Taylor focused on using independent sales representatives and brokers of supermarkets in order to distribute this product. A good hand around the networks and which people to trust down the chain to distribute the product was a great value driver for the company. Softsoap sold very well in the soap section of the supermarkets rather than the beauty aid section & was priced very fairly. Minnetonka also created value for their product by customizing their product line. They introduced themselves in the toothpaste market, even if not for a very successful stay, they were looked at as a company willing to take risks to expand their product line.
The customer may have bought it straight from the business or the producer of the product per through the retailer or the wholesaler. This specific way of purchasing is called channels. It is sensible to use more than one route of channels, this is so that the customers is able to make choice of which way they wish to purchase the product * Manufacture- produces goods and sells them. They also have a big factory where they turn raw material into finished goods. * Retailers- There may be owned by the manufactured or independent of the manufactured.
Niche companies such as Urban Outfitters sell products that are not as common but in demand. So for example at a store such as Urban Outfitters, their shelves are constantly flipping/moving items to allow for new products that will continue to bring in revenue from the customers that shop specifically for items that go against the norm. Whereas a counterculture product at a big box store might get lost in the waste side due to the large amount of bulk inventory, not allowing consumers to really find those not so common items at a Sears or Wal-Mart. Sears and Wal-Mart both buy in bulk so they get reduced cost on the items they purchase to sell, Niche stores such as Urban Outfitters do not.
In order to operate and run a business efficiently we do need to have inventory. Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale and in the retail and wholesale businesses these are a necessity in order to have a functioning operation. Retailers try to turn their inventory at least four times a year so they can make as much profit as possible. In addition the wholesale businesses have to carry large quantities of inventories in order to supply other business and stores. The only types of business that do not need to carry physical inventory are service and sales organizations.
You will not find milk, eggs, and bread only sold at Vons super markets. These staple products will be sold at all grocery stores, large or small. Customers do not want to search extensively for staple products so they must be conveniently located. That is why place is the main marketing mix factor for staple products. Homogeneous shopping products are customer products that are considered to have very little differences.
Firstly, Sainsbury’s have a number of different sizes of payment points in stores which customers can use to pay for their shopping. This is in order to stop the customers from having to wait long periods of time to be served. The different sizes also contribute for different people. For example, there is a hand basket till for hand baskets only; this
Costco is providing items in bulk and at low prices; consumers gravitate toward discounting hoping to get the most out of their money. Sam’s is decreasing product costs by buying from low cost labor countries like China and Mexico. BJ’s is focusing on retail shoppers offering more grocery items and smaller quantities of packaged goods. Does one rival have a better strategy than the others? I think Costco has the best strategy due to the cost efficient distribution through the use of the cross dock distribution.
Super Bakery provided a unique strategy in how it did business. Management chose to outsource its selling, manufacturing, warehousing and shipping to other companies instead of maintaining those departments in house. They were able to bring many companies together and organize the work flow from those companies to fill customer orders. The company only performed certain functions in house which were strategic to the business. This allowed the company to maintain the maximum value for the company while minimizing the investment the company would require.
The ice cream is sold in the dessert frozen section where as the dreamy clusters can now be found in the candy aisle. These products are alleged to help you in ways that you can eat all of it and not feel guilty. ‘Skinny’ the cow claims that even the new Dreamy Clusters are covered with rich chocolate and clusters of creamy caramel are only 120 calories. These skinny delights are alleged to help you eat a ‘light low fat calorie snack.’ At 120 calories, Skinny cow claims that you can treat yourself to all of it and not feel in the wrong or fat. These treats and delights are low in calories so that people feel that they can eat it and that they made a healthier choice than something else.
INTRODUCTION The primary objective of distribution strategy is to provide sufficiently broad, gap-free market coverage, i.e. being available in enough outlets so that customers have convenient access for purchases. Distribution strategy is influenced by the market structure (Lippert et al, 2008), the firm's objectives, and its resources and of course it’s overall marketing strategy. The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g. speciality goods such as car repair kits); or Exclusive (with distribution restricted to upmarket outlets, as in the case of Gucci clothes).