Philippines Channel Management

Philippines Channel Management


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

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 Partnerships20-
  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 Frontier Strategy Group

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