persuaded that more attention need to be devoted to its distribution strategy if it was to build up strategic alliances with key retailers and enhance its market share.