Friday, December 4, 2015

Distribution

          For my distribution since I want to have authentic flavors, I would use a local distribution center in Brazil for the nuts and have them ship to our location here in Vegas. I would also use a distribution center or Habanero grower from Brazil to purchase the Habanero chile. We would learn the techniques of roasting and grinding the chilies to season the peanuts. We will package the product in plastic triangle bags and use wire tie ups to secure the bags. Since we are distributing to local bars we will not use a big rig, we would probably purchase, to start a 10 foot truck, like the ones U-Haul use. Purchase about 1 or 2 for local deliveries. “The objective is to maximize profits, not sales. Therefore, the company must weigh the benefits of providing higher levels of service against the coasts. Some companies offer less service than their competitors and charge a lower price. Other companies offer more service and charge higher prices to cover higher costs.” Marketing: An Introduction, Armstrong/Kotler, page 329. I believe in cutting the logistics system since we will be small company to start with we can have our own logistics and distribute ourselves cut the cost of having another company do our deliveries. Perhaps also, I could contact and speak to both with my distributors in Brazil and have them work together in a dual company to produce the product there and have the product once completed sent here, where I could just package and distribute. 

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