25 Apr Your family runs a specialty ice cream parlor, Scoops. You manufacture your own ice cream in small batches and sell it only in pint-sized contain
Your family runs a specialty ice cream parlor, Scoops. You manufacture your own ice cream in small batches and sell it only in pint-sized containers. After someone not affiliated with the company sent six pints of your ice cream to a popular talk-show host, they proclaimed on their national TV show that it was the best ice cream they had ever eaten. Immediately after the broadcast, orders came flooding in, overwhelming your small-batch production schedule and your limited distribution system. The company's shipping manager thinks they can handle it, but you disagree.
Answer the following questions:
- List the reasons why you need to restructure your channel of distribution?
- Building on question one, determine a new channel structure for Scoops. Write a proposal to present to your key managers.
- Now that you have a basic channel structure for Scoops, list the market, product, and producer factors that will affect your final channel structure.
Post an initial minimum 250-word response
Reasons to Restructure the Channel of Distribution
1. Production Bottlenecks: As a small-batch manufacturer, Scoops is unable to meet the sudden surge in demand with the current production schedule.
2. Overburdened Logistics: Limited distribution infrastructure cannot accommodate the influx of orders in an efficient and timely manner.
3. Customer Experience: Delayed deliveries and potential stockouts could harm Scoops' reputation and customer satisfaction.
4. Scalability Issues: Current operations are optimized for local or manageable volumes, not nationwide shipping or mass distribution.
Proposal for a New Channel Structure
To address these challenges, Scoops should transition to a tiered distribution model:
1. Partner with Regional Distributors: Collaborate with established distributors who have experience handling perishable goods and broader reach.
2. Utilize Fulfillment Centers: Establish partnerships with third-party logistics providers (3PLs) to store and ship ice cream more effectively.
3. Online Storefront Upgrade: Invest in a robust e-commerce platform that integrates with scalable shipping solutions, ensuring efficient order management and tracking.
4. Selective Retail Partnerships: Introduce Scoops to high-end grocery chains and specialty stores in key markets to diversify distribution channels.
Market, Product, and Producer Factors
Market Factors:
· Increased nationwide awareness due to the TV feature.
· Customer demand for premium quality and timely delivery.
Product Factors:
· Perishable nature requiring specialized handling and refrigeration.
· High-end positioning necessitating upscale distribution points.
Producer Factors:
· Limited production capacity demands phased scaling.
· Family-owned operation requiring careful management of brand identity during expansion.
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