Channel Conflict Gnaws at Retailers
As manufacturers add new distribution points to sell as much of their product as possible, channel conflict will continue to be one of the most pressing issues facing Nationwide dealers, several of the buying group's directors said at this week's PrimeTime conference.
"The single biggest issue we face is channel conflict," one executive told Dealerscope. "You have to get more feedback from the manufacturers so they can publicly say what their strategy is, because it's been difficult even for us to get it."
Nationwide and its dealer members have developed several strategies - including more creative promotional campaigns, greater product differentiation, and deeper database development for more targeted email campaigns - to offset the erosion of product sales and profits caused by channel conflict and over distribution.