Asking the right questions and finding out the answers when the market development has taken too long time without tangible results or existing channel is not bringing the anticipated results, can be difficult. The key question however, the companies should ask themselves is “how long more can we wait?”.
The reason for inefficiency is not always within the channel, but can be based on many factors such as general market conditions, wrong market mix, unintentional lack of communication between the parties and even cultural differences.
Channel Diagnostics is a visualization tool developed to reflect market realities.
Nordic Industries Development applies Channel Diagnostics approach to challenges the clients face with their sales channels.
The objective is to help them to understand and evaluate better the strategic fit of their channel partners.
Initially it is important to understand.
a) The primary problems in the sales channel such as:
- We have found a partner, but results are sluggish
- The distributor sells well product X but repeatedly fails to make progress on product Y
- The results are more or less, but we don’t know what our distributor really does and how much could we potentially win business in a market.
- Technology fit, commercial fit, size fit etc.
b) The problem as client perceives it such as:
- Does our partner apply right sales arguments?
- How well does our partners scope fit into the market of our company?
- What’s the expertise and competence of our channel partner to our company?
- Do we get the right reasons why sales expectations are not met ?
c) Another side of the story:
- Has the manufacturer been present enough and available for channel partners?
- Are their expectations realistic?
- How does the channel partner sees the product and market mix (the flexibility issue)?
NID’s approach enables systematic diagnostics of client’s (principal) and sales channel’s (agent, distributor, country organization) capabilities, expectations and mutual understanding about goals and objectives. Based on discussions with the client and the channel partner, NID builds a comprehensive understanding about issues affecting the sales performance. Results are visualized as a gap analysis about strategic imbalances affecting the performance and communications between the client and the channel.
Based on sector expertise by Nordic Industries Development, it is sometimes, but not necessarily, possible to identify generic issues as well as proven solutions to issues affecting sales, performance and ultimately the bottom line of both client and the channel partner.
As a result, there will be objective basis on talks, decisions and further improvement of sales performance at a specific geographical area, product or market segment.
TO KNOW MORE about our Channel Diagnostics services, contact us.