Page 595 - Business Principles and Management

project:
MY BUSINESS , INC.

DEVELOPING YOUR PRODUCT AND DISTRIBUTION
STRATEGY
Two important marketing decisions for your new business are the type
and assortment of products you will offer and how to distribute them.
Some new businesses have very limited product choices, and others offer
an extensive set of enhanced and extended products. Most retail busi-
nesses purchase products and supplies from other channel members, so
they are part of an indirect channel of distribution. An important part
of distribution is to select a good location for the business that makes it
convenient for customers to find the business and purchase your prod-
uct. In this project segment, you will study product development and
distribution decisions for your new juice business.

DATA COLLECTION

1. Identify your basic physical product. It will be very similar to that
offered by many competitors. Study as many competitors as you can
and identify the possible extended and enhanced product choices for
this type of business.
2. Study competitors and collect additional information about this
type of business from magazines and the Internet. List possible
product lines and product assortments that seem appropriate for
the juice products.
3. Collect examples of the packages and brand names used by the
primary competitors selling these products in your community.
4. Develop a simple map of the area of your town or city where you
might locate your new business. Mark on the map the locations of the
businesses that offer the same types of products you are considering.

ANALYSIS
1. Develop a product strategy that identifies the products, product
lines, and product assortments you plan to offer during your first
six months in operation. Justify your choices.
2. Review a business directory from your community or on the Inter-
net. Identify at least four manufacturers or suppliers from whom
you might purchase the products and supplies you will need for
your business.
3. Design the basic juice cup or container you will use to package your
product. If possible, contact a supplier and determine the cost of
various sizes of cup or container. Identify any other packaging you
will need.
4. Once your facility has been determined, analyze any immediate and
long-term improvements needed for the facility. Develop a sales pre-
sentation on your products. Videotape it or present it to your class.
5. Develop a distribution plan. Include the methods you plan to use to
store products and supplies and transport them to your stores. Also
list other possible channels for distributing your products.

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