Fancam: A New Channel Management Strategy
(9 pages of text)
In its first four years, Fancam Pty Ltd. (Fancam), a high-definition, 360-degree crowd-imaging business based in Cape Town, South Africa, had enjoyed considerable growth that was driven in part by its network of resellers around the world. However, the structure and incentives of the reseller channel were becoming too difficult for the business to manage. By February 2015, Fancam's chief executive officer was considering how to fix the firm's channel management strategy. He was considering the use of reseller exclusivity agreements and wondered how to manage such agreements. He also wondered how to improve the company's multi-faceted sales incentive structure, whether to replace resellers with an in-house sales force, and what role these decisions would have on the brand positioning of his company’s product.
This case is best suited for a graduate-level course on sales, business development, or marketing. It analyzes the establishment and initial development of a sports imaging and marketing company that operates primarily in the United States and South Africa. After working through the case and assignment questions, students will be able to do the following:
- Evaluate the risks and benefits of reseller exclusivity.
- Critique and develop a reseller commission structure appropriate to a growing international business.
- Identify the implications of international channel management decisions on the brand positioning of a product.
- Compare a reseller channel with a direct-to-client channel in an international business-to-business context.
Arts, Entertainment, Sports and Recreation
South Africa; United States, Small, 2015
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