Channel Strategy
Understanding Your Channel Strategy
This industry uses a lot of jargon and acronyms. Don’t worry if you don’t understand everything yet! In these blogs, I cover the high-level concepts, but definitely consider diving deeper as you go.
What is a Channel Strategy?
Your channel strategy is a part of your go-to-market (GTM) strategy. A channel is simply a place where you sell your product, like a grocery store or an online marketplace. Your choice of channel is critical because it impacts various aspects of your business, including:
Packaging
Pricing
Communication
Events
Staffing
Choosing the Right Channel
Many of you might start selling online or at farmers' markets. These are examples of channels. You might think you need to sell in grocery stores to be successful, but before you go down that road, let’s talk.
Channels to Consider:
Online (E-commerce)
Farmers' Markets
Grocery Stores
Specialty Retailers
Direct-to-Consumer (DTC)
Wholesale
Subscription Boxes
Pop-Up Shops
Corporate Sales
Foodservice Channels:
Restaurants
Cafes
Hotels
Catering Services
Institutional Dining (schools, hospitals)
Bars
Event Venues
Strategy Selection
Don't try to tackle all channels at once! Decide which one will help you reach your goal this year in the fastest way. Here are a few pointers:
Profitability Goal: If your goal is profitability, you might avoid grocery stores and e-commerce initially, but it depends on your product.
Revenue Growth Goal: If you aim to grow your top-line revenue quickly to attract investors, and you have the budget, you might choose a more expensive channel with higher volumes and reach.
Other goals which would impact your choice of GTM strategy include: Brand Awareness, Market Penetration, Product Validation, Sustainability or Impact.
The key point is that there isn't a one-size-fits-all blueprint for building your business. I can help you select the best strategy based on your:
Product format / use case
Customer base
Competitive landscape
Cost of goods / margin
Location
Funding
Goals