Cheese company Place Analysis Essay

Place and Distribution Channels
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March 28, 2021
Table of Contents TOC \o "1-3" \h \z \u Table of Figures PAGEREF _Toc67845562 \h 2Place PAGEREF _Toc67845563 \h 3Channel System PAGEREF _Toc67845564 \h 3Sale through Retailer PAGEREF _Toc67845565 \h 3Logistics and Customer Service PAGEREF _Toc67845566 \h 5
Table of Figures
Figure 1. Channel System Diagram……………………………………………………………….4
Place
Channel System
Cheesseen is a cheese production company. The company produces cheese and cheese products on its ranch. The ranch cows are fed on organically farmed greens, with half the ranch being a farm for cow feeds. As the company is starting up, it needs to create a brand that can attract its initial set of consumers base on its affordable yet high-quality cheese products on the market. However, in establishing its place of operations, Cheeseen would initially focus on the use of a "Sale through retailer" distribution system. In line with the segmentation plan provided in the company's 'objective planning,' this distribution system would best reduce the costs of distribution and maintain the freshness of the product while still taking advantage of the high traffic and consumer base retailers offer.
Sale through Retailer
As stated earlier, Cheeseen will be using a sale-through-retailer distribution system for selling its cheese products. Notably, the distribution pathway for this channel would start from the producers, passed for distribution and management of retailers, and the consumption of the consumers CITATION Mog19 \l 13321 (Moghaddam, Javadi, & Molana, 2019). This distribution system would be most beneficial in line with the initial goals and aims of the company due to its advantages like; (1) fewer distribution costs, (2) better freshness, and (3) presence of high traffic and consumer volume in retailer stores.
First, the use of a sale-through-retailer distribution system reduces the company's distribution costs. Being a startup, Cheeseen would benefit from the lesser fixed and operational costs due to the lesser number of intermediaries. Accordingly, such costs could be used for further product improvement or increasing the company's marketing budget.
Second, maintaining the product freshness can be improved by reducing the number of intermediaries. Since the company's main product is a perishable good, then a shorter distribution channel would be better. Additionally, given that the company aims to start its distribution chains within the locality, then additional distribution channels would not be necessary for the meantime.
Finally, a sale-through-retailer distribution system would improve the initial customer base through high-volume traffic in retailer stores. Supermarkets and other retailers constantly traffic customers every day, which means that marketing costs could be more efficiently used CITATION CBI20 \l 13321 (CBInsights.com, 2020). Additionally, since the customers of local markets live within their immediate and nearby vicinities, the "market testing" in the nearby lo...