What should Alice’s have done?Based on your personal research, what distribution approach(es) would you use if you Alice’s was your company? Why?How do your ideas relate to your target market(s), does your research change the approach to the channel(s)? Why/why not? Case Study: Alice's DressingsDistributions ys tems may evolve over time as abusiness grows and changes. Considera small one-store family res taurant named Alice's, with delicious, unique, homemadesalad dressings (e.g., Pomegranate Vinaigrette, Rum-Rais in-Orange Ranch, BhueCheese Catalina). Initially, the dressings were only availab le to customers eating atAlice's. Then cus tomers begin requestingbottles to buy. Initial sales and distributionofAlice's Salad Dressings were from the res taurant to walk-in cus tomes. The productwas packaged in a 32-ounce canning jarwith a handmade label.New distribution channeks cause packaging and pricing changes. Then Alice'sDressings were sold to a local grocerystore at a discounted wholes ale price, 28percent less per ounce than the retail res taurant price, packaged in asmaller, 26-ouncebottle. As local demand grew, Alice decided to have the dressings made in anindependent packing facility and sold to other s tores in the area, which initially rais edthe costof making the dressings. Alice's lusband, brothers, and asister-in-law dividedup initial sales res ponsibilities to callonlocal and regionalstores in their s pare time.The popularity of Alice's Dressings caused Alice to consider the possibility of sellinglarge pallet quantities to dis tributors in other s tates. The dis tubutors needed another 25percent dis count fromwholesale price, alongwith free s hipping. Sales brokers werealso recommended, at 5 percent commis sionon netdistributors ales, since the familycould no longer call oneveryone. A separate companywould have to be setup tomarket the s alad dressings; an enterprise requiring full-time management.Distribution channeks are ley to pricing and packaging decisions. In this case, aseparate business, new dis tribution chamels and sales representation grew outofAlice's initial one-store restaurart. Alice's restaurantwas initially able to sell the saladdressings at $5.00 per 32-ounce jar (15.6cents perounce) directly to customers.However, once adecisionwas made to sell Alice's Dressings as ashelf-s table item ingrocery s tores, the bottles changed to astandard 26-ounce size to compete with otherdressings sold in this size.Alice was concemed that grocery consumes, unfamiliarwith the restaurant, would notpay over $3.99 retail per 26-ouncebottle when competing brands ranged from $1.29 b$2.69 for the same 26-ource size. Wholes ale prices were 28 percert less than retail, at$2.89 perbottle. However, the costof ingredients was substantially more thancompeting brands, at$1.00 perbottle, and packaging and processing costs addedanother $0.50 perbottle. Profits were reduced from restaurants ales perbottle, butstillacceptab le (i.e., from $3.50 abottle, or 11 cents per ounce, to $1.39 perbottle, or fivecents perounce), since the total amountofsales and profits were expected to besubstantially greater through grocery s ales.Further researchwith marketing experts in the industy and sales brokers indicated afurther 40 percent reduction in delivered distrībutor price (inchudingbrokeagecommissions and shipping costs). Alicewould net $1.73 perbottle at delivereddistrībutor price withbrokerage commissions of 5 percent, leaving anunacceptable

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In the given case study, we can observe the concept of expansion and scaling of business, which in…

What should Alice’s have done? Based on your personal research, what distribution approach(es) would you use if you Alice’s was your company? Why? How do your ideas relate to your target market(s), does your research change the approach to the channel(s)? Why/why not?