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Should Channel Management be a CXO role?
Yes, it should rank alongside Marketing & Sales
No, It should be part of the CMO/Marketing Director's role
No, it should be part of the CSO/Sales director's role
No, it cuts across all functions
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ROUTES TO MARKET

SNUGGLING UP TO BIG RETAIL
Author: Julian Dent | CEO VIA International
Email: jdent@viaint.com

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This customer insight forms a large chunk of what Electrolux, for instance, brings to its closest retailer relationships. The company recently
completed a survey of 5,000 European consumers, which showed totally different buying patterns from one country to another.

This focus on the consumer is also vital if these companies are to look successfully beyond their relationship with the retailer. Vermeulen says: 'HP itself needs to have a relationship with the consumer. We know that if you deal successfully with teething problems in the first 30 days of ownership, then you massively increase the likelihood of a repeat purchase. It is our job to provide that support.'

Given the commitment, given the customer insight, what can suppliers achieve? Some of the gains are spectacular. HP, for instance, gets weekly sales figures from retailers representing 40% of its European sales. The benefits to be gained from such data are immense

HP now knows where merchandising and demos will pay off. Sjaak Vermeulen says: 'Before, we felt we needed to launch in all 600 branches of one chain. Now we know that launch success is determined by only 100 of them, so we can concentrate our efforts.'

He has also learnt to concentrate merchandising in the more successful stores. 'If you go to a retailer and offer merchandising or in-store training, they will immediately direct you to their worst performing stores – not the places you want to be in!'

But to see where the information revolution can carry suppliers, you have to look at the data Tesco is selling, via Dunnhumby, its 53%-owned data-mining agency, to its suppliers. Dunnhumby director Patrick Rohrbasser says: 'For one producer we studied 200 launches over two years, and we can now predict launch success after eight weeks.'

'Armed with our sales data, suppliers are able to argue about category management with Tesco, using Tesco's own sales data!'

Electrolux has managed to save millions through joint ventures aimed at optimising the supply chain and sharing its profits with its retailer
partners.

Ultimately, some retailers use Electrolux to manage entire product categories. Wickes, the home-improvement chain, employs Electrolux as joint manager of its entire white-goods business.


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Are you ready for the retail revolution
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