I S L A N D

S W E E T S
2 0 2 2
D I S T R I B U T-
I O N
S T R AT E GY
 Supply
Chain
• A system of organizations, people, activities,
information and resources involved in supplying a
product or service to a consumer.

Vertical Marketing
• The encompassing of a group of companies and
customers that are an interconnected around a
specific niche.
 A method of
disseminating
Distribution goods or
Strategy services to
end-users.

Effective logistic Intermediaries

Uses an Indirect Distribution Strategy. This is an approach support to
ensure the
help
manufacturers
smooth and
efficient to establish
positive
to distribution by a manufacturer which involves one or distribution of
your physical relationships
goods, with retailers

more third parties (intermediaries) that help deliver the

Retailers can Shares the
recommend burden of
goods to the consumers. Such third-parties normally promotional distribution of Reduces the amount
warehousing,
offers and stock
of start-up costs
product management, required
include exporters, importers, wholesalers, and retailers. displays. To sales outreach
enhance sales and other duties.

Establishes
a much
Allows better
focus on core
wider
competencies customer
reach in a
shorter time
These benefits allow the manufacturers to do
minimal work as the Intermediaries share the
burden of distribution, sales outreach and reduces
the cost from start-up. This allows for the
manufacturers to spend less on marketing, research,
hiring and effort to get their products sold.

Retailers and customers will be more trusting of the

manufacturer products if they are supplied or
transported by the same intermediary companies or
people. This helps to maintains and improve
customer/retailer loyalty.
Logistics is the process of coordinating and moving resources – people,

materials, inventory, and equipment – from one location to storage at the

desired destination.

Two Logistical problems of keeping vending machines stocked with

sweets:

❑ Freshness of Candy: the display and stored goods should be

rotated regularly.
❑ Location of Vending Machine: The heat magnified by the window
may cause damage to your products. Avoid placing machines in
direct sunlight or in front of windows.
 Should Island Sweets open a chain of
sweet shops?
o Develops a better relationship and
understanding of customer’s needs and wants.
o Creates a stronger and more distinct brand;
making it more recognizable and trustworthy.
o Sales will increase.
o Distribution costs decreases as intermediaries
and other third parties are no longer needed.
o Risks are minimalized since they are shared
among the chain shops.
o A larger scale organization allows for better
access , resources when conducting research
and development.
o Lower selling price
o Overhead costs increase; a lot of capital is
needed to create multiple shops of the same
quality.
o Difficulty to attract customers over a period of
time as one particular item is sold.
o High operational costs; must hire persons to
supervise, control, and coordinate the different
chains.
o Difficulty to manage and maintain all chains.
 Island Sweets current Distribution channel and
strategy may have been profitable in the past,
however, with rising competitors such as SWEETS4U
how long will they sustain?

With a strong management and marketing team Island

Sweets can easily overcome their ISWEET CONS and
rise to the top.

Within 1-3 years ISLAND SWEETS sales will increase greatly.

As a result of the company’s better relationship and understanding of the customer’s needs and wants, a
better research facility and their stronger brand recognition Island Sweets will be able to find ways to
capture and maintain their customer’s attention.

The costs spent on hiring managers and other workers to supervise and control the chains will help
operations to be smooth and effective. All workers will be highly qualified and educated and experienced
which will help to reduce mistakes and other problems from arising.
R E F E R E N C E S
o Supply chain. (2003, February 22).
https://en.wikipedia.org/wiki/Supply_chain

o Brief, ©. (2021, April 11). What is indirect distribution? Definition and

meaning. MBA Brief - MBA concepts and MBA frameworks.
https://www.mbabrief.com/what_is_indirect_distribution.asp

o Strategy, P. D. (2019, September 10). Indirect distribution advantages.

Product Distribution Strategy.
https://productdistributionstrategy.com/indirect-distribution-advantages/

o Advantages of multiple shops or chain stores. (n.d.). Business-Marketing.

https://marketinglord.blogspot.com/2012/06/advantages-of-multiple-
shops-or-
chain.html#:~:text=%20Advantages%20Of%20Multiple%20Shops%20Or%
20Chain%20Stores,notable%20advantage%20of%20multiple%20shop%20
is...%20More%20

o 21 advantages and disadvantages of chain or multiple stores. (2019,

September 13). Googlesir. https://www.googlesir.com/advantages-and-
disadvantages-of-chain-or-multiple-stores/
 MANAGEMENT OF BUSINESS:UNIT 2

6A

PRESENTERS:

Leeford Gumbs

Jewanne Singh

Arisha Richardson

Shazlyn Reid