need help with questions 3 Video Case 14.1 Taza Chocolate, a small Massachusetus

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need help with questions 3

Video Case 14.1 Taza Chocolate, a small Massachusetus-based manufacturer of stone-ground organic chocolate made in the classic Mexican tradition, sells most of its products to retailers, wholesalers, and distributors throughout the United States. Individual custom- ers around the world can also buy Taza chocolate bars, bak- ing squares, chocolate-covered nuts, and other specialty items directly from Taza at the company's Web site, and if they live in Somerville (Massachusetrs), they might even find s Taza emplayee riding a "chococycle," selling products and datribating samples at an upscale food truck festival or open m urket on a weekend With a staff of about 20 people, Taza sources all its ingredients directly from certified organic growers with whom the company cultivates a personal relationship "Because our process here at the m factory is so minimal," says the company's director of sales, "it's m really important that we get a very high-quality ingredient... . The cocoa beans are the most important. ...When we source those, T we pay a premium above even fair-trade prices. We call it direct ch trade. To make sure that we're getting the absolute cream of the fre crop, we have a direct face-so-face human relationship between us and the actual farmer that's producing thase beans The company believes that dealing directly with its suppl ers is the best business model for Taza as a small firm, mot only f choo e it allows the company to meet ies social responsibility but also because it ensures quality, which commands a m price. "We're a premium brand," says the director of Rnals, remum price ales, "and because of the way we do whar we do, we have to harge more than [the cost af] your average chocolate bar Europ Chapr Wholesaling Retaling, ared Phrsical Disnbution

Explanation / Answer

Ans 3

Advantages of using distributors

There are many advantages of using distributors but the main benefit of using a distributor is that they can sell your products and generate significant income faster.

Established customer base

The most important benefit of using a distributor is that all established distributors already have good relationships with an existing customer base of resellers and retailers. Which implies that once a distributor gets hold of new products they can very quickly promote them to their customers and start generating sales.

Sales & Marketing Expertise

Also they are experienced at both sales and marketing and understand well how best to sell to their customers. Distributors are therefore able to take new products and promote them in the most effective manner to their resellers to achieve the best sales results. It after all, it is as much in their interest to sell your products as it is in yours since once they have purchased products they only make a profit when they sell them.

Storage & Logistics

Utilizing distributors also implies that you benefit from a significant amount of storage space without the need to invest in physical premises to store your products. To add to the benefit of extended storage space distributors also have established and reliable logistics which means they can move products quickly and cost effectively.

Wider distribution channel

By utilizing distributors your business can benefit from a much greater distribution channel without the need to have a physical presence in each territory. This implies not only can your products reach a much wider consumer audience increasing sales but you can also make significant financial savings through not needing additional premises and staff.

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