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MILESTONE SEVEN: DISTRIBUTION
Milestone Seven: Distribution
Jordan Sadler
MKT 500
Professor Teague
MILESTONE SEVEN: DISTRIBUTION
How Will Walmart’s Meal Kits Be Distributed
The company that I will be producing a product for is Walmart, and the product
that I am proposing for them is a meal kit service that can be distributed from their current retail
locations using the in-store pickup option or ordered online and shipped to customers using their
e-commerce platform. The key goal for this new service is for it to be the most affordable meal
kit service on the market out of the many competitors that currently provide the same service.
Luckily, Walmart already has a very robust channel of distribution set up that will help us
accomplish this goal. Walmart’s distribution strategy and the different channels that they have set
up has been key to the company’s success and it is the main factor in the company’s ability to
offer their consistently low prices. We will be depending on their current channels of distribution
to successfully execute and supply this new meal kit service.
Walmart is known for being a low-cost retailer that offers consistent everyday low
pricing on their products. The company is able to achieve this because they have a very extensive
network of suppliers that they purchase their merchandise from in bulk at lower prices than their
competitors, and they’re then able to pass those savings along to their customers. They also have
a very large network of distribution centers that they own and operate which houses all of their
products and guarantees that they always have the necessary supplies available to keep their
stores stocked at all times. Walmart keeps an incredibly large inventory of their products
available at all times, and we plan on using this same system and inventory of products to create
their meal kits. By relying on the distribution channels that Walmart already has set up, which
has proven to be extremely successful for the company, it will allow us to introduce this new
meal kit service with ease and with minimal changes needed from the company. It will also allow
MILESTONE SEVEN: DISTRIBUTION
us to maximize the profit from this new service, as the company won’t need to incur extra costs
setting up new channels of distribution.
Walmart uses a vertical marketing system to accomplish their distribution, which
consists of all of their needed channels acting as one unified system to meet their needs. The
company currently has 210 distribution centers, which are the hubs of all of their business
activity. Walmart also has their own fleet of transportation consisting of over 9,000 tractors,
80,000 trailers, and more than 11,000 drivers. Walmart is able to move goods to and from their
distribution centers efficiently because of this fleet of trucks and drivers that they have. Their
network of distribution centers is responsible for shipping their general merchandise and
groceries to their stores on a daily basis to meet the needs of their consumers at each store. Each
of their distribution centers is more than 1 million square feet in size and has over 600 employees
that are responsible for unloading and shipping over 200 trailers of supplies to their stores daily.
Each distribution center supports up to 100 stores that are in a 150 mile radius from the center
(Walmart, n.d.).
Outside of their distribution centers, they also have a network of fulfillment centers
that is responsible for fulfilling all of their online orders that come from their e-commerce
platform, Walmart.com. The efficient system that they use at their fulfillment centers gives them
the ability to serve customers quickly and provides options as to how customers would like to
receive their orders, whether it be through in-store pickup or shipped directly to consumers
homes. Their fulfillment centers are strategically located across the country to give the company
very quick and efficient access to their customers using ground shipping methods. Each
fulfillment center is capable of shipping and handling millions of orders to consumers (Walmart,
n.d.).
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Related Questions
9.2 Marketing Channel Profitability (Figure 9-5)
How does the net marketing contribution and marketing ROI change if the business modifies its sales mix to 30% direct sales, 40% agent distributor, and 30% distributor retailer?
How does the net marketing contribution and marketing ROI change if the business replaces the direct sales channel with the agent-distributor channel, with a sales mix of 60% agent distributor and 40% distributor retailer?
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Table: Factors causing the decline in sales
Factors
% Contribution
Delayed deliveries
15%
Lack of delivery personnel
8%
Inaccurate sales orders
25%
Wrong deliveries
32%
Delayed invoicing
6%
Pilferage
7%
Expired items
7%
a. Following the Pareto Principle, what are the vital factors or main contributors to the decline in sales? Show your Pareto Chart and indicate or label the vital factors or contributors to the problem.
Hint: know the vital few %
b. What are the vital factors or vital contributors to the problem?
