Channel Strategy for Architectural Paint in the New Century
Few questions are more important, or more difficult to answer, for an architectural paint company than: “How should we distribute our product?”
Choice of the right channel involves many more strategic factors than volume, growth rate and gross profits. When forming channel strategy, the coatings company must assess the risks inherent in each channel. It is also necessary to gauge the company’s core competencies objectively. Each of the three main channels demands different skills. The complexity and interaction of these five factors — volume, growth rate, price, risk and expertise — explain why there is no simple “one size fits all” distribution channel strategy. Every company needs to assess its own position and determine the strategy that suits it best.