Route to Market

What does RtM do? provides a roadmap to get your products, from your factory or warehouse
to your customers, distributors and/or end-users, in the most efficient and effective manner,
with the aim of growing sales while satisfying customers.

4 phases : assessment, strategy, design, and implementation

We have a proven methodology that has consistently

delivered sales uplift
Activities
1. Distribution network optimised, territory
extensions and new distributor
contracts
2. Distribution network optimised, major
improvement in market information,
national distribution centre started
3. designed and implemented a new end-
to-end RtM and distribution
4. all RtM processes in scope, new
distribution structure, fewer higher
quality, better financed, distributors
Impact
bottom line impact >Euro 11 million
per annum.
financial benefits (from sales uplift
and reduced logistics costs)
estimated at USD 2-3 mn per year
Bottom line savings >USD 3.6 mn,
working capital improvement GBP 1
million, zero stock outs & doubling
of the company’s share price
Bottom line savings of several
millions of USD and significant
sales growth.

Here is what the 20 Steps to Route to Market Excellence looks like:

Assessment
To start with, you should review and understand (not guess) every element of your
current RtM set up. This should include reviewing your ‘current’ 20 steps across
your RtM. This should include the performance of current and available distributors,
field force, back office, sales management, operations, CRM, to name a few. We
also recommend reviewing RtM operations of competitors and best in class non-
competing companies.

STEP 1 Review Current RtM Performance – Strategy, the Existing 20 Steps that
are present, SWOT, Work Practices, Metrics, SKU Segmentation & effect on RtM,
advanced RtM Data Analytics, etc. Read more on our supply chain and RtM
analytics solution here.

STEP 2 Consumer & Market Mapping – Consumer Behaviour & Trends, Specify
Geographic Realities, Trade Landscape, Point of Sale (Direct/Indirect), Key
Battlegrounds, Must Wins

STEP 3 Distributor Assessment (Direct/Indirect/3rd Parties) – Visit Client

Distributors, Access Current Distributors. Read more on our programme to assess
distributors’ performance here. Download our Distributor Performance
Guide here.

STEP 4 Competitor Analysis – Competitive, Non-Competitive, Best in Class

Deliverables of this phase include:

 Current RtM performance – A-Z of Current Performance covering the 20 steps.

 Distributor Performance Assessment (Quantitative & Qualitative) vs Best in
Class
 Competitors – Model of Competitor RtM and Best in Class RtM Models
 Market Map – Current Consumer Behaviour & Geographic Nuances, Outlets by
Channel and Coverage Map (Direct & Indirect)

Strategy
Based on the extensive review in steps 1 to 4, looking strategically across the 20
steps and working closely with your cross functional and interdepartmental teams,
map out your customised RtM Strategy and approach to deliver your strategic goals.

STEP 5 RtM Strategy & the 4D Approach

 Overall Approach to RtM linked to commercial goals

 Detail what success looks like
 DIME Approach (Direct, Indirect, Mix & Everything in between)
 Define requirements across 4D’s (Distribution, Display, Dialogue, Digital)
 Link them to the organisation goals
 Strategy Map to Define Dependencies & Ensure Organisation Buy-in
Deliverables of this phase include:

 4D RtM Strategy & Approach

 RtM Strategy Map – Highlighting Key Dependencies of RtM Strategy
Components. Read more and see an example of an RtM Strategy
Roadmap here.

Design
In this phase focus should be to design the specific steps that deliver the RtM
strategy. This includes classifying each point of sale/outlet against chosen criteria,
segmenting these into channels, building territories to cover the market, designing
the required RtM structure to deliver this.

The right data and metrics need to be available. A Sales Incentive Programme to
support RtM goals should be developed and the sales force need to be equipped
with the required toolkit to deliver. Finally, a Trade Incentive Programme to partner
with your customers is needed and the right technology needs to be in place.

STEP 6 Outlet Classification – Levels, Criteria, Resource

STEP 7 Channel Classification – Review, Prioritise, Define Channels, Sub-

channels, Management & Resource
STEP 8 Territory Planning – Geography, Link to Market Mapping, Trade
Coverage, Resource FTEs (To Be vs. As Is)

STEP 9 RtM Structure – Define Field Force & Back Office – Distribution,
Merchandising, Promotions, Telemarketing, Customer Services, Events, Trade
Marketing, Horeca, etc

STEP 10 Data & Metrics – Define Current Capability, New Data Requirements,
Revenue Management Model (e.g. maximising revenue with efficient territory
planning, route optimisation, sales targets, incentives, etc.), New KPIs. Read more
and see a Balanced Scorecard example here.

