Evaluating and Controlling Channel Members
Evaluating and Controlling Channel Members
The producer must regularly monitor the channel's performance against agreed targets such as sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion and training programmes, and services to the customer. The company should recog nize and reward intermediaries that arc performing well. Those which are under performing should he helped, remedial actions should he taken or, as a last resort,
the intermediary should he replaced. The firm must periodically 'requalify 1 its intermediaries and prune the weak performers, allowing only the best ones to cam'its products.
Finally, manufacturers need to he sensitive to their dealers. Those which treat their dealers lightly risk not only losing their support, but also confronting legal problems. Disputes with dealers are counterproductive and create bottle necks that can frustrate a company's growth. The experience of the brewery
group AnhenserBuseh is insightful. If you ask for a Budweiser in a bar in America or Asia, you will get a light
beer from AnheuserBusch, the world's largest brewer. Ask the same question in a European bar and you are likely to be served a stronger, hoppier beer from the Czech Republic's Budejovieky Budvar brewery. If you want the American version, you will have to ask for a 'Bud', unless you are in the United Kingdom, where both variants share the Budweiser name. But Budvar has now started selling its own Dud in the Czech
Republic, an extra strong lager, which it hopes also to sell to bigdrinking Germans, However, it will have to win the right to use the name Bud in Germany, a privilege also denied to the American brewer Anheuser Buseh. which sells its beer in the country as plain 'B'. AnheuserBusch,
began selling Budweiser beer in 1876, some I 1 ) years before Budejovieky Budvar, the Czech brewer was established. Following an agreement in 1911, Budvar won exclusive rights to use the Budweiser name throughout
most of Europe, while AnheuserBusch gained the rights in North America, South America and most of Asia. Currently, Budvar has the exclusive rights to use the name Budweiser in 42 countries, in addition to
the l.'K, while AnheuserBusch sells under that name in 11 European countries, and the name Bud in a further 9. Budvar, however, had registered the name Bud in 1950 in a few countries, including the former
Soviet Union, Czeehoslavakia, Hungary and Austria. Both brewers are keen to expand sales of their Budweiser/13ud brand in Europe, especially the big drinking markets like Germany. After the Velvet Revolution in
1989, AnheuserBusch started a concerted campaign to gain a 34 per cent stake in findvar and resumed trademark negotiations, AnheuserBuseh,
however, had to divorce the purchase of the stake in Budvar from a resolution of the trademark dispute, which was hampering the brewer's plans to market Budweiser in other important European markets. Jack Pnrncll, chairman and chief executive of AnheuserBuseh International, said he hoped that separation of the investment from the trademark dispute would advance progress in both issues. The delicate relations between Budvar and AnheuserBusch have made the Czech government procrastinate with privatization, originally scheduled for the end of 1996. So, while the government would eventually decide on how Budvar should
be privatised, AnheuserBusch pursued further negotiations on reaching trademark agreements elsewhere. The American brewer terminated negotiations in September 1996 after securing favourable trademark
Physical Distribution and Logistics Management • 925
rulings in Spain, Greece, Sweden, Finland, Norway, Lithuania and Latvia. Meanwhile, AnheuserRuseb is prepared to appeal against any unfavourable decisions (e.g. if Budvar succeeds in its claim to the Bud name in Germany) which hampers the development of its Budweiser business in Europe." 5
The key to profitable channel management lies in creating winwin outcomes for all in the channel system a symbiotic relationship that yields cooperation, not conflict, among channel participants will invariably result in higher channel performance.
Physical Distribution arid Logistics
Parts
» Book Principles Of Marketin Pleased
» I'hrce considerations underlying the
» The Information Technology Boom
» • False Wants and Too Much Materialism
» There is good reason to search a 2.4
» Levi's Strategic Marketing and Planning
» Analysing the Current Easiness Portfolio
» Conflict Between Departments
» Marketing Strategies for Competitive Advantage
» Principal actors in the company's
» • Persistence of Cultural Values
» McDonald's; Breaking into the South African Market
» Analysis of International Market Opportunity Deciding Whether or Not to Go Abroad
» Understanding the Global Environment
» Procter & Gamble: Going Global in Cosmetics
» Sheba: The Pet's St Valentines Day Pedro Quclhas Brito, Universidade do Porto, Portugal
» Individual Differences in Innovativcncss
» Influence of Product Characteristics on Rate of Adoption
» Selling Business Jets: The Ultimate Executive Toy
» • Systems Buying and Selling
» • Strong Influences on Government Buyers
» TABI.EI GOVERNMENT CODES OF PRACTICE IN VARIOUS COUNTRIES
» Qantas: Taking Off in Tomorrow's Market
» • Defining the Problem and Research Objectives
» CLOSEDEND QUESTIONS NAME DESCRIPTION
» Estimating Total Market Demand
» Estimating Actual Sales and Market Shares
» TimeSeries Analysis technology.
» Segmenting International Markets
» • Selecting Market, Segments
» 2 VOLUME BRAND SHARES (%) BRAND SHARE CoffeeMate total: 55.5
» 7 CONSUMPTION BY HOUSEHOLD SIZE (PER PERSON/WEEK)
» Preview Case Gastrol: Liquid Engineering
» Determine the Competitors'Positions One way of defining competitors is to look at
» Communicating and Delivering the Chosen Position
» The Need for Customer Retention
» The Ultimate Test: Customer Profitability
» 1 POTENTIAL PRODUCT FIELDS FOR AN EXPANSION OP THE UNCLE BEN'S BRAND
» 2 VARIETIES OF UNCLE BEN'S FEINSCHMECKER SAUCE
» Federal Express: Losing a Packet in Europe
» Close or Distant Competitors
» • Expanding the Total Market
» • The Customer Service Department
» What Governs NewProduct Success?
» Lufthansa: Listening lo Customers
» Managing Productivity CU _ C7 ^ •
» Mattel: Getting it Right is No Child's Play
» Internal Factors Affecting Pricing Decisions
» • BreakEven Analysis and Target Profit Pricing
» 1 CAR OWNERSHIP ACROSS THE EUROPEAN UNION
» Mobile Phones: Even More Mobile Customers
» Stena Sealink versus Le Shuttle, Eurostar and the Rest
» Preview Case British Home Stores
» • Selecting the Message Source
» Setting the Total Promotion Budget
» Factors in Setting the Promotion Mix
» Integrated Marketing Communications
» Setting the Advertising Budget
» • Selecting Advertising Media
» Standardization or Differentiation
» Media Planning, Buying and Costs
» IBM Restructures the Sales Force
» • Other Sales Force Strategy and Structure Issues
» 5 per cent sales elite apart from the rest is 'an astounding 60 per cent [are] just there for the
» Britcraft Jetprop: Whose Sale is it Anyhow? 1
» 1 COMMERCIAL SUCCESS OF THE JETPROP AIRCRAFT, 1992 NUMBER OF CONTINENT
» 1 PANEUROPEAN CONSUMER GROUPS
» Analyzing Customer Service Needs
» Defining the Channel Objectives and Constraints
» Identifying Major Alternatives
» Designing International Distribution Channels
» Evaluating and Controlling Channel Members
» • Building Channel Partnerships
» The Growth of Direct Marketing
» Customer Databases arid Direct Marketing
» DirectResponse Television Marketing
» Online Marketing and Electronic Commerce
» Germany, the UK and other countries in Europe 1997 to SI.64 billion or 7.5 per cent of global
» • Creating an Electronic Storefront
» • Participating in Forums, Newsgroups and IVcb Communities
» • The Promise and Challenges of Online Marketing
» Roberto Alvarez del Blanco and Jeff Rapaport*
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