Competition Question

**jck2003** · 08-12-2007 04:17 PM

Hi,

I am at this very moment planning a large toys and collectables distribution business. I hope to target small independant stores but I know the money is in the chain stores.

My distribution business will be unique and there will no compeitor in the market to match what makes me different from the rest. I know it will be a popular selling point.

Anyway, I know some of the wholesalers that are supplying some chains in my home country and I would just like to ask for your suggestions in regard to trying to take these contracts.

-I will be cheaper than these wholesalers (I hope this will stand out for retailers and chains)
-I will provide a unique service different to all as I will offer an advice forum for them where they can get loads of information on prodcuts aswell as how much they should retail them at etc. (My main selling poitn aswell as prices as above)

The distribution company (my competitior), that is selling to the chains is located in a different country. Therefore I will also offer them better delivery times.

I have contacts in the chains also. So, if I offer this and stand out can the chain choose to switch to me or more than likely will they have a contract with my competitor? Does anyone know this standard procedre?

Any help is appreciated in relation to this. Thanks in advance.

**jck2003** · 08-13-2007 12:39 PM

Guys really would appreciate advice or suggestions regarding this matter

**jck2003** · 08-15-2007 04:21 AM

Anyone have any suggestions at all?

**focalpoint** · 08-16-2007 03:30 AM

i would suggest you that you identify all the members in your value chain. each of the members in the value chain has needs, value expectations, sets of desired benefits, and relative costs which need to be fulfilled by one or more value chain members. identify who is above you in your value chain, is it the manufacturer. identify who is next to you in the value chain and right till the end customer. now think it like this..what does each of these. members want. what benefits they seek. for the distributor the value expectations could be brand, availability and margin to be earned. your next marketing strategy should be to address and fulfill the value drivers as far down the value chain as it can. i hope this helps.

**mango** · 08-16-2007 03:38 AM

I am not in the import/ export business so dont take my word for it, but doesnt chain toy stores such as Toys R Us get their toys directly from the manufacturer?