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 distribution 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 ***** Lambert as their exclusive distributor in Canada, the coverage of this specific distributor with bicycle shops and chain stores must be considered as ***** broadest in the ***** market. The ability ***** Cycles Lambert to also serve the majority of bicycle dealers, multi-store ********** and potentially even department stores through ***** use of insightful services programs is another major reason why these twenty 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 ***** ***** a large geographic region include the following: first, *****re needs to be aggressive ***** ***** 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 ***** ***** is not caught ***** a high level ***** obsolete inventory; third, *****re ***** be an excellent order management and fulfillment system in Lambert's w*****house and a tight consolidation with the major ***** ***** chain stores. The evidence of th***** being ********** case is that sheer number of exclusive relationships and the continued growth of Lambert in a competitive m*****rket.

Exclusivity in *****direct channel structures only happens when ***** distributor has significant value to deliver, both in terms of service and the longevity of relationships ***** dealers, chains and resellers. While non-exclusivity is very common, in fact more common in many ********** indirect channel strategies, the ***** in the bike ***** and ***** industry is more attributable to the highly fragmented nature ***** the ***** available, and less about ***** inherent structure of the ***** itself as defined by buying patterns of customers. The fragmentation ***** ***** product strategies and the sheer number of parts ***** accessories producers, all aligned with a ***** niche-oriented m*****rket in cycling, is what fosters the growth of non-exclusive distribution arrangements. For Norco and their reselling of 101 brands (***** 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 ***** requires a much higher level of commitment from a d*****tributor to make sure the manufacturer sees continued value, in non-exclusive distribution arrangements ***** manufacturer and distributor ***** evaluating each others' ability to deliver on the commitments that made the agreement happen in the first place. Exclusivity implies a ***** has a very


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