Page 202 - 100 Great Marketing Ideas (100 Great Ideas)

97 BUILD A NEW
DISTRIBUTION CHANNEL

Sometimes distribution channels are so tied up by existing
companies it is difficult (even impossible) to get a product to market.
Even when retailers can be identified, often part of the chain is
contracted to some major supplier who blocks the distribution at
the wholesale stage.

For small companies in particular, finding a route to market can
present a major challenge: often the big boys are not interested
unless there is a fairly substantial financial commitment in terms
of renting shelf space or supplying large amounts of product on
extended credit.

The idea

When Red Bull was first launched in Britain, it was an attempt to
create the energy drinks market from scratch. The company was
founded in Austria in 1984, but only started selling the drink
in 1987.

Breaking into the British market proved difficult. The company
wanted to target a young audience, partly because they would
have the longest usage life and partly because young people often
participate in sports or need to stay up late, either to party or to
study. Red Bull therefore began by recruiting students to act as
part-time salespeople, visiting nightclubs and sports centers to
promote the drink. Since the nightclub owners were seeking to
attract a young audience, the student salespeople represented a
powerful influence.

100 GREAT MARKETING IDEAS • 193