1 Assess your current situation

To optimize your distribution mix, the first step is to evaluate your current performance and identify your strengths, weaknesses, opportunities, and threats. You can use tools like SWOT analysis, customer feedback, market research, and sales data to understand your current situation. Ask yourself questions such as: what are your distribution objectives and how well are you meeting them? Who are your target customers and what are their preferences, behaviors, and expectations regarding distribution? What are the benefits and costs of your existing distribution channels and methods? How do you compare to your competitors in terms of distribution efficiency, effectiveness, and differentiation? Additionally, consider the external factors that may affect your distribution such as legal, economic, social, technological, environmental, and ethical issues.

2 Choose your distribution strategy

The next step is to decide on your overall distribution strategy, which is the level of control and coverage you want to have over your distribution channels and methods. Intensive distribution involves using as many channels and methods as possible to reach a wide and diverse customer base, such as for convenience goods or commodities with high demand, low price, low differentiation, and low customer loyalty. Selective distribution focuses on a limited number of channels and methods to reach a specific and segmented customer base, such as for shopping goods or specialty services with moderate demand, moderate price, moderate differentiation, and moderate customer loyalty. Exclusive distribution uses only one or a few channels and methods to reach a niche and loyal customer base, such as for luxury goods or professional services with low demand, high price, high differentiation, and high customer loyalty.

4 Choose your distribution methods

The fourth step in the process is to choose the ideal distribution methods for your distribution channels. Distribution methods refer to the specific ways used to transport, store, and deliver products or services to customers. This could include transportation, warehousing, packaging, and delivery. Transportation encompasses the vehicles, routes, and schedules used to move products from one place to another, for example by road, rail, air, sea, or pipeline. Warehousing involves facilities, equipment, and systems used to store products until they are needed by customers. Packaging includes materials, designs, and labels used to protect and present products or services in an attractive way. Delivery covers processes, procedures, and policies employed to transfer ownership and possession of products or services.

5 Monitor and evaluate your distribution mix

The final step is to monitor and evaluate your distribution mix on a regular basis to ensure it is aligned with your objectives, customer needs, and market conditions. You can use metrics, indicators, and feedback to measure and improve your distribution performance, such as assessing distribution costs (e.g., transportation, warehousing, packaging, delivery costs), revenues (e.g., sales, commissions, fees, royalties), efficiency (e.g., number of orders fulfilled, time taken, resources used), effectiveness (e.g., quality, quantity, availability, reliability of products/services), and satisfaction (e.g., convenience, communication, customization).