Marketing channel reflection

Channel Par*cipants

Lecture 2

Part 1 Marke*ng Channel Systems

Learning Objec-ves

5

3M Post-It

3

SAP for Wholesale Distribu*on

Channel Surfing Ques-on 1 You are a new Channel Manager for a company that is a market leader for Laser printers You have decided to cut your Wholesaler’s volume rebate from 5% to 3% per annum without any prior consulta*on Your Wholesaler is a achieving a minimum GM% of 3% for the sale of printers. Ques*on: What would the Wholesalers likely reac*on be?

10

Pharmabroker Sales

12

Komatsu Branch Offices

ANZSIC Wholesale Codes

15

Over 60 classifica*ons

Starts with 3000

5

Mini Case 1 – Toys R Us File for Bankruptcy

23

Ques*on

1.  What factors have led to Toys R Us having to file for bankruptcy?

2.  What compe*tor factors have led to their situa*on?

3.  How would restructure their Channel?

Retailing Defini-on

Retail is the sale of goods to end users, not for resale, but for use and consump*on by the purchaser. The retail transac*on is at the end of the supply chain. Manufacturers sell large quan**es of products to retailers, and retailers a^empt to sell those same quan**es of products to consumers.

25

Retail Disrupted: Deloi^e Digital

26

27

Kind-of-Business Classifica-ons

•  Motor vehicle & parts dealers

•  Furniture & home furnishings stores

•  Electronics & appliance stores

•  Building material & garden equip. & supply dealers

•  Food & beverage stores •  Health & personal care

stores

•  Gasoline stations •  Clothing & clothing

accessories stores •  Sporting goods, hobby,

book, & music stores •  General merchandise

stores •  Miscellaneous store

retailers •  Non store retailers

Retail Trade

Amazons Wave of Disrup-on

29

30

Top Trends 2018

31

8

Mini Case 2 – Bunning’s Disaster in UK hardware push

34

Ques*on

1.  What contributed to Bunning failure in the UK Market?

2.  What measures should Bunning’s take to rec*fy their mistakes?

3.  What lessons can we learn from Bunning’s failed entry into UK market?

9

Retail Trends and Predic-ons 2018 1.  Chore shopping will become easier 2.  Retailers will enable shoppers to build and customize

products 3.  Retailers will increasingly reply on robots 4.  Retailers will step up their social media strategies 5.  Data will drive retail decisions 6.  Augmented reality technology will get sophis*cated 7.  Bricks and mortar stores will con*nue to flourish 8.  Healthy and environment friendly lifestyles 9.  In home services and delivery 10.  Retailers that curate assortments will win

39

Facilita-ng Agencies in Marke-ng Channels

•  Transportation agencies •  Storage agencies •  Order processing agencies •  Advertising agencies •  Financial agencies •  Insurance companies •  Marketing research firms

Channel Surfing Ques-on 2

“An ounce of good measurement is worth a pound of middleman rebuff sales fluff?

41

Summary

•  Many types of par*es par*cipate in the marke*ng channel

•  Producers and manufacturers lack economies of scale and scope to distribute their products directly.

•  They rely on wholesalers or retailers as facilita*ng agencies to share in the performance of distribu*on tasks.