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Strategic Positioning in Two-Step Distribution

Situation

A two-step distributor was interested in evaluating its current go-to-market strategy with respect to product portfolio, regional footprint and overall business model in an effort to accelerate growth.

Approach

Principia’s unique segmentation of the two-step distribution channel through Principia’s Two-Step Distribution 2019 data product provides unique segmentation of this channel along three critical dimensions: product line, geography served, and manufacturing capability. The impact of each of these on margins and GMROI is shown to identify drivers of growth and profitability.


Outcome

The client proceeded with a growth strategy and repositioning based on the relative profitability of each segment, adding both new products to its portfolio and additional branches to expand its market reach.

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