Partnering with retail chains

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Not only are there benefits to suppliers engaging in a retailer-supplier partnership, retail chains also benefit from the relationship. The key advantage for the retail chain is that they are the sole provider of the product (Linton). Companies that partner with retail chains often agree to only sell their items to that specific store, creating an exclusive channel breadth, which is when a supplier gives “a limited number of dealers the exclusive right to distribute the company’s products” (Armstrong & Kotler 305). For example, in the 2000s, Mary Kate and Ashley Olsen decided develop a clothing line for eight to twelve year old girls; the Olsen twins decided that Wal-Mart would be the perfect place to sell their line. These products “bearing [the Olsen twins'] names, including computer games, dolls... [were] estimated to generate about $1 billion in retail sales alone per year” for Wal-Mart (The Biography.com). Because these products were only available at Wal-Mart, fans of the Olsen twins would have to shop at Wal-Mart if they wanted to purchase these products, making Wal-Mart an exclusive destination for all things Olsen twins. Much like Wal-Mart, retail chains monopolize over all of the sales of their partner’s brand which gives them full responsibility of marketing and advertising. Having full responsibility of marketing and advertising is an added benefit to the retail chain because they can control what image is associated with the supplier’s products and can also develop their own ways to advertise. Because the retail chain most likely already has their own established customer base, they will know how to effectively market to their customers.
Another advantage a retailer gains when partnering with a supplier is...

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...er is Still a Force." Chicago Tribune: 1. Jun 04 2003. ProQuest. Web. 15 Apr. 2014 .

Rayner, Clare. "Retail Supplier Collaboration, Supplier Relationship Management and Supply Chain Information Sharing." Retail Acumen: Delivering Excellence in Retail. Wordpress.com, 20 Oct. 2010. Web. 4 Apr. 2014. .

Reuters. "Martha Stewart, Macy's Settle Lawsuit over J.C. Penney Deal." DailyFinance.com.
Daily Finance, 2 Jan. 2014. Web. 13 Apr. 2014.

Strachan, Maxwell. "Sears Spins Off Lands' End." The Huffington Post. TheHuffingtonPost.com, 06 Dec. 2013. Web. 20 Apr. 2014.
Yu, Zhenxin, Hong Yan, and TC Edwin Cheng. "Benefits of information sharing with supply chain partnerships." Industrial management & Data systems 101.3 (2001): 114-121.

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