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 the twenty seven manufacturers who have assigned ***** Lambert as their ***** distributor in Canada, the coverage of this specific distributor with bicycle shops ***** cha***** 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 **********s and potentially even department stores through ***** ***** ***** insightful services programs is another major reason why these twenty seven manufacturers have enough confidence in ***** to give them exclusivity ***** their products *****out all of Canada. Looking specifically at those programs that attract manufacturers to opt for ***** ***** a large geographic region include the following: first, *****re needs to be aggressive use ***** 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 ***** retailers' inventory from *****ing written down when new products are introduced while at the same time allowing manufacturers to provide advance enough warning of new products so ***** Lambert is not caught with a high level of obsolete inventory; 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 the case is that sheer number of exclusive relationships and the continued growth ***** Lambert in a competitive market.

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 *****'s indirect channel strategies, ***** ***** in the bike ***** and ***** industry is more attributable to the highly fragmented nature ***** the ***** available, ***** less about ***** inherent structure of the industry itself as defined by buying patterns of customers. The fragmentation of the product strategies and the ***** number of parts and accessories producers, all aligned with a very niche-oriented market in cycl*****g, is what fosters the ***** ***** non-exclusive distribution arrangements. For Norco ***** ***** reselling of 101 brands (their site does not delineate exclusivity or not) the breadth ***** lines they are carrying is ***** 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 a distributor to make sure ***** manufacturer sees continued value, in non-exclusive distribution ***** ***** manufacturer and distributor are evaluating each others' ability to deliver on the commitments that made the agreement happen in the ***** place. Exclusivity implies a distributor h*****s a very

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