Value Chain Strategy Pertemuan 17 Buku 1 Hal:

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Presentation transcript:

Value Chain Strategy Pertemuan 17 Buku 1 Hal: 318-343 Matakuliah : J0504 - Strategi Pemasaran Tahun : 2009 Value Chain Strategy Pertemuan 17 Buku 1 Hal: 318-343

Learning Objective Strategic role of value chain Channel strategy Managing the channel International channels Bina Nusantara

Strategic role of value chain (1) Distribution functions Buying and selling Assembly Transportation Financing Processing and storage Advertising and sales promotion Pricing Reduction of risk Personal selling Communications Servicing and repairs

Value chain structures - consumer products Producers Supply Chains Sales Agents Direct Channel Wholesalers Wholesalers Retailers Retailers Retailers Consumers

Value chain structures - organizational products Producers Supply Chains Sales Agents Sales Agents Direct Channel Distributors Distributors Distributors Re-sellers Organizational Customers

Strategic role of value chain (2) Channels for services Direct distribution by manufacturers Buyer considerations Competitive considerations Product characteristics Financial and control considerations

Factors Favoring Distribution by Manufacturer Opportunity for competitive advantage Profit margins adequate to support distribution organization Rapidly changing market environment Complete line of products Early stages of product life cycle Distribution by the manufacturer Purchases are large and infrequent Complex product application Extensive purchasing process Small number of geographically concentrated buyers Supporting services are required

Channel strategy (1) Types of channel Conventional channel Vertical marketing systems Ownership VMS Contractual VMS Administered VMS Relationship VMS Horizontal marketing systems Digital channels Product digitization Channel digitization

Channel strategy selection 1. Type of distribution channel Horizontal marketing system Conventional Vertical marketing system Administered/ Relationship Ownership Contractual 2. Intensity of distribution Intensive Selective Exclusive 3. Channel configuration

Channel strategy (2) Distribution intensity Intensive Exclusive Selective Channel configuration End-user considerations Product characteristics Manufacturer's capabilities and resources Required functions Availability and skills of intermediaries

Channel strategy (3) Channel maps Selecting the channel strategy Market access Value-added competencies Financial considerations Flexibility and control considerations Channel strategy evaluation

Illustrative channel map for heating units Production = 100,000 units Consumption = 100,000 units Direct sales = 10,000 units Commercial Construction Companies (85,000 units) Construction Sub- Contractors 84,000 units Independent Distributors 42,000 units 75,000 units 42,000 units 7,000 units Production Of Central Heating Boilers Small Hardware Retailers 40,000 units 2,000 units Large Hardware Retailers 5,000 units 5,000 units Domestic Customers (15,000 units) Direct sales = 1,000 units

Channel strategy (4) Changing channel strategy Channel strategy modification Channel migration Channel audit