The Situation

A major furniture manufacturer with two distinct channels is selling their product online and through their branded retail stores however is not able to sell their product through the department and specialty stores channel because their online and retail channels are viewed as direct competitors by department and specialty stores. The department and specialty store channel represents an $81 billion marketplace that the manufacturer wants to benefit from. Additionally, while the manufacturer exists outside of the department and specialty store channel there is no basis for side-by-side comparison of their product. Consumer loyalty is focused on the retailer and few manufacturers have strong brand relationships with the consumer. As such retailers typically “own” the relationship with the consumer.

The Challenge

The challenge was how to open the door to the department and specialty store channel for the manufacturer while allowing them to continue to sell through their online and branded retail store channels. An objective was to provide a system that allows customers of department and specialty stores to purchase the manufacturer’s product online and have the product sale credited to the respective store and potentially the sales representative. Of equal importance was the objective of getting department and specialty stores to allot floor space and sales efforts for the manufacturer’s products.

The Solution

The solution we developed uses our Patented Distribution Relationship Management® software. Consumers are able to go to the manufacturer website and specify the exact products they wish to purchase and are then prompted to provide information as to the department or specialty store from which they want to purchase the product. If they have no allegiance to any store they may choose one based upon geography, services offered or other qualifiers or direct our system to choose one for them. Consumers may also choose one of the manufacturer’s branded retail stores from the lists provided. Whichever store is chosen is then credited for the sale and the net profit they would have received by virtue of an offline sale is forwarded to them. Their relationship with their customer remains completely in tact. They have little concern that the manufacturer’s branded stores will steal their customers as they are confident in the loyalty of their customers. The product may be shipped by the manufacturer or distributor in this case however in the majority of instances furniture is shipped to the retailer to assemble, finish and prepare for delivery. The manufacturer succeeds at gaining floor space and market opportunity by assuring the department and specialty channels they are not competing for their customers. The system drives new traffic to department and specialty stores and assures loyalty throughout the channel. Sales reports are available online to all channel partners at all times.