Podcast
Questions and Answers
Why is understanding distribution strategy considered important?
Why is understanding distribution strategy considered important?
- It directly impacts customer experience (correct)
- It optimizes advertising budgets
- It helps identify market trends
- It dictates pricing strategies
What is the ultimate goal of luxury brands when choosing a distribution partner?
What is the ultimate goal of luxury brands when choosing a distribution partner?
- To enhance brand exclusivity and value (correct)
- To minimize operational costs
- To maximize product availability
- To increase product range
What is the main feature of flagship stores?
What is the main feature of flagship stores?
- They operate as multi-brand outlets.
- They focus solely on discount sales.
- They sell exclusively online.
- They showcase the brand’s image and values. (correct)
What characterizes digital native vertical brands (DNVB)?
What characterizes digital native vertical brands (DNVB)?
How does the wholesale distribution model function?
How does the wholesale distribution model function?
What is a defining characteristic of corner concessions in department stores?
What is a defining characteristic of corner concessions in department stores?
What distinguishes concept stores from other retail formats?
What distinguishes concept stores from other retail formats?
What is a key feature of multi-brand stores?
What is a key feature of multi-brand stores?
What is a common aspect of multi-brand outlets?
What is a common aspect of multi-brand outlets?
What does the term 'shop in shop' refer to?
What does the term 'shop in shop' refer to?
What do marketplaces and e-partners primarily enable brands to do?
What do marketplaces and e-partners primarily enable brands to do?
Which of the following statements accurately describes brand licensing?
Which of the following statements accurately describes brand licensing?
What is a characteristic of second-hand and rental stores in omnichannel distribution?
What is a characteristic of second-hand and rental stores in omnichannel distribution?
Which of the following entities would not typically be classified as a wholesaler?
Which of the following entities would not typically be classified as a wholesaler?
What type of operational cost is commonly associated with running retail operations?
What type of operational cost is commonly associated with running retail operations?
Which of the following best defines the role of wholesalers?
Which of the following best defines the role of wholesalers?
In the context of omnichannel distribution, which function does an e-partner NOT perform?
In the context of omnichannel distribution, which function does an e-partner NOT perform?
Which of the following is NOT a component of operating costs for a company?
Which of the following is NOT a component of operating costs for a company?
What is a key reason why companies need to clarify their distribution strategy?
What is a key reason why companies need to clarify their distribution strategy?
Which of the following is NOT considered a key element of the marketing mix?
Which of the following is NOT considered a key element of the marketing mix?
How does a distribution strategy influence brand perception?
How does a distribution strategy influence brand perception?
What could be a consequence of not having a well-defined distribution strategy?
What could be a consequence of not having a well-defined distribution strategy?
Which of the following is an example of a distribution channel with full control?
Which of the following is an example of a distribution channel with full control?
Whose perspective is mentioned as a reason for why distribution strategy matters?
Whose perspective is mentioned as a reason for why distribution strategy matters?
Which of the following best describes 'brick & mortar' stores?
Which of the following best describes 'brick & mortar' stores?
What can negatively affect a company's bottom line according to distribution decisions?
What can negatively affect a company's bottom line according to distribution decisions?
Flashcards
Omnichannel Distribution
Omnichannel Distribution
A distribution strategy that aims to create a seamless customer experience regardless of how the customer interacts with the company, whether online or offline.
Distribution Channels & Formats
Distribution Channels & Formats
The channels and formats used by a company to reach its customers. These include physical stores, online sites, mobile applications, and social media platforms.
Objectives of Luxury Brands in Distribution
Objectives of Luxury Brands in Distribution
The goals a luxury brand seeks to achieve when partnering with another company for distribution. This can include brand image, market reach, and customer access.
Challenging an Omnichannel Strategy
Challenging an Omnichannel Strategy
Analyzing an existing omnichannel distribution strategy to uncover potential challenges and areas for improvement. This involves understanding how effectively it serves customers and meets the brand's goals.
Signup and view all the flashcards
Optimizing an Omnichannel Strategy
Optimizing an Omnichannel Strategy
Proposing new ways to optimize or design omnichannel distribution strategies based on existing challenges and market opportunities.
Signup and view all the flashcards
Why Does Distribution Strategy Matter?
Why Does Distribution Strategy Matter?
The importance of distribution strategy in achieving company objectives. This includes considerations like customer reach, brand positioning, and sales performance.
Signup and view all the flashcards
Evaluation Methods
Evaluation Methods
Class participation, case studies, and a final exam are used to assess understanding of omnichannel distribution concepts.
Signup and view all the flashcards
Pedagogical Approach
Pedagogical Approach
The course emphasizes interactive learning through a mix of theory, practical exercises, and real-world cases.
Signup and view all the flashcards
Distribution (Place)
Distribution (Place)
One of the four Ps of the marketing mix, which refers to how a company makes its products available to its target market.
Signup and view all the flashcards
Directly Operated Channels
Directly Operated Channels
This is a type of distribution channel where a company sells its products directly to customers. It can be done through physical retail stores or online stores.
Signup and view all the flashcards
Mono-branded Store
Mono-branded Store
A retail store that offers only products from a single brand, often its own.
Signup and view all the flashcards
Click & Mortar
Click & Mortar
A retail store that has a physical presence and also operates an online store.
Signup and view all the flashcards
Indirect Distribution Channels
Indirect Distribution Channels
A company that sells its products through third-party retailers like supermarkets or department stores.
Signup and view all the flashcards
E-commerce Distribution
E-commerce Distribution
A company that sells its products exclusively through online retailers like Amazon or Alibaba.
