Running head: ICE CREAM DISTRIBUTION 1
Ice Cream Distribution
What are the potential pros and cons of Perry Ice Cream's direct sales distribution channel?
Delegate your assignment to our experts and they will do the rest.
Perry Ice Cream’s direct sales distribution channel has advantages because the company can deliver to shoppers what is needed in a timely fashion, when it is needed, and on individual basis. In that sense, they deliver a unique experience to the shopper. In the rising demands of the modern shopper, this distribution channel is the most effective (Ryan & Baretta, 2018). At the same time, the direct sales distribution channel establishes a true collaborative relationship between retailer and the supplier. However, the direct distribution channel has cons as Perry has to employ many employees to distribute their products (Ryan & Baretta, 2018). The company has to dig deeper in their budget to acquire frozen food trucks, establish routes and drivers that deliver to the majority of the retail and food service outlets.
What are the potential pros and cons of collaborating/partnering with this national brand?
By collaborating with a national brand, it will be a win-win situation for Perry. Firstly, Perry will have their products advertised, since the national brand has deep pockets to spend on advertisement, which will promote their products. Profits will maximize on whichever method, on drayage or margin. Even so, collaborating with national brand will come with cons since the two will be competing directly with Perry’s market share (Ryan & Baretta, 2018). The national distribution does not have distribution in the core markets where Perry enjoys dominant market. In addition, being partners will mean selling same products, making it difficult to set Perry apart from the national brand (Dent & White, 2018).
Evaluate the marketing channel options and describe the value channel members provide.
In view of the marketing channel options, channel members bring value because they can help in advertising products, and in some cases help to maximize profits. In the case of Perry, history shows all the channel members have complemented their brand and enhanced their assets (Ryan & Baretta, 2018).
Assuming that Perry's leadership decides to carry the competitors’ products, evaluate the two proposals. Would you recommend they use on margin or drayage, and why?
The company should go by on margin because the company will earn healthy margins at regular pricing (Dent & White, 2018). The company should strive to get freshet product on customer shelves. By so doing, they will set themselves apart in the eyes of the consumers. Customers will have fresh assortment of flavors compared to the national brands. Drayage would be an additional burden to Peryy, and they will find it difficult to get their products on shelf in time (Ryan & Baretta, 2018).
References
Dent, J. & White, M. (2018). Sales and Marketing Channels: How to Build and Manage Distribution Strategy. 3 rd ed. New York, NY: Kogan Page
Ryan, K. S. & Baretta, P. G. (2018). Perry’s Ice Cream Distribution Strategy and Strategic Alliances: The 800-Pound Gorilla. New York, NY: SAGE Publications: SAGE Business Cases Originals
