COMM 296 Chapter Notes - Chapter 16: Store Brand, Category Killer, Vertical Integration
Document Summary
Retailing is changing, manufactures no lone rule many chains - there has been a shift to retailers dictating to the suppliers. Many retailers and some manufactures use an ominchannel/multichannel strategy to sell in more than one channel. The level of dif culty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated. When a manufacturer has a strong brand/desirable in the market, it is easier to vertically integrate. Retailers know that customers have preferences regarding manufactures and in contrast, the manufactures need to know where their target market customers expect to nd their products and those of their competitors. Customers expect to nd certain products at some stores (ex. Several factors pertaining to members determine the channel structure. Generally, larger and more sophisticated the channel member, the less it will use supply chain intermediaries. Independent grocery store will buy from wholesaler but walmart buys directly from manufacturer.
