Murillo_6.3 - Assignment_Case Study_Distribution Strategy and Strategic Alliances (PLG1)

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6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) 6.3 - Assignment: Case Study “Distribution Strategy and Strategic Alliances (PLG1)” Oscar E. Murillo 21 NOV 2021 Embry-Riddle Aeronautical University MKTG 311

6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) Objective To evaluate the strategic significance of Perry's ice cream distribution plan of action and alliances, including evaluating direct sales distribution channels, their benefits and drawbacks, cooperation and associations, as well as market channel options and rival proposals from competing ice cream companies Introduction In the world of sales, operations are not always transparent, and this is especially true for entrepreneurs. Success may be accomplished via a multitude of methods other than mass manufacturing and selling in an environment of perpetual competition. Marketing tactics, distribution channels, and strategic partnerships are just a few of the aspects that may have a substantial impact on a company's performance, raising revenue and enhancing its prospects of long-term success. Direct Sales Distribution Channel An organization that uses a direct sales distribution channel has direct touch with the customer, completing direct transactions with no involvement from third parties. Distribution tactics may (and should) evolve in response to the overall success of a specific organization since there is no one-size-fits-all distribution system or strategy. As a result, Perry's Ice Cream has achieved tremendous success in this area. Whenever a company choose which distribution channel to use for its operations, there will always be benefits and drawbacks to consider, as shown by the following few examples:

6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) Pros:  Provides for direct engagement opportunities  Allows for a detailed grasp of client’s needs  Creates opportunities for the collection of market data  Personalized products enable competitive service  Reduce costs for third parties  Opportunities for improved efficiency  Increased chance to receive first-hand feedback  Prompt and dependable products and services Cons:  Raised costs for logistical requirements  Considerable baseline staffing size  Potential for increased operational costs  Customer service network design requirements Initially, the advantages seem to exceed the disadvantages; nevertheless, rigorous investigation and analysis would be necessary to perform an exact evaluation of the demands and requirements for effective operations. Because it has boosted the firm's profit and operational capacities, Perry's Ice Cream distribution strategy has been very successful, and this has resulted in overall success, which translates to growth and expansion for the company. Collaborations and Partnership Managing a company alone is a goal that many people want to achieve; it is alluring and, in some ways, gives for a feeling of independence from the responsibilities of collaborations and partnerships. While the latter is more

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6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) likely to produce a better level of performance when performed successfully, the former is more likely to deliver an overall higher degree of operational success. As Root points out, there are hazards associated with this approach. "In order to thrive in today's competitive business environment, a firm needs all of the assistance it can receive. Despite the fact that there is the possibility for great cooperation outcomes between businesses, there are also downsides that should be considered before entering into a partnership with another firm." (Root, G., et al., 2020). It is necessary to take factors such as employees, expenditures, and resources to an entirely new level in order to attain the high degree of performance that the vast majority of customer’s demand. Pros:  Enhanced production rates and efficiency  Augments research and development capabilities  Bolstered manufacturing systems  Increased opportunities for goal expansion  Innovative crew and support teams Cons:  Operational expenditures have potential to grow  Inherent risks increase with cultural variety  Increased requirements for comprehensive HR support  Higher risk for conflict of interests

6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) Referencing the previous example, a side-by-side comparison may assist in providing a visual picture of the benefits and downsides of a cooperation or partnership. (Dewitt, K. 2018) Collaborations and Partnership When it comes to the marketing sector, channel members include customers, retailers, and distributors. It is true, as Kotler points out, that "a corporation's channel decisions have a direct influence on every other marketing decision that the company makes." If a firm works with huge discount stores, distributes via high-quality specialty boutiques, or sells directly to clients on the internet, pricing is established." As explained by Kotler (2018) on page 335, the value provided by various marketing channels, in addition to other factors, is what customers unconsciously desire: information availability and

6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) dissemination, competitive and flexible pricing, and excellent contact with prospective purchasers, to name a few examples. Having the capacity to actively and effectively coordinate these efforts may, in many circumstances, give the competitive advantage that most businesses seek in order to be successful in their operations. Having the ability to actively and successfully coordinate these activities Furthermore, analyzing and exploiting the aforementioned components may aid in the formulation of effective risk assessments, product distribution tactics, and financial planning strategies and plans, among other things. Proposal Evaluation and Recommendation Consideration of the prospect of carrying and managing other brand names may be a double-edged sword, and it is vital to approach it as such when making such a decision. It has been shown that Perry's Ice Cream is capable of achieving success without the need to carry a competitor's product in order to do so. While there is potential for growth and harvesting opportunities, there are also risks that must be addressed before to making a business decision or taking action in this area. The plan also includes alternative routes that might potentially result in future growth and development for Perry's Ice Cream, which should be taken into account as part of the overall strategy. In the course of negotiating the agreement, it is critical to devise contingency plans in case the agreement proves to be less than satisfactory. For example, trial durations for evaluating the effectiveness of a surgery should be taken into consideration.

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6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) Conclusion Perry's Ice Cream should take a comprehensive approach to issue solutions, combining all identified areas stated in simulation runs before deciding on a final course of action. Perry's Ice Cream may create a win-win situation for all stakeholders if they use the suggested marketing opportunities. This is highly dependent on whether Perry's Ice Cream's purpose is to grow and expand or to retain profits while enhancing overall customer service. All of these elements influence the firm's direction and overall consumer image. A thorough analysis, reinforced by an in-depth marketing campaign and operational trial runs for a specific period of time, may determine the most effective and efficient execution model for Perry's Ice Cream in the future.

6.3 - Assignment: Case Study - Distribution Strategy and Strategic Alliances (PLG1) References 1. Kotler, P. T., Armstrong, G. (2018). Principles of Marketing. Pearson Education. 17 th ed. Kindle Edition. 2. Ryan, K. & Barretta, P. (2018, March 6). Perry's Ice Cream Distribution Strategy and Strategic Alliances: The 800-Pound Gorilla. London, UK: SAGE. 3. Dewitt, K. 2018. “The Pros and Cons of a Partnership”. Patriot. Retrieved from - https://www.patriotsoftware.com/blog/accounting/pros-cons- business-partnership-advantages-disadvantages-questions/ 4. Lewnes, A., Lane Keller, K. (2019, April 3). 10 principles of modern marketing. MIT Sloan Management Review. Retrieved November 21, 2021, from https://sloanreview.mit.edu/article/10-principles-of- modern-marketing/.

Murillo_6.3 - Assignment_Case Study_Distribution Strategy and Strategic Alliances (PLG1)

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