4. Distribution For J&Y Co.’s brand new product, Boltz ENERGY Cornflakes, J&Y Co. are using indirect distribution. Indirect distribution is defined as a distribution channel with the presence of middlemen or intermediaries (Essex). In this case, J&Y Co. is distributing the Boltz ENERGY Cornflakes through Tesco, Aeon Big and Aeon Jusco. Moreover, the meaning of intensive distribution is a saturated way of spreading the goods into the market (Smriti). In other words, the goods which used this method to distribute will be able to obtain easily at anywhere and anytime. J&Y Co. will make sure that all hypermarkets chosen will not have any shortage issues with the product. J&Y Co. had picked three location to sell the product, which are the following …show more content…
Furthermore, J&Y Co. will be distributing intensively in Aeon Big. This is because Aeon Big always have special deals in house and located close to residential areas. Even though Aeon Big has only a total of 27 outlets nationwide, it’s credibility on good quality and value of products and services has attracted many consumers to purchase from them. This will be the potential way to introduce J&Y Co.’s new product, Boltz ENERGY Cornflakes to the consumers. Figure 4.3 shows Aeon Jusco outlet in Malaysia. The reason J&Y Co. chose Aeon Jusco is because of its potential locations nationwide. All the Aeon Jusco outlets are easily access to and located at crowded residential areas. Aeon Jusco is very well known among the upper middle class consumers. J&Y Co. would like to expose Boltz ENERGY Cornflakes to different classes of consumers in order to widen the range of target market and target audience. Thus, J&Y Co. is able to build up a strong customer base in the market in order to compete with other rival …show more content…
has created an attractive brand logo, slogan and suitable packaging for Boltz ENERGY Cornflakes. With these features, it is easier for the new product to be attracted by the target market. Moreover, J&Y Co. has carried out the target market and target audience analysis based on the demographic segmentation nationwide. In addition, J&Y Co. has set the net weight and pricing based on a comparison analysis on the potential competitors such as Nestlé and Special K. In order to compete with them, J&Y Co. has set a relatively lower price compared to the two competitors and more weight in the product. Furthermore, J&Y Co. has carried out indirect distribution and intensive distribution for Boltz ENERGY Cornflakes. J&Y Co. will be distributing the Boltz ENERGY Cornflakes through three chosen hypermarkets nationwide. Besides, J&Y Co. will apply intensive distribution on the product. This because J&Y Co. hopes that all potential consumers are able to purchase the Boltz ENERGY Cornflakes anytime. Lastly, J&Y Co. created a few interesting and attractive promotion elements and selected a few media. These elements will be able to draw the attentions and create awareness among the potential market and audience of Boltz ENERGY
Product: The company produces a physical good – Cookies/Crackers. In doing this, the company became diversified by the use of several product lines, not just one line of cookie or cracker. Also, in acquiring other businesses, the company thought it best to keep the originating firm’s brand name vice-carrying its name on the new product (i.e., Sunshine company). In thins regard, Sunshine’s Cheeze-It cracker line would not risk losing customers who are accustomed to that logo on the product or the name being used in association with the product.
Nutri-Grain cereal bars were created by the Kellogg Company and first introduced in the 1970’s Australia. They were later introduced to the United States and other countries. As more women began to work outside the home, the ritual of a family breakfast became obsolete as many individuals turned to quicker solutions for breakfast. The Nutri-Grain bar soon became popular as the on-the-go snack during the 1990’s. The cereal bar also comes in a variety of flavors that kids love, from blueberry to strawberry yogurt and has the texture a soft, homemade cookie. This television commercial centers on the theme of fostering a relationship between today’s kids and nature (see Appendix A). As the youth of today spends more time in the electronic world,
The company believes in purchasing small local brands and there facilities to enter the new markets and then invest in there up gradation to make their products compete at the national and international levels. This saves company a lot of time in just developing the product and starting from scratch in any new markets .This also helps in gaining first movers advantage and capturing the market. The refrigerated pasta was a immediate success with sales of over $30 million in the first year and $100 million in the second year
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
These two companies are market leaders thanks to they know their customers and have large brand awareness, also they have a very effective sales force.
The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
Exclusive Distribution through its high end attractive retail stores. Up-to 7 Retail Outlets, in a city/ town
The unified systems of producer, retailer and wholesaler show coordination of participating organizations in collaborative relationships.Next, the exclusive distribution where give limited amount of dealers the exclusive right to distribute La Senza products in their territories (Principles of Marketing, 2009) For example, the La Senza in Vietnam distribute products with Nguyen Trai and Le Loi street. However, the selective distribution can also be applies in La Senza because the use of more than a intermediary who are willing to carry the final products that are ready for end-users (Principles of Marketing,
An organization focuses on many aspects and strategies that address customers’ needs and wants. The organization develops a product that includes many steps such as, product life cycle, type of brand, packaging and labeling, but the final step is how to have their product accessible to the consumer, which is distribution. A distribution channel is the path where products, including their ownership, flow from producer to consumer. There are many paths an organization can choose to send their product. Physical distribution is the actual movement of products from a producer to consumers.
With regards to promotions we will be doing a multiple plan of action. To acquire a strong position in the market, we need to give special emphasis on effective promotional activities. In order to get the maximum market
Direct distribution approach is a direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries also known as a zero level channel (Richardson & Gosnay, 2010). Direct distribution is a model used by organizations to move products from production to the buyer without the use of wholesalers or retailers. By eliminating the number of parties involved in the distribution process, a company can capitalize with significant savings. An organization using direct distribution will sell and distribute the shampoo using their own warehouse and employees. By using zero level channel there are no other businesses involved in getting the company’s product to the consumer. Using a zero channel distribution enables the company to bypass the retailers and become closer to the customers and building relationships with the customer. By selling directly to a customer it allows a company to have better control over who the product is going to be sold to, allowing the company to keep their respected name and reputation. If issues arise, they are easily dealt with as the customer deals directly with the company and eliminate any middle men or outside
Consumers can purchase the goods through diverse channels and this will raise consciousness in the customers’ mind and make the loyalty. The higher the channel, the lower the price, it is going to occur all kinds of customers. Thus, enterprises have to consider their distribution channel architecture. They need to decide that channel must be applied an identical to their brand
Distribution channels- Distribution channels help people to get their favourite food at their nearest places or at most famous public places.
Juhayna Food Industries is a leading Egypt-based manufacturer specialized particularly in the production, processing and packaging of milk, yoghurt, as well as juice. Egyptian company's factories are composed of 8 companies. Six factories are included in the group. During the past three decades Juhayna has succeeded in achieving the loyalty of consumers through the variety of quality products as trusted household names 1.