Why are Distribution Channels Important for Food Production Industry?
By *Ameen Ahsan Strategy Consulting*
Food Production is one of the oldest and most sought after industries in the world today. Today the Food Industry has brands from A-Z trying to market and sell their products. Since food is something without which none of us can do without, the competition and new entrants in to this industry is very high.
Food Production Industry has a lot of untapped potential. The demand for food products is only set to rise given the present state of affairs of the globe. Be it organic food or processed food, the food production industry offers huge opportunities if you are able to play it right.
One step to playing it right and having an advantage over the competitor is to have a right mix of distribution channel for the products you offer. Distribution channels help you expand your reach and grow revenue.
Distribution involves getting the product from the manufacturer to the ultimate consumer. Distribution is often given very less attention by business. Many businesses fall for the trap that if they make a better product, consumers will buy it. The problem is that retailers may not be willing to devote shelf-space to new products. Retailers would often rather use that shelf-space for existing products have that proven records of selling.
An effective distribution channel is not about eliminating middle men and reducing cost, but is all about designing the right mix of channels for your business and improving efficiency.
If your channels mix is not right, it would result in unsold good and very little growth for your business.
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