Marketing Distribution In Order For Marketing Plan

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Typically, personal care products are made in the country in which they are sold, though it is possible to utilize regional trading blocs such as NAFTA for continental-wide production. If we choose to develop our own manufacturing capabilities, we need to ensure that we have a program to ensure quality and to ensure cost control, and we must decide if we are to produce in the U.S., Canada or Mexico. Several factors would be taken into consideration with that decision, including cost. The other major option for manufacturing is to have the product produced by a third party. Under this option, we would contract out the production to a firm that is experienced in the production of personal care products, but has excess capacity. This option is utilized by many firms in the industry already and it is believed that excess capacity exists.

This option would allow us to control costs by fixing the cost of production in a contract. Additionally, we would not need...

...

For those reasons, we are going to hire a third party company to produce Free. This will allow us to focus on our core competency of marketing, while leaving production in the hands of a company that has decades of experience in producing personal care products. This option also gives us cost certainty, something that would not exist if we produced Free ourselves.

Sources Used in Documents:

References

No author. (2013). Distribution methods affect bottom line. Business Tool Kit. Retrieved May 2, 2013 from http://www.bizfilings.com/toolkit/sbg/marketing/packaging-pricing/distribution-methods-affect-bottom-line.aspx

Kaya, O. (2009). Outsourcing vs. in-house production: A comparison study of supply chain contracts with effort dependent demand. Koc University. Retrieved May 2, 2013 from https://ais.ku.edu.tr/AR/OKAYA200916__SC-Contract-Omega-revised2.pdf


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