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

Exclusivity in *****direct channel structures only happens when ***** 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 in many industry's indirect channel strategies, ***** non-exclusivity in the bike accessories and ***** industry is more attributable to the highly fragmented nature ***** the products available, ***** less about the inherent structure of the industry itself as defined by buying patterns of customers. The fragmentation ***** ***** product strategies and the ***** number of parts and accessories producers, all aligned ***** a very niche-oriented m*****rket in cycl*****g, is what fosters the growth of non-exclusive distribution arrangements. For Norco and ***** 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 level of commitment from a distributor to make sure ***** manufacturer sees continued value, in non-exclusive distribution arrangements ***** manufacturer and ***** are 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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