Reference no: EM133925241
Assignment:
Olive & Sinclair - Chapter 14: Our goal this week is to practice distribution strategy and consider the different elements that impact distribution channels including target market, brand image and pricing strategy - and how a change in distribution can impact sales (keep in mind our Nike video from this week!). After watching the case video and reading the case, respond to the following prompts:
Look at the different distribution options for Olive & Sinclair. Keep in mind the company's brand image and target market characteristics as well as the situations for which each type of channel works best. Discuss the upsides and downsides of the following Olive & Sinclair distribution options.
Selling Direct through their in-person store. What is at least one upside and one downside for selling the chocolate solely through their in-person store?
Selling Wholesale to Specialty Grocers. What would be one upside and downside for selling wholesale to specialty grocers?
Selling Wholesale to "Big Box" Stores. What would be one upside and downside for selling wholesale to "big box" stores?
Profit Calculation: A chocolate bar sells for $8.50 retail. (Assume the markups listed in page 2 of the case file.) If the Cost of Goods Sold is $2.00, what profit would Olive & Sinclair make when selling wholesale to stores? What profit would they make when selling direct-to-consumer (DTC)? (Assume no labor costs.)
2. Recommend a NEW distribution strategy. Be sure to provide a rationale for your answer and cite our text, readings, videos and resources from this week to support your recommendations. Reminder: Keep in mind the target market and your pricing strategy as you consider your recommendation.
1. Channel Structure - What's your distribution strategy? Should the company sell product:
- Direct-to-consumer in their online or brick & mortar store
- Wholesale to small boutiques
- Wholesale to specialty grocers
- Wholesale to big-box stores
- A combination (describe combination)
- None of the above
2. Channel Structure: Mix - How much should they focus on each channel of distribution? (Should they focus half of their marketing efforts on each, only a little on one channel, etc.) Explain your strategy and reasoning, be sure to cite our resources from this week.
3. Assuming a wholesale option (regardless of your response to a), brainstorm two stores that you feel would be a good strategic fit for Olive & Sinclair. Why would they be a good strategic fit?