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The study of channel management at Owens Corning entering into Chinese roofing market
 
Summery

Along with the quicken step of globalization, many multinational companies have invested in new market, where risk and opportunity coexists. To compete and operate successfully in the global environment, in–depth comprehension of the local Marketing channel and reasonable channel strategy are crucial for these multinational enterprises. This dissertation reviews a multinational company named Owens Corning, a global manufacturer of fiberglass-based insulation and composites, and other building materials. The main objective is to provide a better understanding of managerial behaviors in distribution channels at the starting age.
Firstly, the practice of Owens Coring China in 1970s is examined. The whole channel design process such as channel structure, channel role, channel partners recruiting are reviewed. Two forms of channel conflicts (horizontal and vertical conflicts) are investigated. And then a SWTO analysis of Owens Corning is carried out, it presents that marketing channel is of great importance when enter a new market. Furthermore, the channel structure is discussed taking the product character, market factors (demand and supply) and distributors into consideration. The discuss shows that a channel with short length and low intensity is suitable for the concentrated demand of high class products. With an AHP analysis, the channel partners recruiting standards reveals that high marketing ability, great financial strength and extensive social relationship are deemed most important characters of the most suitable local distributors in China. Investigating the channel conflicts with power analysis approach, we find that Non-coercive power will increase the channel satisfactory and lessen the vertical conflicts. Though coercive power is successfully implemented for the horizontal conflicts at the starting stage, choosing creditable distributors and other strategy such as providing differentiated products may plausible in the long run. The result shows that the theories developed in the developed market are plausible in the developing market. At last, this dissertation makes some recommendations for enterprises that hope to exploring the new market.
 
1 Introduction 6
2 Literature review 9
2.1 Definition of channel and its function 9
2.2 Channel behavior 10
2.3 channel design 12
2.3.1 The factors 12
2.3.2 The process and strategy 13
2.3.3 Channel structure 14
2.3.4 Channel partner recruitment and AHP method 16
2.3.5 The function allocation 18
2. 4 Channel conflicts 18
2.4.1 Overview 18
2.4.2 The conflict definition 19
2.4.3 The outcome of channel conflict 19
2.4.4 The root for conflict 20
2.4.5 Conflict resolution and management 21
2.4.6 Channel Conflict and Game Theory 23
2.4.7 Channel conflicts and power 25
2.5 Marketing channels in China context 25
3 Research methodology 28
3.1 Case selection 28
3.2 Research design and data collection 28
3.3 Data Analysis Methods 31
4 finding 35
4.1 The consumption behavior in China 35
4.2 The channel design plan 37
4.2.1 The channel structure 37
4.2.2 The functional allocation 39
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