FERRELL, MARKETING 44 (2012) ("The channel captain
may be a producer, wholesaler, or retailer.
For each of the target market segments, develop a comprehensive Value Chain "Cluster" designed to uncover and show where industry structure, value chain inefficiencies, supply/demand balance or other structural issues may present attractive opportunities for strategic value creation or extraction, the Channel captain
(or, captains) for each segment be identified.
The last of these off-kilteryarns (all generated via the artist's arcane self-invented rhyme-based system) was performed by Alice Konitz and Taylor, who, in tandem and in costume, seemed to channel Captain
Beefheart, Red Krayola, and Kurt Schwitters all at once.
Because of its position or economic power, a channel captain
can stipulate marketing policies to other channel members, in effect exercising control over some or all of their decisions and activities.
Nearly every analysis of returns or similar policies across a variety of literatures assumes the manufacturer to be the channel captain.
For instance, when the manufacturer is the channel captain, the first calculation would be the retailer's choice of Q to maximize [[pi].
The seminal work appears to be by Pasternack (1985), who found that for a single-period setting with the manufacturer as channel captain, a properly designed policy allowing full returns (R = 1) at partial credit (b < w) can coordinate the channel to the benefit of both parties.
Our analysis will consider cases in which each party is the channel captain.
Which calculation to perform next depends on which party enjoys the status of channel captain.
d) When the manufacturer is the channel captain (Stackelberg leader with regard to the channel policy), the equilibrium will be the full return policy uniquely specified by
At that point, food manufacturers will have strategically lost their role as channel captains
in the food industry - which they have had for most of the 20th century.
The dual-channel strategy was a workable marketing and sales concept, also enjoyed by Revlon and Max Factor, in the glory days when brands were the channel captains
because mass volume paid for the brand's product advertising, which also drove traffic to department stores.