ManagingThe Channel Conflict14 september 2011
Channel ConflictChannel Conflictoccurs when manufacturers (OEM’s, brands) disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products direct to consumers through general marketing methods and/or over the internet through e-commerce.
In all layers of the value chainProducerImporterDistributorRetailerE-tailerPhysicalstoreInternetstoreConsumer
Why would you sell directly?
Becauseyourconsumers want it!?LLThe knowerThe doubterThe searcherRRLLemoratioemoratioemoratio
The digital ecosystemengageconvertretainserviceconsumerscomputermobileinfopillarsTVSocialNetworksOnline photo and videoWidgetsSocial bookmarkingBlogsMash upsComparisonsitesKnowledge sharingUser generatedcontentCompany.com
internetofflineother
Customer Journey internetofflineother
Customer Journey (2)internetofflineother
Customer Journey Consumer (3)internetofflineother
Customer Journeys: conclusioninternetofflineother
producerretailershowroomdealerdealerdo it yourselfcustomercustomercustomercustomercustomercustomer
distributorlabel xcustomercustomerdealercustomerdealercustomercustomercustomerdo it yourselfbrandshowroom
So every industry is multichannelofflineonlineballstoolsclubsapparelhandkerchiefscoursestraveltrolleys
Because the companies want it…What is the lure for manufacturers to sell directly?Leverage the power of their brand
Margin
Consumer data
Ability to control/affect sales process
Better quantify marketing spend
Fight counterfeit cycle
Flagship store to tell their storyStep 1: is itworthit?What is your potential direct sales?
Step 2: is there really a problem?Are the channels really attempting to serve the same end users?Do channels mistakenly believe they are competing when in fact they are benefiting from each other's actions?3.   Is the declining profitability of a player genuinely the result of anotherchannel’s encroachment?4.   Will a channel’s decline necessarily harm a manufacturers' profits?
Step 3: Who’s in the driver’s seat?
1. What’s thepower of your brand?
2. What’s the power of your distribution channel?80%-20%?Distributors in driver seat80%20%
2. What’s the power of your distribution channel?80%-80%?Producer in driver seat80%80%
3. How much value does your reseller really add?
Strategies to cope with the conflictAdded value retailerhighlowproducerpowerretailers
Strategies to handle the conflictAdded value retailerhighlowproducercompetepowerretailers
Strategies to handle the conflictAdded value retailerhighlowproducerpowerretailersforwardintegration
Strategies to handle the conflictAdded value retailerhighlowproducerguidepowerretailers
Strategies to handle the conflictAdded value retailerhighlowproducerpowerretailersco-operate
invoicetrainingavailabilityturnover overviews$return goodsbranddistributordealerinvoiceserviceavailability$return goodscustomer
branddistributormanualsavailabilityturnover overviews$return goodsdealercustomer$return goodsinvoiceserviceavailability
Example: Shop online pick up at store
Guide
Shop.CallawayGolf.com
cooperate
The corporateecosystem....CampaignwebsitecontentwebsiteContent sitescontentMobielInspirationManualOrientationBuyReview sitesVideosInfo aboutproductsand pricesserviceYouTubeFanpageRSS feedBlogsCommunities
ResumeDo your consumers want it?Is there really a problem?Who is in control?Define your strategy
But….10 years from now there will be no channel conflict anymore.
14 september 2011Over Jungle Minds

Kanaalfconflict

Editor's Notes

  • #2 Ik heb Channel met een hoofdletter geschreven
  • #3 Ikheb de tekst links uitgelijnd,ditleestwatrustiger