Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by customizing computers

Discuss the importance of channel innovation, giving examples of piggyback marketing in emerging markets.

Channel innovation can be an essential element of a successful marketing strategy as noted in the case of Dell computers, which began as a b-to-b marketer. The business model proved to be very successful, that the company began marketing direct to the home PC market. This strategy may not work for other products, particularly where a complicated system or mechanism is involved. Before deciding which system to use, marketers must study each country individually. In general, if the market is large, it is more feasible to use a manufacturer's own sales force. Piggyback marketing is a good example of another channel innovation that has grown in popularity. In this type of marketing, one manufacturer obtains product distribution by utilizing another company's distribution. Both parties can benefit by increasing the total revenue generated by the channel members. Successful piggyback marketing requires that the combined product lines be complementary. They must appeal to the same customer and must not compete with each other. Several companies have taken advantage of the opportunity to piggyback with Avon, which has a network of direct sales representatives in over 100 countries. Several of Mattel's toy lines are being marketed in China by local Avon representatives. In Australia, New Zealand, Brazil, Canada, and France, Avon representatives offer Reader's Digest subscriptions along with Avon's health and beauty products. In emerging markets, Avon offers a second catalog featuring products from Timex, Duracell, Time-Life, and others. Thus, piggyback products already account for 15% of sales in some emerging markets.