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 the twenty seven ***** who have assigned Cycles Lambert as their ***** distributor in Canada, the coverage of this specific distributor with bicycle shops ***** cha***** stores must be considered ***** ***** broadest in the Canadian market. The ability of Cycles Lambert to also serve the majority ***** bicycle dealers, multi-store chains and potentially even department stores through ***** ***** of insightful services programs is another major reason why these ***** seven manufacturers have enough confidence in Lambert to give them exclusivity ***** their products ********** all of Canada. Looking *****ally at those programs th***** attract manufacturers to opt for exclusivity ***** a large geographic region include the following: first, *****re needs to be aggressive use of credit terms for both the manufacturers and retailers; second, there is the need for price protection and inventory stock balancing that on the one hand protect the retailers' inventory ***** being 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 ***** a high level of obsolete inventory; third, *****re must be *****n excellent order management and fulfillment system in Lambert's wareho***** and a tight consolidation with the major ***** ***** chain stores. ***** evidence of th***** ***** ********** case is that sheer number of exclusive relationships and the continued growth ***** Lambert in a competitive m*****rket.

Exclusivity in indirect channel structures only happens when ***** d*****tributor has significant value to deliver, both in terms of service and the longevity of ***** with dealers, ***** and resellers. While non-exclusivity is very common, in fact more common in many *****dustry's indirect channel strategies, the ***** in the bike accessories and ***** industry is ***** attributable to the highly fragmented nature ***** the products available, and less about ***** inherent structure of the industry itself as defined by buying patterns of customers. The fragmentation of the product strategies and the sheer number ***** parts ***** accessories producers, all aligned with a very niche-oriented market in cycling, is what fosters the ***** of non-exclusive d*****tribution arrangements. For Norco and their reselling of 101 brands (their site does not delineate exclusivity or *****) 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 a d*****tributor to make sure ***** manufacturer sees continued value, in non-exclusive distribution ***** 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 distribu*****r has a very

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