Supply Chain Management and Channel Behavior

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Questions and Answers

What is the primary benefit of Gardenia's daily supply mechanism?

To assure customers of fresh bread (correct)

To limit the variety of products available

To reduce the cost of production

To enhance overall brand visibility

How does Gardenia's packaging innovation benefit their products in retail?

It allows for bulk purchasing

It increases visibility and customer attraction (correct)

It simplifies the supply chain process

It reduces packaging costs significantly

What is one of the secondary channels through which Gardenia distributes its products?

Specialty gourmet shops

Sari-sari stores (correct)

Online delivery services

Wholesale distributors

What type of customer does the multi-channel distribution concept target?

Individuals with barriers to accessing supermarkets (D) Signup and view all the answers

Which of the following is NOT a direct sales channel used by Gardenia?

Sales through online platforms (C) Signup and view all the answers

What is a significant advantage of Gardenia’s expansion into smaller retail outlets?

Greater convenience and accessibility for consumers (B) Signup and view all the answers

How does Gardenia ensure a personal connection with its customers?

Through door-to-door selling (D) Signup and view all the answers

What is the goal of Gardenia's varied distribution strategy?

To ensure product availability in every market corner (D) Signup and view all the answers

What characterizes a manufacturer-sponsored wholesaler franchise system?

It involves significant control from the manufacturer. (A) Signup and view all the answers

Which of the following best describes a horizontal marketing system?

It involves a partnership between companies at the same channel level. (B) Signup and view all the answers

What is disintermediation in marketing channels?

Cutting out intermediaries to sell directly to customers. (D) Signup and view all the answers

What does intensive distribution mean?

Offering products in as many outlets as possible. (D) Signup and view all the answers

Which factor is NOT considered when setting channel objectives?

Customer preferences. (A) Signup and view all the answers

What is the primary focus of marketing logistics?

Effective planning and control of product flow. (D) Signup and view all the answers

Which distribution strategy allows a limited number of dealers to sell a product?

Selective distribution. (D) Signup and view all the answers

What criteria are used to evaluate channel alternatives?

Economic, control, adaptability. (A) Signup and view all the answers

What best describes upstream partners in a supply chain?

Firms providing raw materials and components necessary for production. (C) Signup and view all the answers

What is a value delivery network comprised of?

Customers, suppliers, distributors, and the company itself. (B) Signup and view all the answers

Channel conflict primarily refers to disagreements among channel members regarding what?

Goals, roles, and rewards of channel participants. (D) Signup and view all the answers

Which type of conflict occurs among firms at the same level within a marketing channel?

Horizontal conflict. (C) Signup and view all the answers

What defines a Vertical Marketing System (VMS)?

A unified system of producers, wholesalers, and retailers. (D) Signup and view all the answers

What characterizes a Corporate Vertical Marketing System (VMS)?

Single ownership of various stages of production and distribution. (C) Signup and view all the answers

What distinguishes a Franchise Organization in channel distribution?

It is made up of independent firms at different levels linking via contracts. (D) Signup and view all the answers

In a conventional marketing channel, what is the primary flow of goods?

Producers to wholesalers, to retailers, and finally to consumers. (A) Signup and view all the answers

What is the primary advantage of the direct-to-consumer channel in a multi-channel distribution system?

It bypasses intermediaries to reach the consumer directly. (D) Signup and view all the answers

Which market expansion strategy did Gardenia use to grow its business?

Sequential market penetration (D) Signup and view all the answers

What does the 'jar-full' concept describe in Gardenia's distribution strategy?

Moving from one distribution channel to another sequentially (D) Signup and view all the answers

Why is efficient logistics and delivery critical for perishable products like bread?

It ensures products remain fresh and available for consumers. (A) Signup and view all the answers

How does Gardenia ensure the freshness of its products in various distribution channels?

By withdrawing stale bread and replacing it daily. (C) Signup and view all the answers

What key component does Gardenia's organizational system emphasize for effective distribution?

Responding to changes in market demand (D) Signup and view all the answers

Which distribution channels does Gardenia utilize in its multi-channel strategy?

Supermarkets, convenience stores, house-to-house sales, and institutional channels (B) Signup and view all the answers

What strategic advantage does segmented market penetration provide Gardenia?

It helps maximize market share and establish dominance in channels. (D) Signup and view all the answers

What is the primary role of interaction in Mr. Cruel's success?

To foster collaboration across departments. (D) Signup and view all the answers

Which aspect does Mr. Cruel emphasize for inspiring innovation?

