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 w*****h manufacturers. In the case of ***** twenty seven ***** who have assigned ***** Lambert as their ***** distributor ***** Canada, the coverage of this specific distributor with bicycle shops and chain stores must be considered ***** ***** broadest in the ***** market. The ability of Cycles Lambert to also serve the majority ***** bicycle dealers, multi-store cha*****s and potentially even department stores through the use of insightful services programs is another major reason why these twenty seven manufacturers ***** enough confidence in ***** to give them exclusivity ***** their products ********** all of Canada. Looking *****ally at those programs th***** attract manufacturers to opt for ***** ***** a large geographic region include the following: first, *****re needs to be aggressive ***** of credit terms for both the manufacturers and retailers; second, there is the need ***** price protection and inventory stock balancing that on the one hand 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 ***** products so ***** Lambert ***** not caught ***** a high level ***** obsolete inventory; third, there ***** be an excellent order m*****agement and fulfillment system in Lambert's warehouse ***** a tight consolidation with the major ***** and chain stores. ***** evidence of this being the case is that sheer number of exclusive relationships ***** ***** continued growth of Lambert in a competitive market.

Exclusivity in *****direct channel structures only happens when the d*****tributor has significant value to deliver, both in terms of service and the longevity of relationships with dealers, chains and resellers. While non-exclusivity is very common, in fact more common ***** many ********** indirect ***** strategies, the ***** in the bike accessories and ***** *****dustry is more 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 ***** accessories producers, all aligned with a very niche-oriented m*****rket in cycling, is what fosters the ***** of non-exclusive d*****tribution arrangements. For Norco and ***** reselling of 101 brands (their site does not delineate exclusivity or *****) 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 ***** d*****tributor to make sure ***** manufacturer sees continued value, in non-exclusive distribution ***** ***** manufacturer and distributor ***** 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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