Mba - Marketing Management - Alessi Case Study.ppt

alessievolutionofanitaliandesignfactory marketingmanagementteamcemba 06 howtocontrolandexpanddistributionwithoutcompromisingthebrandimage distributionstructuredistributionandthebrandimagechallengesnextstep whycontrollingdistribution controlbrandimageproblemofheterogeneityinretailerstrategiesoverproductdisplaydiversityindistributionchannelsrecoveringfrompriceandbrandconfusionofpasttenyearsincreaseturnover distributionstructure usedistributionasachannelofdistributiondiversifiedchannels retailoutlets museumstores giftshops aplacetoincreasebrandequityluxuryretailshopsinitalyoffering betweenshoppingandspecialtydesign orientedtableandkitchenproductsshoppinggoods notconveniencegoods about50 purchasesasgifts weddingpresents christmas overall25 30 ofannualsales specialtygoods bestsellerslikem suicide magicbunny etc consumersidedistributionstructure 1983 changeintostreamlineddistributionsystem distributionstructure manufacturer independentdistributors retailers manufacturer retailers orders deliveries orders deliveries orders singlecountryindependentagentsorsubsidiaries orders deliveries 1983 streamlineddistributionsystem hybridchanneladministrationindirectforordersanddirectfordeliveriesagents independentorcompany ownedsubsidiariesbenefits increaseofcontrolindistribution reductionoffunctionaldiscrepancies reductionofdeliverycosts economiesofscaleinordermanagement bettermappinginassortmentofgoodsandbetterservicesbycompany ownedsubsidiaries distributionstructure manufacturer retailers orders singlecountryagent orders deliveries pushstrategyinducecooperationwithretailers keepinventorylow displayproducts andvisibilityonshelfspacestowinvoluntaryco operation streamlineddistributionsystem shiftinmarketcoveragestrategyfromintensivedistributiontoselectivedistribution agentsasindependententitiesinexclusivegeographicalareasfrom9000retailersin1989to5000in2000 managementofpowerindistributionchannels avoidancestrategydifferentiation designorientedandproductnamingfocus tableandkitchen high qualityreductionincosts reductionindeliverycostsbystreamlineddistributionsystem lately resistanceandconfrontationstrategydiversificationofchannels selectedretailers ownstores licensingcontrolleddistributionsystem managementofpowerindistributionchannels powermanagementincreasedbystreamlineddistributionsystembettercontroloverproductsandshorterdeliverychannelsthusreductionofcostsofopportunity threatofrevocationretailerchurn 5 in 03 trainingsmerchandisingreferencevalueidentification coercivesources non coercivesources power basicoffering services supportinmerchandising inventoryrisk training serviceoffering distributionandthebrand distributiononbrandimage consistentretailexperiencetostrengthenthebrandbenefits customerloyalty moreinelasticconsumerresponse greatertracecooperationandsupport possiblelicensingopportunityshop in shopforcontroloverproductdisplay demandingretailercommitment askforminimalsurfacesmono brandstores showroomsandflagshipstores 03 3movestoexpanddistributionwhileincreasingcustomer basedbrandequityvalue consistentretailexperienceincreasingretailpenetrationinkeymarketslicensingthebrandfornewertypesofproductslikewatchesandcars distributionchallengesonbrandimage 80s toointensivedistributionsystempricediscrepancybetweenluxuryretailersandothersconfusingbrandimageconstantcontrolchallengeoverproductdisplay merchandis