Mochalicious: Branding, Pricing, and Distribution Research Paper

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Distribution Channel Analysis Identifying Wholesalers, Distributors, Retailers, and e-Commerce

Single or multiple channels of distribution can be utilized including the direct channel of the Internet using the company's e-Commerce website as well as the direct channel of sales teams. Multiple teams that specialize in different products of customer segments may also be utilized. Direct channels include catalogue sales and retail sales as well as the use of a wholesaler or distributor, which is described as a company "that buys products in bulk from many manufacturers and then resells in smaller volumes to retailers. The Value-Added reseller will work with end-users to make provision of custom solutions that including "multiple products and services from different manufacturers." (VanAucken, 2013) a consultant can be used to develop relationshi8ps with companies and make provision of various services types. A dealer may purchase inventory from a manufacturer or distributor and then resell is to an end-user. Finally, the sales agent or manufacturer's representative can outsource the sales function to a company selling various products of the manufacturer to a group of customer is a specific territory. (VanAucken, 2013)

IV. Push or Pull Strategy and Rationale

This study has chosen the push strategy, which involves targeting the product to the customer. Stated as examples of push tactics are the following;

( 1) Trade show promotions to encourage retailer demand

( 2) Direct selling to customers in showrooms or face-to-face

( 3) Negotiation with retailers to stock your product

( 4) Efficient supply chain allowing retailers an efficient supply

( 5) Packaging design to encourage purchase

( 6) Point of sale displays. (Marketing Made Simple, 2013)

The term 'push strategy' is reported to describe the work "…a manufacturer of a product needs to perform to get the product to the customer.

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This may involve setting up distribution channels and persuading intermediaries and retailers to stock the product. The push technique can work particularly well for lower value items such as fast moving consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decision on the spot. This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling face-to-face. New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel." (VanAucken, 2013) Following establishment of the brand, this can be integrated with a pull strategy. (VanAucken, 2013, paraphrased)

V. How Distribution Strategy Fits Product, Service, Target Market and Overall Marketing Strategy

The Distribution Strategy Checklist reports the following components in the fit of the distribution strategy to the fit, products, service, target market and overall marketing: (1) Introducing new distribution and delivery systems including home delivery, subscription delivery, free delivery to customer who purchase at volume to increase sales, provide customer service and gain advantage over competitors; (2) increase of sales through addition of new channels of distribution; (3) potential partnerships to achieve off-premise sales outlets in other retail settings. (VanAucken, 2013)

Summary and Conclusion

This study has set out how Mochalicious can best brand and sell its product on both a local basis. This study has reported how the brand can be strengthened, the product marketing diversified, and how sales can be increased both locally and globally......

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