Q1. After a trip to Peru, where you were inspired by the craftsmanship of artisa
ID: 1224474 • Letter: Q
Question
Q1. After a trip to Peru, where you were inspired by the craftsmanship of artisans who make jewelry and decorative artifacts, you decided to establish an import business focusing on their work. How would you determine distribution intensity for your business? What mode or modes of transportation would you use to get the goods to the United States? How and where would you warehouse the goods? Explain the reasoning behind your answers. (50pts) Q2. Think about the confectionery category (candy, gum, and mint) and then choose a product within that category. There are many products available in stores within this category for us to consider purchasing. Confectionery products are typically sold in most distribution points (food stores, drug stores, convenience stores, big box stores, department stores, etc.) The category is highly competitive and consumers buy this category on impulse so the manufacturers and retailers rely on up to the moment information at the store level to have the right candy brand in the right place for the target market. Hershey Foods would like to launch a new chocolate candy bar targeted to teen boys. Describe the channel strategy that would be most appropriate for the first 90 days of introduction. Discuss how the finished goods would be transported from its plant in Hershey, PA to stores across the globe. Explain the reasoning behind your answers (50pts).
Explanation / Answer
Q1.
The key for importing artifacts, jeweler and goods from Peru is transportation and distribution. It is essential to plan for international trade. This would be essential for cost effective and efficient import operation. The efficient way to import from Peru will be air.
First, assess the size and weight of the goods to import as it will have an impact on the cost.
Second, think about how quickly these products can be reached to U.S.A. this is necessary and the type of delivery service and the cost will be useful in this case. Air route will be quicker and significantly cheaper. At the same time due attention must be taken to see if the transport costs affect the overheads.
It is also essential to get quotes from the insurance brokers before fixing on the appropriate insurance level for the artifacts and jeweler. The special requirements of the customers in U.S need to be taken care of. Care needs to be taken to ensure that the products imported have market value and demand to cover the costs invested.
Supplier reliability will ensure that the products being imported are in quality and quantities that are required. The financial demands of importing need to be managed and additional costs in transportation, insurance, foreign exchange etc need to be built in the usual financial plans and cash flow projections.
Q2:
The placing and distribution of confectionery product is of vital importance. Many a times the purchase of such product is not on regular basis for a regular consumption, but it relies upon the impulses of consumers.
When Hershey Foods is going to start the launch of its new candy marketed for teen boys, it should be very careful and selective and persuasive about its distribution strategy.
Multi channel placing strategy would be beneficial here. Distributors and retailers would help to gather information from market and would help to promote the candies as well.
The following can be used in first 90 days to channel the candy correctly to teen boys:
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