Marketing Strategy for Jones Soda: Distribution Channel

Topics: South African rand, South Africa, Cape Town Pages: 3 (795 words) Published: April 23, 2012
Marketing Strategy
Distribution Channel
Jones Soda will prepare the shipment and send it to the port of Seattle. They will then ship it to the Beverage experts in South Africa. The product will be finished already and the Beverage Experts only need to get the product to the retailers specified. Beverage Experts

Unit 31 Dirk Smit Industrial
14 Jakaranda St, Hennopspark, Centurion
Tshwane, South Africa 0154
Telephone No: +27 12 653 2569 (Beverage Experts)

Mid-Sized Supermarket
Designed to fit in the niche between convenience stores and supermarkets (Spar Retailer). SPAR Central Office: 031 719 1900 (SPAR)

Pick ‘n Pay
“Inspired by you”
Cape Town
101 Rosmead Avenue, Kenilworth
Telephone no: 021 658 1000 (Contact us)

“Better and better”
Telephone no: 021 673 7020

In the United States, the current price of Jone’s Soda is $18.99 for a 12 pack (Jones). This averages out to $1.58 per bottle of soda. Considering retail is usually marked up 25%, this would make their original product close to $1.18. One American dollar is worth approximately 7.818 South African Rands (ZAR). If we take the $1.18 and convert it, we get 9.22 ZARs. When you add the 25% back in plus another 10% for shipping overhead you get 12.63 ZARs for one Jones Soda. This goes back roughly to $1.62. This is a reasonable price for the South Africans. Jones will be able to regain its shipping costs, and the South Africans will still have a reasonable priced drink. Since the buyer and the user are essentially different people, there will be a discrepancy in how much the end consumer will be charged. If one considers the average retail add on to be roughly 10% the end consumers price ends up being 13.893ZAR. This should not be too much of a burden on the end consumer. This price will reflect Jones soda as being a premium quality soda.

For the promotion of Jones Soda, I think their best bet in South Africa is an underground...
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