Ford: Enabling New channels of Distribution.

Automotive new Channel of Distributions

 Distribution channels in the automotive
industry

1. Customers in the premium segment particularly want to have as many

channels to choose from, and use, according to individual preferences. An
integrated multi-channel strategy (combination of online and offline channels)
in sales is the logical response of OEMs and a way to differentiate themselves
from competitors.

2. A multi-dimensional sales funnel concept must accommodate the complexity

of individual Customer Journeys adequately. Previous surveying concepts
primarily focus on client experiences made at a dealership or are aligned to
retail processes after car delivery.

3. New marketing and distribution channels are bringing discipline to the current
industry scenario. They are significantly resulting in cost-effectiveness and
establishing customer relationships. Customers are now more empowered
with personalized and engaging experience from new channels that they are
approaching.
 Ford: Super Test Drive center

• Ford and Alibaba confirmed in partnership in December 2017 “to explore a

strategic collaboration to jointly identify new opportunities to redefine consumer
retail experiences and explore solutions for sustainable mobility”. Under the
agreement, the two companies would collaborate on four major verticals –
operation system, cloud computing, digital marketing, and online retail – through
four Alibaba business units

• Using Alibaba Cloud’s mid-end platform solution, Ford built a new digital platform
called “Ford Mall” in less than six months thanks to the speed, scalability, and
flexibility of Alibaba Cloud technology. Ford Mall offers a new channel for
prospective consumers to access Ford vehicle information and services, including
make and model details, dealer showroom locations and pricing.
 Ford: Super Test Drive center

• The platform not only helps Ford improve its online customer experience but also
provides a new opportunity for Ford to connect with its customers, making it easier
to find and visit a nearby dealer.

• The auto "vending machine" is part of Alibaba's push toward what it calls "New
Retail," blending online and offline experiences together. Ford hopes it will entice
customers into showrooms.
 Thomas Cook from leisure & entertainment
industry, about its Channel Migration strategies
• Customers in today's evolving travel industry interact through multiple touch points
and channels (Figure ). Each channel varies in cost, implementation and benefits

• A comprehensive strategy and framework can enable travel players to design an

effective channel mix. It will help companies design a consistent and engaging
sales-to-service experience across channels and effectively manage cost-to-serve
 Channel Right Approach MIX

• A comprehensive strategy and framework can enable travel players to design an

effective channel mix. It will help companies design a consistent and engaging
sales-to-service experience across channels and effectively manage cost-to-serve

• The framework should comprise of the following key elements:

1. Cost optimization of service channels

2. Mix optimization of service channels

3. Step-wise channel migration and deployment

Channel Migration Strategies
Distribution Method-Thomas cook

Distribution Channels

Sales & Distribution Management

 Core Objective for Omni
Channel Approach

Lead
Optimized generation
visibility to its travel
agencies

Improved
customer
experience

Sales & Distribution Management Term