The route to market or Go to Market model, how to attend the market and customers, is one of the most important commercial competencies for businesses.
Among the multiple options that a company faces to determine a strategy that allows profitable sales growth, one that offers huge opportunities is “re-thinking” the way in which products and services are taken to market.
The reality is that few businesses can presume to have a clear and fast way to take products and/or services to the buyer. Regardless of the sector (consumer goods, construction, automotive, textile, pharmaceutical, service, etc.), the majority of markets change so fast that the formulas or conditions that succeeded one day will not necessarily stand the test of time.
This is the first paradigm that business management must overtake, by raising the following question:
Are there forces in the commercial channels that are moving and that generate the need to study them to capitalize opportunities?
The main factors in the business environment that have a direct impact on the profitability or effectiveness of the Go-to-Market model are:
- The entrance of new forms of competition. These can be characterized by raising new value propositions for the buyer or final consumer. This value proposition can include variables in the brand—presentation—price relationship that can make shoppers or consumers within the particular channel evolve, affecting the preference towards a company’s products.
- New service needs in the channel. Regardless of the channel to which we refer, it is a fact that what we used to refer to as service, is today a term that is more complex to understand and to satisfy. Today, service is perceived in most cases as the integration of a series of activities that a provider or manufacturer must execute to satisfy the business needs of a channel. In the end, these activities represent a cost, or in some cases, an investment for the business, so that the more complex the variables are, and with greater demand for service, one can expect an increase in the cost of service, a motive for which opportunities are opened for segmenting or “rationalizing” the offered service.
- Growth in the number of managed SKUs. This growth can come from different sources (for example, product innovation or growing consumer segmentation and their reasons for buying). Still, the fact that there is a greater quantity of products to market and supply the market, causes us to re-think the method of execution to see if it is sufficiently effective.
- A change in capacity or power of the channel. Just as business changes, customers also change, and it is a fact that the players in each channel evolve, for better or worse. This means that the new capacities represent opportunities to grow the business with them or make decisions that mean the eventual decrease in business conducted with them (depending on the specific case). The point is that a business cannot assume that what it did successfully in the past within the channels will continue in the present, and much less into the future.
These factors have a direct impact on the growth and profitability of a company. At Sintec, we develop Go-to Market models that are customized by industry and client. Contact us to define your new Go-to-Market strategy for capitalizing on opportunities in your different commercial channels.
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