Obtaining control over your online sales & distribution channels

THE OUTCOME

what happens when your local dealers  get into the biggest online marketplace in your country and start selling into each other locations competing online?

The Answer is simple, it will destroy your physical distribution channel that took so much effort for you to build. Tyres are big objects, but nowadays with the improvement of online delivery, tyres are sold online and delivered right to your door, then you go to a local tyre shop and ask them to install your precious Michelin tyres into your car.

If you are a tyre manufacturer like Michelin you want to know that the tyres are installed properly on your client´s car. You do not want to  send people to multibrands tyre shops to install your tyres, you want to provide the full Micehlin quality service and the full quality experience for your clients. So you developped over time a network of shops all accross the country and you set up which zone belongs to each shop.

Problem is when some of these shops start selling online at different prices and delivering tyres to the other shop zones that were not into online sales. It has  the power to destroy your network and it´s unfair for your less tech saavy shops. What would you do? will you forbid to sell tyres online or will you move ahead and set up rules that makes online selling fair for everybody? 

That´s what we did for Michelin in Argentina, we entered into the marketplace  Mercadolibre were all the tech saavy Point of sales were selling, we created there the official Michelin Online Shop, and we put inside of it all the point of sales,  the ones that were already selling online and the ones that were not yet doing it, we set up pricing rules for them, automating the integration of its stock in real time, answering client questions  and running online campaigns to deliver traffic to Michelin Shop to increase sales. We collect payments and send those payments to every shop, we track the billing the delivery and installing of every tyre in every client and the corresponding follow up.  The Shop assigns sales to each point of sales according to the geolocation of the buyer.  Now Michelin has control over that new channel and created fair rules for all of its shops not to compete each other but to help each other to increase online Michelin sales as a whole, we managed to technologically level them up and providing them with new clients and online business intelligence.

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