Five Steps of the Supply Chain

Marketing Plan Analysis – Distribution and Pricing Objectives and Strategies

Directions: Address each of the questions below in the textbox provided.

1. Identify and explain the five steps of the supply chain for your brand. If the brand does not utilize a step, explain why this would make business sense.
2. Describe in 50-100 words total how each of the following influence your distribution strategies.

• Product Mix
• Target Market
• Control of Display, Pricing, Promotion
• Estimated Life Cycle
• Regulations or Taxes

3. Describe the distribution channel strategy utilized by the brand.
4. Identify and explain the marketing channel strategy currently used by the brand.
5. Identify any possible channel conflicts. What would create these conflicts? How can they be resolved or prevented?
6. Define the brand’s pricing objectives for the brand.
7. What are the current pricing strategies for the brand. Explain.
8. Using the above research findings, in 250 words, provide your recommendations for the brand regarding the distribution and pricing objectives and strategies.

References: Provide APA-formatted references for all resources you have cited.

1. Five Steps of the Supply Chain for Kroger:

1. Procurement: Kroger procures goods from various suppliers, including farmers, manufacturers, and distributors. This step involves negotiating contracts, purchasing raw materials, and managing relationships with suppliers.
2. Distribution/Warehousing: Once procured, products are transported to Kroger’s distribution centers or warehouses. Here, inventory is stored, managed, and prepared for delivery to retail locations.
3. Retail Operations: Products are then transported from distribution centers to Kroger’s retail stores. This step involves managing inventory levels, arranging displays, and ensuring products are readily available for customers.
4. Customer Purchase: Customers purchase goods from Kroger’s retail locations. This step involves various aspects such as pricing, promotions, and customer service.
5. Returns/Reverse Logistics: Kroger manages returns and reverse logistics processes, including accepting returns from customers, handling defective products, and managing the return of unsold goods to suppliers or redistribution centers.

Kroger might not directly involve itself in manufacturing, so that step may be omitted from its supply chain.

2. Influence on Distribution Strategies:

• Product Mix: Influences the assortment of products carried in stores and the allocation of shelf space.
• Target Market: Guides decisions on store locations, formats, and product offerings to align with customer preferences.
• Control of Display, Pricing, Promotion: Determines how products are presented in stores, pricing strategies, and promotional activities.
• Estimated Life Cycle: Impacts inventory management and decisions regarding product introduction, growth, maturity, and decline stages.
• Regulations or Taxes: Influence distribution logistics, pricing strategies, and compliance measures.

3. Distribution Channel Strategy: Kroger utilizes an extensive network of distribution centers and retail stores to efficiently distribute products to customers.

4. Marketing Channel Strategy: Kroger employs an omnichannel marketing approach, integrating online platforms with traditional retail stores to enhance customer experience and reach a wider audience.

5. Possible Channel Conflicts: Conflicts may arise between Kroger and suppliers over pricing, promotions, or shelf space. Resolving conflicts involves open communication, fair negotiation, and establishing mutually beneficial agreements.

6. Pricing Objectives: Kroger’s pricing objectives may include maximizing profit margins, maintaining competitive pricing, and enhancing customer value perception.

7. Current Pricing Strategies: Kroger employs strategies such as everyday low pricing, promotional pricing, and loyalty programs to attract customers and drive sales while remaining competitive in the market.

8. Recommendations: Based on the above analysis, Kroger should focus on optimizing its distribution network for efficiency and cost-effectiveness while enhancing its omnichannel capabilities to meet evolving customer needs. Additionally, implementing dynamic pricing strategies supported by data analytics can help Kroger maintain competitiveness and maximize profitability. Regularly evaluating channel performance and addressing conflicts promptly through effective communication and collaboration with suppliers is crucial for long-term success in the marketplace.