Reference no: EM133696544

Assignment:

Background Information:

This video illustrates the channel and physical distribution strategies (the PLACE element of the marketing mix) used by Country Pure Foods, a manufacturer and distributor of beverage products, including juices, single serve water and most recently, ready-to-serve iced coffee. Country Pure Foods specializes in juice products, which it manufactures and distributes under its own brand names [Ardmore Farms, Natural Country] as well as through private label arrangements with retailers, such as Buehler's Grocery Store Chain, and under contract  arrangements with major national brands.

A number of distribution and channel concepts are explained in the video, including multiple channel distribution strategies, cooperation among channel members, supply chain activities, and physical distribution technologies. The video provides visual examples of the storage, warehousing, and transportation functions which are account for nearly 30% of the cost of many products but are not typically transparent to consumers.

Country Pure Foods uses its multiple channel distribution strategy to leverage opportunities in the marketplace. Specifically, Country Pure Foods distributes products through the food service, retail, and co-pack channels. Students are able to visually see each of these distribution channels and the various activities and channel partners involved in each, including SYSCO a well-known national distributor and Buehler's Markets, a local chain of 13 grocery stores in Northeast Ohio. The video gives examples of the tradeoffs in physical distribution costs and levels of customer service, explaining how lost sales can occur because inventory levels are too low, resulting in customer dissatisfaction, or customer service levels are so high, price must be higher than customers are willing to pay. Specific examples are used to explain these concepts to students in a more concrete fashion, using examples such as schools, and airlines that college students can easily relate to.

Additionally, the video illustrates the distribution technologies used by Country Pure Foods to lower costs and increase customer benefits: scanning, EDI, and a robotic palletizer. Answer the questions below pertaining to the video and utilize theory from Chapters 10-12 and any relevant material (video links or articles) to support your viewpoints.

1. Explain how Country Pure Foods employs a multiple channel distribution strategy. Now explain in more general terms why most firms employ a multiple channel distribution strategy.

2. Your text and the video state that "Close cooperation among all firms in the network is critical to meet the needs of the customer at the end of the supply chain". Give examples of cooperation among channel members as shown or implied in the Country Pure Foods video. What are the benefits from such cooperations? What alternatives exist to these cooperations?

3. The robotic palletizer used by Country Pure Foods to assemble pallets for storage is one of the distribution technologies illustrated in the video. Explain how this particular technology impacts distribution cost and customer service.