Distribution Channel Strategies Research Articles

Implications of unobservable promotion on distribution channel strategies in a retail platform

Besides distribution services, retail platforms are beginning to provide unobservable promotion services to enhance traffic and demand. Thus, suppliers are incentive to consider the impact of platform promotion on distribution channel strategies. Hence, considering a retail platform supply chain in which the supplier uses an outcome-based contract to incentivize the retail platform’s hidden promotion effort, this paper investigates the implications of unobservable platform promotion on the supplier’s distribution channel strategies. We develop a Stackelberg game model to examine the equilibrium outcomes of reselling and agency selling under unobservable promotion action and find that the retail platform may volunteer to promote in both channels when the market potential difference is large. Interestingly, voluntary promotion may motivate the supplier to increase the wholesale price. Furthermore, we derive conditions under which the supplier prefers reselling and agency selling. When the market potential difference is small, the distribution channel strategy is a threshold policy of the commission rate, below which agency selling is preferred, and reselling is preferred otherwise. It is counterintuitive that when the market potential difference is large, the commission rate will not influence the preference of channel selection and the reselling channel is always preferred by the supplier. Interestingly, the impact of platform promotion on the threshold of distribution channel strategies is non-monotonic in the increment probability of high market potential and market potential difference. Specifically, platform promotion induces the upstream supplier to select the reselling channel suppose the increment probability of high market potential is moderate, while induces the supplier to select the agency selling (reselling) channel when the market potential difference is moderate (large) suppose the increment probability of high market potential is high. Moreover, we find that enhancing the increment probability of high market potential benefits the supplier more, but only moderate increment probability of high market potential makes the retail platform better off.

Entrepreneurial Orientation and Strategy Channel Distribution to Success Entrepreneurship with Superiority Compete as Mediation on Center Coffee Muria Kudus

This study analyzes the influence of entrepreneurial orientation and distribution channel strategy on entrepreneurial success with competitive advantage as mediation in the Muria coffee center Kudus, Central Java, Indonesia. This research is descriptive statistically by testing hypotheses. The sample was 110 business actors. Sampling technique using Purposive Sampling The data collection used in this study is a questionnaire method. Test Instruments use validity tests, reliability tests, and normality tests. Analysis of data used Structural Equation Modeling operated through the AMOS program. The results are entrepreneurial orientation does not have a significant direct effect on competitive advantage. Distribution channel strategy directly affects competitive advantage, and entrepreneurial orientation has no significant direct effect on entrepreneurial success. Distribution channel strategy has a direct effect on entrepreneurial success. Competitive advantage has a direct effect on entrepreneurial success. Competitive advantage can mediate the influence of entrepreneurial orientation on entrepreneurial success, and competitive advantage can mediate the influence of distribution channel strategy on entrepreneurial success as partial mediation.

한국 화장품의 대중국 수출 촉진 요인과 유통채널 설계방안에 관한 연구

The Chinese cosmetics market is showing rapid growth. This study analyzed causal relationship between Korean cosmetics exports and China’s macroeconomic facilitation factors. After analyzing Chinese cosmetics market and challenges for Korean cosmetics companies, this paper suggests an effective distribution channel selection and management strategies for Korean cosmetics companies. Indirect distribution, optimum route plan for small and medium-sized cities from metropolises, utilization of electronic commerce, differentiation between premium brands and diffusion brands and strategic quanxi orientation shall be required for most of the Korean cosmetics companies.
 The limitations of this study are as follows: analysis of export promotion factors of Korean cosmetics export in Chinese market are limited to a few variables and that this paper does not cover Chinese regional market segment’s characteristics. However, this paper has significant implications for understanding on the distribution channel strategies for Korean cosmetics export in China and suggests some strategic solutions.

THE EFFECT OF DISTRIBUTION CHANNELS’ STRATEGIES AND TYPES ON CONSUMERS’ BUYING BEHAVIOR OF CONVENIENCE PRODUCTS

As distribution is a key element in marketing strategies and its role can extend to be the core for creating competitive advantages for many products, especially for fast-moving consumer goods where product accessibility is a main determinant for consumers’ buying behaviour. Accordingly, the purpose of this research is to investigate the impact of different distribution channel strategies and types on the consumer buying behaviour of convenience products such as protein bars.

