Soda Essay Example | Topics and Well Written Essays - 1000 words

Soda - Essay ExampleGiven that the company we are dealing with is a multi content, different strategies are used to trade the soda depending on the specifications of that particular segment.The soda is normally distributed apply the five main distribution pedigrees namely Vending, Food stores, convenience & gas, reverse lightning, and press merchandisers. Supermarkets universe the principal customer for soft drink makers are mettlesomely fragmented although it go forth be one of the main channels we are going to exploit. We will use them as one of the channels to get to the clients because they have a big customer base owing to the heavy flow of traffic. The problem with national mass merchandising is that they have a big bargaining power which significantly reduces on the profitability of soda. This is also coupled with the fact that their loyal clients dwell discounts in order to continue using their services. Low prices means less profits although this is a channel that i s crucial for us especially in name of marketing our product and establishing a market niche (Keller 114).The fountain sales are equally less profitable just like the national mass merchandising but we will consider it as paid sampling. This channel is a little tricky because the buyers at major fast food imprisonment often stock products from one producer in order to have a stronger bargaining power. The effect is that the sales volume will be high although the profitability level will be low owing to the relatively big percentage of the sales going to them. However, this is a very important channel for us because it will help us in building our brand and developing customer loyalty. This is the reason why we will invest in fountain equipment and cups used to serve the sodas in these outlets.The most profitable channel of distribution for soda is vending because we will be able to sell directly to the clients without using any