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Distribution Strategy and Strategic Alliances
Introduction
Perrys Ice Cream may collaborate with a competing national brand, but there are considerations that have to be made. This paper looks at those issues. They include sales channel, the pros and cons of partnership, the value of alternative marketing channel options, and whether margin or drayage makes the most sense.
Direct Sales Channel
Direct sales involves the company selling its products directly to customers, without going through any other retailers or intermediaries. There are several potential advantages to this approach for Perry Ice Cream (Ryan & Barretta, 2018). First, it can allow the company to better control its inventory and ensure that its products are fresh. Second, it can reduce costs by eliminating the need to pay fees to middlemen. Finally, it can give the company a more direct relationship with its customers, which can be valuable for marketing and customer service purposes. However, there are also some potential drawbacks to direct sales. First, it requires a significant investment in terms of staff and resources. Second, it limits the reach of the company's products, as they will only be available through Perry Ice Cream's own channels. Finally, it carries the risk of alienating potential customers who may prefer to purchase products through more traditional means.
Partnering with a National Brand
There are a few potential pros and cons to partnering with a national brand that is also a competitor. On the pro side, it could...…for Perry's specific situation.
Conclusion
Whether direct sales is a good option for Perry Ice Cream depends on a variety of factors including the company's specific needs and objectives. The decision of whether or not to partner with a competitor will come down to a weighing of the potential benefits and drawbacks. Each type of marketing channel has its own advantages and disadvantages, and it is important to choose the right mix of channels in order to achieve the desired results. Ultimately, the decision of which type of marketing channel to use depends on a number of factors, including the nature of the product, the size of the target market, and the resources available to the company, and whether margin or…
References
LeRoux, M. N., Schmit, T. M., Roth, M., & Streeter, D. H. (2010). Evaluating marketingchannel options for small-scale fruit and vegetable producers. Renewable agriculture and food systems, 25(1), 16-23.
Ryan, K. & Barretta, P. (2018). Perry's Ice Cream Distribution Strategy and StrategicAlliances: The 800-Pound Gorilla. London, UK: SAGE
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