Marketing Of Dove Milk Chocolate
A product takes many routes to reach the final consumer and thus marketers often seek to identify the most efficient channel. This makes marketing a good like the dove milk chocolate, which is consumer convenient, different from marketing a specialty good like a handbag. Thus, the dove milk chocolate uses the retailer channel. In this case, the retailer will be the party that ultimately sells the product to its consumer (Lamb, Hair, & McDaniel, 2008). Despite the fact that the retailer is the main driver of the distribution channel, the producer of the product does most of the decision-making.
Channel cooperation entails a joint effort towards creating a supply chain that gives each partner a competitive advantage, and most significantly produces the best services and products to the consumer. As such, there is a hierarchy in the distribution channel and thus the company with the most authority is considered the channel captain. Thus, authority refers to the ability of the partner to influence the behavior of the other partners within the channel. Thus, the role of the producer in this case is to implement measures aimed at promoting the concentration of supply. Additionally, the producer supplying the chocolate in this product chain has the responsibility of investing in product quality, relationship marketing and brand reputation. On the other hand, the retailer receives the dove milk chocolate from the producer and sells it to the end user. Thus, a conventional marketing channel would be the most appropriate to use among the type of retailers suitable for providing this product to the purchasers are supermarket, general stores, specialty stores and malls.
The intensive distribution channel will be the most appropriate for the dove milk chocolate in order to achieve maximum market coverage. In this sense, the manufacture of the dove milk chocolate will avail the product in every outlet so that potential buyers might access it. If the consumers are willing to look for the product, it must be available for them. Given that a low value product such as the chocolate is purchased frequently, it requires a lengthy channel. as such, small quantities of the product will be sold to retailers by the producers. For instance, if the producer adopts an intensive distribution strategy then the dove milk chocolate can be sold to retailers who are willing top stock their products. It is necessary to note that the willingness of the retailer to handle items is likely to control the ability of the manufacturer to succeed in intensive distribution (Christopher, 2005).
Managing channel relationships may pose a challenge to the distribution of the product due to the impact of social dimensions such as power, leadership, conflict, control and collaborating. Thus, when the channel relationships are not equitable, the clash of methods and goals among members can result in channel conflict. The conflict in this particular case may arise from conflicting goals of producers and retailers. For instance if the retailer wants to sell as many chocolates as possible in order to attain maximum profits, regardless of whether the chocolate manufactures is dove milk chocolate or any other brand, the manufacture of dove milk chocolate wants a specified market share and sales volume in each market. Likewise, horizontal conflict is likely to occur when two retailers are handling the same manufactures brand. For instance, this may occur if the dove milk manufacturer practices dual distribution strategies. When the company changes its strategy to start opening its own stores, the traditional retail partners may be angered (Christopher, 2005).
The inventory decision for the dove milk chocolate determines the supply chain costs. This is in terms of the raw materials use to create the end product such that costs are likely to increase if too many dove milk chocolates are kept in inventory. On the other hand, the company may risk product shortages, lost sales and angry customers if a few products are on hand. An inventory control system will be adopted to develop and maintain an adequate supply of raw material and products to meet the demands of customers. With regard to warehousing and materials handling, all the aspects of the storage and movement of the product on the route from suppliers to the final consumers involve a lot of effort. Since the dove milk chocolate is a tangible product, then the role of logistic is more evident from the process of moving materials, components, finished goods, individuals, paperwork, knowledge, information, energy, and any thing else required by the operations (Bo wersox, Closs & Cooper, 2007). It is difficult to keep the shelves of retailers stocked with the dove milk chocolate following the ever-changing trend in operations within retailing stores. The dove milk chocolate starts its journey with the farmer of the cocoa and milk, raw materials suppliers, component makers, manufacture, finishers, packers, ware houses, transporting companies, retailers and finally to consumers. The dove milk chocolate will therefore be accessed by the consumers from the nearest point if the manufacturer increases transportation efficiency and better inventory management practices.
Bo wersox, D, J., Closs D.J., & Cooper, M, B. (2007). Supply chain logistics management. New York :McGraw –Hill publishing.
Christopher, M. (2005). Logistics and supply chain management (3rd edition), Essex :FT Prentice H all publishing.
Lamb, C, W., Hair, J, F., & McDaniel,C (2008). Marketing. New York: Cengage Learning Publishers.
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