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 with manufacturers. In the case of ***** twenty seven manufacturers who have assigned Cycles Lambert as their exclusive distributor ***** Canada, the coverage ***** this specific distributor with bicycle shops and chain stores must be considered as ***** broadest in the Canadian market. The ability of Cycles Lambert to also serve the majority of bicycle dealers, multi-store *****s and potentially even department stores through ***** use of ********** services programs is another major reason why these twenty seven ***** ***** enough confidence in ***** to give them exclusivity for their products *****out all of Canada. Looking *****ally at those programs th***** attract manufacturers to opt for ***** ***** a large geographic region include the following: first, *****re needs ***** be aggressive use of 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 the retailers' inventory from ********** written down when new products ***** introduced while at the same time allowing manufacturers to provide advance enough warning of ***** products so ***** Lambert is not caught with a high level of obsolete *****; third, there ***** be an excellent order management and fulfillment system in Lambert's warehouse and a tight consolidation with the major dealers and chain stores. ***** evidence of th***** being the case is that sheer number of exclusive relationships ***** the continued growth of 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 ***** ***** dealers, chains and resellers. While non-exclusivity is very common, in fact more common ***** many industry's indirect channel strategies, the ***** in the bike accessories and ***** industry is ***** attributable ***** 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 with a ***** niche-oriented market in cycling, is what fosters the growth ***** non-exclusive distribution arrangements. For Norco ***** ***** reselling of 101 brands (their site does not delineate exclusivity or *****) the breadth ***** lines they are carrying is more of an indication ***** the company's focus on building a broader and more globally diverse supply chain. While ***** requires a much higher ***** of commitment from a distributor to make sure ***** manufacturer sees continued value, in ***** distribution arrangements both manufacturer and distributor are evaluating each others' ability to deliver on the commitments that made the agreement happen in the ***** place. Exclusivity implies a ***** h*****s a very

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