Group Assignment Revenue Sharing with Distributors Wonderbar is a chocolate bar
ID: 396869 • Letter: G
Question
Group Assignment Revenue Sharing with Distributors Wonderbar is a chocolate bar that costs you 10 pesos to manufacture, its distinguishing trait is being made from the finest chocolate from Davao. You want to make at least 100 percent margin over your cost and you want to motivate distributors to sell it for you. How would you propose to sell Wonderbars, assuming that your objective is to maximize your sales volume as quickly as possible? 1. Through what distribution channels would you want your customers to 2. How much would you set as your suggested retail price (SRP)? With this Presentation time: an estimate of 5 to 10 minutes per group get these? SRP, how much will you offer to your distributor/s? Explain.Explanation / Answer
1) I will prefer channel distribution as well as every possible distribution option. I will hire people having experience in sales and business development and hey will be assigned a particular territory. They will make distributor as well as retailers. I will make a sound policy for offline product distribution so as to ignore any channel conflict. An online wing will also be start which will dedicate to deliver the product on time to those consumers who purchase via online channels.
2) Our pricing strategy will be skimming one in initial days. As we are incurring a cost of pesos 10 then after having 100 percent margin, we shall sell it to distributors or super stockists with a minimum offer of pesos 20. But, our expert team will set a suggested retail price as well as Maximum retail price by seeing and analyzing the trend in the different marketplace. At anyhow, we shall recommend a SRP ranging between Pesos 22 to 27 and MRP not exceeding to pesos 30.
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