Distribution Strategies for Volume and Premium Brands
2006 (English)In: Conference on Recent Advances in Retailing and Services Science,2006, 2006Conference paper (Refereed)
This article deals with distribution strategies in the car industry. As markets mature and competition gets tougher, numerous industries have become subject to substantial overcapacity and a simultaneous pressure to keep costs low while at the same time emphasizing immaterial values. Thus, manufacturers, middlemen and retailers have to work with cost-efficiency in both manufacturing and distribution at the same time as tough competition forces actors to strengthen the brand.
This study on distribution strategies is based on extensive case studies of car distribution chains in Sweden, the UK, Germany, Spain and Australia. Slightly more than 100 interviews were carried out with manufacturers, importers, dealers and industry experts. The interviews were semi-structured in order to give room for interviewees- thoughts and unreservedness, thus reflecting an exploratory approach.
The theoretical assumptions of the study embrace business strategy, corporate identity, brand management, distribution theory, and channel ownership, i.e. direct vs. indirect channels.
In the empirical material, a clear pattern emerges: volume and premium brands are found to be guided by fundamentally different mechanisms. While distribution activities may be shared amongst channel members in a channel selling volume brands, there is a high need for coordination in channels selling premium brands to secure premium values that reflect the brand-s raison d-être and justify its price premium. On the other hand, premium brands evince a number of important characteristics that reflect high brand attractiveness. Substantial differences between volume and premium brands were found as regards cost vs. brand focus, channel control, channel coordination, customer behaviour and the potential of indirect sales channels.
Place, publisher, year, edition, pages
premium brand, volume brand, distribuiton, automotive industry, car industry
IdentifiersURN: urn:nbn:se:liu:diva-34669Local ID: 22469OAI: oai:DiVA.org:liu-34669DiVA: diva2:255517