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

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

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