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INTERNATIONAL MARKETING MANAGEMENT

SESSION 11:

INTERNATIONAL CHANNELS OF DISTRIBUTION

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CHANNELS OF DISTRIBUTION BARRIERS TO STANDARDIZATION

Customer Shopping Patterns and Preferences

Competitor Control of Outlets

Structure of Distribution (Traditional vs. Advanced)

Regulation of Distribution

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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

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COUNTRIES DIFFER IN EVOLUTION OF THE RETAIL SECTOR

Multiplicity of formats Competitive intensity Retail productivity Internationalization Adoption of technology Size of retail enterprise Proportion of demand with organized retailers

OPPORTUNITIES?

TraditionalChinaGreeceIndiaMexicoArgentinaMalaysiaEastern Europe

EmergentBrazilItalyPortugalTaiwanSpainSouth Korea

StructuredBelgiumJapanFranceDenmarkNetherlandsSweden

Advanced

Germany

UK

Canada

USA

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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.

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.

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TOP 10 RETAILERS WORLD-WIDE1999 Total Forecast Sales, in Billions of Dollars

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$160.20

$78.97 $78.97 pro formapro forma

$60.82$60.82

$43.56$43.56

$42.83$42.83

$42.71$42.71

$40.74$40.74

$38.98$38.98

$38.23$38.23

$37.37$37.37

$37.06$37.06

Source: Management VenturesSource: Management Ventures

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INTERNATIONAL RETAIL EXPANSION STRATEGIES

Global RetailingLocal Marketing/Global Systems

Global Marketing/Local Systems

IKEA

C&A Carrefour

MultinationalRetailing

Walmart (?)

AdaptedStandardized

Centralized

Decentralized

Management Systems/Operating Skills

Product Assortment/Mix

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GLOBAL RETAIL ASSORTMENT STRATEGIES

Private-labelFocus

Few Product Categories

Many Product Categories

ManufacturerBrands Focus

Toys R Us, Virgin Douglas, Spar, Vobis

CC

Benetton, Ikea, Habitat, Gap, H&M, C&A

AA

Marks & Spencer, Migros

BB

Carrefour, Makro, Promodes, Yaohan

DD

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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