1. The Lean LaunchPad
Presentation examplesused in
Class 5 - Distribution Channels
07/02/12

2. Book Publishing
Channel Example

3. Example: Book Publishing
National
Publisher Printer Wholesaler Retailer Customer
Distributor
2

4. Book Publishing
National
Publisher Distributor Retailer Customer
Wholesaler
•Percent of 35% 15% 10% 40%
Retail
$7.00 $3.00 $2.00 $8.00 $20.00
• You get
-35% of retail
- the distributor gets 10%
- the wholesaler gets 15%
- the retailer gets 40%
-less any discount they offer the customer
3

5. Book Publishing Economics
National
Publisher Wholesaler Retailer Customer
Distributor
Allowances
Wholesale costs
Bills
Markup
Credit
guarantees
Payment
guarantees
Payment
guarantees
Return rights
Credits
Payments
4

6. Book Publishing Delivery
National
Publisher Printer Wholesaler Retailer
Distributor
Prepare film
Receive
(content)
 Schedules
 Print orders Determine Merchandise
 Bundle allocations titles
counts
 Film
Sell
Deliver orders
magazines
 Establish Prepare
galleys Print and ship
identity
magazines
 Create
demand
Dispose of Acknowledge
returns returns
5

7. Medical Device
Channel Example

8. Product flow/Channel
Electronic Partners/
Health Fluid Synchrony
OEMS
Records
Electronic Support Pump + Bundled
Records Services Controller Kits
Hospitals
(Anesthesiologists
Patients Neurosurgeons)
Pain Clinic
(Anesthesiologists
Neurosurgeons)

9. Hospitals
Pain Clinics
Channels (Direct)
• Direct to institutions
• Some formularies involved in purchase decisions
• Some doctors make purchase decision directly
• Device company/Doctor relationship is key
• Heavily influenced by :
• Clinical study results
• Regulatory approval
• Reimbursement

10. Farm Sensor Industry
Channel Example

11. Channel Model: Service Provider
Product
Money
OEM Nutrient
Data
Large farm
Us
Small farm
USDA/EPA Licensing/sales

12. Channel Model: Service Provider
Product
Money
OEM Nutrient
Data
Large farm
Product
Us
Small farm Service
USDA/EPA Licensing/sales

13. Dental Product
Channel Example

14. COST / PROFIT ANALYSIS
Licensing Revenue Model
Per unit cost and profit estimation
Our revenue 4-8% revenues List price
End user
Univ. Manufacturing
Maintaining Raw License
R&D License & Distribution
IP fee materials fee
Packaging
13

15. Licensing of Technology Ecosystem
University Insurance
Agencies
2-4% license fee
$$$
DMX
R&D
Products
Procedures
Health-Care
IPs
Providers: $$ End
4-8% royalty Hospitals User
~$40 Practitioners
Customer Clinics
segment: Large
corporations
J&J, GSK, 3M
14

16. Medical Device
Channel Example 2

17. •
•
•
•
•
•

19. Dental Product 2
Channel Example

20. Channels
Direct Sales Big Distributors
Private Practice Institutional Purchasing
Dentist Dentist Department

21. Channels
Direct Sales Big Distributors
80% Market Share
30% Margin
Private Practice Institutional Purchasing
Dentist Dentist Department

22. Channels
Continuing
Education Magazines Trade
Courses & Email Shows
Direct Sales Big Distributors
80% Market Share
30% Margin
Private Practice Institutional Purchasing
Dentist Dentist Department

23. Online Rental
Channel Example

24. PM Tools
Rentpost.com
Listings Rentjuice.com
Provider Buildium.com
Craigslist Rentingsmart.co
Potential Padmapper.com
Propertyware.com
Landlords Rent.com
Apartment.com propertymanagemnt360
Show, Advise, Valuate
Forrent.com
Rentjuice.com
Realtors
Propertyware.co
Trulia.com
Sell, Advise
Credit Checks
Landlords
Safetenantcheck.c
Erenter.com
Buildium.com
Property Listings,
Managers Checks Payment Facilitator Maintenance
Rent Payment
Listings, Rentpayment.com Ratings
Checks Clearnow.com
Rent Payment Yelp.com
Tenants Online Cheque
Angie’s List
Rentingsmart.co
Maintenance
Furnishing Moving Find information Maintenance Finding
Service Zoospi.com
Providers Redbeacon.com
Taskrabbit.com
Servicemagic.com Schedule Tools
Setster.com
Web Info Zoospi.com
23

25. Dental Product 3
Channel Example

26. COST / PROFIT ANALYSIS
Direct Sales Revenue Model
Our revenue $27 List price $40 *
Per unit cost and profit estimation %32 cut
End user
Raw active Manufacturing & Profit + R&D + License
Distributor
ingredient Packaging fee
$6 ? ($5) ~$11 ~$13
* Competition
• NuProprophy paste (Novamin$50)
• NuPro desensitizer (Novamin$93)
• MI varnish (Recaldent$100)
• Gluma desensitizer (Glutaraldehyde$130)
• Health-Dent desensitizer (Fluoride $49)
25

27. Direct Sales Ecosystem
R&D & University Insurance
Regulation
Agencies
$?
$$??
Raw Materials
Manufacturing
$6/pk DMX
R&D
Products
Customer
$5/pk Procedures
Segments;
Formulations IPs
Health-Care $$?? End
&Packaging
-32%($27) Providers: User
- Hospitals
Product - Practitioners
Sales & $40/pk - Clinics
Distribution
26

28. Channel Example

29. • F-dopa iodonium intermediate
• F-dopamine iodonium intermediate Precursor Synthesis
Reagents
• ABX • Siemens Explora
GMP • Eckert & Ziegler Precursor in Cassette
Cassette • GE MX module for TracerLab
Components
• Eckert & Ziegler • Synthra
GMP • Siemens Explora Cassette (device)
Compliant • Neoprobe • TracerLab/ GE
Synthesizer
• Siemens PETNet
• GE Amersham
PET Drug • Cardinal Health Finished product
Distributor • AAA • Iason
28
I-Corps Final Presentation 12/14/11

30. Channel Example

31. Travel Industry
Channel Example

32. Travel Services:
Impact of Changing Technology

33. The Advent of GDS Systems (1980 -1995)

34. Turning the Screen Around
Online Travel (1995-2010)