Evaluating channel strategy opportunities that result in building a branded website
Situation
The largest global distributor of manufacturing supplies wanted to liquidate extra inventory without compromising their brand. Orchid Strategy Group evaluated our client’s channel strategy and identified ways to build on the company’s competitive advantage, “a vast product array with quick delivery.”
Approach
Success is determined by the customer ... it’s that simple. Via thorough analysis of inventory, sales operations, and sales channels, Orchid Strategy Group identified a strategic opportunity for an alternate channel targeted to a sub-segment of our client’s customer base. We created the value proposition for an overstock liquidation approach. The key insight from customer research revealed that independent, smaller contractors were open to an overstock shopping experience, as they did not need large quantities of products. However, like the remainder of the base, they share the same requirement: when a product was needed, it was often needed immediately. We led an internal cross-functional employee team through the creation of the business plan and marketing plan to liquidate select inventory through a standalone website. Branding was a crucial component as the client wanted to distance themselves somewhat from the liquidation industry but maintain the “quick delivery” halo from the parent brand. We arrived at a “powered by …” approach.
Solution
The success of this project was due to starting and ending with the customer – including multiple rounds of quick yet inexpensive customer research, comprehensive competitive analysis, and diligent user acceptance testing. Cross-functional team involvement was essential to the quick cycle time to launch.
Results
Our client maintained a share in the primary brand, while sales jumped by an additional 30% from the website.