Bev net live channel management presentation bill sipper cascadia managing brands 12 05 14
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Transcript of Bev net live channel management presentation bill sipper cascadia managing brands 12 05 14
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Cascadia Managing Brands
Consultants specializing in the non-alcoholic beverage industry; large and small companies alike;
Brand managers
Outsourced VP Sales or VP Marketing
We implement the agreed upon strategy whether we were involved as consultants or not
A La Carte
Consulting
Sales
Marketing
Brand Management
Need to Know
How many of you have purchased a new, non alcoholic beverage for the first time at Costco?
How many of you have purchased a new, non alcoholic beverage for the first time at a Drug Store?
How many of you have purchased a new, non alcoholic beverage for the first time at a deli?
Key Takeaway: Dont Try to fit a round peg into a square whole. Plan your journey into the channels carefully, especially how it relates to effecting your distribution network and/or your pricing and brand positioning
The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet.
DEFINITION of 'Distribution Channel
Channel Management
What is Channel Management?
Channel = types of stores
Management gets broken down into two parts:
PLANNING
Managing
Plan Your Work and Work Your Plan
Dont Expect What You Dont Inspect
Whos Checking the Checker?
Channel Strategy
Decide which channels you want to conquer and in what order
Understand there are ramifications to each strategy you need to understand before moving forward
Drug Channel
Food Chains
Department Stores
Natural/Specialty Distributors
Grocery & Drug Wholesalers
Specialty Retailers
Mass Merchandisers
Convenience & Gas
Internet & Consumer Direct
Examples of Distribution Channels
Types of Distribution
DSDDirect Store Door
Convenience Broadliner
Food Service Distributor
Club
Direct to Retailer
Natural Distributor
Specialty Food Distributor
General
Wholesaler
Warehouse
Know Your Channels
The answer is 261,061
What is the question?
How many stores are there in the US that sell beverages?
Channel Breakdown# US Stores
# Stores USConvenienceSupermarketsDollarDrugMass MerchNatural/SpecialtyOtherClubMilitary148126.036569.021311.020000.013570.09133.05000.04000.03352.0
% of Non Alcoholic Beverage Sales By Channel
*National Average, Regions Are Very Different; Plan Accordingly
Channel Margins
Manufacturer Gross Profit Target = 45%
45%-55%
C-Store
25%-35%
40%-50%
Drug
45%-50%
Club
11%-13%
*6%-
8%
Major Natural Food and Gourmet Chains work on 40% - 44% Margin
DSD
30%-33%
Grocery
33%-35%
40%-44% for WFM, TFM
GroceryProduce or Dairy
Natural Foods Distributor
Almost The End
This is not a difficult business. Do not over think it;
Planning is critical;
If you dont know something, ask for help;
Be entrepreneurial
Use the rules we discuss today as guidelines, not absolutes!
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