Product_Offering

Introduction International Market Channel Strategy According to Kotler and Keller (2007), “A marketing channel performs the work of moving goods from producers to consumers, overcoming the time, place, and possession gaps that separate goods and services from those who need or want them”. Choosing an appropriate channel strategy affects other marketing decisions. Kudler Fine Foods channel will produce a variety of wines. By using selective distribution, Kudler will sell the wines only at certain retailers, online, and at other Kudler Fine food stores. This channel objective will help in having a lower service output and give the customers a lower price. The channel will be from producer to retailer to consumer. This helps to control price cutting. Select transportation will be used to ship the products over to different sites. The transportation mode for local shipments will be rail and truck because cost and dependability is average. For overseas shipments, sea transportation and truck transportation will be used. The companies' channels must be managed. This helps control channel conflict, helps coordinate, develop commitment and trust. When going abroad. Kudler Fine Foods has to make sure the distribution channel is short or the cost will be higher to the customers. The international headquarters will be at the Chile warehouse and shipped to the United States and the host country of China for distribution for China’s retailers. Pricing Strategy According to Kotler and Keller (2007), “many consumers use price as an indicator of quality”. “Firms choosing the objective of maximum market share believe that higher sales volume will lead to lower unit costs and higher long-run profit. With market-penetration pricing, the firm sets the lowest price, assuming the market is price sensitive. This is appropriate when the market is highly price sensitive and a low price stimulates market growth”, (Kotler and Keller, 2007). The competitors can help determine a price. The lower the price of Kudler Fine Foods wine, the higher the demand. Kudler Fine Foods will set the cost as the floor price and the competitors and substitute price as an orienting point and Customers’ assessment of unique features as the ceiling price. Kudler will use value pricing to win loyal customers by having a low cost for a high-quality product. When incomes are low, the customer is looking for lower prices. According to Kotler and Keller (2007), “It is a matter of reengineering operations to become a low-cost producer without sacrificing quality, and reducing prices significantly to attract a large number of value-conscious customers”. Kudler Fine Foods will charge a lower price for a good quality wine. Before setting the price, Kudler Fine Foods have to consider other factors such as geographical pricing, price discounts and allowances, promotional pricing, and discriminatory pricing. For example, if a customer purchases in volume, the wine will have a discount price. Kudler Fine Foods can also offer special-event pricing. Kudler Fine Foods will use product pricing to distinguish between the different types of wine. Price is also determines by the country’s economy. When selling the wine abroad, we will have to add in any extra charges such as tariff, cost of transportation, and retailer margin. Problems faced with pricing overseas are Price escalation, transfer prices, dumping charges, and gray markets. Kudler Fine Foods will use a market based price in each country. So, the price of the wine will vary from one country to the other. Changing Environmental Factors Economics Innovation and Technology Social and Demographics Conclusion