Reference no: EM133877149

Case Study: FreshBrew Ltd. - Choosing the Right Distribution Channels

FreshBrew Ltd. is a medium-sized coffee brand based in Kenya. It sources high-quality Arabica beans from smallholder farms in the highlands and has built a reputation for ethical sourcing and premium quality. Originally, FreshBrew sold only to local cafes and restaurants, using a direct distribution approach with its own delivery vans.

With the increasing popularity of its brand among international tourists and growing interest in specialty coffee overseas, the company is exploring new distribution strategies. The management team is considering expanding into international markets such as the UK and Germany, and also launching an e-commerce platform to sell directly to customers worldwide.

To achieve this, FreshBrew is evaluating several distribution channel options:

Retail Partnerships: Collaborating with international supermarkets and organic stores like Whole Foods (UK) and Alnatura (Germany) to stock FreshBrew products.

Online Marketplaces: Listing their products on platforms such as Amazon and Etsy.

Own Website: Developing their own online store with international shipping and subscription options.

Distributors and Agents: Appointing foreign distribution agents who would be responsible for marketing and logistics in selected regions.

The management must consider factors such as cost, control over branding, customer experience, and market reach. One key concern is maintaining the brand's image as ethical and high-quality, which could be compromised if products are placed in the wrong retail environments or handled poorly by intermediaries.

Question 1. Define the term ‘distribution channel' and explain the two main types of distribution channels.

Question 2. Identify and explain two benefits and two challenges FreshBrew may face if it chooses to sell through online marketplaces like Amazon. Hire best assignment help and experienced tutors now!

Question 3. Evaluate the suitability of using intermediaries such as distributors and agents for FreshBrew's international expansion. Provide at least one example to support your answer.

Question 4. Compare the advantages of direct distribution through an e-commerce website with indirect distribution via retail partners. Use FreshBrew's context to support your answer.

Question 5. Recommend the most appropriate distribution channel or combination of channels FreshBrew should adopt for its international expansion. Justify your answer.