New Distribution Channel

Sample Project

VAST FOOTPRINT, HEAVILY REGULATED, STRICT GUIDELINES

The Client
The client is a broadly based media company listed on the Toronto Stock Exchange.  Its primary business includes over 60 newspapers in Southwestern Ontario. It is the largest producer and distributor of newspapers in Canada. The client utilizes direct home delivery as well as the traditional “push” retail channel models. It includes both urban and rural geographic areas.

The Need
The client’s wish was to enter a new market, which brings marketing and direct home delivery of various products to its customer’s homes. The first product launched would include Ontario VQA wines. Other products would follow. Products would be advertised via editorials, critiques, and general reviews in the newspapers. Readers would have the ability to place orders by telephone or Internet. This marketing strategy is well established in other parts of the world but remains relatively untapped in Canada.

A distinct vertical operation within the overall corporation had to be created to promote and distribute Ontario VQA wines to consumers in the GTA and surrounding areas.  A complete distribution channel had to be created that fulfilled the high customer service standards and operated within the tight guidelines established by the Government.

The Situation
Extremely tight Government regulations surrounding the marketing and distribution of alcohol exist within this province. Delivery to the customer’s home had to be attempted within 48 hours of the order being placed by the customer. Packaging had to have flexibility to accept multiple configurations while being able to pass a six-foot drop test. Delivery footprint had to accommodate over 90% of the province.

The Solution

The SCS team was engaged to build the new distribution channel model. Key components addressed included:

  • Regulatory & Legal requirements
  • Systems and Order processing
  • Order Fulfillment – Pick, Pack, Ship, Delivery and Reverse Logistics
  • Customer service
  • Packaging
  • Procurement
  • Implementation

The Result
The model developed provided an on time delivery rate 100%. All established processes functioned within the Government regulations and the client was in a positive net profit position following the pilot promotions.