Channel Mistakes: Why Great Products Die in the Wrong Retail Strategy

In my experience guiding brands into the U.S. market, I've seen brilliant products fail, not because of quality, pricing, or branding, but because of retail strategy mistakes.

Choosing the wrong channel can suffocate even the best product.

In this Paper, I explain why understanding U.S. retail ecosystems is critical for success, and how brands must think strategically, not just opportunistically, about where and how they launch.

1. The False Assumption: “Any Shelf Is Good Shelf”

Many companies assume that distribution equals success: The more stores, the better. This is a fatal error.

As Bain & Company (2019) notes, channel fit, not just presence, correlates most strongly with repeat purchase rates in CPG categories.

In my experience: When a premium product is placed in the wrong environment (wrong retailer, wrong section, wrong shelving tier), it erodes brand equity and recovery becomes almost impossible.

2. Understanding Retail Archetypes

U.S. retail is a fragmented, highly specialized landscape.

Key archetypes include: Mass Retailers (Walmart, Target), price-sensitive, broad volume. Premium Supermarkets (Whole Foods, Wegmans), experience-driven, value on storytelling. Club Stores (Costco, Sam's Club), bulk purchases, family size, value-perception critical. Specialty Retailers (Trader Joe's, Central Market), curated uniqueness, trendsetters. E-commerce Channels (Amazon, Thrive Market), convenience-first, dynamic search-driven behavior.

Each channel demands different packaging, pricing strategies, and marketing activations.

3. Real Case Studies: Winners and Losers

Winner: Chobani Yogurt

Chobani understood early that launching in Whole Foods first would build credibility with health-conscious consumers, before expanding into Walmart. This sequencing protected its brand equity while scaling.

Source: Chobani Founder Hamdi Ulukaya’s interviews, Forbes (2017).

Loser: UK Confectionery Brand Thornton’s

Thornton’s attempted U.S. expansion through mass channels like Walgreens without adapting pricing, packaging, or branding to American retail psychology. The brand was perceived as “cheap candy” rather than “affordable luxury” and withdrew after years of losses.

Source: The Guardian, “Thornton’s Struggles in U.S. Market” (2015).

4. Channel Psychology: What Americans Expect

American consumers interpret value through channel positioning.

If your premium cheese is sold next to heavily discounted private label brands in mass retailers, it loses perceived quality, even if nothing changes inside the package. According to a McKinsey U.S. Shopper Survey (2021), 64% of U.S. consumers associate perceived quality directly with where a product is sold.

Channel shapes perception. Perception shapes destiny.

5. My Framework for Channel Selection

When I guide brands entering the U.S., I apply a framework based on:

a. Channel-Product Alignment

Is the retail environment compatible with the product’s brand story, margin structure, and customer expectations?

b. Sequencing and Staging

Should the brand start premium (build trust) and then expand mass (scale reach)?

c. Retailer Partnership Readiness

Can the brand support in-store marketing, sampling, and education programs effectively for the chosen retailer?

d. Long-Term Brand Vision

Is the initial channel a stepping stone to sustainable growth or a trap of short-term sales at the cost of long-term brand damage?

6. The Hidden Risks of Opportunistic Listings

In the U.S., getting "any listing you can" often backfires. Without the right support: Products are buried in generic aisles, promotions fail, de-listings happen quietly and quickly, retailers blame the brand, not the shelf.

Brands that scramble for listings lose control of their destiny.

Conclusion: Strategic Patience Wins

Rushing into the wrong shelf is worse than waiting for the right one. Channel strategy is brand strategy.

The shelf where your product lives is not just a place, it’s a message. Winning brands control where they speak,

how they are perceived, and when they choose to grow. Anything less is luck and luck is not a strategy.

References

Bain & Company. (2019). How Brands Can Build Channel Fit to Win in CPG. Retrieved from https://www.bain.com

McKinsey & Company. (2021). The New U.S. Consumer Sentiment. Retrieved from https://www.mckinsey.com

Forbes. (2017). Chobani's Founder on Winning American Hearts. Retrieved from https://www.forbes.com

The Guardian. (2015). Thornton’s Struggles in U.S. Market. Retrieved from https://www.theguardian.com