The product utilizes the channel of distribution as a strategy of marketing for purposes of bridging the gap existing between demand and supply. This has a propensity of ensuring that the Keurig 2.0 System Brewers reach the desired market segments. The entity can also continuously alter its channels of distribution so as to match its efforts of expansion and consequently achieving a larger share of the market. Choosing the marketing channel of the product involves the identification of potential retailers who have an interest in the goods. The marketing channel can be achieved using a dealer network. This would mean selling the product using a network of dealers who are well spread geographically. I.e. manufacturer- wholesaler- retailer-buyer. The dealers have the mandate of servicing the products whenever any issues arise. The network of dealers is fundamental to the clients and as such, having a program for training and supporting those in the channel of marketing is significant for maintaining the marketing share.
Market channel strategy
Keurig 2.0 System Brewers uses the selective distribution strategy whereby the products are sold only at specific outlets in particular locations. Tanner & Raymond (2015) notes that this means that the products of the company can be purchased at some shops with the meaning that they would not be found at every outlet dealing with similar products. This is vivid from the manner in which Keurig 2.0 System Brewers selectively distributes its products to different entities not only in the United States but also in other places in the world where it has its reach. This is a fundamental strategy as it ensures a broad reach for its products. For a new target market, the distribution strategy would slightly change for purposes of maximally serving the market. It would need to utilize exclusive distribution that means selling its products through other retailers available on the market.
Value chain
The wholesalers play a key role in the acquisition of the goods from Keurig 2.0 System Brewers thereby stocking them. The wholesalers will decide on the type of goods that is most suitable and appealing to both the retailers and consumers of the commodities for purposes of the stocking. They are also associated with storage facilities and as a result, they have the responsible for storing the goods from the Brewers. The primary purpose of the retailer, on the other hand, is to sell the brewer products to the customers. They form a fundamental means of passing the goods to the clients thereby accomplishing the market channeling to the end. Besides, the retailers assume the risks associated with holding the Keurig 2.0 System Brewer commodities. In the warehouse, there are risks of deterioration, as well as, spoilage that the retailer will have to keep abreast with just as intended.
Pricing strategy
A notable pricing strategy that is used by the Keurig 2.0 System Brewers is the cost based pricing model. This encompasses the setting of the price of the commodity through the addition of a fixed amount or percentage of the initial value of producing the product. In spite of the pricing strategy being an old one, it is still widely used for the promotion of different associated products in the market. The primary advantage of the pricing strategy just as is experienced by Keurig 2.0 System Brewers is that the company can quickly make a calculation of their intended selling prices. With this, the business has the propensity to accurately predict what the overall margin of profit would be. In most cases, then resulting prices are acceptable by the clients of the firm. Essentially, the customers are often not disturbed by the associated costs of making the product but by the value the commodity offers them for their money.
References
Tanner, J., & Raymond, A. (2015). Principles of Marketing (1st ed., p. 48). London: The Saylor Foundation.
