Channel-based RTM modeling to support entry into a complex and fragmented retail landscape
Designed a hybrid RTM model combining regional distributors and strategic partnerships, enabling access to seven sales channels and unlocking up to $1.2B in potential sales
Project challenge & objective
The client sought to develop a route-to-market (RTM) model to support the successful launch of a new ready-to-drink (RTD) coffee category in the U.S. market. The initiative faced several key challenges:
● Channel complexity: Each channel required a distinct RTM model to ensure competitiveness and market fit.
● Proximity channel fragmentation: The proximity channel, critical for RTD coffee, comprised over 150.000 points of sale, demanding a scalable and locally relevant execution model.
● Lack of local capillarity: While the client held a strong market presence, their sales were disproportionately dependent on large, centralized accounts, limiting their ability to activate and execute effectively at a local level.
Objective: Evaluate and recommend strategic RTM alternatives capable of addressing the needs of diverse channels and securing a successful market entry for a new RTD coffee line.
Strategic approach & methodology
1. Channel assessment
● Conducted in-store audits and structured questionnaires with POS decision-makers to map operational and commercial touchpoints.
● Interviewed buyers and channel leaders to understand buying behavior, execution expectations, and logistical requirements.
2. Design of strategic RTM alternatives
● Developed a range of RTM models including:
o Strategic partnerships.
o Regional distribution networks.
o Direct distribution schemes.
● Each model was assessed for:
o Channel coverage and execution capability.
o Sales potential and commercial control.
o Fit with existing operational capabilities.
● Defined discounting and trade term structures for both retail and RTM intermediaries (e.g., distributors, brokers, partners).
3. Comparative evaluation & business case development
● Built detailed business cases for shortlisted RTM options, including:
o Revenue projections.
o Cost-to-serve analysis.
o Implementation roadmaps.
● Compared strategic alternatives in terms of market share potential, value capture, and feasibility.
● Final recommendation was validated and signed off by key stakeholders.
Solution & expected results
The selected RTM strategy combined regional distribution networks with strategic partnerships to ensure both reach and local execution capability. This hybrid model balanced speed towards the market with long-term scalability.
Business impact & strategic value
The tailored RTM model enabled access to seven distinct sales channels, creating the foundation to funnel up to $1,2 billion in potential RTD coffee sales. It empowered the client to overcome structural limitations and build sustainable execution capabilities across fragmented retail environments.