Signup and view all the flashcards
Level of Control
Level of Control
The level of involvement a company has in its distribution channels. High involvement means the company has a lot of control. Low involvement means the company has less control.
Signup and view all the flashcards
Multi-brand stores
Multi-brand stores
Retailers who sell products from multiple brands, such as department stores, concept stores, or boutiques.
Signup and view all the flashcards
Shop in shop
Shop in shop
A dedicated space within a department store where a single brand operates independently, managing its own inventory, staff, and customer relationships.
Signup and view all the flashcards
DNVB (Digital Native Vertical Brand)
DNVB (Digital Native Vertical Brand)
A type of e-commerce business that controls the entire process from product design and manufacturing to direct customer sales.
Signup and view all the flashcards
Wholesale
Wholesale
Selling products to a retailer, who then sells them directly to the customer.
Signup and view all the flashcards
Outlet store
Outlet store
A retailer that sells discounted goods, often from previous seasons or overstock.
Signup and view all the flashcards
Concept store
Concept store
A temporary retail space that showcases a brand, product, or event for a limited time.
Signup and view all the flashcards
Margin contribution
Margin contribution
The financial difference between the price of a product and its cost of production, reflecting the profitability of a sale.
Signup and view all the flashcards
Wholesaler's Gross Margin
Wholesaler's Gross Margin
The price difference between what a wholesaler pays for a product and the price they sell it at, expressed as a percentage.
Signup and view all the flashcards
Company's (Retailer's) Gross Margin
Company's (Retailer's) Gross Margin
The price difference between what a company (retailer) pays for a product and the price they sell it at, expressed as a percentage.
Signup and view all the flashcards
Company Margin from Bulk Sales (BTB)
Company Margin from Bulk Sales (BTB)
The profit a company makes from selling products in bulk (Business to Business).
Signup and view all the flashcards
Company Margin from Store Sales
Company Margin from Store Sales
The profit a company makes from selling products to the general public.
Signup and view all the flashcards
Operating Cost
Operating Cost
Expenses related to the normal running of a business, like wages, rent, marketing, and training.
Signup and view all the flashcards
Distribution Channels
Distribution Channels
The various ways a company makes products available to customers, like selling through a store, online, or marketplaces.
Signup and view all the flashcards
Brand Licensing (TMLA)
Brand Licensing (TMLA)
A partnership where a company licenses its brand (logo, name, image) to another company for a fee (royalties).
Signup and view all the flashcardsStudy Notes
Omnichannel Distribution
- Omnichannel distribution is a key element of marketing strategy.
- It impacts pricing, cost of supply, operations and storage.
- It involves distribution channels.
- It impacts brand perception, reach, and fosters brand immersion.
- Different levels of control exist in commercial grasp.
Omnichannel Distribution: Who Am I?
- Valérie Apicella-Magentie is a consultant.
- She specializes in value-creating strategies.
- She helps companies develop internationally, define strategies, and support start-ups.
- She leads workshops to co-create CX vision, digital strategies, and roadmaps.
- She has a degree from ESCE & London Business School.
- Her contact email is wobakid@gmail.com.
Omnichannel Distribution: Pedagogical Approach
- The educational approach is interactive.
- Students are encouraged to participate and ask questions.
- The method is based on 50% theory (examples, videos, reading) and 50% applied exercises and case studies.
- Case studies must be completed in groups or individually.
- Document format must include the participant names, the program, title, and subject.
- Submission deadlines are strictly enforced.
Omnichannel Distribution: Evaluation
- Evaluation includes continuous monitoring.
- Class participation and involvement in business cases (written and potentially oral) are assessed.
- A final exam accounts for 50% of the total grade.
Omnichannel Distribution: Objectives - Key Takeaways
- Students will learn about the importance of distribution strategies.
- They will also learn what omnichannel distribution is.
- They will grasp characteristics and rationale of main channels and formats.
- They will understand luxury brand objectives for choosing distribution partners.
- They will learn to identify, challenge, and optimize existing omnichannel strategies.
Omnichannel Distribution: Survey Questions
- Why is a clear distribution strategy important for companies?
- What are the essential elements of a marketing mix?
- How does distribution impact product cost?
- What is the economic impact of distribution?
- How can distribution practices differentiate companies from competitors?
- How can distribution influence customer experience and brand immersion?
- How does distribution impact brand perception?
Omnichannel Distribution: Retail vs. Wholesale
- Wholesale deals with discounts, gross margin, operating costs, and cost of goods.
- Retail deals with company's operating costs, gross margin, and cost of goods.
- Wholesale and retail margins contribute differing percentages to the whole company’s margin.
Omnichannel Distribution: Main Definitions – Full Control
- Retail Stores or Online Stores: Direct sales through a controlled network of physical or online stores;
- Flagship Stores: Showcase brand image and values;
- Shop-in-Shop or Concessions: The brand operates within another retailer's space with its own stock management.
- DNVBs (Digital Native Vertical Brands): E-commerce companies that control every aspect of their sales process.
Omnichannel Distribution: Main Definitions – Middle Control
- Multi-brand stores: Independent stores, department stores, concept stores, or online marketplaces.
- Corners/Concessions in department stores: A brand can operate a corner or concession, or sell wholesale to the larger department store.
- Multi-brand outlets: Offer discounted brands.
Omnichannel Distribution: Main Definitions – Low Control
- Marketplaces and E-partners: Intermediaries between brands and customers managing the process from sourcing to final sale.
- Secondhand, rental stores and platforms: A method of selling used or rented goods.
- Brand licensing: A brand licenses or rents out its trademarks to another company for use.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
