Wednesday, August 28, 2013

Marketing Mix: Distribution

Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company’s supply chain (Armstrong, Gary,  Philip Kotler. Marketing: An Introduction, 10th Edition). In order to ensure the delivery of spicy safari snacks, we will sign a contract with another food company that makes regular deliveries to the bars. Distribution channel decisions often involve long-term commitments to other firms. (Armstrong, Gary,  Philip Kotler. Marketing: An Introduction, 10th Edition.) By doing so, it will save our company money from having to transport it ourselves. Just like some beer companies (i.e. Stella Artois, Sam Adams) having specific requirements for how their beer is to be served to customers, we would have our chips displayed right at the bar, so it is in direct sight of the customers. Additionally, when a customer order safari chips, the bars will serve them in a bowl instead of just handing the customer a bag.

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