Placing a Product

Once a product has been developed and a pricing strategy has been chosen, the business must consider where it should place the product and how to get it there via placement and distribution. Read this section to learn about product distribution strategies and supply chain management.

  1. Working in the school chemistry lab, you come up with a fantastic-tasting fruit drink. You're confident that it can be a big seller, and you've found a local company that will manufacture it. Unfortunately, you have to handle the distribution yourself – a complex task because your product is made from natural ingredients and can easily spoil. What distribution channels would you use, and why? How would you handle the physical distribution of your product?
  2. (AACSB) Analysis

Students at Penn State University can take a break from their studies to visit an on-campus ice cream stand called the Creamery. Milk for the ice cream comes from cows that graze on university land as part of a program run by the agriculture school. Other ingredients, including sugar and chocolate syrup, are purchased from outside vendors, as are paper products and other supplies. Using your personal knowledge of ice cream stand operations (which probably comes from your experience as a customer), diagram the Creamery's supply chain. How would the supply chain change if the company decided to close its retail outlet and sell directly to supermarkets?