This post was originally published on February 14, 2024 on LinkedIn

Imagine this: You're at Target, picking up your online order, and there's a bonus—Starbucks coffee delivered right to your car. 

It's a nice treat, right? 

Target began selling Starbucks through their Drive Up orders in 2022, and—as of this past October—rolled out the program nationwide. Target gets most of the credit for this successful program because their customers love it. But I think the real winner is Starbucks. Why? Because they seized an exclusive opportunity to sell to a captive audience.

Crafting a Competitive Advantage through Our Sales and Distribution Model

It's a universal business truth: gaining a competitive edge extends beyond just having standout products or a catchy brand. Our sales and distribution model, often lurking in the background of business strategy discussions, is ripe for differentiation. The real opportunity lies in rethinking how customers access our offerings, turning this overlooked aspect into a cornerstone of our growth.

Six Methods for Differentiating Our Sales and Distribution Model

1. Sales Channel: Opening New Doors. Creating niche sales channels, much like Starbucks' partnership with Target, can set us apart in a crowded market. By offering our products in unexpected settings, we not only provide consumers with novel purchasing avenues but can also make their experience with us better. 

2. Geographic Coverage: Crafting Your Terrain. The areas we serve—or don’t serve—can be a strategic differentiator. Pursuing expansive coverage can set us apart in a powerful way. But so can limiting our reach. Southwest Airlines exemplifies this, opting to fly out of smaller airports to steer clear of competitors at major hubs.

3. Operating Hours: Timing is Everything. ‘Open 24 Hours' may be a great way to differentiate in our category. But we can also break away from the conventional, by limiting our hours. For example, through its Opt Outside initiative, REI prompts both employees and customers to enjoy the outdoors by closing its retail stores on Black Friday.

4. Reliability: The Assurance of Availability. The consumer expectation of product availability is a given—until it's not. During recent baby formula shortages, Bobbie Baby turned reliability into a unique selling proposition by ensuring subscribers had a guaranteed supply. How did they do it? By temporarily capping their number of subscribers to only as many as they could serve.

5. Exclusivity: The Lure of the Limited. The luxury sector is built around a scarcity model, yet the allure of exclusivity is not reserved for them alone. Offering limited-edition products or special collaborations can create a buzz, drawing in customers seeking something truly unique.

6. Seasonality: Seizing the Moment. Beyond the usual holiday fare, seasonality can be an effective differentiator. Think of it as creating anticipation and demand during a specific window of time. The Girl Scouts do this incredibly well with their January-April cookie sales, proving that timing can indeed be a point of differentiation.

Reshaping How and Where We Sell 

As business leaders, we have the opportunity to think differently about how we sell and distribute our products. The examples above show us how reshaping elements of our sales and distribution model can go a long way in building a competitive advantage, and ultimately drive growth. Now, it’s on us to do something about it.

Let's start the conversation—share your thoughts and ideas below!