GREAT QUESTION!!! From my experience you can manage channel conflict in a few ways…. ultimately giving the retailers a different product (more often a diff. variation of a product) then the internet channel.

For example if I sold a new type of sneaker, I could offer it through retail in the color red and through the internet in the color blue.

Often this is not effective enough though, and it becomes a branding strategy. The retail product is under one brand name and the internet product (albeit the same product, perhaps with a different look and certain modified functions) is under another brand name.

This multi-brand strategies can be used in many ways to make distinctions like brick and mortar vs. internet or even high-end vs. mass market. Toyota (mass market) for example has a tough time competing with BMW, but Lexus (high end) has no problem competing with BMW. Lexus, as you know, is part of Toyota. The cars (Toyota & Lexus) at the core level are really similar, perhaps identical. But through branding they avoid conflict and can properly position themselves. Different example then retail v. internet, but same strategy = a core product can be branded and positioned two different ways.

- Mike

That was some good advice you shared with Haley from Naptime Studio. However, since she sells direct to consumers online AND distributes through “bricks and mortar” retailers… her distribution model has some built-in “channel conflict”. Curious to know how you might suggest she manages the problem.

Enjoy your blog,

Jon