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Hint: Use SMART GOAL
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answer pls asap
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Instructions: Read first the file on the link below before answering the questions.
Gdrive Link: https://drive.google.com/drive/folders/1--uHO2wsXfzqIp3NKgcgOmJsTKFI4vb4?usp=sharing
Questions:
A. To continue your Marketing Plan, prepare the following:
PLACE / CHANNEL OF DISTRIBUTION
- Explain where the production shall be conducted and how it will be distributed or sold.
- Prepare a flow chart to show the producer to the end user or consumer /customer and explain.
PROMOTION
- Prepare a table showing the columns - ITEMS (or promotion tools), QUANTITY, COST and TOTAL COST .
- Explain the promotion tools to market your business.
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Is this a good example of an opportunity cost?
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1. Discuss the types of distribution channel that could be used to deliver this product to end consumer.
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1.Where are you going to sell your product?
2.Will it be at a department store, specialty store, etc.?
3.Are there alternative venues to sell your product? If so, what are they and what are the advantages and disadvantages to using these?
4.Is your target market the same with each sales venue? What tactics do you plan to use regarding a retail marketing strategy.
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No Chat GPT or any other AI tool.
No hand written solution.
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- 9.2 Marketing Channel Profitability (Figure 9-5) How does the net marketing contribution and marketing ROI change if the business modifies its sales mix to 30% direct sales, 40% agent distributor, and 30% distributor retailer? How does the net marketing contribution and marketing ROI change if the business replaces the direct sales channel with the agent-distributor channel, with a sales mix of 60% agent distributor and 40% distributor retailer?arrow_forwardAmong the identified 7P’s of marketing, which do you think are the three most appropriate marketing mix in a sari-sari store business, and why? Justify your answer by citing examples.arrow_forwardDescribe the kind market segment in this example. Explain.arrow_forward
- Table: Factors causing the decline in sales Factors % Contribution Delayed deliveries 15% Lack of delivery personnel 8% Inaccurate sales orders 25% Wrong deliveries 32% Delayed invoicing 6% Pilferage 7% Expired items 7% a. Following the Pareto Principle, what are the vital factors or main contributors to the decline in sales? Show your Pareto Chart and indicate or label the vital factors or contributors to the problem. Hint: know the vital few % b. What are the vital factors or vital contributors to the problem? c. If the sales and marketing manager wants to reduce the impact of vital factors or contributors by 70%, what will be a good GOAL Statement to improve his sales problem? Hint: Use SMART GOALarrow_forwardanswer pls asaparrow_forwardInstructions: Read first the file on the link below before answering the questions. Gdrive Link: https://drive.google.com/drive/folders/1--uHO2wsXfzqIp3NKgcgOmJsTKFI4vb4?usp=sharing Questions: A. To continue your Marketing Plan, prepare the following: PLACE / CHANNEL OF DISTRIBUTION - Explain where the production shall be conducted and how it will be distributed or sold. - Prepare a flow chart to show the producer to the end user or consumer /customer and explain. PROMOTION - Prepare a table showing the columns - ITEMS (or promotion tools), QUANTITY, COST and TOTAL COST . - Explain the promotion tools to market your business.arrow_forward
- “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. Smaller or lighter packages were more expensive to ship with UPS, but USPS provided a low-cost alternative. UPS ships more than 220 internationally, whereas; USPS is strict about shipping to specific international destinations. I have chosen USPS over UPS; by doing this, orders were delivered on time and without damage by the United States Postal Service. The opportunity cost is the benefit of UPS shipping.” Is this a good example of an opportunity cost?arrow_forwardA reputable FMCG company is holding its Annual Sales Conference on July 1 st , 2021 for its fiscal year sales plan. The company is interested in launching new product beside its existing product lines. The new product will be novel in the history of the company. 1. Discuss the types of distribution channel that could be used to deliver this product to end consumer.arrow_forwardWith the help of your lectures, explain how 4Ps are used for marketing plan and used for a product or a service marketing strategies. Explain your answer with the help of an industry examplearrow_forward
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Recommended textbooks for you
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