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
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.)
TOP 10 RETAILERS WORLD-WIDE 1999 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
$78.97 pro forma
$60.82
$43.56
$42.83
$42.71
$40.74
$38.98
$38.23
$37.37
$37.06
Source: Management Ventures 6

7. 7

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

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

10. Need to Adapt Channel Tactics to Differences in Distribution Patterns
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