Enabling a DSD Strategy to Support Growth
Clarkston Consulting recently partnered with a tea and coffee roaster and retailer on a DSD strategy. Read an overview of the project below or download the full case study.
Download the DSD Strategy Case Study Here
A national premium brand that produces packaged coffee and tea for grocery stores, mass merchandisers, home delivery, food service, and its own retail outlets had a distinct advantage in its category by using a network of sales representatives and a Direct Store Delivery (DSD) model for sales and distribution. This DSD approach allowed the company to maintain direct control over product freshness and merchandising, driving significant growth by fostering strong relationships with retailers.
However, the client recognized that its DSD model, while effective for early growth, was not scalable for their long-term goals, particularly as they expanded into new markets and introduced more products. The complexity of managing an expanding sales force and delivery fleet presented logistical challenges and increased costs, limiting the scalability of their current system. As they sought to support their growth strategy in grocery and mass merchandiser channels, they realized the need to reconsider their go-to-market approach.
To address this, the company engaged Clarkston Consulting to help redefine their distribution strategy. Clarkston was tasked with analyzing the existing DSD framework and identifying opportunities to optimize it while exploring more scalable alternatives. The consulting team developed a hybrid approach, combining the strengths of DSD with the efficiency of traditional warehouse distribution models. This new go-to-market strategy provided the flexibility to scale operations while maintaining the brand’s premium positioning and close retailer relationships.
Ultimately, the redefined strategy enabled the company to pursue its growth objectives while improving efficiency and expanding its reach in key retail channels.