Equilibrium Decisions on Pricing and the Greenness Degree in Supply Chains under Single- and Cross-Distribution Channels of Green and Nongreen Products and Government Subsidies

Rapid economic growth and industrialization have brought us material abundance and greater convenience, while also causing socio-environmental problems such as the rapid depletion of resources, unexpected natural disasters, and environmental destruction. For these reasons, environmental issues have attracted public and governmental attention around the world over the past few decades. As a result, environmental sustainability has become a critical indicator for evaluating the success and efficiency of supply chain management schemes. For a sustainable supply chain, many governments are employing subsidy policies to encourage consumers to purchase environment-friendly (green) products. This article considers a supply chain composed of two competing manufacturers and two retailers. The first manufacturer produces a green product, while the second manufacturer produces a nongreen product. Each of the two retailers can sell only a green product, only a nongreen product, or both green and nongreen products. In the market, consumers purchasing the first manufacturer’s green products can receive certain subsidies from the government. The amounts of the government subsidies that a consumer receives depend on the greenness degree of the product. Using a three-stage Stackelberg game framework, this article discusses equilibrium decisions on pricing and greenness for four different distribution channel structures. Major findings of this study reveal that (i) the government subsidy has a positive impact on the greenness degree and the demand for green products; (ii) the government subsidy level depends on the manufacturers’ distribution channel strategy types; and (iii) the greater the environmentally negative impact of a green product, the lower the level of the government subsidy paid for purchasing green products. Based on these findings, this article suggests that policymakers focus on establishing the policies that encourage the purchase of green products for the sustainability of a society and a supply chain.

Using PLS-SEM for assessing negative impact and cooperation as antecedents of gray market in FMCG supply chains: an analysis on Spanish wholesale distributors

PurposeWithin the fast-moving consumer goods (FMCG) supply chain, one of the problems facing the distribution channel strategy is the presence of the gray market. The article shows two novel antecedents of the participation of official distributors in this gray channel: Negative impact on distributor performance and the relationship with their supplier. Knowledge of this background helps to preserve the strategy outlined for the official distribution channel.Design/methodology/approachData were collected from 172 Spanish wholesale distributors and analyzed using PLS-SEM.FindingsThe authors found that the damage through negative affectation in the official distributor's performance and the cooperation provided by the manufacturer, have different effects. While affectation is shown to be a powerful antecedent of participation in the gray market, the effect of perceived manufacturer cooperation does not show strong results.Practical implicationsIn business practice, these findings lead the manufacturer to keep transactions carried out in the gray market at low levels and provide cooperation to official distributors to guarantee the official channel strategy aimed at efficiency in the distribution of branded goods.Originality/valueThe background of the gray market discussed in the study has not been previously analyzed in the literature. In this way, the authors contribute to the knowledge of such a common problem as the presence of the gray market in the segmentation of distribution channels of high-demand products.

On the introduction of return window to supply chains with online channel

In the E-commerce era, many firms offer return policy in the form of return window, allowing consumers to return for a full refund within a specific time, which has an important effect on supply chain operations. Motivated by practical observations, we explore a supplier’s distribution channel strategy when introducing return window in both centralized and decentralized supply chain systems. A game-analytical model is developed to study the interaction between channel strategy and return window. The equilibrium channel strategies, return windows, and prices in the two systems are derived. We find that a long return window always tends to be offered by the supplier when the direct channel is open (in a dual-channel or single direct-channel strategy) since it expands potential market demand. Also, the supplier provides a shorter return window in the decentralized than the centralized system as the existence of double marginalization, which enriches existing results. We prove that introducing return window always restricts the supplier to choose a dual-channel strategy, but it incentivizes (restricts) the supplier to choose a single retail-channel strategy in the decentralized (centralized) system in response to changing cost pressures. Our theoretical findings provide insights for managing supply chains when introducing return window as a market strategy.

