Before we can start discussing this topic, a clear understanding of how Toblerone’s distribution channel looks like. Bellow, there is an illustration of its distribution channel:
Being a big company, Toblerone has to operate in most of the distribution functions. However, there are some distribution functions that are fulfilled through different channel members such as standardizing transactions or assorting in commercial functions through retailers.
Talking about retailers, they can heavily influence its reach to the customer and indirectly alter product image. For example, if a Mars chocolate bar is set on a mid-shelf and Toblerone on a bottom shelf, unless a person came specifically for Toblerone, would pick a Mars. Worse, another example that can be given is that a store does not have Toblerone and they only have Mars, a customer would not trouble going to another store just for a chocolate bar and it will settle for a Mars.
In conclusion, Toblerone has chosen for its product is a non-economic source of power for a channel leadership.
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