B2B Marketing Questions What Model

B2B Marketing Questions What model would you use to describe this type of distribution channel? Why does it work for this industry? There are two dynamics occurring in the Canadian bicycle, parts and accessories distribution channels when Cycles Lambert and Norco are considered from the perspective of exclusive reseller agreements with manufacturers.

In the case of the twenty seven manufacturers who have assigned Cycles Lambert as their exclusive distributor in Canada, the coverage of this specific distributor with bicycle shops and chain stores must be considered as the broadest in the Canadian market.

The ability of Cycles Lambert to also serve the majority of bicycle dealers, multi-store chains and potentially even department stores through the use of insightful services programs is another major reason why these twenty seven manufacturers have enough confidence in Lambert to give them exclusivity for their products throughout all of Canada.

Looking specifically at those programs that attract manufacturers to opt for exclusivity for a large geographic region include the following: first, there needs to be aggressive use of credit terms for both the manufacturers and retailers; second, there is the need for price protection and inventory stock balancing that on the one hand protect the retailers' inventory from being written down when new products are introduced while at the same time allowing manufacturers to provide advance enough warning of new products so that Lambert is not caught with a high level of obsolete inventory; third, there must be an excellent order management and fulfillment system in Lambert's warehouse and a tight consolidation with the major dealers and chain stores.

The evidence of this being the case is that sheer number of exclusive relationships and the continued growth of Lambert in a competitive market. Exclusivity in indirect channel structures only happens when the distributor has significant value to deliver, both in terms of service and the longevity of relationships with dealers, chains and resellers.

While non-exclusivity is very common, in fact more common in many industry's indirect channel strategies, the non-exclusivity in the bike accessories and parts industry is more attributable to the highly fragmented nature of the products available, and less about the inherent structure of the industry itself as defined by buying patterns of customers. The fragmentation of the product strategies and the sheer number of parts and accessories producers, all aligned with a very niche-oriented market in cycling, is what fosters the growth of non-exclusive distribution arrangements.

For Norco and their reselling of 101 brands (their site does not delineate exclusivity or not) the breadth of lines they are carrying is more of an indication of the company's focus on building a broader and more globally diverse supply chain. While exclusivity requires a much higher level of commitment from a distributor to make sure the manufacturer sees continued value, in non-exclusive distribution arrangements both manufacturer and distributor are evaluating each others' ability to deliver on the commitments that made the agreement happen in the first place.

Exclusivity implies a distributor has a very strong ability to execute profitably across multiple dealer, chain, and reseller channels, while non-exclusivity is typically used by manufacturers to quickly grow the breadth of their channels without spending on a direct channel. In addition, indirect channels are often used to evaluate which distributors may be considered for exclusivity in subsequent distribution channel strategies.

Why are the companies distributed by Cycles Lambert opting to deal though an intermediary? Does this distribution model provide value for all parties? How? First and foremost, manufacturers are looking to work with Cycles Lambert due to the breadth of channel relationships they have with dealers, multi-store chains and potentially department stores selling bikes, accessories and supplies. it's not just the sheer number of these relationships however, it is the trust that Cycles Lambert has been able to attain with these many dealers, chains and department stores.

For any manufacturer to create this on their own, it would take years of concerted effort. Secondly, Cycles Lambert has proven over time to be highly effective at managing fulfillment and order management processes across many different manufacturers for many different dealers, chains and department stores.

Manufacturers then are opting to sell through an intermediary as they have existing and often long-term relationships with key members of the dealers, chains and department stores below them, and second, to attain the size and breadth of Lambert, the order management systems and fulfillment systems are well-run. There are many, many other factors to consider, but the fact is many manufacturers consider these two factors first, as they combined will save hundreds of hours and thousands of dollars in addressing a new market.

As a result of the relationships with retailers, chains and department stores and a thorough overview of how to make the order management and fulfillment processes as efficient as possible, distributors like Lambert are increasingly in demand. The reciprocal nature of the relationship all hinges on the trust of the retailers, chains and department stores in Lamberts' ability to execute on the many processes critical for managing ongoing buyer-supplier relationships.

For any given manufacturer to just learn these processes, much less execute them with precision and speed, would take years to learn. That is the major benefit for a manufacturer to work with Lambert for example, yet this applies to many other indirect channels across many different industries. Look at the website of at least one of the brands that Lambert distributes exclusively.

Do the manufacturer and the distributor stress different aspects of the product? Why do you think this is? For purposes of this example I looked at the website for Fulcrum wheels, which stresses racing and touring on their website, which is advanced in its approach to illustrating its products. The entire site is segregated by each of these dominant areas of wheel designs, complete with online guides on how to get the best possible wheels for an activity.

Cycles Lambert on the other hand only shows a subset of the racing wheels from Fulcrum, and does not provide the level of detail as shown on the Fulcrum site itself. The reason that Cycles Lambert chooses to only show a subset of the entire product set from Fulcrum is that the distributor has created a product strategy specifically in racing wheels and Fulcrum's unique capabilities fill one area of that broader strategy. Lambert has a product roadmap that defines the role of each exclusive and non-exclusive product taken on.

This roadmap is created based on what Lambert knows customers will be looking for, in addition to an analysis of their previous sales history. Lambert is looking to fill a.