Ford motor company distribution channel

distribution channel of maruti suzuki ppt

Based on our experiences and analyses, we estimate that about 7 percent of the total cost to serve consumers, or nearly one-quarter of automotive marketing and distribution costs, can be reduced based on a typical traditional dealer operation.

The Internet offers new and better ways to perform many sales and marketing functions and makes it possible for manufacturers to have more and richer two-way communications directly with consumers.

Ford motor company distribution channel

We anticipate five major changes in future automobile distribution patterns and practices: 1. He led the team responsible for China becoming the largest single market for Mercedes-Benz globally — establishing a highly efficient, profitable national distribution network that drove year-over-year sales increases for 59 consecutive months. New formats and channels will discipline the current system to drive out non-value-adding cost. So will the new distribution channel work? Notably, it is either one or the other, but not both, that has led the way and prospered, and it is typically a single company that captures the benefit. The cost reductions derive from three sources: The consolidation and rationalization of channel activities to achieve economies of scale and eliminate inefficient operations. Well, that depends on what their current marketing strategy wants to achieve. Republic also brings other critical elements to the party -- an outsider's perspective and an innovative spirit. Dell has also integrated the purchasing and product development activities so it can maintain greater control over supplier activities. Will the vehicle manufacturers and their franchised-dealer networks be able to overcome years of inertia and complacency to pioneer and execute new concepts that will strengthen and extend the value of their brands? For biographical information and a photo of Mark Ovenden, click here. Manufacturers are surprisingly -- if not shockingly -- cut off from their consumers today. Do you believe these strategies are effectively reaching and serving the product's market segment? As a result of the high-cost, low-satisfaction proposition provided by the traditional dealer channel in general, many players have recently moved to capitalize on opportunities afforded by improving the channel-value equation.

These include economies of scale in areas such as advertising, management, personnel, facilities and systems.

While we are not sure which vehicle manufacturers will survive, we are confident that winning will require a better understanding of the life-cycle value equations of both cars and buyers, and the development of innovative strategies to capture that value.

Do you believe these strategies are effectively reaching and serving the product's market segment?

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Dealers handled paperwork and delivered vehicles but customers negotiated prices online. Republic appears to recognize these second-stage requirements, at least in used cars.

distribution channel of maruti suzuki

This distribution model has been remarkably resistant to change.

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Ford Motor Company Supply Chain Strategy