Chocolate is one of the mainstays for American customers and comes in different forms. The country has numerous companies that make chocolate and its derived products with a broad range of stores vending such brands. Taza is one of the American-based enterprises that concentrate on the manufacture of chocolate bars (Iacobucci, 2016). It is a relatively young firm domiciled in Somerville, Massachusetts, with about twenty employees. The business deals directly with certified organic farmers to source its ingredients, creating strong and lasting relations with the growers while obtaining the quality products. Taza Chocolate sells most of the items to distributors, wholesalers, and retailers (Iacobucci, 2016). It also sells directly in its website and to the community residing near the company. Despite being a new entrant in the industry, Taza has a sophisticated distribution channel, pricing strategy, and integrated marketing approach as presented in the response analysis.
tailored to your instructions
for only $13.00 $11.05/page
Distribution Channels and Significance to Overall Marketing Efforts
The establishment employs several distribution channels to vend its products. Taza uses both indirect and direct distribution approach to circulate its products as part of its delivery plan. The indirect method entails selling its goods to wholesalers, distributors, and retailers with the price attached for effective resell that guarantees returns to such critical players. It also adopts direct distribution through orders processed via its website at competitive costs. It also implements an innovative delivery tactic called “Chococycle” where staff situated in Somerville rides around on a bicycle selling its products and issuing samples at an upmarket or open bazaar. The firm also uses factory tours as part of local marketing strategy. It imposes an entrance fee during visitations by domestic customers. The distribution channels allow the customers to interact with their quality products at the earliest convenience, as well as round-the-clock items availability. Building partnership with distributors and resellers enhances brand awareness.
Price differentiation based on the distribution channel is a critical success element for Taza Chocolate. Each delivery system aims to enhance customers’ accessibility to the products while maintaining a business-centric perspective in such supply models. All the channels employ and remain cognizant of a price differentiation strategy in the enterprise. Keeping the depth and breadth of distribution lines is an effective approach in monitoring and measuring the business (Ailawadi & Farris, 2020). Once a business commits to a set of provision modes, it is inappropriate to change or disrupt the process because the methodologies have numerous connotations. Every circulation style alongside their devoted prices contributes to a better managerial sense. For instance, by selling locally through the “Chococycle” platform or even via the website at competitive prices, the enterprise gains trust while expanding its customer base. The supply methods make the firm to engage with consumers at various levels while providing them with quality products.
Taza Chocolate, just like any other consumer goods manufacturer, use integrated marketing channels concurrently to reach varied target markets. The plan entails selling items to consumers directly or to other businesses that further conveys to customers. For instance, the company sells its products to dealers, retailers, and independent distributors with the sole objective of delivering products to intended customers with realizing revenues from the business. The move builds an essential trust factor due to continuous availability of its items coupled with remarkable quality, making the enterprise to develop and sustain a unique business model.
Ailawadi, K.L., & Farris, P.W. (2020). Getting multi-channel distribution right. Hoboken, NJ: John Wiley & Sons.
Iacobucci, D. (2016). Marketing management (5th ed.). Boston, MA: Cengage Learning.