Eliminating unnecessary elements. (A) Signup and view all the answers

What should a company focus on when launching a challenger brand, according to Mr. Cruel?

Understanding internal and external challenges. (D) Signup and view all the answers

What phase of the product life cycle involves investing in awareness and demand creation?

Introduction phase. (B) Signup and view all the answers

During which product life cycle phase should companies focus on cost optimizations?

Maturity phase. (D) Signup and view all the answers

What characteristic is crucial for a challenger brand's entrepreneurial intensity?

Focusing on the right set of problems. (A) Signup and view all the answers

What should companies do during the growth phase of a product life cycle?

Listen to early consumer feedback for improvements. (D) Signup and view all the answers

How should a company support a product in the decline phase?

Consider phasing out the product. (C) Signup and view all the answers

Study Notes

Supply Chain

Upstream partners help to provide raw materials, components, parts, information, finances, and expertise needed to create a product or service.
Downstream partners, such as wholesalers and retailers, form a vital connection between the firm and its customers.
Value Delivery Network is composed of companies, suppliers, distributors, and ultimately, customers who partner together to improve the performance of the entire system.
Distribution channels are sets of interdependent organizations that help make a product or service available for use or consumption.
Each layer of marketing intermediaries, called a channel level, performs some work in bringing the product closer to the final buyer.

Channel Behavior and Organization

Each channel member depends on the others for common good.
Channel conflict arises from disagreements among members on goals, roles, and rewards.

Types of Channel Conflict

Horizontal conflict occurs among firms at the same level of the channel.
Vertical conflict occurs between different levels of the same channel.

Types of Channel Organization

Vertical Marketing System (VMS) consists of producers, wholesalers, and retailers acting as a unified system.
Conventional Marketing Channel consists of producers directly to wholesalers, directly to retailers, and to consumers.

Major Types of Vertical Marketing Systems

Corporate VMS integrates successive stages of production and distribution under single ownership.
Contractual VMS consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact.
- Franchise Organization is a common type of contractual relationship.
  - Manufacturer-sponsored retailer franchise system
  - Manufacturer-sponsored wholesaler franchise system
  - Service-firm-sponsored retailer franchise system
Administered VMS leadership is assumed by the size and power of one or a few dominant channel members.
Horizontal Marketing Systems occur when two or more companies at one level join together to follow a new marketing opportunity.
Multichannel Distribution Systems occur when a single firm sets up two or more marketing channels to reach one or more customer segments.

Channel Design Decisions

Channel design decisions are influenced by the nature of the company, its products, marketing intermediaries, competitors, and the environment.

Number of Marketing Intermediaries

Intensive distribution involves stocking the product in as many outlets as possible.
Exclusive distribution gives a limited number of dealers the exclusive right to distribute the company's product.
Selective distribution uses more than one, but fewer than all, of the intermediaries willing to carry the company's products.

Evaluating Major Alternatives

Economic criteria
Control criteria
Adaptability criteria

Channel Management Decisions

Channel management decisions include selecting, training, motivating, and evaluating channel members.

Marketing Logistics and Supply Chain Management

Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Gardenia Bread Case Study

Daily Supply Mechanism ensures fresh bread for customers.
Innovation in Product Display with upright packaging increases visibility and customer interest.
Multi-Channel Distribution includes supermarkets, grocery stores, and smaller convenience stores.
Direct Channels include house-to-house selling and institutional sales.
Geographic Expansion and Market Segmentation uses a sequential market penetration approach to dominate different channels and regions.
Logistics and Delivery focus on speed and efficiency, ensuring freshness across all channels.

Mr. Cruel's Career Success

Three "I's" contribute to Mr. Cruel's success:
- Interact with a wider team to solve complex problems and widen influence.
- Inspire people within the organization by motivating key players and employees.
- Innovate by challenging conventional business practices and inspiring change.

Challenger Brand Launch Strategy

Know what is going against your business on deeper levels, both internal and external.
Emphasize entrepreneurial intensity, organizational strength, and focus on the right set of problems.

Product Life Cycle

Introduction: Invest in awareness and demand creation with the right communication and consumer insights.
Growth: Improve the offer, fine-tune marketing strategies based on consumer feedback to penetrate the market.
Maturity: Maintain market share with differentiation, cost optimizations, and ongoing product and marketing relevance.
Decline: Consider product extensions, reduce to harvest, or divest.

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Description

This quiz covers key concepts in supply chain management, including the roles of upstream and downstream partners. It explores the value delivery network and the importance of distribution channels. Additionally, the quiz addresses channel conflict and organization among channel members.