Game changers are strategies and concepts that help change the outcome for an organization… and thinking beyond brick and mortar is a great Place to start.
The underlying principle of Place strategy is to gain access to the end-user more effectively and efficiency.
Place is often associated with generating short-term revenue. If you’re in the restaurant, retail or real estate industry then you’re all too familiar with how critical the right location is to your sales strategy. In a broader context, Place is simply where customers make contact with your brand in order to purchase a product or service.
By way of example, in manufacturing, the primary point of contact is with a sales representative and that could occur over the phone, in a boardroom or even on the golf course. With consumer goods, the point of contact comes via a distribution network and is made up of retailers who carry the products.
Here are four (4) Place strategies that stand out to me as game changers:
- Developing a High-Functioning Sales Culture. Most organizations I work with have a great product, good production processes, and a solid business model but their sales departments need work. Time and energy spent on creating a more effective sales culture has a major impact on the health of an organization; as well as, helping it fulfill its mission. By hiring the right people and creating clear marketing metrics, your consumer contact points become stronger and everyone’s experience becomes… well… richer.
- Casting a Wider Net. eCommerce activity continues to increase as people become more familiar and increasingly comfortable with making purchases online. At Relevention, we help our manufacturing clients bypass layers of distribution so they can sell direct to their end users online. This process often helps companies develop healthier margins which means (other than the obvious profit) you have immediate headroom with your price point and can pass savings on to your customers; this activity can make it easier to sell higher volumes, as well as, increase brand loyalty.
- Launching a Chain of Stores. Fashion designers and clothing manufacturers are often forced to sell their products at department stores that may, or may not, do a great job of merchandising or ensure a great brand experience. However, with the rise of strip malls and smaller retail store blue prints they are able to have their own Tommy Hilfiger-like store thus passing increased value onto their consumers. Apple pioneered this strategy within the technology industry with the Apple Store and their Genius Bar.
- Owning the Products. Retailers are always fighting for better product selection and pricing in comparison to their competition; the trend now is to develop your own Private Label products. In Canada, Loblaw’s President’s Choice brand is leading the way. In the US, Trader Joe’s is seeing record revenue and their shelves are nearly exclusive to their own branded products.
Other strategies that have worked include things like home parties, auction sites, and mobile applications. The key is to always think of how to add more value along the chain of activities. As a company creates more valuable points of contact their products or services are delivered to the end-user more effectively and efficiently. If that doesn’t change the name of the game I don’t know what does.
Have a great day!
– Braden