MKT 300 1st Edition Lecture 18Outline of Last Lecture I. Strategic Pricing MethodsII. Pricing StrategiesIII. Everyday Low pricing vs. High/Low pricingIV. Price-Quality RelationshipV. New Product Pricing StrategiesVI. Price Tactics Aimed at CustomerVII. Business to Business Pricing Tactics and DiscountsVIII. Legal Aspects and Ethics of PricingOutline of Current Lecture I. Supply Chain and Channel ManagementII. Supply Chain ManagementIII. Supply Chain, Marketing Channels, and Logistics are relatedIV. Making Information FlowV. Making Merchandise FlowVI. Managing Marketing Channels and Supply Chains Through Strategic RelationshipsCurrent LectureI. Supply Chain and Channel Managementa. Heinz acquiring Kraft will unite commonplace kitchen brandsb. Warren Buffet behind planc. Small organic brands are doing welli. Nestle (1), Pepsi (3), Unilever (4), Heinz and Kraft (5)d. Hostess in vending machines and gas stations: doing welle. Plum using Campbell’s research for future productsf. Many places can be a downfall: Target in Canadag. Trends: Conscious Consumption—feeling good about the product you’re buyingi. Toms and Warby Parker; Everlane—makes sure suppliers follow suit with “radical transparency”These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. Zady’s socially conscious marketing (slow fashion, old methods to new style)—From Sheep to Shelf sweater life videoh. Secret Life of Sour Cream: starts on farm in upstate New York (1)i. Methane from manure: convert methane to electricity in methane digesterii. Processing Plant (2): milk to plant, then to pasteurize; uses lots of water/electriciii. Distribution (3) and Store (4)i. Supply Chain Management: coordinating all actions for getting items to next step in the chainj. Mars and their chocolate: 12-14 hours to make batch of M&Ms; first new plant was recently built—first in 35 years because we’re now eating so much chocolatek. Diet Coke: Millions of one of a kind bottles—personalized l. Vertical integration: buy the supplier and make it part of your own; Underarmourbuying fitness appsm. Smoothies from frozen fruit trend; 60% frozen fruit purchased last year went intosmoothiesi. Placement in grocery story was very importantii. Wanted it to seem super healthy; try to get it away from Cool Whip and closer to frozen veggiesiii. Costco looking for more frozen fruit (organic) strawberriesiv. Additives placed near frozen fruit for convenience at Walmart and Targetv. Blender sales have risen over 100%vi. Hard to freeze citrus fruits: Dole researched ten years on freezing the mandarin orangen. What stores do you want to be located in?o. Crave jerky—not in gas stations/convenience stores. In Target and healthy food stores.II. Supply Chain Managementa. Also includes manufacturers’ suppliers and THEIR suppliersb. Channel Distribution: manufacturer, retailer, distribution centerc. Vanilla been big lately: grown in Madagascar (complicated/long process); Manufacturers have to get it from hered. Removal of GMO’s: affects the whole supply chain; Ben and Jerry have worked for two years, and say it could take up to ten more.e. McDonald’s wants to rid antibiotics that humans use (over 14,000 restaurants—will affect extremely much)III. Supply Chain, Marketing Channels, and Logistics are Relateda. Supply Chain Management: managing everythingb. Logistics Management: managing flow from manufacturer to distribution to the storec. Marketing Channel: reduces the number of transactions, makes shopping more convenient/efficientIV. Making Information Flowa. RFID: Radio Frequency Info Datab. Data Warehouse: storedc. EDI: companies share informationd. VMI: Proctor and Gamble help Walmart manage creste. CPFR: collaborator plan, forecastf. Zara: Spanish retailer; get products in and out quicklyi. Rely on RFIDii. H&M/Forever 21; Abercrombie and Fitch is struggling: new products with no logoV. Making Merchandise Flowa. Distribution centers vs. direct to storei. Flour/fresh food = direct to store; doesn’t go through distribution centerii. Stihl chainsaws only at Stihl placeiii. How many stores you located in?iv. Dannon: Evolution Fresh sold in Starbucksv. Making deliveries more: Home Depot building online distribution centers because of online shoppingb. Burger King began making deliveries, Panera in Louisville, KYc. Roadie: make deliveries for others and get paid; use Waffle House as meeting pointsd. Why E Commerce can be a pain for delivery meni. Amazon delivers in India by men on bikes with backpacks e. More and more companies using robots: Lowe’s has greeters/ask if help is neededf. Right product manufactured at right time getting to the right place purchased by the right customeri. Meet customer expectationsii. On time deliveryiii. Quality productsVI. Managing Marketing Channels and Supply Chains Through Strategic Relationshipsa. Mutual Trust, Open Communications, Common Goals, Interdependence, Credible(fulfilling promises) commitments all are components of a strong relationshipb. Crave Jerky: young (four years old); saw need for better jerkyi. Gave out samples, no money for advertising; had to get into whole foods (looked into that relationship so both make a