Ron's Food Seasoning Company Case Study

Proper distribution is an essential part of making business successful. It is how the business put their products on the hand of the customers. But before the products come on the hand of the customers it passes through several channel members. Since Ron’s Food Seasoning Company wants to expand the coverage of their distribution system, the company must carefully select their channel members in order to be effective their distribution. Channel members can maintain the contact between the company and consumers since the channel members has the final contact with customers. They help Ron’s Food Seasoning Company to promote, negotiate, give and acquire information, carry the products and physical distribution of goods. Producer-to-buyer is used …show more content…
The good thing about agents is that they can have better control, give instructions and demand more from their performance since they are under the …show more content…
Wholesaler They are not in contact with any company, can also reduce the cost of distribution and sell to other wholesalers, retailers and institutions. They are operating on high volume and low margins. The main job of the wholesalers is to break bulk or to sell product in lot sizes, promote the products, and further the distribution of the products. According to Ronaldo Mendoza, owner of Ron’s Food Seasoning, they distribute to different wholesalers and some of them are going directly to their company to purchase the products. They sell products directly to final customers for their personal, non-business use through different distribution channels aiming to earn a profit. They are closet to the consumers because they have the final contact with them. They carry different kinds of products depending on what they want and sell it in small sizes. Retailers are earning the highest margins among the different channel of distribution. Ron’s Food Seasoning is primarily supplying to different retail stores in the community like sari-sari stores, stores in the town market, and local grocery