Innovative Distribution Channels

and
Integrating Multi-Channels
Distribution Channels
Chain of good and services that travel from the manufacturer/ vendor to the
consumer.

Multi-Channels
A marketing strategy that gives your customers more opportunities to
purchase your product.
Fun Facts and Background

Companies started outgrowing their means of outsourcing.

Single-Channel distribution wasnt enough.

Companies wanted to be more efficient.

Internet vastly improved multi-channel distribution.

Multi-channel has become very competitive.

Debate Topic #1

Some people argue that by using a Direct Channel, the manufacture can eliminate
the intermediary and lower the price of the product. Do you think you would
make more money without the intermediary or make more with them?
Solutions

Studies show that their are multiple fallacies with this statements. In today's day and
age, the intermediaries and distribution departments carry out too many task for a
company to just takeover. You would have to train people and even though price
would decrease for one channel it would increase in others with could actually cause
you to lose money. Even though you could try to replace them, the functions,
communications, and networking couldnt be replaced. Your customer base would
drop dramatically especially when you could not get certain things like auto parts
out.
Debate Topic #2

In Multi-channel marketing, is offline or online the better option?

Solutions

When it comes down to it, it is best for companies to cross-integrate their

distribution channels. With the technology, constant growing markets, and steady
consumer change it taste, you want to get your product out to as many people as
possible. You would want to take advantage of as many opportunities as you could as
a company so that you could continue to grow. That means direct, indirect, offline,
online, and any other channel. It would also depend on your company too though. If
you are a car manufacturer a lot of your business is done in bulk and sold in person
mainly. But there are many car websites online now where the manufacture has
already made their money so the dealer has found a way to sale more cars online
and pay a small cut to companies like Autotrader and Carvana. Toyota itself would
do mainly big deals with direct channels. Now Louis Vitton would be different.
Stats
 The changes in Multi-Channels
Distribution

1
http://www.supplychain247.com/photos/multi_channel_
distribution_in_the_apparel_industry/1
Reasons for Change
The changes in Multi-Channels
Distribution
 vs.
- Big box retail store or superstore - Franchise

- Over 150 distribution center - One facility in Montana who purchases

wheat from local farms and ships to all
- Largest in the world servicing stores, clubs, their stores
and direct delivery to customers2
- Store owners are responsible for attaining
- Each distribution center supports 90 to any other product they wish to sell or add
100 store in a 150+ mile radius1 such as: local honey, meat and vegetables,
drinks, or chips
- 6 disaster distribution centers

http://corporate.walmart.com/our-story/our-business
2
-I dont know what to add here...I just thought we could talk about Amazon and how
theyve made it convenient for people to order with just one click
Multi-Channel Marketing

The goal of multi-channel is to give consumers a choice, and allow customers to buy when and wherever
they want.

As customer expectations rise and technology evolves, the shift from multi-channel to omnichannel will become even more
important for brands. Customers want a seamless experience, and that experience has to be across multiple platforms.
As mentioned previously, while multi-channel allows businesses to reach customers on various platforms, it does not offer the
unified experience customers expect. Omnichannel on the other hand, does just that.
It may take some time for brands to catch up and siloes to be torn down, but for businesses who want to succeed, they need to
shift to an omnichannel strategy.
As a result of having a multi-channel strategy to sales, most companies say that their organization has experienced
increased sales (74 percent), increased consumer loyalty/acquisition (64 percent), competitive advantage (62 percent) and
better consumer experience (57 percent) Just 16 percent of businesses say that they are currently meeting all business and
analysis needs for consumer experience via multi-channel.
Future Projections

As customer expectations rise and technology evolves, the shift from multi-channel to omnichannel will
become even more important for brands. Customers want a seamless experience, and that experience has to
be across multiple platforms.
While multi-channel allows businesses to reach customers on various platforms, it does not offer the unified
experience customers expect. Omnichannel on the other hand, does just that.
It may take some time for brands to catch up, but for businesses who want to succeed, they need to shift to
an omnichannel strategy.
Lessons for Businesses

Integrate Marketing Departments

Understand Your Buyer

Establish a Multi-Channel Platform

Create a Unified Experience

https://www.emarsys.com/en/resources/blog/what-is-multichannel-marketing/
Lessons on Teamwork Effort

Emily Braswell-

Sarah Ford-Google Slides was very beneficial, when some of us werent able to meet
up,or just to add to in between meetings.

Alicen Long-

Justin Weaver- Gathering information outside of our meetings so that when we

come together we all can put our findings and ideas together that way we are more
efficient and can focus more on our task at hand instead of wasting time every
meeting figuring out what we want to do and need to find.
Pros and Cons

Pros: Cons:

We can communicate in meetings Groupthink.

to combine our information.
Trying to work around everyone's busy
We can brainstorm to come up schedules.
with multiple ideas.
Figuring out who wants to cover which
We can talk and correct each other
topic.
on misinterpreted information.

Every member has their views into Team members butting heads.
how we can improve our
presentation. People could lose track of work needing to
be done.
More resources.
Conclusion
References
1
http://www.supplychain247.com/photos/multi_channel_distribution_in_the_apparel_industry/1

2
http://corporate.walmart.com/our-story/our-business

http://news.sap.com/sap-survey-finds-new-opportunities-omnichannel-consumer-products-companies/

https://www.emarsys.com/en/resources/blog/what-is-multichannel-marketing/

https://ex.hhs.se/dissertations/221743-FULLTEXT01.pdf

https://www.sas.com/en_us/insights/marketing/multichannel-marketing.html

https://books.google.com/books?
id=8LJwaPuuQagC&pg=PA321&lpg=PA321&dq=arguments+between+innovative+distribution+channels+
and+multi-channel+distribution&source=bl&ots=lytprtte-k&sig=-
Z0tLCct1yjG_OaYqnGRHgP0dOw&hl=en&sa=X&ved=0ahUKEwjOlMaciK3TAhWhy4MKHa2MCrcQ6AEI
KDAB#v=onepage&q=arguments%20between%20innovative%20distribution%20channels%20and
%20multi-channel%20distribution&f=false
References

https://books.google.com/books?
id=AOS5DQAAQBAJ&pg=PA532&dq=how+does+louis+vuitton+market+its+prod
ucts+globally?
&hl=en&sa=X&ved=0ahUKEwiTsfWVkq3TAhXKxYMKHZRWCqgQ6AEIIzAA#v=o
nepage&q=how%20does%20louis%20vuitton%20market%20its%20products
%20globally%3F&f=false