Last week, Forrester hosted a channel roundtable in Singapore on theevaluation of channel models in Asia Pacific.The goal was to create a common platform for tech vendor senior channel executives and Forrester analysts to discuss key changes faced by the channel leaders and how best to adapt to them. The briefing was attended by 26 senior channel executives representing 21 tech vendors.
All of the channel leaders agreed with a Forrester report which indicated that channel models are under great pressure due to the growth of mobility and the devices that power it, as-a-service computing models, and the decreasing influence of IT departments on overall tech spending. As they cope with these changes, the key challenges they identified during the interactive roundtable were:
Identifying and engaging with those channel partners that can adjust to market shifts. This emerged as a major challenge, not only for some of the new cloud-based service providers but also for traditional tech vendors venturing into new solution areas. A shortage of skilled channel professionals within Asia Pacific exacerbates this challenge. Several also identified the challenge of high turnover within their channel base and the frustration of investing in the skills of a partner executive and having him shift to a competitor’s channel.
Product strategists in many industries (from CPG to consumer electronics to financial services) share a challenge with their marketing colleagues: how to leverage the power of brand. Product strategists have a number of strategic tools in their toolboxes for differentiating their products from competitors’ offerings: features (a different taste, a new technical capability, or a higher interest rate, for instance); channel, price, or brand (or based on some combination of these factors). For the moment, let’s think about brand, because some product strategists design and build their products based largely on the promise implied by their brand name.
Forrester’s new research report– leveraging a multi-year analysis of Consumer Technographics® data – shows that while brand is important, brand loyalty (defined as the propensity to repurchase a brand) has been waning. The new report, entitled “Brand Loyalty Isn’t Enough For Products Anymore,” reveals that:
· Brand loyalty is on the decline. Brand loyalty dropped in the U.S. from 2006 to 2010, our data shows. One reason? The Great Recession. Another? The strength of brands themselves: competing brands in the marketplace entice consumers to try new brands.