Question

Product:light & fit yogurt

How does the product flow from the producer to the retailer?

What kind of factors affected the channel choice?

Did the target market impact any of these choices?

Answer 1

Product flows from the producer to retailer as given below

Dairy farms ---> Processing Plant ----> Warehouse ------>Distribution -----> Retailer

The entire process is kept under 6 degrees celcius.

The raw material for the yogurt comes from dairy farms which is prepared into the desired form at the processing plant. The product is stored in warehouses which are connected to the processing facilities. The stored product is distributed in refrigerated vehicles to the retailer where it is stored below prescribed temperature to keep it in its desired form.

It is a part of a cold chain which needs to be managed very efficiently to prevent spoilage and losses.

The channel choice is affected by the climate ( hot tropical climate needs different kind of channel structure), distance between point location of  channel partners, time of consumption from preparation, number of stages between production to retailing, supply size ( bulk or small), geographical location of retailers and the logistical factors affecting the distribution process and nature of customers and their consumption pattern.

The target market's frequency of purchase, average buying size / quantity, end use and the desired characterstics of the product, paying capacity and quality consciousness are some of the factors that affect channel choice.