1. International Distribution and Logistics
• Swatch’s channel design
• Today’s system of exchange
• Rationalising local channels
• Wholesaling
• Nike’s ‘Do it yourself’
• Retailing
• Creating new channels
• Kodak’s own airfreight hub
• Global logistics

2. Global Channel Design
• Chosen intermediaries
must meet criteria
• work closely with
distributors
• build sustain brand
• avoid discounting
• ‘shops in shops’ approach
e.g department stores

3. Today’s system of exchange
Promotion
Contact
Negotiation
Transporting and storing
Producers
Users
Financing
Packaging
Money
Goods

4. Rationalising Local Channels
• Changing distributors - where a poor job is
being done e.g. Nike took on distributors
• Dual distribution - multiple channels may
emerge e.g Goldstar in USA (OEM deal
with Sears, later under own brand)

5. Wholesaling
• Vertical integration
• power and competition 80/20 rule e.g. Malaysia a dozen
European import houses handle half of the trade, whilst
hundreds of smaller companies handle the remainder
• Efficiency
• trend towards integration by technology e.g. Wal-Mart
• Types of wholesaler
• fit all bills e.g. full-service wholesalers

6. Nike’s ‘Do it yourself’
• 1970s independent
distributors
• successful brand at home
• 1980s established own
subsidiaries overseas
• Now controls most
subsidiaries
• even bought some
distributors

7. Retailing
• Middlemen who sell directly to the consumer
• Retailing and lifestyles
• many in developed world
• retailers are globalising
• Problems for marketer?
• Gillette blades through drugstores in USA, tobacco shops in
Italy, department stores in Germany, street in Moscow,
counters in Thailand, travelling vans in India

8. Creating New Channels
• Retailing is dynamic
• Innovative over recent years
• self-service
• discounting
• vending machines
• mail-order houses
• fast-food globally diffused
• Global retailing
• success for Carrefour in Brazil and Argentina
• Marks and Spencer had problems in Canada and pulled-out

9. Kodak’s own airfreight hub
• Minimise shipping errors
and product handling
• loaded onto trucks at
Rochester plant
• All paperwork is already
completed
• flight approval is obtained
before truck arrives at
airport (JFK)

10. Global Logistics
• Focus on channels within a country
• ‘the transportation and storage activities necessary to transfer
the physical product from manufacturing plants and and
warehouses in different countries to the various local market
countries’ Johansson (1999)
• Supply chain management
• e.g. Nissan trucks sold in France come from their Tennessee
plant, Micras from Sunderland, Maximas from Japan via
Amsterdam.
• Competition and technology

11. • Air Express e.g. FedEX, DHL, UPS and Airborne
• Ocean carriers
• Global carrier alliances e.g. Sea-Land Service of Seattle and
Maersk of Denmark have a global partnership.
• Overland transportation
• roll-on-roll-off (RORO) containers are moved from ships
directly onto rail (USA)
• Warehousing and inventory management
• e.g. SKF bearings new distribution centre in Belgium reduced
distribution points from 24 to 5