...SITUATION ANALYSIS In 1984, at the age of 19, Michael Dell founded Dell Computer with a simple vision and business concept; that personal computers could be built to order and sold directly to customers. Michael Dell believed his approach to PC manufacturing had two advantages: (1) bypassing distributors and retail dealers eliminated the markups of resellers, and (2) building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components, and finished goods. Now, that concept picked up and arrived at Dell being the multi-billion dollar leading computer manufacturer in the world with 2001 revenues reaching $32 Billion and return on investment of 335%. However, things started to plummet by 2001 and Dell experienced, for the first time, a -10% decline in sales and unprecedented cutthroat competition from HP and IBM. Dell Corp. had to make difficult decisions on how to sustain its profitability in light of its broad product portfolio - PCs, workstations, servers and storage products for a broad cross-section of customers in the United States and worldwide. Fueled with ambition and determination, Michael Dell is set to maintain his company's leading position in these tough times. Dell, facing a predicament of whether they should maintain their strategic course or fundamentally change it in order to achieve the targeted growth rates, managed to acquire three important strategic options: 1) Focus only on the four major core products (Desktops...
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...and its ownership closer to the final buyer. Channel conflict: Disagreement among marketing channel members. Vertical marketing system :A distribution channel structure in which producer wholsers , and retailers act as a unified system one channel members owns the others ,has contracts with them or has so much power that they all cooperate Future vertical marketing system divided in to two .They are 1.conventional marketing system 2.vertical marketing system Vertical marketing system: A vertical marketing system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED VMS: An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. The most advanced supply-distributor arrangement for administered VMSs involve distribution programming, which can be defined as building a planed, professionally managed, vertical marketing system that meets the needs of both the manufacture...
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...Arbaaz Mehdi BUSN 495 Norbert Golembiewski Business: Unitus Entertainment Type of Business: Event Management Company Who is the customer? Our customers are anyone and everyone who is a fan of music, who would love to listen and see the performances of live music artists. In addition; they are also individuals, private firms, and corporate companies that need service in dynamic media presentations and unforgettable events. We offer a unique opportunity to bring various artists of different music genres who perform together leaving the audience with a lasting impression. What is the value proposition? When you work with Unitus Entertainment, you work with quality people who have the experience and imagination to bring energy, life, and entertainment. Our approach is straightforward to leave the audience with a lasting impression. We create a grand event by great ideas that drive results, cost effective budget, business transparencies, legal proceedings, and outstanding client services. What is product/service being offered? Music Entertainment Events: * Fair and festivals * Concerts * Parties (club, beach, hotel) * Corporate Entertainment On Site/Others: * Venue Selection and Procurement * Theme Design * Lighting and Sound * Photography and Video Production * Booking Artist * Promotion and Marketing * Site/Venue Inspection & Selection * Full Service Travel Arrangements (Air, Ground & Hotel) What does the value chain...
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...Introduction 4 Abstract 4 Distribution Channel 5-6 Distribution Strategies 7-8 Conclusion 9 Bibliography 10-11 INTRODUCTION Few producers sell their goods direct to the consumers, however most use third parties or intermediaries to bring their products to the market. They try to forge a distribution channel- a set of independent organisation involved in the process of making a product or service available for use or consumption by the consumer or business user. This report will examine the way Marks and Spencer’s sell their goods direct or indirect to the consumers. The following features will also be examined: • How M&S channel members are selected • How M&S channel members are trained and motivated • What is M&S distribution strategy • What is the structure of M&S distribution strategy To obtain the above information the following strategy were used • Journals • Websites • Books • Telephone ( no information given ) •...
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...Table of Contents Executive Summary ------------------------------------------------------------------------ 3 Strategic Analysis --------------------------------------------------------------------------- 4 Analysis results ------------------------------------------------------------------------------ 7 SWOT ----------------------------------------------------------------------------------------- 8 Balanced scorecard ------------------------------------------------------------------------- 9 Recommendations --------------------------------------------------------------------------10 Executive Summary Our consulting firm, NG Inc, was asked to research Starbucks and compile a strategic analysis and balanced scorecard for their career objectives. Starbucks was founded in 1971 in Seattle and continues to be the lead marketer of fine coffee at the retail level. It currently has retail stores in all 50 states, as well as 36 countries outside the U.S. Its products and services include: over 30 blends of coffee, hand crafted beverages, merchandise, fresh food, global consumer products, Starbucks cards (rechargeable gift cards), and its brand portfolio (subsidiaries such as the Tazo Tea Company and Ethos Water). After preparing a balanced scorecard for their 2004 strategies, we compared the actual 2005 data to their goals to measure how successful they were in achieving these goals. In order to prepare a strategic analysis and balanced...
