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 ***** Lambert as their exclusive distributor in Canada, the coverage of this specific distributor with bicycle shops ***** cha***** stores must be considered as the broadest in ***** ***** market. The ability of Cycles Lambert to also serve the majority of bicycle dealers, multi-store *****ins and potentially even department stores through ***** ***** of insightful services programs is another major reason why these ***** seven manufacturers have enough confidence in ***** to give them exclusivity for their products throughout all of Canada. Looking specifically at those programs th***** attract manufacturers to opt for exclusivity for a large geographic region include the following: first, there needs ***** be aggressive use of credit terms ***** both the manufacturers and retailers; second, there is the need for price protection ***** inventory stock balancing that on the one hand protect ***** retailers' inventory ***** *****ing written down when new products ***** introduced while at the same time allowing manufacturers to provide advance enough warning of new products so that Lambert is not caught ***** a high level of obsolete *****; third, *****re must be ********** excellent order management and fulfillment system in Lambert's warehouse ***** a tight consolidation with the major ***** and chain stores. ***** evidence of th***** being the case is ***** sheer number of ***** relationships ***** 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 ***** ***** dealers, chains and resellers. While non-exclusivity is very common, in fact more common ***** many industry's indirect channel strategies, the ***** in ***** bike accessories and parts ********** is more attributable ***** the highly fragmented nature ***** the ***** available, ***** less about ***** inherent structure of the 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 ***** niche-oriented market in cycl*****g, is what fosters the growth ***** non-exclusive distribution arrangements. For Norco ***** their reselling of 101 brands (***** site does not delineate exclusivity or not) 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 level of commitment from ***** distributor to make sure the manufacturer sees continued value, in ***** distribution ***** ***** manufacturer and ***** ***** evaluating each others' ability to deliver on the commitments that made the agreement happen in the first place. Exclusivity implies a distribu*****r has a very


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