MbaMarketingManagementCaseStudy

1、alessievolution of an italian design factorymarketing managementteam cemba 06how to control and expand distribution without compromising the brand image? distribution structuredistribution and the brand imagechallenges next step why controlling distribution? lcontrol brand image lproblem of heteroge

2、neity in retailer strategies over product displayldiversity in distribution channelslrecovering from price and brand confusion of past ten years lincrease turnover distribution structureluse distribution asla channel of distribution diversified channels: retail outlets, museum stores, gift shops, la

3、 place to increase brand equity luxury retail shops in italyloffering: between shopping and specialtyldesign-oriented table and kitchen productslshopping goods (not convenience goods!): about 50% purchases as gifts, wedding presents, christmas: overall 25-30% of annual sales. lspecialty goods: best

4、sellers like m.suicide, magic bunny, etc lconsumer side distribution structure l1983: change into streamlined distribution systemdistribution structuremanufacturerindependent distributorsretailersmanufacturerretailersorders - deliveriesorders - deliveriesorderssingle country independent agentsor sub

5、sidiariesordersdeliveries1983: streamlined distribution systemlhybrid channel administrationlindirect for orders and direct for deliverieslagents: independent or company-owned subsidiaries lbenefits: increase of control in distribution, reduction of functional discrepancies, reduction of delivery co

6、sts, economies of scale in order management, better mapping in assortment of goods and better services by company-owned subsidiariesdistribution structuremanufacturerretailersorderssingle country agentordersdeliveriesl push strategylinduce cooperation with retailers, keep inventory low, display prod

7、ucts, and visibility on shelf spaces to win voluntary co-operation. streamlined distribution systemlshift in market coverage strategylfrom intensive distribution to selective distribution: l agents as independent entities in exclusive geographical areasl from 9000 retailers in 1989 to 5000 in 2000.

8、management of power in distribution channelslavoidance strategyl differentiation: design oriented and product naming l focus: table and kitchen, high-quality l reduction in costs: reduction in delivery costs by streamlined distribution system. llately: resistance and confrontation strategyldiversifi

9、cation of channels: selected retailers, own stores, licensinglcontrolled distribution systemmanagement of power in distribution channelslpower management increased by streamlined distribution systemlbetter control over products and shorter delivery channels thus reduction of costs of opportunity. th

10、reat of revocationretailer churn=5% in 03trainingsmerchandising reference valueidentificationcoercive sourcesnon-coercive sourcespowerbasicofferingservices: support in merchandising, inventory risk, trainingservice offeringdistribution and the branddistribution on brand imagelconsistent retail exper

11、ience to strengthen the brandlbenefits: customer loyalty, more inelastic consumer response, greater trace cooperation and support, possible licensing opportunity lshop-in-shop for control over product display, demanding retailer commitment: ask for minimal surfaceslmono-brand stores: show rooms and

12、flagship storesl03: 3 moves to expand distribution while increasing customer-based brand equity value:lconsistent retail experiencelincreasing retail penetration in key markets llicensing the brand for newer types of products like watches and carsdistribution challenges on brand imagel80s: too intensive distribution system price discrepancy between luxury retailers and others confusing brand image lconstant control challenge over product display, merchandisi