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Philippines Channel Management

  • ID: 4372581
  • Country Profile
  • August 2016
  • Region: Philippines
  • FrontierView
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How to Manage Channel Partners Effectively in the Philippines

A comprehensive overview of how to manage channel partners effectively in the Philippines. Learn about the distribution landscape, common challenges faced by multinational companies, and 6 actionable tactics to optimize channel performance.

The distribution landscape in the Philippines is complicated by its unfavorable power dynamics and unique tiered structure. Heavy reliance on distributors, more than in most other markets in the region, makes effective distribution management especially critical.

As executives strive to improve the performance of their indirect channels, it’s crucial that they develop a nuanced understanding of the market characteristics and the challenges that emerge as a result. Executives should use the tactics provided in this report to overcome these challenges and to manage Philippine distributors more effectively.

What you will learn

  • What does the current distribution landscape in the Philippines look like
  • Which challenges are most likely to impact multinational companies expanding in the market
  • Understand a set of actionable tactics any company with distributors can put in place today
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Executive Summary

Section 1: The Philippines’ Distribution Landscape

  • Multinational Companies Rely Heavily on Distributors
  • Overview: The Philippines’ Distribution Landscape
  • Localized Business Relationships
  • Archipelagic Geography
  • Poor Infrastructure Development
  • Concentrated Economic Activity
  • Two-Tiered Distribution Landscape

Section 2: Common Challenges to Effective Distribution Management

  • Overview: Challenges to Effective Channel Management
  • Limited Customer and Operational Insight
  • Low Demand Generation and Brand Building
  • Conservative Expansion Plans
  • Bargaining Power Favors Distributors

Section 3: Tactics to Overcome Challenges & Improve Performances

  • Overview: Tactics to Overcome Common Challenges
  • Tactic #1: Build Long-term Partnerships
  • Tactic #2: Invest in Regular On-Site Visits
  • Tactic #3: Integrate Inventory Tracking Systems
  • Tactic #4: Focus on Sub-Distributor Finances
  • Tactic #5: Set Up Local Marketing Teams
  • Tactic #6: Assist in Sub-Distributor Selection

About us

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The author’s strengths include global management topics and country level analysis tailored for a senior executive audience. The research focuses on cross-industry implications of macroeconomic, geopolitical risk, and emerging trends that impact the strategic decisions of business decisionmakers.


Research analysts:

Almost all have advanced degrees in economics, international affairs, or political science, and are multilingual. Researchers have lived and worked in the markets they cover and are based in regional hubs close to market

  • Analysts cover:
  • Economic trends and indicators (near-term volatility, long-term forecasts); political developments (election results, post-election policy, regulations, spending, monetary policy), outlook for market demand and cost of doing business, upside and downside scenarios, MNC investment sentiment, business practices
  • Quality control:

    • Research workflows supported by standard, proprietary process maps, tools and templates for analysis and writing, forecast admin tool, and content management system
    • Research managers pressure-test quality, consistency and usefulness of outlooks, scenarios, and suggested actions
    • Analyst interactions with clients (>1500/year) provide ongoing feedback loops from on-the-ground operators to c-suite
  • Research inputs include:

    • Primary: Multinational and local executives (interviews, surveys, analyst consultations), international and local experts (NGO officials, academics, consultants), international and local government officials
    • Secondary: Local-language news and international media, public/official data sources, government/association reports, Bloomberg
  • Research outputs include:
  • Forecast economic data, country/region outlooks and scenarios, market intelligence reports (monthly/quarterly for key countries as well as occasional Market Spotlights), as-needed analyst commentary alerts