Philippines Channel Management

  • ID: 4372581
  • Country Profile
  • Region: Philippines
  • Frontier Strategy Group
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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

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