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April 10, 2007 | Direct-To-Trade | WineDirect Admin

Dual Sales Channel Development

What are the benefits of dual sales channel development? The obvious answer is that your products would be available to customers at both retail locations (wine shops, restaurants, etc.) as well as for direct shipment to their homes and offices. This is a core market development strategy which many wineries do not take advantage of because they believe the initial investment of opening the second sales channels is too high. Development of any new market requires a ground investment of dollars, employee resources and administrative overhead to establish. But, promoting your products through both the direct-to-consumer and direct-to-trade channels will provide you with efficiencies. The second channel does not double your market development costs and in many cases developing your second channel can be quite modest in cost. For both channels you will be managing a targeted email marketing campaign, merchandising your products online, updating your website with tasting notes, product accolades, news and events, coordinating winemaker dinners, attending events, etc. The importance of maintaining dual channel sales increases when one channel suffers or is put in jeopardy. This is particularly true when the security of your direct-to-consumer channel is in jeopardy as it feeds and promotes the health of your retail accounts. Some wineries choose to develop their DTC channel first because of a large barrier of entry into a state’s wholesale marketplace. This is particularly true in states which require the use of a distributor. The good news is that the need to seduce a distributor, which can be a quite humbling and sometimes frustrating experience, has been eradicated in a number of states where Inertia has launched its Direct-to-Trade Initiative.

If you are looking to strengthen your reach into a particular state, and are interested in the Direct-to-Trade Initiative, just drop me a line.

Onward and upward,
 

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