高収益を生み出す流通チャネル戦略の探究

高収益を生み出す流通チャネル戦略の探究

Studying Distribution Channel Patterns in the Poultry Farming Industry

This study aims to explore, understand, and determine the role of distribution channels for Day Old Chicken and Day Old Duck hatchery industry players in Tulungagung Regency in managing their distribution channels. This research is important to do because this research will examine more deeply how to get distribution channels, how to manage distribution channels in marketing activities, and how to determine the right distribution channel strategy through SWOT analysis. This study aims to explore, understand, and determine the role of distribution channels for the Day Old Chicken and Day Old Duck hatchery industry players in Tulungagung Regency in managing their distribution channels. This research uses a qualitative approach and this type of research is a multi-case study. In this study, to obtain the validity of the data, triangulation was carried out. This research is qualitative research that uses SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) in analyzing and identifying data. The results show that the strategy adopted by the Poultry Hatchery Industry is a direct-distribution strategy, the direct distribution channel carried out by DOC and DOD has the main advantage in terms of cost, but there are also obstacles to further decline in sales targets. The results of the analysis found the cause of the decline in sales targets because the company did not fully implement direct distribution channels, one way to achieve this is by utilizing online marketing.

Effect of Distribution Channel Strategies on the Performance of Banks

Effective distribution channel strategy selection, application, and management does not only help to meet the shopping needs and habits of the target customers efficiently under the cost restraints of the seller; they must also lessen the drawbacks caused by distribution channel conflicts such as double downgrading. This study evaluated the effect of distribution channel strategies on the performance of commercial banks in Nigeria. The objective of the study specifically was to identify the distribution channel strategies adopted by commercial banks in Nigeria and to determine the effect of the distribution channel strategies adopted on the performance of the bank. The study adopted a descriptive survey research design. The population of the study was 43 management staff of five commercial banks operating in Nigeria. Questionnaire was used as the tool for data collection. The data was analyzed and presented using percentages, mean and standard deviation. The study found that the branch network, electronic banking and multiple distributions were used by the banks. Marketing strategies being employed by the banks were aggressive marketing, mass marketing and value marketing, the study further found that the adopted distribution channel strategies have a significant effect on the performance of the banks. It was recommended among other things that; commercial banks should adopt those marketing distribution strategies that ensure the performance of the bank is improved and do away with those which adds costs so that the banks can compete effectively with the others and that they should embrace the concept whole heartedly by adopting electronic banking as already the battle for the banks is technology usage which should be one which offers customers more features.

ANALISIS STRATEGI BAURAN PROMOSI DAN STRATEGI SALURAN DISTRIBUSI PADA UNIT KELOLA ARCHIPELAGO INTERNATIONAL PADA SITUASI PANDEMI COVID-19 KOTA DENPASAR, BALI

The objectives of this study are (1) to analyze the marketing promotion strategy of hotel products carried out by Aston Denpasar, Neo Denpasar, Quest Denpasar during the covid-19 pandemic, (2) to analyze the marketing distribution channel strategy carried out by Aston Denpasar, Neo Denpasar, Quest Denpasar during the covid-19 pandemic, (3) To determine the right promotion strategy and distribution channel strategy during the covid 19 pandemic. This research uses qualitative research. Data analysis uses SWOT analysis where SWOT analysis is a tool used to compile the company's strategic factors. The results of this study. (1) The strategy used three hotels is to carry out the same promotional mix, namely personal selling, advertising, sales promotion and publicity strategies. (2) The distribution channel strategy carried out by Aston Denpasar, Neo Denpasar and Quest Hotels is where the hotel determines the best distribution channel for its products to meet customer needs. Consumer needs used direct distribution and distribution through wholesale agents. (3) The marketing and distribution mix recommendation strategy through swot analysis is in a growth strategy through horizontal integration.

Carbon tax policy analysis based on distribution channel strategy.

This paper establishes a theoretical model to study the carbon tax policy based on a firm's different distribution channel strategy. First, we examine the firm's optimal distribution channel strategies in the absence of government policy intervention. Then, on the assumption that the firm is owned by the society as a whole and taking into account the environmental impact of the firm's decisions, we describe the product distribution strategy that optimizes social welfare. Through the comparison of the above two situations, we find that without the intervention of government policies, the firm's decision may deviate from the decision that optimizes social welfare. Finally, on the basis of the analysis, we propose a carbon tax policy for retailers in distribution channels under different firm distribution strategies. We hope that with the intervention of carbon tax policy, firm decisions can achieve optimal social welfare.

