FSM3075
Food Service and Hospitality Strategic Marketing
Individual Assignment #4, Direct/Indirect Distribution
For this assignment you will put yourself into the shoes of an entrepreneur with a new food product. You have set up a manufacturing operation in a small business incubator facility. Your output is limited but there is plenty of capacity to grow. You believe that consumers and full service restaurants are potentially fruitful markets for you.
You need to decide the best way to distribute your product to these markets, either directly or indirectly. You will make this decision based on the six conditions identified in the Developing and Managing Channels of Distribution Reading in the HBSP Coursepack. Describe the following conditions as they likely exist for your company (You will need to use your imagination and draw some conclusions based on the limited information provided.). Decide if you will distribute directly or indirectly based on the conditions. Briefly explain your decision.
Conditions
1. The size and distribution of the end customers
2. The nature of the product or service
3. The role and the position of the product in the end customer’s purchasing basket
4. The nature of the producer firm
5. The relative size of the producer firm
6. The business strategy of the producer firm
Conclusion
• Will you distribute your product directly or indirectly?
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