Distribution Plan Channel Design essay
The channel design should focus on the development of the effective channels of distribution, which allow the company to distribute the new product fast and deliver it to customers as soon as possible. In this regard, the company should focus on diverse channels of distribution which can back up each other. The company can focus on the supply of snackfood to the chain of its fast food restaurants. Furthermore, the product may be distributed directly to customers using the call center, which accepts orders from customers, while the shipping service will deliver its products to customers. In addition, the company will deliver its product to retailers, which can sell products to customers directly. In such a way, the company can use retailers to sell its products en mass. The use of retailers can boost sales of its products closer to the target customer group.
b. Retailers
While choosing retailers, the company should focus on large retailers which are oriented on lower- and middle-class customers. Retailers should offer the company an opportunity to sell its product at affordable price. At the same time, retailers have to be oriented on mass sales to increase profits of the company producing snackfood by means of increasing the sale rate. Mass sales can help the company to increase its profits, taking into consideration the low profit margin of the product. At the same time, the company can develop effective policies to reach large retailers operating in the lower-segment of the market. In such a way, the company can enhance its position in the market since large retailers can help the company to expand its business nationwide fast and increase its sale rates.
Section VIII
VIII. Promotion Plan
a. Advertising Concept
i. Message Appeal
The promotion of the new product is an essential condition of the successful marketing of the product. In this regard, snackfood needs the effective and attractive slogan that will catch the attention of customers and persuade them to start buying snackfood, instead of conventional fast food. In this regard, the company producing snackfood should focus on distinct features of the product, such as the positive impact of the product on customers’ health, its fast food nature that means that the product may be cooked and consumed fast without waiting for a long time, when the product is ready to consume as is the case of conventional but healthy food. In addition, the product is easy to buy and customers can consume the healthy product at an affordable price.
More important, the company should not only stress advantages and strengths of snackfood but also promote the specific lifestyle to make customers buying snackfood on the regular basis. For instance, the company can promote healthy and active lifestyle, which makes the consumption of snackfood, which is a healthy fast food item, an integral part of such lifestyle, which is particularly popular among the youth and young adults, which are the target customer group of the company.
In such a way, the appeal to the target customer group leading active and healthy lifestyle should comprise the core of the marketing and promotional strategy of the company. Hence, the appeal message of snackfood should be as follows:
Healthy fast food for everyone, anywhere and anytime.
ii. Message Execution
The message should be shaped clearly and be appealing, on the one hand, and informative on the other. In such a context the proposed message (Healthy fast food for everyone, anywhere and anytime) is efficient because it explains the essence of the new product and its positive impact on consumers’ health along with its availability and affordability. At the same time, the message should be conveyed via media available to the target customer group.
iii. Media
Among the variety of media that can be used for the promotion of food snack, it is possible to recommend using television and internet above all as the major media to reach the target customer group. These media are the most popular and available to the youth and young adults. The company may create the website to back up the new product, where customers can receive any information on the product and order it any time they like. The website can help the company receive the live feedback from customers on the product. As a result, the company will be able to respond to customers’ demands and change its product respectively.
b. Sales Promotion Tools
Sales promotion tools will involve special offers to loyal customers, such as the special discount system that will attract customers with low-income, which comprise a large part of the target customer group of the company. In addition, the company can offer its customers a possibility to win the annual fitness center subscription that will attract customers concerned with their health, which also are the target customer group of snackfood.
c. Public Relations Tools
The company can sponsor sport events and socially significant events at the local level, including offering free snackfood for the poor in terms of the promotional campaign. In such a way, the company will create a positive brand image and attract its target customer group, especially customers with low income.