Agency or Self-Run: the effect of consumer green education on recyclers’ distribution channel choice under platform economy

ABSTRACT Consumer green education has significantly affected the green supply chain and recyclers have started to distribute remanufactured products via online platforms. Through a two-period game model, this study examines the effects of consumer green education on the recycler’s channel choice. The recyclers sell remanufactured products through either the E-retailer’s platform (Agency channel), or their own online platform (Self-Run channel). Surprisingly, our research indicates that a new product seller (E-retailer) can benefit from the remanufactured goods’ cannibalisation in the Agency channel, provided the consumer green education is under-developed. This finding challenges the traditional opinion that the cannibalisation causes loss of profit for new-product sellers. Besides, as the consumer green education effect increases, the recycler prefers the Self-Run channel even with high operational costs. This study provides new insights into the recyclers’ channel choice by considering the consumer green effect, thereby extending the research on the remanufactured products’ distribution channel strategy.

Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain

This research builds two-period game models to address the choice issues of the Original Equipment Manufacturer (OEM)’s licensing strategy and the Independent Remanufacturer (IR)’s distribution channel, considering consumer online reviews in a closed-loop supply chain. In both periods, the OEM sells new products by the direct distribution channel. In period 2, the OEM determines the licensing strategy (the fixed or royalty fee) to authourize the IR to remanufacture, and then the IR chooses the distribution channel (direct or indirect) for remanufactured products. Interestingly, our results show that the IR prefers the direct channel when the remanufacturing cost is smaller. And the obtained willingness-to-pay (WTP) from consumer online reviews has a positive impact on the threshold value of the remanufacturing cost. Moreover, we find that the OEM’s licensing strategy choice depends on the sizes of the fixed licensing fee and the obtained WTP. The OEM will choose the royalty licensing strategy to the IR who has chosen the direct channel, when the fixed fee and the obtained WTP are smaller. Finally, we find the optimal royalty fee, numerically examine the impact of the interaction among these factors on consumer surplus and social welfare, and relax the basic assumption to show the robustness of our model.

Impact of capacity on the supplier's distribution channel selection in facing a retail platform

AbstractIn the presence of agency selling in emerging retail platforms, suppliers are motivated to select purely traditional reselling, agency selling or a hybrid distribution channel strategy. In this paper, considering a capacity‐constrained supplier facing a retail platform, we examine the equilibrium pricing and ordering decisions in the hybrid channel, and further analyze the impact of limited capacity on the supplier's distribution channel selection as well as equilibrium outcomes. Results show that the hybrid channel always dominates pure agency selling. In comparison to the unlimited capacity setting, we find that limited capacity motivates the supplier to select pure reselling under a low commission rate. However, under a moderate commission rate, moderate capacity motivates the supplier to select the hybrid channel. We also show that, under moderate capacity in the hybrid channel, the retail platform may order all the supplier's capacity and strategically withhold some to avoid downstream competition, and that the impact of commission rate on the capacity thresholds of withholding behavior may be nonmonotonic. Interestingly, we find that moderate capacity may benefit the supplier, the retail platform, and consumers at the same time, creating a win–win–win outcome.

Proposed Customer-based Brand Equity (CBBE) Strategy for Railway Courier Service – Case Study: Rail Express of PT Kereta Api Indonesia

PT Kereta Api Indonesia (KAI) is a railway transportation service provider in Indonesia. In 2019, KAI launched railway courier service to support logistic sector, called Rail Express. Despite the advantages of railway courier service in providing low-cost fee and minimum risk of time delay and accident, low market penetration indicates brand awareness in the market is still very low. The main objective of this study is to develop customer-based brand equity strategy for railway courier service, by using Rail Express as the case to carry out the research. This study used a series of qualitative method research to fully comprehend the business situation and propose the solution to the business problem. First, in-depth interviews were conducted to the management and staff of KAI to assess external and internal environments of railway courier service. Second, focus group discussions were conducted to gain consumers’ insight related to brand awareness and brand image of Rail Express. The discussion was attended by 16 participants that represent Rail Express target market of e-commerce buyer and seller. Third, this study used TOWS matrix to generate business solution alternatives based on previous analysis findings. As the result, this study formulated three main strategies to build customer-based brand equity: first, integrated marketing communication to establish brand awareness by increasing brand recall and brand recognition; second, brand repositioning to establish brand image by developing brand associations related to positive image and technology; and third, improvement on existing marketing mix, i.e., product, distribution channel, and price strategies.

