1. Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers' market produce, stereo equipment, and rolls of steel. Then construct alternative channels for these same products. Farmers’ market produce could fall in one of two marketing channel structures the first one being direct channel.
This is so because the Farmers market can sell their produce directly to the consumers. Alternatively, they could sell their produce to wholesalers through agents/brokers channels whereby the wholesalers will sell the produce to retailers, and finally retailers sell the produce to consumers. Rolls of steel are most likely to be marketed through direct channel structures. This is so because they are typically sold to business or industrial markets such as construction companies. For this reason, they are typically sold in large quantities from the manufacturer thereby making direct marketing channel the most practical.
New vehicles and stereo equipment would be most likely marketed through retailer channel structures because retailers are large and can buy large quantities of these products directly from the manufacturer. Lastly, candy bars, Tupperware, and non-fiction books are most likely to be marketed through wholesaler channels because this channel structure is the one commonly used for frequently purchased low cost items.
2.Discuss the impact of just-in-time production on the entire supply chain. Specifically, how does JIT affect supplies, procurement planning, inventory levels, modes of transportation selected, and warehousing? What are the benefits of JIT to the end customer?
Just-in-time is a very effective production system that has a positive impact on the entire supply chain for the simple fact that it is lean, or green: Nothing goes to waste! This means that stock levels of raw materials, work in progress, and even finished products are kept to a minimum. However, this system requires a very carefully planned scheduling for it to work. Inventory levels are closely monitored such that stock is only obtained when it is needed.
This makes storage or warehousing easy since less space is required transportation as well. Identify the type of retail operation that the following stores represent: JC Penneys is a department store because it carries a variety of shopping and specialty goods such as apparel, cosmetics, housewares, electronics and furniture. Purchases for department stores are generally made within each department rather than centrally Food Lion/Vons are specialty stores because they specialize in a given type of product, and in this case, they specialize in food products. Seven-Eleven is a convenience store because they carry only a limited line of high-turnover convenience goods.
They are usually found near residential areas and operate 24hours a day, seven days a week. Toys-R-Us and Petco are discount stores, but more specifically, specialty discount stores, also referred to as category killers because they heavily dominate a narrower merchandise segment (in this case, toys, and pet products respectively). Wal-Mart and Sam’s Club are discount stores, but more specifically, full line discount stores because they offer consumers very little service and carry a broad assortment of goods such as hardware, housewares, toys, auto parts, sporting goods, clothing, bedding and so forth and so on. Dollar General/Dollar Tree is also a discount store, but more specifically, an extreme-value retailing store. These kinds of retailers are usually found within the community and carry day to day necessities marked at rock bottom prices aimed to attract low and fixed income consumers.