marketing5 - companies believe stars will confuse cosumers...

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11/10/08 Channel design Market coverage Intensive distribution exclusive distribution selective distribution best satisfy buying requirements eg., info, convenience, variety, services most profit largest cost is labor channel relationships conflict vertical--slotting allowances, diverting supplier-retailer disagreements Hannaford brothers-food line-sister companies-use guiding stars program- nutritious shopping made simple “the package may say health, but this grocer begs to differ” 3 stars to healthiest food and 0 to least healthy-94% of stars in produce campbell’s-“we don’t like the idea that there are good and bad foods out there, and these sort of arbitrary rating systems” Campbell soup company-healthy request line of soup was “aligned with the government definition of what healthy is” similarly conagra foods said that the company would like to know how Hannaford concluded that many items in its healthy choice line did not merit any stars
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Unformatted text preview: companies believe stars will confuse cosumers more conflictdisintermediation-system where all of a sudden, one rectangle/one player, completely circumvents player above it new retail channel positioning dilemma: atural/health-whole foods, wild oats, fresh market mass-supercenters upscale-wegmans, ukrops, heb foodservice-eat-in, take out value concepts-dollar stores, etc. horizontal conflict: territory overlaps, dual distribution-outlet mals, channel blurring channel relationships-cooperations channel captain channel influence-4 factors top 20 worldwide retailers by sales 2007-walmart stores, Carrefour, tesco, metro group, Kroger, ahold, Costco, rewe, Schwarz group, aldi, walgreens auchan, edeka, Albertsons, aeon, safeway, itm, leclerc, seven, tengelmann...
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This note was uploaded on 11/27/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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