Essay - B2b Marketing Questions What Model Would You Use to Describe...


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B2B Marketing Questions

What model would you use to describe this type of distribution channel? Why does it work for this industry?

There are two dynamics occurring in the Canadian bicycle, parts and accessories ***** channels when Cycles Lambert and Norco are considered from the perspective of exclusive reseller agreements w*****h manufacturers. In the case of ***** twenty seven ***** who have assigned Cycles Lambert as their exclusive distributor in Canada, the coverage ***** this specific distributor with bicycle shops and chain stores must be considered ***** the broadest in ***** Canadian market. The ability of Cycles Lambert to also serve the majority of bicycle dealers, multi-store ********** and potentially even department stores through ***** ***** of insightful services programs is another major reason why these twenty seven manufacturers ***** enough confidence in ***** to give them exclusivity for their products *****out all of Canada. Looking specifically at those programs that attract manufacturers to opt for ***** for a large geographic region include the following: first, *****re needs ***** be aggressive use ***** credit terms for both the manufacturers and retailers; second, there is the need for price protection ***** inventory stock balancing that on the one hand protect ***** retailers' inventory from ********** written down when new products are introduced while at the same time allowing manufacturers to provide advance enough warning of ***** products so ***** Lambert ***** not caught with a high level of obsolete inventory; third, *****re ***** be ********** excellent order management and fulfillment system in Lambert's w*****ho***** ***** a tight consolidation with the major ***** and chain stores. ***** evidence of this being the case is that sheer number of ***** relationships and the continued growth ***** Lambert in a competitive m*****rket.

Exclusivity in indirect channel structures only happens when the distributor has significant value to deliver, both in terms of service and the longevity of ***** ***** dealers, chains and resellers. While non-exclusivity is very common, in fact more common in many ********** *****direct channel strategies, the ***** in the bike ***** and parts ********** is ***** attributable to the highly fragmented nature ***** the ***** available, and less about the inherent structure of ***** industry itself as defined by buying patterns of customers. The fragmentation ***** the product strategies and the sheer number of parts and accessories producers, all aligned with a very niche-oriented m*****rket in cycling, is what fosters the growth ***** non-exclusive distribution arrangements. For Norco ***** ***** reselling of 101 brands (their site does not delineate exclusivity or not) the breadth of lines they are carrying is more of an indication ***** the company's focus on building a broader and more globally diverse supply chain. While exclusivity requires a much higher level of commitment from a ***** to make sure ***** manufacturer sees continued value, in non-exclusive distribution arrangements ***** manufacturer and distributor are evaluating each others' ability to deliver on the commitments that made the agreement happen in the ***** place. Exclusivity implies a distributor has a very

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