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Global_Distribution-1

Global_Distribution-1 - Marketing Strategy Global...

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Marketing Strategy -- Global Distribution
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Outline Types of Marketing Channels Indirect Channels Direct Channels Global Channel Management
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Global Marketing Channel Import Agent Marketing Subsidiary WOMS Producer Retailers Wholesalers Customer Direct Business Model Supply Chain (e.g., Logistic Companies) Marketing Channel
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What’s The Catch? Channels members play similar functions (e.g., making contacts, negotiation, …) anywhere in the world. But, they practice considerably different from country to country (e.g., on returned goods, rebate system, efficiencies, …) because Infrastructures Culture/Life style Strategic considerations (e.g., positioning)
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Number of enterprises (thousands) Persons employed (thousands) Turnover (billions ECU) Belgium 48.0 201.8 85.0 Denmark 35.8 166.2 60.0 Greece 28.0 115.4 France 132.4 1,049.0 312.0 Ireland 3.5 40.4 12.0 Italy 192.6 1084.0 Luxembourg 1.9 10.8 5.0 Netherlands 71.9 360.0 135.0 Portugal 31.3 200.0 United Kingdom 142.7 921.0 310.0 United States 469.5 4,578.0 1,260.0 Japan 436.4 4,332.0 2,651.0 Wholesaling in Selected Countries
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Number of enterprises (thousands) Persons employed (thousands) Turnover (billions ECU) Belgium 127.8 274.7 35.0 Denmark 48.1 199.7 24.0 Greece 175.0 338.2 20.0 France 461.8 2,090.0 260.0 Ireland 29.3 131.4 11.0 Italy 929.7 2,401.0 230.0 Luxembourg 3.5 18.1 3.0 Netherlands 95.0 637.5 45.0 Portugal 173.3 366.3 20.0 United Kingdom 348.2 3,030.0 280.0 United States 1,503.6 19,085.0 1,350.0 Japan 1,619.8 6,851.0 682.0 Retailing in Selected Countries
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Channel Efficiency in Selected Countries Wholesaling (b) Retailing (b) Ratio Belgium 85 35 2.4 Denmark 60 24 2.5 France 312 260 1.2 UK 310 280 1.1 USA 1260 1350 0.9 Japan 2651 682 3.9
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Global expansion of retailing is still difficult. Most large retailers are still pre- dominantly domestic. For example, MSRP: No existence in Europe Allowed in US Rigorously enforced by some manufacturers in Japan However, significant change is observed. Global Retailing
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based on sales for the year 2000 Rank Company Country Sector ($ millions) 1 Wal-Mart US Discount Store/Warehouse club 180787 2 Carrefour France Hypermarket 59690 3 Kroger US Supermarket 49000 4 Home Depot US Home Improvement 45738 5 Metro Germany Diversified 42733 6 Ahold Netherlands Supermarket/Hypermarket 41251 7 Kmart* US Discount Store/Specialty 37028 8 Albertson's US Supermarket 36762 9 Sears, Roebuck US Department Store/General Merchandise 36548 10 Target US Discount Store/Department Store 36362 *as of March 2002, Kmart was in bankruptcy proceedings Source: Chain Store Age 12/2001 Global Retailers
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Two Important Aspects of global retailing mkt Although some countries (e.g., India) still hold channel power in wholesalers, channel power is downshifted to retailers. Retailers are service providers. As such, the popular business models are licensing, SA, or WOMS. Since they are also low-value added, labor issue is often a challenge in management.
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Traditional Direct Marketing MAIL ORDER – catalogs, sales offers through “snail” mail TELEMARKETING – phone calls from companies to households DIRECT RESPONSE TV (DRTV) – TV commercials with phone numbers to let viewers call for purchases.
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