Essay - B2b Marketing Questions What Model Would You Use to Describe...

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B2B Marketing Questions

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

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 in many ********** indirect ***** strategies, the ***** in the bike accessories and parts industry is ***** attributable to the highly fragmented nature of the ***** available, and less about ***** inherent structure of the ***** itself as defined by buying patterns of customers. The fragmentation of the product strategies and the ***** number ***** parts and accessories producers, all aligned ***** a ***** niche-oriented m*****rket in cycl*****g, is what fosters the growth of non-exclusive d*****tribution arrangements. For Norco and ***** reselling of 101 brands (their site does not delineate exclusivity or not) 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 ***** of commitment from a d*****tributor to make sure ***** manufacturer sees continued value, in ***** distribution ***** both manufacturer and distributor ***** evaluating each others' ability to deliver on the commitments that made the agreement happen in the ***** place. Exclusivity implies a ***** has a very


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