2008: Product-Channel Penetration Simulator
PRODUCT-CHANNEL PENETRATION SIMULATOR
Executive on Demand Position:
President, Chief Executive Officer, Vice President Sales and Marketing, Director of Sales, Vice President Product Development
Project Outline:
Develop an easy to use market channel analytical tool that enables the user to determine potential and risk when considering introducing new products to current customers, or considering entering new channels or implementing a combination both strategies.
Project Outcome:
The product channel simulator was developed as an extension to the retailer assortment planner. This tool was created to help a small to medium size manufacturer’s (SME’s) sales department better understand the potential of launching a new product in both an existing group of customers as well as in new channels not yet penetrated.
Created a market potential analytical tool necessitating the need to research on the type and quantity of stores used for distribution (could be retail stores, jobbers, drug stores, etc…) and creating a database of the information. Using the detailed demographic information on the potential customers in each channel as a set of values and adding to this the company’s product information, a sales manager could easily apply a series of “what-if” scenarios to help develop a strategic plan. The program permits the user to select individual or all customers within a distribution channel, select only the channels pertinent to the product, select the penetration potential within a chain of stores or a channel and apply a wide range of pricing and profit scenarios. The “what-if” scenarios can be applied independently or reviewed as a grouping to evaluate the individual or compound effect of potential strategy.