Essay on Marketing Analysis : Value Chain

1106 Words Sep 9th, 2015 null Page
According to Michael Porter (1985), “value chain” is a set of activities that an organization carries out to create value for its customers. Porter divided all steps into two activities: Primary Activities and Support Activities. The former activities include: Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service. The latter activities included: The infrastructure of the firm, Human resource management, Technology development and Procurement. About Inbound Service, concentrate producers get involved in the first step. Their roles are conducting marketing programs as well as developing them, especially in terms of product development, market research, and advertising with bottlers. This step are also seen as Operations in terms of transforming the inputs into the final product. As the following step, bottlers buy concentrate, and add water and corn syrup, then packaging. At the same time, concentrate procedures are also in charge of negotiating “customer development agreements” (CDAs) with retailers, including getting enough shelf space. When it comes to Outbound Logistics, you can find some difference between private – label CSD and branded CSDs. The former is often delivered to a retailer’s house where the retailer is in charge of storage, transportation, merchandising, and stocking the shelves as well as the additional cost. On the other hand, the latter is delivered directly to stores. About Marketing & Sales, bottlers have an authority to…

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