Lastly, the psychological pricing considers the psychology of prices and not simply the economics. It is that the consumers perceive the higher- priced products as Baskin-Robbins offers high quality of products. Besides, the consumer usually use price less when they can judge the quality of a product by examining it or based on their experiences. Loyal Baskin-Robbins customers will purchase the ice-cream based on their experiences. 2.3 PLACE STRATEGY 8
2.3.1 MARKETING CHANNELS/DISTRIBUTION CHANNELS Marketing channel is a system of marketing institution that enhances the physical flow of goods and services, along with ownership title, from producer to customer or business user. Baskin-Robbins is a company that sell ice-cream. The main Baskin-Robbins is using direct channel because they can straight away produce the ice-cream then sells it to customer directly. But Baskin-Robbins is using indirect channel because they export those ingredient to the franchise in Malaysia to distribute their product to customer. Indirect channel defined as selling and distributing products to customer through intermediaries like wholesaler, retailer, distributer and agent. The franchise which located in Malaysia is not too many and people will not always consume Baskin-Robbins’s ice-cream and the price of the ice-cream is also quite high compare to other company’s ice-cream, so the ice-cream that sells by Baskin-Robbins is consider shopping product. Baskin-Robbins in Malaysia also has a supply chain management that helps them to control the activities of purchasing, processing and delivering those ingredients that will use to make ice-cream. First of all, all the ingredients that use to make ice-cream is import from USA main company because Baskin-Robbins want to make sure the consistency of the taste of the ice- cream in every franchise. They also want their customer to consume the best quality ice-cream. After all the ingredients reach Malaysia, they will check the ingredients carefully before they use it to make ice-cream. This is because they want to make sure the freshness of the ingredients. Finally, they will sell their ice-cream to the customer directly. 9 Customers Baskin- Robbins (Franchise in Malaysia) Supplier of Baskin- Robbins (USA) Baskin- Robbins(Main company in USA)
If the customers feel any problems after consumed our product, they can straight away give feedback to the Baskin-Robbins franchise then they will let the main company and the supplier know the problem. The main company and supplier will try their best to improve the problem to satisfy customers’ needs and wants. The common benefits of supply chain management are to reduced cost, improved services and also enhanced revenue. Besides that, there are three types of channel function that performed by intermediaries, transactional function, logistical function and facilitating function. First talk about transactional function. Transactional function is to contact, promote, negotiate and taking risk. The franchises
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