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Handling channel conflict and online distribution
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Handling channel conflict and online distribution


keys to address your online strategy, if you are a product company

keys to address your online strategy, if you are a product company

Published in Business , Technology
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  • 1. Online business and structure Information document
  • 2. Objectives of a business Integral values Brand value Sales & Profits
  • 3. Distribution pie Physical Modern retail Online Overlap or Channel conflict
  • 4. Case study 1- Company A in Telecom • No of retailers over 650,000 • No of distributors over 34,000 • Modern retail over 2800 outlets • No of online partners over 80 direct and over 200 through affiliates • No of banks they are available all 34 • Key targets (high to low) Reach>Awareness>Distribution>Business>Brand values>Society
  • 5. Key point • Channel conflict ratio of a physical distribution company/with online product presence is 3% at the lower side and 20% at the higher side • 20% is when you reach through all possible mediums at the same time (without any restriction) • Key factor they address- the price and brand value (not the channel) as its just a tool to reach masses and create awareness-with the same message
  • 6. Case study 2 Online business – a leading Travel portal • Over 34000 travel agents • Over 200 affiliates • Online direct to customers • Note- all affiliates are non-exclusive • The price point is flexible and the customer is to get the same price with marginal difference between online and through affiliates/agents- online priced at low • still the online contributes to over 30% of the total business, while through affiliates/agents its over 60% • Key factor in online sales- process to sell or conversion