SUPPLY SIDE CHANNEL ANALYSIS CHANNEL STRUCTURE AND INTENSITY

PREPARED BY:AISHA HIRAIZGHAN JAMIL SHEIKH

Contents

Chanel design challenges

Brand assortment limitations

Intensity of distribution

Dropping a brand

Efforts of sustain brand distribution

Category exclusivetivity

Bargain influence

Channel Design Challenges:

1)To determine the level of intensity needed.

2)Combining different channel types by going to

market in multiple ways.

3)To decide whether the manufacture should

simultaneously go to the market via its own

channel or via 3rd party.

BRAND ASSORTMENT LIMITATION (Category Exclusivity) AS A BARGAINING CHIP FOR THE DOWNSTREAM CHANNEL PARTNER

Downstream Channel Members use the money to “pay” the supplier for :

- limiting the number of competitors who can carry the brand in the Channel Member’s trading area

- providing desired brands that fit the Channel Member’s strategy

- working closely to help the Channel Member achieve competitive advantage

- making Channel-Member-specific investments• new products • new markets• differentiated Channel Member strategy requiring supplier cooperation

- accepting the risk of becoming dependent on a strong Channel Member

Limiting brand assortment is currencyFever brand = more moneyExclusive dealing =

Downstream Channel Members need to “pay more” when :

- the trading area is important to the supplier

- the trading area is intensely competitive

For the ManufacturerFor the Manufacturer

Manufacturers use the money to “pay” the Channel Members for :

- limiting its own coverage of brand in product category(gaining exclusive dealing is very expensive)

- supporting premium positioning of the brand

- finding a narrow target market

- coordinating more closely with the manufacturer

- making-supplier specific investments• new products• new markets• differentiated marketing strategy requiring downstream implementation

- accepting limited direct selling by manufacturer

- accepting the risk of becoming dependent on a strong brand

Manufacturers need to “pay more” when :

- the product category is important to the Channel Member

- the product category is intensely competitive

Limited coverage is currencyMore selectivity = more moneyExclusive distribution =

Target Market

Segment Marketing

Niche Marketing

Local Marketing

Individual Marketing

Piggybacking Marketing

An initial marketing strategy that is pretty low costing, since it involves two, or more than two firms, who will market each other’s products in the right markets for maximum publicity.

Thank you