Marketing products within a tiered distribution system is a unique challenge. Whether you’re promoting a premium whiskey available in liquor stores, a CPG product stocked at big-box retailers, or an outdoor brand carried by specialty shops, your approach requires precision. Unlike direct-to-consumer (DTC) brands, where data flows freely and attribution is straightforward, tiered distribution introduces complexities that demand a nuanced strategy.

This is where geotargeting, rooftop targeting, and a deep understanding of rate-of-sale metrics come into play. Let’s explore how to effectively market products in this space while addressing data gaps and optimizing for sales growth.

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The Difference Between DTC and Tiered Distribution Marketing

Before diving into geotargeting strategies, it’s essential to understand the fundamental differences between DTC and tiered distribution marketing:

• DTC Marketing:
  • You control the entire sales funnel.
  • Consumer data is readily available, allowing for personalized marketing and clear attribution of ROI.
  • Attribution is relatively simple—ads drive traffic directly to your website or app.
• Tiered Distribution Marketing:
  • Your product is sold through distributors and brick-and-mortar retailers, creating an attribution gap between marketing efforts and sales.
  • Consumer data is harder to access, as sales occur through third-party locations.
  • Success often depends on collaboration with distributors and retailers to align marketing efforts with sales goals.

The challenge lies in bridging that attribution gap and driving measurable outcomes without the benefit of direct consumer data.

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Why Geotargeting and Rooftop Targeting Are Essential

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1. Driving Foot Traffic to Retail Locations

Geotargeting enables you to focus your marketing efforts on specific regions, cities, or even neighborhoods where your product is sold. Rooftop targeting takes it a step further by pinpointing individual retail locations, ensuring your ads reach the right audience near stores carrying your product.

Why it matters:

• You don’t waste ad spend marketing to areas where your product isn’t available.
• Customers are more likely to act on an ad if they know the product is conveniently located nearby.

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2. Supporting Your Distributors and Retailers

Distributors and brick-and-mortar stores want to see you invest in driving sales to their locations. By directing customers to specific retailers, you strengthen those partnerships, encouraging them to prioritize your product on shelves and in promotions.

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How to Execute Geotargeting and Rooftop Targeting

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1. Start with Location Data

The first step is gathering accurate data on where your product is distributed. If you’re working with a distributor, ensure you have a detailed list of retail locations stocking your product.

• If possible, include insights into high-performing stores and areas with growth potential.
• Update this data regularly to reflect changes in distribution.

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2. Use Platforms with Advanced Geotargeting Tools

Platforms like Meta (Facebook and Instagram) and Google Ads offer robust geotargeting features. Use these to create campaigns targeting audiences within a specific radius of your retail locations.

Example:
For a CPG product available in Target stores, create an ad campaign targeting users within a 5-mile radius of Target locations. Include messaging like:
"Now available at Target! Find [Product Name] in the snack aisle today."

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3. Customize Creative for Local Audiences

Localize your ad copy and visuals to make your message resonate. Include phrases like "Now available in [City Name]" or specific references to nearby retailers.

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Overcoming the Attribution Gap

One of the biggest challenges in tiered distribution marketing is the attribution gap—the disconnect between your marketing efforts and the final purchase. Without direct tracking, it’s harder to prove ROI. Here’s how to address this:

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1. Use Rate-of-Sale Data

Data from sources like IRI or Nielsen can show you how your product is performing in retail locations. These metrics are invaluable for:

• Identifying regions or stores with high growth potential.
• Tracking the impact of your marketing campaigns on sales velocity.

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2. Alternatives When Premium Data Isn’t Available

IRI and Nielsen data can be expensive, but you can still get actionable insights:

• Distributor and Retailer Feedback: Work closely with your distribution partners to gather anecdotal and transactional insights.
• Promotional Sales Data: Track sales lifts during promotional periods to gauge the impact of your marketing efforts.
• Customer Engagement Data: Use QR codes or landing pages to drive traffic to store finders, giving you a partial picture of customer interest.

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3. Encourage Retailer Collaboration

Collaborate with retailers to track sales data. Offering co-branded promotions or in-store events can give you an edge and encourage stores to share results.

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The Role of Rate-of-Sale Data

Rate-of-sale (ROS) data is critical in tiered distribution. It provides insight into how quickly your product is moving off shelves—a key metric for retailers and distributors.

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Why ROS Matters:

• Performance Benchmarking: Helps you identify underperforming areas that may need additional marketing support.
• Retailer Confidence: Retailers prioritize products with strong sell-through rates.
• Optimized Ad Spend: Allows you to focus marketing dollars on areas where sales are lagging.

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Strategies to Improve Rate of Sale:

• Local Events: Sponsor tastings or product demonstrations at high-potential locations.
• In-Store Promotions: Offer discounts or bundle deals to incentivize trial purchases.
• Strategic Sampling: Provide free samples in key markets to drive initial interest and adoption.

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Bridging the Gap: Building a Holistic Strategy

Combining geotargeting, rooftop targeting, and rate-of-sale insights gives you a roadmap for success in tiered distribution marketing. To make it work, focus on:

1. Hyper-Localized Campaigns: Ensure your ads align with where your product is available.
2. Data-Driven Decisions: Use rate-of-sale data to adjust your strategy based on performance.
3. Retailer Collaboration: Strengthen relationships with distributors and stores by showing them how your efforts drive foot traffic and sales.

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Conclusion

Marketing in a tiered distribution system requires precision and adaptability. By leveraging geotargeting, rooftop targeting, and rate-of-sale data, you can close the attribution gap, build retailer confidence, and drive measurable results.

This isn’t just about placing ads—it’s about aligning every effort with the realities of your distribution network to ensure your product finds its way into the hands of the right customers, every time.

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