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 ***** Lambert as their exclusive distributor ***** Canada, the coverage of this specific distributor with bicycle shops and chain stores must be considered as ***** 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 ***** use of insightful services programs is another major reason why these ***** seven manufacturers ***** enough confidence in Lambert to give them exclusivity for their products throughout all of Canada. Looking *****ally at those ***** that attract manufacturers to opt for exclusivity ***** 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 new products so ***** Lambert is not caught ***** a high level of obsolete *****; third, there ***** be *****n excellent order management and fulfillment system in Lambert's warehouse and a tight consolidation with the major ***** and chain stores. The evidence of this being the case is that 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 in many *****'s *****direct ***** strategies, the ***** in the bike ***** and ***** industry is more attributable to the highly fragmented nature of the products available, and less about the inherent structure of ***** ***** itself as defined by buying patterns of cus*****mers. The fragmentation ***** the product strategies and the sheer number of parts and accessories producers, all aligned with a ***** niche-oriented m*****rket in cycl*****g, is what fosters the ***** ***** non-exclusive d*****tribution arrangements. For Norco and their reselling of 101 brands (their site does not delineate exclusivity or *****) the breadth of lines they are carrying is ***** of an indication of the company's focus on building a broader and more globally diverse supply chain. While exclusivity requires a much higher level of commitment from ***** distributor to make sure the manufacturer sees continued value, in non-exclusive distribution ***** both manufacturer and ***** ***** evaluating each o*****rs' 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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