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 with manufacturers. In the case of ***** twenty seven ***** who have assigned ***** Lambert as their ***** distributor ***** Canada, the coverage ***** this specific distributor with bicycle shops ***** chain stores must be considered as the broadest in ***** Canadian market. The ability of Cycles 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 ***** seven manufacturers have enough confidence in ***** to give them exclusivity ***** their products throughout all of Canada. Looking *****ally at those programs th***** attract manufacturers to opt for exclusivity ***** a large geographic region include the following: first, *****re needs ***** be aggressive ***** ***** credit terms for both the manufacturers and retailers; second, *****re is the need ***** price protection ***** 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 ***** Lambert is not caught with a high level of obsolete inventory; third, there ***** be an excellent order m*****agement and fulfillment system in Lambert's w*****house and a tight consolidation with the major dealers and chain stores. ***** evidence of th***** ***** the 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 the distributor 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 *****'s indirect ***** strategies, the non-exclusivity in ***** bike accessories and ***** industry is ***** attributable to 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 of ***** product strategies and the ***** number ***** parts ***** accessories producers, all aligned with a ***** niche-oriented ***** 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 *****) 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 ***** place. Exclusivity implies a distributor has a very


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