1. International Distribution and Logistics
Swatch’s channel design
Today’s system of exchange
Rationalising local channels
Wholesaling
Nike’s ‘Do it yourself’
Retailing
Creating new channels
Kodak’s own airfreight hub
Global logistics

2. Global Channel Design Chosen intermediaries must meet criteria
work closely with distributors
build sustain brand
avoid discounting
‘shops in shops’ approach e.g department stores

3. Today’s system of exchange
Promotion
Contact
Negotiation
Transporting and storing
Users
Financing
Producers
Packaging
Money
Goods

4. Rationalising Local Channels
Changing distributors - where a poor job is being done e.g. Nike took on distributors
Dual distribution - multiple channels may emerge e.g Goldstar in USA (OEM deal with Sears, later under own brand)

5. Wholesaling Vertical integration Efficiency Types of wholesaler
power and competition 80/20 rule e.g. Malaysia a dozen European import houses handle half of the trade, whilst hundreds of smaller companies handle the remainder
Efficiency
trend towards integration by technology e.g. Wal-Mart
Types of wholesaler
fit all bills e.g. full-service wholesalers

6. Nike’s ‘Do it yourself’
1970s independent distributors
successful brand at home
1980s established own subsidiaries overseas
Now controls most subsidiaries
even bought some distributors

7. Retailing Middlemen who sell directly to the consumer
Retailing and lifestyles
many in developed world
retailers are globalising
Problems for marketer?
Gillette blades through drugstores in USA, tobacco shops in Italy, department stores in Germany, street in Moscow, counters in Thailand, travelling vans in India

8. Creating New Channels Retailing is dynamic
Innovative over recent years
self-service
discounting
vending machines
mail-order houses
fast-food globally diffused
Global retailing
success for Carrefour in Brazil and Argentina
Marks and Spencer had problems in Canada and pulled-out

9. Kodak’s own airfreight hub
Minimise shipping errors and product handling
loaded onto trucks at Rochester plant
All paperwork is already completed
flight approval is obtained before truck arrives at airport (JFK)

10. Global Logistics Focus on channels within a country
‘the transportation and storage activities necessary to transfer the physical product from manufacturing plants and and warehouses in different countries to the various local market countries’ Johansson (1999)
Supply chain management
e.g. Nissan trucks sold in France come from their Tennessee plant, Micras from Sunderland, Maximas from Japan via Amsterdam.
Competition and technology

11. Air Express e.g. FedEX, DHL, UPS and Airborne Ocean carriers
Global carrier alliances e.g. Sea-Land Service of Seattle and Maersk of Denmark have a global partnership.
Overland transportation
roll-on-roll-off (RORO) containers are moved from ships directly onto rail (USA)
Warehousing and inventory management
e.g. SKF bearings new distribution centre in Belgium reduced distribution points from 24 to 5