Appropriate Retailers for Distributing KIND Healthy Snack Products
Any aspiring food processing business needs to select retailers that cover the target group for their products fully (Caspi et al. 540). To reach a customer base effectively, an organization must first assess the retailers such as food stores, supermarkets, shopping malls, beverage & snack shops, fast food joints, and convenience stores.
Advantages and Disadvantages of KIND Selling through Retailers
Retailers are essential in ensuring that a product reaches out to the intended consumers at their convenience easily (Caspi et al. 541). However, using retailers has its pros and cons.
- They play an essential role in KIND’s products reaching a full range of its target consumers.
- They offer KIND the ability to reach their target group easily.
- They have a wide reach
- They are the sole source of statistics for KIND to evaluate the demand for their products in a particular location.
- KIND will not be able to directly dictate the pricing of their products on the store shelves.
- If the business is not doing well, KIND’s products will stay in the store for long.
- They have no influencing capacity in regards to sales of KIND’s products they have displayed. Therefore, KIND has to keep on marketing its products in a particular store through banners, promotions, and discounts.
Importance of Wholesalers in KIND’s Distribution Strategy
Wholesalers, on the other hand, are essential in bridging the gap between KIND and retailers. They stock KIND products with the sole aim of distributing them to a retail store when ordered. They are critical in distributing the breakfast shake to the market. Wholesalers will promote the product by explaining to the buyers how it is safe and safe to the consumers. The breakfast shake is one of the products that follow of slogan and has natural and safe ingredients. As this breakfast shake is a new product of KIND, these market strategies may be used to promote the product well,
- Use of multi-market distribution. Though this will involve many traders in between, it is one of the strategies to use so that the breakfast shake can reach many buyers.
- Use of Intensive distribution. KIND should use distributors who can cover a large market. This is a good strategy as it will make the new breakfast shake to be known by many consumers.
- Use of selective distribution. For this breakfast shake to be consumed, the use of specific and selected traders should be applied. This one strategy will enable buyers to have faith in the product.
KIND’s production department analyses the orders from wholesalers to predict their next production batches and current consumption rates.
Market-logistics issues that KIND should consider for the successful launch of a new product
Marketing-logistics are the most crucial in a product launch to its consumption. KIND should follow these steps in ensuring success in launching their product.
- Place: KIND should assess the potential retail sections that are suitable for their products with the sole aim of targeting their consumers (Green et al.).
- Product delivery: KIND should come up with an efficient delivery channel that will ensure that their products reach the market in time to ensure they maximize on demand (Caspi et al. 541).
- Price: KIND should evaluate the best recommended retail price commonly referred to as RRP to ensure that consumers are not over-exploited by store owners (Green et al.)
- Promotion: KIND should introduce the product into the market via promotions and discounts. The trend should be periodical as a technique of raising product awareness (Green et al.)
Should KIND roll out the plan to produce breakfast shake for 14-25 years old students and athletes or not?
KIND should take up the opportunity and produce their new breakfast shake product. It is an excellent idea since they will maintain their slogan, “natural and healthy ingredients you can pronounce.” For a 14-25 years old athlete and student, they require some light snack to keep preparing them for the start of the day. Further, the snacks will be tasty. This is the catchy line to teens’ uptake of any snack in the market. They love new and delicious products. It is an excellent venture that KIND should take up and roll it out into the growing healthy snack market.
Caspi, Caitlin Eicher, et al. “Differences in Healthy Food Supply and Stocking Practices between Small Grocery Stores, Gas-Marts, Pharmacies and Dollar Stores.” Public Health Nutrition 19.3 (2016): 540-547
Green, Kevin M., et al. “A Meta-Analysis of Social Marketing Campaigns to Improve Global Conservation Outcomes.” Social Marketing Quarterly (2019): 1524500418824258.