STEP 11 Sales Incentive Programme (SIP)– Successes, New Targets including

Volume, Brand Distribution, Point of Sales (POS), Visits, etc.

STEP 12 Trade Tool Kit – Define Must Haves including Order Capture, Order
Method, POS Material Placement & Management, Planograms, Trade Incentives &
Promotions, Pricing Initiatives, Trade Engagement Options, etc

STEP 13 Trade Incentive Programme (TIPs) – Review Successes, Promote

Loyalty, Develop Options

STEP 14 Technology – Define Technology Requirements for CRM, Hand Helds,

Order Capture, Trade Marketing, Trade Data capture, Track customer compliance to
terms, RtM Data Analytics, etc.

Deliverables of this phase include:

 Outlets – Customer Outlets Classified

 Channels – Channel & Sub Channel Management Plan
 Territories – New Territories, Resource Plan, Route Plans, Target Calls &
Frequency
 Structure – Defined Field Force – Type, Numbers, Structure. Cost to Serve
Model
 Data & Metrics – Roadmap including Requirements, Capture & Systems, New
KPIs, Revenue Management Model
 SIP – New Sales Incentive Programme & Training Plan
 Trade Tool Kit – New Trade Tool Kit & Training Plan
 TIPs – New Trade Incentive Programme & Training Plan
 Technology Roadmap & Plan

Implementation
Now is the time to focus on implementation. Depending on the strategy chosen
either pilot, scenario plan or implement the new approach with your teams.
STEP 15 Distributor Partnership Programme – Develop Model Distributor,
Strategy, Approach, Development Plan & Execution for each Distributor. Read more
and see a Distributor Partnership Programme example here.

STEP 16 Third Degree Partnerships (3DPs) – based on current Distributor needs

& issues, identify 3DPs and implement program. Read our blog post on 3DPs
here for more information. Download our Guide on 3DPs here.

STEP 17 Key Account Management (KAM) – Define KAM Needs, Relationship

Management & Negotiation, Develop & Implement Trading terms, Train KAMs

STEP 18 Training & Upgrading – Rollout Programme to support all aspects of new
RtM. Include ‘Steps of the Call’, ongoing Training Programme. Roll out New RtM
Development (NRD) approach to ensure Continuous Improvement

STEP 19 Functional Integration – Map Out & Execute RtM links to other
Functions, especially Marketing & Supply Chain (Sales Forecasting/Inventory
Management/Out of Stocks Prevention). Also include Finance, Operations, IT& HR.
Integrate new RtM with Sales & Operational Planning (S&OP). To understand how
and for an example, read here.

STEP 20 Culture & Leadership – Develop & Execute Supporting Change

Management Plan. Develop & Execute Clear Messaging. Develop Cross-Functional
Buy-In & Support.

Deliverables of this phase include:

 Distributors – Model, Development Plans, New Contracts & SLAs, New

Performance System
 3DP – Partnerships & Programme Rollout
 Training – Programme, Workshops, Train-the-Trainer, On-The-Job Coaching
 KAM Programme – Delivery
 Functional Integration – New Functional Interfaces Embedded, S&OP and RtM
Integrated
 Culture & Leadership – Change Management Plan, Workshops to Support Plan

Timing
There are many factors that will affect the amount of time to either build or to review
an existing RtM model.

For example, although Route to Market strategy development is an iterative process,

we encourage clients to complete a process within a 3 to 4 month period from
starting the Assessment to delivering the Strategy. We have found that if the process
extends much further, something inevitably changes (e.g. the environment), and
organisations can get caught is a semi-permanent analysis state, resulting in
delayed strategic decisions.

Our experience is that it takes a further 3 to 4 months to Design a new RtM model
and commence the process of Implementation with your teams.

All Enchange Route to Market Programmes

Deliver a Sales Uplift, Typically Starting at
15%
What you should do now
 Find further details on each step of our methodology on our blog. See
related posts here.
 If you would like us to improve your RtM execution – to increase brand
distribution volume and profit growth, contact us for a Free RtM
Session. During this free phone consultation, one of our experts will discuss
your RtM goals and suggest strategies to achieve RtM excellence in execution.
 To understand what is involved in distributor assessment download
our Distributor Assessment Guidehere.
 To understand the capability of your distributors to achieve your sales objectives
download our Free Distributor Assessment Tool here.
 To learn practical, hands-on advice on how to improve your distribution
operations download our RtM Improvement E-Book here.
 For help with implementing 3rd Degree Partnerships download our
Guide here.