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INTERNATIONAL MARKETING MANAGEMENT

INTERNATIONAL MARKETING MANAGEMENT. SESSION 11: INTERNATIONAL CHANNELS OF DISTRIBUTION. 1. CHANNELS OF DISTRIBUTION BARRIERS TO STANDARDIZATION. Customer Shopping Patterns and Preferences Competitor Control of Outlets Structure of Distribution (Traditional vs. Advanced)

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INTERNATIONAL MARKETING MANAGEMENT

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  1. INTERNATIONAL MARKETING MANAGEMENT SESSION 11: INTERNATIONAL CHANNELS OF DISTRIBUTION 1

  2. CHANNELS OF DISTRIBUTION BARRIERS TO STANDARDIZATION • Customer Shopping Patterns and Preferences • Competitor Control of Outlets • Structure of Distribution (Traditional vs. Advanced) • Regulation of Distribution 2

  3. DIFFERENCES IN DISTRIBUTION FROM COUNTRY TO COUNTRY DOMINANCE OF ORGANIZED/MASS DISTRIBUTION (Supermarkets, Hypermarkets, Discounters, etc.) • Role of Open Air Markets, Itinerant Retailers • Importance of Small Independents LOCUS OF POWER • Extent of Disintermediation • Retailers as Channel Captains TECHNOLOGICAL SOPHISTICATION • Computerized Inventory and Ordering Systems • Use of Scanner Systems/Smart Cards • Catalogue and In-Home Shopping • Internet Sites 3

  4. COUNTRIES DIFFER IN EVOLUTION OF THE RETAIL SECTOR Traditional China Greece India Mexico Argentina Malaysia Eastern Europe Emergent Brazil Italy Portugal Taiwan Spain South Korea OPPORTUNITIES? Structured Belgium Japan France Denmark Netherlands Sweden Advanced Germany UK Canada USA • Multiplicity of formats • Competitive intensity • Retail productivity • Internationalization • Adoption of technology • Size of retail enterprise • Proportion of demand with organized retailers 4

  5. Shopping online isn’t as popular in Europe as in the U.S. and Japan, but the region should catch up by 2003 as more e-tailing sites pop up. Browsing for books is popular everywhere, but Europeans are more interested in travel deals. 5

  6. Wal-Mart (U.S.) Carrefour/Promodes Metro (Germany) Kroger (U.S.) Ahold (Netherlands) Intermarche (France) Carrefour (France) Ito Yokado (Japan) Albertson’s (U.S.) Promodes (France) Edeka (Germany) $160.20 $78.97 pro forma $60.82 $43.56 $42.83 $42.71 $40.74 $38.98 $38.23 $37.37 $37.06 TOP 10 RETAILERS WORLD-WIDE1999 Total Forecast Sales, in Billions of Dollars Source: Management Ventures 6

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  8. INTERNATIONAL RETAIL EXPANSION STRATEGIES Product Assortment/Mix Standardized Adapted Local Marketing/ Global Systems Global Retailing Centralized Walmart (?) IKEA Management Systems/ Operating Skills Global Marketing/ Local Systems Multinational Retailing Decentralized C&A Carrefour 8

  9. Few Product Categories C D A B Toys R Us, Virgin Douglas, Spar, Vobis Carrefour, Makro, Promodes, Yaohan Benetton, Ikea, Habitat, Gap, H&M, C&A Marks & Spencer, Migros Private-label Focus Manufacturer Brands Focus Many Product Categories GLOBAL RETAIL ASSORTMENT STRATEGIES 9

  10. IMPLICATIONS • Need to Adapt Channel Tactics to Differences in Distribution Patterns • Growth of Cross-Border Retailing and E-tailing • Technology Advances Impact Balance of Channel Power • Internet Sites as Alternative Channel 10

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