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Distribution Channels

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Distribution Channels
Reese’s Distribution channels

Introduction Any product or service in the marketplace utilizes distribution channels to reach its customers. Although the manufacturers and services providers can and do provide their goods and services directly, utilizing distribution channels multiplies the number of goods and services that reach the marketplace (Advameg, Inc, 2011). Therefore, distribution channels can increase market share and profit margins since these distribution channels help the company’s product reach its target segments and enter into new marketplaces (Advameg, Inc., 2011). As they enter into new regions, stores, and the like, manufacturers and service providers can capitalize on these channels and markets by cultivating demand. Yet, the beauty of the distribution channels rests within the ways they free these companies and manufacturers to do what they do best, manufacture products and provide services to meet customer demands. Distribution channels just help these companies reach their goals and satisfy the manufacturers’ and service providers’ customers.
Reese’s Distribution Candy is one of the most widely distributed goods in the world, especially within the United States (Packaged Facts, 2004)). According to the 2004 Package Facts Report, The U.S. Candy and Gum Market, the candy market has been steadily increasing. In 2004, the marketplace, its manufacturers and distributors enjoyed a (Packaged Facts, 2004)”[…] $23.5-billion market for chocolate candy, hard candy, soft candy, mints and gum, covering both the mass-market and gourmet levels. Not surprisingly, its parent company, Hershey’s (HSY) has captured the top slot in the candy/confectionary sector (Bavdek, 2008; CandyUSA, 2010). Reese’s chocolate and peanut butter candy is available in more than 21 variations and distributed in more than 90 countries (The Hershey’s Company, 2011). Although the Hershey Company does sell some Reese’s products and Reese’s brand merchandise



References: Advameg, Inc. (2011). Distribution channels. Encyclopedia of Business, Second edition. Bavdek, M. (2008 Oct. 16). UPDATE 3-Hershy U.S. market share stabilizes, shares rise. Reuters. CandyUsa. (2010). Hershey Sales, Earnings Increase. Retrieved from http://candy.amplify.com/ The Hershey Company. (2011). REESE’S peanut butter cups. Retrieved from (2011). Reese’s store. Retrieved from http://www.hersheysstore.com/products/ shop_by_brand/shop_reeses

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