Angela Martinez

2022-Spring: BUSI-1301-S01-Business
Principles

Honest Tea Plus Coca-Cola Equals National

Distribution
04/12/22
The level of market coverage that has been utilized in marketing some products such as
honest tea beverages is intensive distribution. Intensive distribution can be regarded as a
form of marketing strategy whereby a company tries to sell its products using small
vendors and at times big stores. It helps in the creation of brand awareness of the product
which later results in higher sales. This method has been used for products such as soft
drinks, cigarettes, therefore, intensive distribution utilizes retailers in distribution of
goods.
Honest tea k-cups are the first fruit of a partnership signed back in february when the
companies signed a 10-year collaboration deal cokes global brand anticipated cold
at-home beverage system k-cups went off patent in 2012 and asked about the threat posed
by such unlicensed manufactures during keurigs earnings call on august 6 brian kelly
refused to comment on rumors and speculation.
Honest teas now have more bottling options. Like the new bottle from coca-cola that is
made with a plant-based resin that is more environmentally friendly. Despite the
problems that traditional soft drink companies face, Honest Tea has made advances
because its beverages are tasty, have fewer calories than many competitors, and cater to
the increasing organic food sector. However, the company initially had trouble acquiring
distribution. Retailers were hesitant to carry beverages that were significantly less sugary
than those already on the market. Finally, they received a favorable response from a
natural-foods supermarket chain, which agreed to purchase 15,000 bottles. That order
helped Honest Tea establish itself as a viable competitor and laid the groundwork for
approaching other regional multi-store retailers. Honest Tea has increased annual sales to
$13.5 million and was delivering 1.5 million cases of bottled drinks per year eight years
after it began operations.
Sources:
How would you describe Honest Tea's ideal level of market ...
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