An International Beverage Company RTM Model

Identify the Preferred Route-to-Market Model

The Work
Assessing Four Distinct Route-to-Market Models

By examining modern trade, hotel, restaurant and cafe channels, Certius identified four viable route-to-market models. The first of these was based on key account management and business development by the brand owner, while sales and collection were directed by the Iranian distributor. At its core, the second model involved the full management of the key accounts, chain stores, and HoReCa channels to be driven by the brand owner, with delivery alone being done by the distributor. A third option involved the brand owner to take full management of all of the aforementioned channels, including delivery, with the fourth option committing the distributor to the management of these channels, along with their other brands.

Certius assessed these route-to-market options against a set of KPIs, and identified each model’s implications, advantages, and risks in several key areas. This included assessing them on their ability to drive category growth; increase market coverage; help the client access and use new data and information; reduce cost to serve; implement efficient systems and processes; maintain control over the operation; minimise the capabilities and resources needed; and reduce operational, financial and compliance risks. We also showed how several multinational companies manage these channels and the results of their efforts.

The Impact
A Mixed Model Approach

Through our assessment, we were able to recommend a mixed model which took into account the company’s ambition and strategy in Iran, as well as its existing resources. Our proposal aimed to maximise their business whilst maintaining a reasonably low exposure to risks.