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...Assignment 2 Product, Price & Place Strategy 2150-XXX Include full names and student Ids. March, 2010 Product Strategy Product Concept Core: Convenience that promotes a better future. Actual: A backpack with a built-in, removable, cooler-like lunch box on the bottom. Solar panels on the front that will charge built in batteries that can be used to charge ipods, cell phones, and/or cameras. Compartments for reusable plastic utensils that will be included in initial purchase of the pack. A water-bottle, in its own side-pocket, that utilizes Thermos vacuum technology that will have a removable lid/straw combination, essentially turning the bottle into a “camelback” like apparatus for no-hassle beverage consumption during bike rides and other adventures will also be included. There will be an inner separation that is well-padded on all sides that will be ideal for laptop toting. There will also be an extractable water-proof cover that will pull out from bottom and cover the entire back to protect against unexpected rainfall. All of these features and benefits will be wear the Thermos name that, through its 106 years in business (thermos.com, 2010), represents reliability and sustainability in itself. Augmented: The packs will come in a variety of colours and sizes including a line of children’s packs that will have various kid-popular cartoon images on the front. There will be a 30-day satisfaction guarantee as well as a 1-year limited warranty – the limits...
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...Channels of Distribution In the uncertain fluctuating market of today, it is essential for a company to hold on and face those uncertainties in order to survive. Consumers can be an aid for a company's survival, thereby it is essential for consumers to get the goods of a company whenever and however they need them. Here is where distribution channels come in and give hand. "Channels of distribution are the different paths that goods passed through in moving from the producer to the consumer", (Meyer et al, 1988). With the help of distribution channels, companies are able to overcome the time, place and possession gaps that separate goods and services from the consumers. As said by Aaker (1984), access to an effective and efficient marketing channel is often a key success factor. However, in this competitive era, an understanding of the alternative distribution channels and the trends in their relative importance can be of strategic importance for any company. For example, the growth and importance can be of a self service retail gasoline stations and the comparison growth in the importance of convenience stores such as the 7/11 chain in gasoline retailing has strategic significance to petroleum companies and distributors as well as to firms in food retailing (example adapted from Aaker, 1984). Additionally, because of competition, gaining distribution in some industries can be extremely difficult and costly. Nowadays, even large, established firms have trouble obtaining...
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...big names in year 2007, for example HP, Dell, Apple, and they have their own differentiate products. It is thus hard for new competitor to break into the established brand and customer loyalty. Each firm has contract or has built tight relationship with its suppliers that prevents others from entering the supply chain. The industry requires certain level of capital. Small firms lack the resources and capability of acquiring enough capital to compete with the existing large firms. The established distribution channels of either retail stores or outlet also somewhat prevents the small firms from entering. The bargaining powers of suppliers In the PC industry, the big suppliers such as Intel and Microsoft have a relatively large power over its differentiate products (microprocessor, Windows system) while the mass small firms that produce other simple components lack of bargaining power, and faces great competition in price and design. The Bargaining Power of Buyers Home and corporate users dominate the five categories of buyers on PC consumption. There are large amount of these buyers in the market that are price sensitive with low switching cost on the products, which raises the overall buyers’ power. Threat of substitutes The emergence of PDF, smartphone and iPad (not yet in 2007) stands as the greatest threats to the PC industry. These substitute products are evolving with greater design yet cheaper price that threatens PC. Rivalry PC industry is a highly competitive...
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...research, lead generation, target marketing, negotiating, and sales staff management. Summary of Qualifications Twenty plus years sales experience in a variety of industries including four years in distribution, four years in showroom & direct sales, ten years of direct, institutional & dealer sales. Cultivate client relationships to better understand their needs, acting as client advocate, while acting in the best interest of the company. Develop relationships and networks with all level to expand contacts, cultivate new business, and expedite sales process. Work with clients to understand their business goals and objectives and provide solutions that meet or exceed client expectations. Assist companies in understanding how critical success factors are measured, achieved and reported to help establish short and long term goals. Train and mentor new sales personnel using real life situations, providing both positive and negative feedback, reinforcing skills and building self esteem. Proven self-starter, working independently, while contributing to the success of the entire team. Specialization • Business Development • Consumer Durables - Sales & Marketing • Corporate Marketing • Customer Support/Client Service • Distribution • Management• FMCG Sales & Marketing• Telecommunication Products & Services • Trading/Wholesale/Indenting • Market Research. Professional Experience 2 Years(s) - June, 2013 to Till Date. FMCG Market Researcher,...
