Question: The Rust Oleum Corporation is world renowned for its anticorrosive coatings for
The Rust-Oleum Corporation is world-renowned for its anticorrosive coatings for virtually any application, for use on everything from heavy industrial equipment to consumer patio furniture. The company sells its industrial products through wholesalers (industrial distributors) and its consumer products through both wholesalers and retailers. Rust-Oleum has, for many years, talked about doing business with its channel members by the golden rule—“doing business together with sincerity, honesty and cooperation.” The company is also fairly selective in its choice of distributors, limiting the number selected to the fewest possible needed to provide effective coverage of each market. In addition, Rust-Oleum makes it a point to say that it sells through the distributor, not just to him. Given this approach to dealing with channel members, what criteria do you believe would be especially important for Rust-Oleum Corporation to emphasize in selecting prospective channel members?
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