Automobile Marketing: Distribution Strategies for Competitiveness
An Analysis of Four Distribution Configurations
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This book deals with Automobile Marketing and how distribution contributes to manufacturers and dealers competitiveness. Based on a thorough analysis of the automobile industry, different distribution solutions are investigated through applying a framework of four strategic issues. First, the pressure to keep distribution costs low while conveying a clear brand message gives rise to decisions on solus or multi franchising. Second, the choice of either selling through one channel that is likely to be committed to the brand, or through multi channels, meaning competition among channels. Third, t...
This book deals with Automobile Marketing and how distribution contributes to manufacturers and dealers competitiveness. Based on a thorough analysis of the automobile industry, different distribution solutions are investigated through applying a framework of four strategic issues. First, the pressure to keep distribution costs low while conveying a clear brand message gives rise to decisions on solus or multi franchising. Second, the choice of either selling through one channel that is likely to be committed to the brand, or through multi channels, meaning competition among channels. Third, the choice of selling the products through own outlets or through franchised dealers, the latter giving rise to conflicting interests. Fourth, the choice of mechanisms for coordinating channel members efforts and knowledge exchange. The findings are presented as four distribution chain configurations: the brand-based chain, the efficiency-based chain, the flexibility-based chain and the premium aspiration chain, the latter representing an inferior strategy by trying to be a premium brand while lacking attractive products.
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