Evaluating major channel alternativesIdentifying major channel alternativesEstablishing objectives and constraintsAnalyzing customer needs and wants
Example: How does Chinese brand Skyworth design theirchannels when enter the Philippines market?ChannelDesignDecisionMajor ChannelAlternatives:SM, Abenson,Anson’s,Imperials…Needs andWants: thosepractical and notconcern withbrandObjectives andConstraints: fastgrowth and controlfinancial lossEvaluate MajorChannelAlternatives:SM, ESLA, RoyalStar are goodalternatives
Selecting channel members Training and motivate channel members Evaluating channel members Modifying channel design and arrangements Channel modification decisions Global channel considerationsMotivating and Balancing arethe most important!
Cash transactiondealer: highlight cashprice to attractivecustomerSelf-financingtransaction dealer:highlight the downpayment or monthlyinstallment paymentProductlineProductline
Vertical marketingsystemsHorizontalmarketing systemsIntegratingmultichannelmarketing systems
SkyworthRetailersCustomersSkyworthWholesalersRetailersCustomersCity and Townas MetroManilaFarawayCountrysideas VisayasandMindanaoAreaWholesalers :capital platform and logisticsplatform for faraway countryside.
SM: biggest dealer, offer exclusive modelswith volume requirement; Other dealer: offer common models butcontrol the suggested retail price; Online sales: introduce another sister brandCOOCAA.
USA: 2012 US US eCommerce and Online Retail salesprojected to reach $226 billion China: 2012 China eCommerce and Online Retail salesprojected to reach $100 billion• those that have launched awebsite without any previousexistence as a firm.Pure-Click companies• those existing companies thathave added an online site for e-commerce.Bricks-and-Clickscompanies
Skyworth e-commerce:Skyworthe-commerceSpecial onlinestore in B2BwebsiteCorporate onlinewebsite:www.coocaa.comSale to onlineB2C retailers
Price management: adopt the same SRPnationwide Product management: offer exclusive modelsto strategic dealer while also protect thoseprofit contributors Account receivable management: use PPT tomotivate early payment. For e-commerce use another sister brand todifferenciate from other dealers.
Skyworth cooperate with Cash cash pinoy andLazada to implement online sales. Skyworth take another sister brand COOCAAto specialize online sales.