Marketing Distribution Packaging Consumer Protection Why do consumers

Marketing Distribution & Packaging

Consumer Protection Why do consumers need to be protected from products? What do they need to be protected from? - False claims - ”lite”, low fat, organic, product grade (USDA grade A), etc. - Accurate nutrition labeling - Does the product contain Genetically Modified Organisms - Country of Origin Are these protections necessary?

Packaging – More than just a cover What are some important elements to consider when you package your product? - What are you trying to tell prospective purchasers? - Does it help promote and sell the product? How? - What other functions can it serve? o Security o Bundling with other products o Minimize loss - What are some potential issues related to packaging

The Functions of Packaging Read the Tylenol Case for discussion. https: //www. pbs. org/newshour/health/tylenol-murders-1982 Create a list – you can search online – of product packaging features that serve to emphasize how packaging can serve as a competitive advantage. Consider the following examples: Consumer Safety Environmental Packaging Additional Product Branding Increasing unit sales Product Security (eg. anti-theft) Product protection (eg. , anti-crush) Providing product Information Keeping the product sterile Meeting regulatory standards

Product Distribution Once product is manufactured it must be distributed. Distribution Channels – these are the paths that the product takes to get from producer/manufacturer to the final user There can be several intermediaries in the process (see map on the next page. Keep in mind the product must go through a selling process as well: - Inside sales – in-house sales force selling the product through the channel - Sales Agents – outside salesperson paid to sell the product, often on commission

Product Distribution

Sales Intermediaries Depending on the product different Intermediaries may be used. Intermediaries buy the product and take the risk of ownership, but generally don’t use the product themselves. Wholesalers – These are entities that buy product from multiple manufacturers, store it and sell it on to retailers (sometimes direct to the final customer). - Pharma example - Big Box Stores Retailers – Sell goods to the final customer for use.

Retail Models Retailers have evolved. From Brick and Mortar physical stores, to many new choices: - Vending - Catalog - Direct Mail - Internet

Design your Distribution Model For your team product consider how it would be best distributed by answering the following 4 questions: 1. What sales model would you initially use (Inside vs. Outside Agent) and explain why? 2. Design your full distribution channel, including any wholesalers and retailers. 3. What options would you give to consumers for product sales and distribution; Bricks and Mortar, Vending, Catalogue and/or Internet 4. If you were to sell your product outside the U. S. – in non-English speaking countries – what issues would you need to overcome.