The
OmnI-ChAnnel eCOsysTem
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Examples: Revlon, Levi-Strauss, Kraft Foodservice, GESCO, clothing and
apparel products.
3.
Company Store/Manufacturer Outlets.
Retail product outlets in
high-density markets; often used to liquidate seconds or excess inventory of
branded consumer products.
Examples: Outlet malls, hostess bakery outlets.
4.
License.
Contracting distribution and marketing functions through licensing
agreements, which usually grant exclusivity for some period of time. Often
used for products in the development stage of their lifecycle.
Examples: Mattel,
Walt Disney, importers.
5.
Consignment/Locker Stock.
Manufacturer ships the product to the point
of consumption, but title does not pass until consumed.
Risk of obsolescence
and ownership remains with manufacturer. Focus on high-price/high-margin
and emergency items.
Examples: Diamonds, fine art galleries, machine repair parts.
6.
Broker.
Specialized sales force contracted by manufacturer that also carries
comparable product lines and focuses
on a narrow customer segment; product
is shipped through another format, such as the preceding options.
Typically
used by small manufacturers attempting to attain broad coverage.
Examples: Schwan’s frozen foods, paper goods, lumber, newer product lines.
Retailer-Based
Channel Formats
1.
Franchise.
Product and merchandising concept is packaged and formatted.
Territory rights are sold to franchisees. Various distribution and other services
are provided by contract to franchisees for a fee.
Examples: KFC, McDonald’s.
2.
Dealer Direct.
Franchised retailers carry a limited number of product lines
supplied by a limited number of vendors. Often these big-ticket items need
substantial after-sales service support.
Examples: Heavy
equipment dealers, auto dealers.
3.
Buying Club.
Buying services requiring membership. Good opportunity for
vendors to penetrate certain niche markets or experiment with product varia-
tions. They also provide buyers with a variety of consumer services; today, they
are largely consumer-oriented.
Examples: Compact disc/tape clubs, book clubs.
4.
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