B2B Marketing the Distribution Channel

B2B Marketing

The distribution channel is "the route by which a product or service is moved from a producer or supplier to customers. A distribution channel usually consists of a chain of intermediaries, including wholesalers, retailers, and distributors, that is designed to transport goods from the point of production to the point of consumption in the most efficient way." When we speak about Cycles Lambert, we speak about one of the largest bicycle parts distributors in Canada. They have a strong policy and their main aim is to "offer the best value, selection and quality of cycling products" to all bike dealers in the country into one-stop shop distribution center. Although they started as simple retailers, since 1984 they have been focusing on the distribution field, trying to offer its customers a variety of choices. Since then their distribution model can be characterized as such: partnership relation between customers, manufacturers and the distributor. The main reason for which this distribution channel functions as accurate as it does is because customers find everything they need in only one stop shop. Although their customers are generally bike dealers and not actual persons, the variety of products is considered an advantage due to the fact that it can satisfy a larger palette of purchasers.

Q2. Why are the companies distributed by Cycles Lambert opting to deal though an intermediary? Does this distribution model provide value for all parties? How?

There are several reasons for which companies decide to sell their products through Cycles Lambert. One main reason would be that they do not have the necessary funds to opening their own shop. Another very important reason is that Cycles Lambert is already considered a brand. Moreover, the distributor is seen as a "brand" which would not associate its name with the one of another's company unless those products apply to certain quality standards. So, although your products may not be the best on the market, by selling them through this distributor it will definitely seem so. Furthermore, Cycles Lambert already has stores all around the country, so instead of limiting yourself to opening only one shop (limited financial resources) you as a producer will be able to sell your products at a national level. In this distribution chain, all parties have gains, one by selling its products, the other by having what to sell. It is actually a useless question because, if there were parties who would be unsatisfied by this method, there would not be any distribution channel after all. Thus, while one gains by achieving a name, becoming a brand (although associated with another) the other gains by constantly increasing its portfolio, by offering another product to its customers, by continuously increasing its profits and its customers' satisfaction.

Q3. 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?

Cycles Lambert Inc. distributes exclusively some brands such as: Michelin, Time, Cat Eye etc. All of them are either bicycle parts or components or even accessories. How ever, when it comes to promoting those brands, the company's website is mainly naming them, showing no further specifications or giving a full description of the product. Meanwhile, the exclusive brand website provides full description of it products, giving suggestions and even allowing you to choose certain aspects such as color, size etc. However, Cycles Lambert's site provides the correct information for you to get a general background, to see with what you may associate your product with, and even gives details about how and where you can buy it from. It is more than obvious that the manufacturer and the distributor stress different aspects of the product. The first one intends to present the whole product specifications, giving ample descriptions, giving suggestion etc. The distributor on the other hand limits itself to presenting the most important characteristics, maybe underlying some other similar products, or why not, even offering ideas which may help the buyer in deciding which the best alternative is for him/her from the entire shop. To put it simply, while the manufacturer describes one product, the distributor describes products from many manufacturers. That is, while the first may tend to exaggerate the characteristics of the product, the distributor will be more objective, giving short, comprehensive explanation about what that product is and what that product does.

Q4. If you were a bicycle retailer, and Cycles Lambert customer, what do you think would help to push more business to your store? Why?