DISTRIBUTION CHANNEL CONFLICTS AND METHODS OF CONFLICTS RESOLUTION.pptx

This is a distribution channel conflict presentation and methods to resolve those very conflicts.

1. Distribution Channel Conflicts and Methods of Conflict Resolution Presented By: TYBMS A-MARKETING Ruchita Kudtarkar Dhruv Kumar Kurapaty Dhananjay Mali Anuj Main Devesh Mandavkar

2. Channel conflict occurs when manufacturers disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet. Introduction

3. Types of Distribution Channel Conflicts Types of Distribution Channel Conflicts Vertical Level Conflict Multi Channel Level Conflict Inter-Type Channel Level Conflict Horizontal Level Conflict

4. Different goals and objectives Power struggles and competition Communication breakdown Lack of trust and transparency Common Causes of Distribution Channel Conflicts

5. Effects of Distribution Channel Conflicts Decreased sales and profitability Damaged relationships with channel partners Loss of market share Negative impact on brand reputation

6. Negotiation: reaching a mutually acceptable solution through discussion Mediation: involving a neutral third party to facilitate resolution Arbitration: delegating the decision-making authority to a neutral third party Litigation: resolving conflicts through the court system Methods of Conflict Resolution

7. Best Practices for Conflict Resolution in Distribution Channels Effective communication and active listening Building trust and fostering transparency Establishing clear goals and objectives Implementing conflict management processes

8. Case Study on Channel Distribution Conflicts Nike beats channel conflict and cannibalization through DTC efforts.Nike declined to sell and distribute apparel and footwear on Amazon for several years, perhaps to control brand messaging and enjoy higher profit margins. The sports brand saw that selling to Amazon through Vendor Central didn’t align with their Direct to Customer (DTC) goals , so they pivoted. The brand now maintains a Nike store on Amazon’s Seller Central as a merchant to drive more DTC sales.

9. How Nike.com turned store channel conflict to an advantage The brand addressed its inter-type channel conflict —channel conflict within its organization.The company allowed departments outside its Nike.com project to contribute ideas and resources to the project. Nike bridged the gap between its online and brick-and-mortar partners to leverage their combined selling strength.

10. Nike wins over Cannibalization Key takeaway: Nike negotiated its differences with Amazon and found a way to sell through the platform without the threat of third-party sellers.

11. Conclusion Channel conflict can be detrimental to channel success and sales. With these having much impact on the success of your channel and its members, there is a need to resolve the problems as soon as they arise or even avoid them altogether from becoming a reality. Thus, managing channel conflict is of utmost importance. As true partners, you win and lose together. By establishing clear boundaries, having an open conversation around who you work with, and setting terms for the partnership, you put yourself on the path to success.

12. Q&A Session Open floor for questions and answers from the audience Thank you. Please feel free to ask any questions.