Supply chain product quality control strategy in three types of distribution channels.

Based on a three-stage stackelberg dynamic game analysis, this paper constructs a product quality control strategy model for three types of distribution channels (direct channel, retail channel and mixed channel) in a three-echelon supply chain, which is composed of one manufacturer, one retailer and the final customer. This paper studies how to design a distribution channel strategy and provides a product quality control strategy. Furthermore, this paper analyzes three types of distribution channels strategy in the context of how they influence a manufacturer's product quality decision and quality prevention strategy, a retailer's product pricing decision and quality inspection strategy, and the final customer's product demand decision. We compare the manufacturer's product quality level, quality prevention effort level, wholesale price, direct sale price and the retailer's quality inspection effort level, retail price in three types of distribution channels and determine the manufacturer's and retailer's expected profits function and the final customer's consumer surplus. In addition, we introduce the distribution channels demand elasticity ratio to analyze the influence of determining the product quality control strategy. Most importantly, we conduct a numerical sample analysis that will prove the model's effectiveness and indicate a specific application in practice.

Effect of Market Orientation on Channel Strategy- An Empirical Analysis of Pesticide Industry

Research in market orientation has overlooked the importance of its impact on various aspects of marketing strategy, especially on distribution channel strategy. Using Kohli & Jaworski's framework of measuring market orientation (MO) and pesticide industry of Pakistan as a context, this article explores the relationship between various constructs of MO with channel strategy. This paper draws survey data from the pesticide industry in Pakistan. Given the low response rate, a norm in developing countries, bootstrapping technique is employed and tests are run. The results reveal that level MO has an impact on how channel strategies are formulated. Findings of the research indicate that higher level of MO is associated with selective channel strategy involving low intensity of distribution and higher channel control. The results also suggest that the right channel strategy helps an organization to create differentiation and to improve performance in a commodity market

Analysis of Business Marketing Strategy in an Effort to Increase the Sales Volume of Company X in Dili City, East Timor

This study proposed to analyze marketing strategies in an effort to increase the sales volume of Company X in Dili City, East Timor. The method used in this research is descriptive qualitative which shows to analyze the marketing mix strategy (Marketing Mix 4Ps) beer beverage products Company X in Dili City, Timor-Leste. The results show that the product strategy is to prioritize the quality (quality product) of the beer itself, the taste of the aroma and not cause disease and other physical disorders, and unique. Price strategy is the standard price of beer and according to the amount of alcoholic beer. Distribution Channel Strategy Company X collaborates with two large companies in Dili to distribute beer beverage products to 12 districs and in the city of Dili. Company X promotional strategies carry out promotional strategies through Event Sports, Live Music, department stores, convenient stores, agents, shops, social internet media (Facebook, Instagram and YouTube) and Advertising (Newspaper, Brochure, Magazine, LED (Light Emmiting Diode). Keywords : Strategy of Marketing Mix (4Ps) DOI : 10.7176/EJBM/11-29-05 Publication date :October 31 st 2019

Single vs. cross distribution channels with manufacturers’ dynamic tacit collusion

A manufacturer can choose to distribute its products through one retailer (single distribution) or across multiple retailers (cross distribution). In this paper, we develop a dynamic model to examine the interactions between two manufacturers' distribution channel strategies and their collusion incentives. Contrary to conventional wisdom, we find that single distribution does not always facilitate collusion between the manufacturers and that collusion is only facilitated when both adopt single distribution channels. In other words, an asymmetric cross-distribution channel structure helps to deter upstream collusion. Our results also suggest that retail mergers can hinder upstream collusion. Furthermore, we show that the equilibrium endogenous channel structures crucially depend on the discount factor of future cash flows and the relationship between the manufacturers' products (substitutes vs. complements). Specifically, when the products are highly substitutable, and manufacturers’ value of future cash flow is sufficiently low, the win-win equilibrium channel structure operated by the manufacturers comprises single distribution channels. However, such an equilibrium channel structure hurts consumers and social welfare when compared with cross-distribution channel structures. In all other instances, the win-win equilibrium structure chosen by the manufacturers yields cross-distribution channels, which also benefit consumers and social welfare.