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...Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers into assortments wanted by consumers * Match supply and demand Information | Gather and distribute information about consumers, producers and other actors and forces in...
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...Operations Management, Marketing Management Submitted to: Prof. Christopher Malanum Submitted by: Acuna, Charzel R. Alcoran, Rachelle Anne K. Aquino, Patricia Mae Ann E. AUGUST 2015 Part 1: Channels of Distributions Channels of Distribution Few producers sell their goods directly to final users. Instead, most use intermediaries to bring their products to market. According to Philip Kotler, distribution channel is a set of interdependent organizations that help make a product or service available for use or consumptions by consumer or business user. Here are some definitions from different websites: Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. (Distribution Channel Definition| Investopedia http://www.investopedia.com/terms/d/distribution-channel.asp#ixzz3jhyoJ8Pg) The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the...
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...SAMPLE growth process toolkit Distribution Channel Optimization Accelerating Growth through Unbiased and Ongoing Partner Evaluation, Selection, and Management SAMPLE INTRODUCTION Growth through Distribution Channel Optimization A recent study determined that high-performance businesses (i.e., the 10 percent that outpace competitors regardless of economic conditions) “excel in the development of meaningful customer insights and practical ways to put those insights into action.” 1 They understand what their customers want, and they know how to deliver solutions that customers will buy. An unwritten, but nonetheless significant, extension of this idea is that they not only know what customers will buy, but where and how they want to buy. In short, no company is successful for its insights alone. Success ultimately depends upon the effectiveness and reach of its go-to-market strategy. Distribution channel optimization is therefore a critical ingredient to sustaining growth through a rigorous customer focus. ∗ D D F F At their most basic level, distribution partners enable suppliers to deliver goods or services to end users, and distributors’ reach significantly influences the extent to which suppliers can engage with customers. On a more meaningful level, distribution partners provide customer service in areas where suppliers cannot or do not (e.g., financing, insurance, training, maintenance, repairs). Taken together, the two deliver an enhanced customer experience...
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...Andrew Juliano (Starbucks) Starbucks has always been recognized as the top company in the premium coffee market. However, over the last 5 years, the company has experienced less sustainable growth. I believe that one of the most influential factors of this recent decline have been their identity crisis and their direct competition. Starbucks has always been associated with an experience. Due to their global success, there have been constant additions of new locations. This permeation has consequently caused a ripple effect in customer perception. The things that made this coffee shop to appealing are being eroded by the lack of exclusivity. Although they still have their strong position and maintain a differentiating strategy, it does not change the fact the brand is being spread too thin. The company was not meeting annual targets for store openings, which resulted in the closing of many locations. Competition is also putting a chokehold on this company. Places like Dunkin Donuts, McDonalds and Pete’s Coffee are some of those competitors leading the front. Unfortunately for Starbucks, these companies are much cheaper. Customers are noticing that if the experience of a Starbucks is being diluted, then they no longer have the effectiveness to charge such a premium for their coffee. The competitor pressure has forced Starbucks to implement some things that may push them into being “stuck in the middle.” We are seeing locations opening drive thrus, and offering breakfast...
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...company's operating situation. The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and economic trends. 2. buyer and seller relationship In quality control, extended relationship between buyers and sellers based on confidence, credibility, and mutual benefit. The buyer, on its part, provides long-term contracts and assurance of only a small number of competing suppliers. In reciprocation, the seller implements customer's suggestions and commits to continuous improvement in quality of product and delivery. 3. Channels of distribution The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer. 4. environmental set Measurement, statistic, or value that identifies the presence or level of the factor affecting the environment. A set of such indicators and their trend...
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...Executive Summary Giorgio Maggiali is the director of Logistics for Barilla and was appointed to this position when his predecessor Brando Vitati was promoted. Vitati had proposed a Just in Time Delivery (JITD) model for Barilla. Vitati has commented on the “thinning margins” the industry was experiencing and the need to “take costs out of our distribution channel without compromising service”. He felt operations could be improved if Barilla was responsible for determining the quantities and delivery schedules to their customers. Giorgio is frustrated with the opposition and resulting lack of progress in implementing this new process. My decision upon reviewing the information provided in the case is to recommend that Barilla continue to implement JITD focusing on dry goods shipped to distributors. Maggiali must first convince Barilla’s employees (Sales especially) that the JITD system will be a success before influencing its distributors. Sales personnel and distributors will have to work together to implement the JITD program. The system will require the distributors to share their sales data with Barilla, who would then forecast and deliver appropriate amounts of products to the distributors at the right time in order to effectively meet demand. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain. Barilla made its mark in the world by taking a commodity and...
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