Question 5a. Product Distribution Channel I can describe our product’s distribution channel as indirect. This type implies that the company uses intermediaries to distribute its products (Hurd, Barcelona & Meldrum, 2008). Such agents help to spread the product through retail stores, wholesalers, and other distributors and vendors to end consumers.
Question 5b. Presence of Electronic Marketing Channel Electronic marketing channels involve the use of specific information technologies. With their help, ventures can create, communicate, and deliver services and messages to customers (Tompkins & Harmelink, 2004). In particular, the Doritos Chips company uses this channel through the social media platforms such as Facebook, Foursquare, and Yelp to widely represent content about its product, which is mostly created by its consumers themselves. The firm also applies customers’ 30-second commercials to show them on the television channels that market Doritos’s products. Additionally, Doritos chips are featured in various movies, thus improving its electronic marketing. By utilizing media resources, the company gains popularity among various target segments.
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Distribution Strategy Our company applies the distribution strategy which exactly meets our goals. Specifically, dual distribution presupposes that two or more channels are used to disseminate a product (Tompkins & Harmelink, 2004). The Doritos Chips company uses this strategy whereby the commodities are delivered directly to retail stores. Another channel implies sending the product to the customers’ warehouses, and the third channel includes third-party distribution networks, such as vendors and operators. By using dual distribution, the company can reach a wider market in a short time, thus saving on costs and
Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.
Since its inception, Chipotle Mexican Grill has faced a number of issues in regards to how employees are treated. There have been reports of employees not being paid for the work they are asked to do, not having clear leadership or direction, and favoritism from managers towards certain employees. This report will further explore the issues Chipotle is facing, as well as offer suggestions for improvement. However, with every new plan there is always the chance of issues during the implementation of new ideas/plans. In summary, this report will offer solutions to Chipotle’s management on how to fix the issues already in place, recognize the issues or problems that will arise, and try to offer suggestions on how to control any push back.
In 1993 the first Chipotle Mexican Grill restaurant was opened in Denver by Steve Ells. The Chipotle Mexican Grill, Inc. a Delaware corporation, serves a focused menu of burritos, tacos, and salads that are made using fresh ingredients. Despite the focused menu, customers have the option to personalize their order. The idea of Chipotle was to show that the food can be served fast without having “a fast-food experience.” In the late 90s Mickey D wanted to prove to its investors that it was diversified. It bought stocks from Boston Market, Donatos, Pret a Manger and Fazoli’s. In 1998 McDonald’s invested about
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
The company I chose for the international marketing strategy project is Chipotle. Chipotle is a chain restaurant which has Mexican cuisine items on the menu. The company can be seen as a fast food company, however according to the company, they are using quality and fresh ingredients in meals. Generally, fast food restaurants are not healthy and fresh if we compare fast food restaurants with fine dining restaurants. According to Chipotle; “When Chipotle opened its first restaurant in 1993, the idea was simple: show that food served fast didn't have to be a “fast-food” experience. Using high-quality raw ingredients, classic cooking techniques, and distinctive interior design, we brought features from the realm of fine dining to the world of
Chipotle Mexican Grill, Inc. is a fast food restaurant franchise that was established in 1993 and is based in America, Canada, Germany and France. The franchise has had an immense amount of success over the last decade, with an annual revenue of 4.5 billion dollars in 2015. With its inception in 1993, Chipotle maintained a culture and mission that “food served fast didn’t have to be a ‘fast food’ experience.” (chipotle.com). Chipotle has become a cultural and societal phenomenon in the US.
The creators of this commercial may of tried to persuade us in a different way than everyone else. But in the end was still entertaining. I believe they tried to persuade us by trying to prove that everyone loves Doritos even the baby inside the mother's womb still could smell them. They were also trying to show that the baby wanted the Doritos so bad that it jumped out of the mother just to grab one. This video was so entertaining and not forgetful that every time someone goes to the store to buy something they will see Doritos and think of that commercial
Chipotle Mexican Grill is one of the most popular Mexican restaurants in the United States, which offers burritos, bowls, tacos, and salads. It is one of my favorite restaurants to visit.
C. Place When it comes to distribution channels, an organization like the NFL uses many of them. For example, NFL teams sell things like tickets direct to end users through their website and marketing campaigns. For things like online buying, the NFL sells through a value added reseller. They have a contract with a company that makes all of the NFL teams’ apparel, then the NFL will resell that apparel to fans online, at games, etc. D.
In the Doritos commercial advertisement, the logo is seen with the brand title. The Doritos logo is the more powerful of the two based on this information, because of how Doritos is widely known and recognized by all, while many of the sponsors on the billboard aren’t as immediately recognizable. The video describes how our society may not even care about the product being advertised, but we still read the billboard or watch the commercial. Also mentioned was the use of colors in a commercial, the marketing effects in politics, and even market research obtained by studying different cults.
...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
It helps create bonds with customers by listening to them about the products and taking the customers opinion into consideration. After all, media marketing is very influential in the world of business and marketing. More and more businesses are working at creating a more well-rounded inter-web advertisement scheme. Through the placement and strategic plan on making the ad and where to put it and how to make the ad stand out to the streamers on the websites the business ad is on. Media marketing will continue to grow and progress as time progresses and more and more people gain access to the internet.
A consumer might pay a bigger cost for the company's services or products due to an assurance to purchase the brand or a passive agreement. The path they bought should be identical to the company's status. Furthermore, companies always need to investigate whether channels are appropriate to marketing or not. Almost every today's companies adopt integrated multi-channel marketing such as social media. They can utilize one or more distribution channels in various ways. It can be sure that the higher the distribution channel, the higher the market place coverage.
...t in both direct and indirect ways. Direct sell will include, sell in online forums or use direct mail to reach our customers. When selling directly, we can take the time to showcase our product’s distinct attributes. Before turning sales over to a distributor, we will build a base of direct sales to prove the product will sell. Using an indirect approach, we will persuade stores to carry our products. While more time-consuming, approaching retailers in store or at trade shows gives us more control over how our product is displayed and how it’s presented to customers. For indirect sales incorporate a middleman in some way or another. A distributor’s functions include stocking, ease of ordering and quick delivery with no pioneering sales efforts. Intermediaries have expertise and contacts, but they may require minimum order quantities and an established sales record.
Distribution channel deals with the delivery of the product to the customer. How good the distribution channel is, depends how effectively the channel fulfils the customers need of time utility and place utility as well as keeping the channel structure under manageable levels.