Marketing channel strategy of multinational corporations: theory and practice

Author: 
Narubodee Wathanakom, Aphiradee Sranrom and Nhatphaphat Juicharoen

In recent years, the marketing channel strategy has been gaining attention among scholars since it is one of the utmost important aspects of marketing mixes. It can lead to the success or failure of multinational business expansion into foreign countries. This go-to-market, or channel strategy, is responsible for transferring products from manufacturers to shoppers and consumers at the right place, right time, and right price. The key success factors for multinational corporations in Thailand can be attributed to the marketing channel strategy. Currently, there is a lack of evidence indicating how these corporations bring the theory to life in the local context, especially when there is a variance between the conditions of the company’s home country and new market. This article will bring to attention the way in which these theories are carried out across 3 key businesses specializing in fast-moving consumer goods. It was found that there are 4-steps in designing marketing channel strategies. These are being employed by analyzing customer needs, clearly defining channel objectives, selecting the channel mixes, and evaluating channel performance, all done to continuously improve the channel execution. In addition, there are more add-on options which are used to make the process more rigorous, for example, customer journey studies, key performance indicators on distribution, sales and profitability aspects, omni channel strategies and rigorous internal and external sources of information for evaluation, all in a timely manner.

Paper No: 
3398