Tuesday, November 25, 2014

Distribution


Now that our marketing strategy is “off the ground” so to speak, the business now has to work on its current marketing situation. We know that we want business-to-business relations but the next reasonable question would be how to get the product there.  To maximize efficiency and minimize unnecessary expenses, the book suggests “a review of distribution that evaluates recent sales trends and other developments in major distribution channels.” (Marketing An Introduction, Gary Armstrong, Table 2.2, pg. 56) After reviewing that, we have to decide where we would want to get our product and how. This is where marketing intermediaries come in play. Marketing intermediaries help the company to promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.” (Marketing An Introduction, Gary Armstrong, pg. 68) I think for my business, I would consider taking the risk of starting local. Although some may argue that going this route would be the last thing a new business would do, I think that this city [Vegas] would provide the boost we need that other cities wouldn’t. Starting local, first and foremost, would keep distribution costs down. We want to get to local bars because word and demand for a good bar experience would spread like wildfire by word of mouth. After gaining support [hopefully] and fulfilling some orders from local bars, we would open up to the big box stores. With enough money and the backing of the Las Vegas bar scene, people would want the snacks at home as well. A similar approach can be observed with products like TGIF’s Potato Skins. Originally starting as menu items exclusively served at the restaurant, demand for the product, brought up by people asking the company “where they could buy them” created a sustainable demand for the product outside of the restaurant. Now, you can buy Potato Skins at your local Walmart as well as other brick and mortar locations. This is the type of expansion we seek to accomplish with the Chicharon Crispers. This would, then, cater to our secondary target market—the masses.

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