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Global Dristribution

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					GLOBAL DISTRIBUTION
http://www.youtube.com/watch?v=WpOUm0Qll58&feature=fvwrel
Fabricante              Transporte
                                                                    Fabricante




Transporte              Proveedor     Clientes
                                                       Transporte


             Clientes
 Productor
                               Distribuidor


                                                 Intermediario



              Mayorista
Transporte
                                     Clientes         Transporte       Clientes
•   Gateway to new country market
•   «Face» of exporter´s firm
•   Avenue through marketing efforts are channeled
•   Contractual obligations
          (difficult to modify for favoring a global strategy)



           Challenge:
       «to impose some
    coordination on local
    distribution channels»
 «Global  Marketer wants to rationalize
distribution by including some uniformity
             across countries»

               There are two ways:


                                 Establishig
Introducing                      Parallel Channels
    New                          (Fight Back
Alternatives                     GreyTrade)
Changing distributors (terminating
             contracts)


           WHY
It is not doing good enough in the
               market
   (Promotion effort, coverage,
        tecnhical assistance)
      They spent 8 % to 9% on
     Advertisement but overseas
          distributors 4%.)

Options: New One or Wholly Owned Sales
Subsidiaries
        Dual Distribution

           WHY

• Termination not necessary but
  you want to improve coverage.
• You want to introduce a new
  line of products.
They set a number of stores with a
separate name.

  «AX Exchange» carrying more cassual
    clothes + Armany Specialty Shops
          + Department Stores

Options: Owned or Private Multichannels-
Mixed Multichanels
                Functions:

• Contact –Negotiating –buying- selling and
  warehousing.

• Also: shipping,

• financing,packaging.
           What to evaluate?
Power and Competition, Financial Power, Infraestructure,
Government

Regulation, complexity in levels (japanese case), efficiency
(comunications, order processing inventory management)

                                          Curious Data:
                                   Japan, Israel and Australia:
                                     Wholesalers perate as a
                                        nation based unit
                                     Italy, Turkey and Egypt
                                     Wholesalers are small,
                                   more than one is required
    «International comparisson of
         wholesalers practices»
«Full service might not include service back
up in european countries»

«Indian retailer expect to hand over defective
products to wholesaler not to manufacturer»

Marketer must be aware of disturbing practices
 They merge as an alternative to take advantage of increased speed and
                       service in global logistics

Eg: Madrid´s father who bougt a video camera for filming his children
• A Madrid Specialty Store (expensive but secure)
• A Madrid discount House (Cheaper but outside of town)
• In Portugal accross the border, duty free and no sales tax
• In Frankfurt at the airport, duty free and with all-europe service
• In barcelona from a street vendor who smuggled it from Hong Kong
    ship (Cheap but risky)
• By fax order from 47Th street in NY (cheap and no fake-45USD freight
    may be acceptable for 700USD camera.


• It is a good answer for grey trade problem
          • Erode Brand Equity
 • Strain Relationships with Authorized
                Distributors
        • Lead to Legal Liabilities
• Complicate Global Marketing Strategies
  • Supply Interface
• Dealer Interference
 • Demand Interface
  • Strategic Attack

				
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posted:7/24/2012
language:Latin
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