Monday, February 27, 2012

Final Project: Distribution

Initially, Chocolate Expressions own online store will be the sole distributor of our products. "Between intensive and exclusive distribution lies selective distribution—the use of more than one, but fewer than all, of the intermediaries who are willing to carry a company’s products." (ARMSTRONG, KOTLER, Marketing An Introduction, chapter 10, page 26.) Since this is not the best distribution model we will begin working with greeting card companies and specialty chocolate outlets to carry our products in their stores. "The producer and intermediaries need to agree on the terms and responsibilities of each channel member. They should agree on price policies, conditions of sale, territory rights, and specific services to be performed by each party." (ARMSTRONG, KOTLER, Marketing An Introduction, chapter 10, page 26.) It is important that each channel member adhere our pricing polices so as not to weaken our position in the market. Also, any online promotions will be exclusive to our online store.

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