Site Content

Additional Information

 Distribution and Marketing Methods of Products In the beverage industry a new brand must be marketed to three distinct groups, (1) the distributors and their sales force, (2) the store’s manager or owner, (3) and last, but no less  important,  the  consumers.  Fernhill  Beverage,  Inc.  has composed an  approach  that is specific to each group.In the incubation period of a new brand the initial launch with a distribution base is crucial. Fernhill Beverage, Inc. realizes that to insure the successful launch of a brand it must get the distributors  and  their  sales  force  to  push  the  desired  product  over  another.  This  is  best accomplished  through  incentives  for  the  sales  force.  For  example,  a  sales  person  might respond to a $10.00 bonus for every new retail account they open. They would also receive $1.00  per  case  for  every  case  they  sell  in  a  60-day  launch  period.  Other  sales  people  may respond to a contest where the sales representative that opens the most new accounts over a  60-day  launch  period  would  receive  a  vacation  package  for  two.  It  is  important  to  work with  the  distributor's  general  manager  and/or  owner  to  design  an  incentive  program  that best  fits  their  needs  and  the  needs  of  the  brand.  Some  distributors  are  comfortable  with financial  incentives  while  others  are  not.  Fernhill  Beverage,  Inc.  is  poised  and  ready  to support the distributors with various sales and promotional programs for the marketing of its  "flagship"  brand Roadkill. Fernhill  Beverage,  Inc.  has  created  sales  sheets  to  be  used  as tools for the distributors to educate and present vital information about the product to the retail  store  manager  or  owner.  Universally,  retail  establishments  try  to  maximize  profit potential per cooler location. To help retailers in their endeavor, Fernhill Beverage, Inc. will introduce  the  brand Roadkill with  a  "buy  3  cases  get  1  case  free"  program  when  they purchase all flavors. The free case would be offered on a co-op basis with Fernhill Beverage, Inc. and the distributor. This will improve the store owner’s profit margin by 25%. There is limited retail shelf space available.To battle the dilemma of a lack of retail shelf space Fernhill Beverage, Inc. is prepared to offer  proprietary  suction  cup  racks  where  needed.  Fernhill  Beverage,  Inc.  intends  to provide labels promoting the brand Roadkill on each of the suction cup racks.Fernhill Beverage, Inc. will also have static cling labels available to advertise Roadkill on the  cooler  glass  doors.  As  volume  grows,  Fernhill  Beverage,  Inc.  is  prepared  to  offer proprietary  coolers  to  select  retail  locations.Fernhill  Beverage,  Inc.  will  again  take advantage  of  its  relationship  with  distributors  to  utilize  shelf  space  in  coolers  that  the distributors  currently  own  and  operate  in  various  retail  locations.  Marketing  within  a major grocery chain is vastly different than marketing within a convenience store or

Roadkill has a target retail price of $.99 to $ 1.19 depending on the market. Fernhill Beverage has found that the lower retail price will service as incentive to purchase the product. "mom  and  pop"  retail  location.  In  many  instances  strategic  plans  such  as  end  caps, positioning  of  the  product  at  eye  level  on  the  shelf  and  displaying  the  product  near checkout stands can be coordinated with the grocery general manager.This relatively simple strategy can be extremely effective and accomplished without the outlay of massive capital.Fernhill  Beverage,  Inc.  believes  that  the   most   successful  strategy  to   market  to   the consumer starts with a grass roots campaign. Much like the phrase "all politics are local"Fernhill Beverage, Inc. feels "all marketing is local".Fernhill  Beverage  is  capable  of  producing  the  product  for  roughly  $.32  per  unit  in  the early stages of production. That price will decrease to roughly $.26 to $.28 per unit with economies of scale. At this point, the full production cost of Roadkill is $.32 per unit or $7.68 per 24 pack case.Currently, Roadkill is sold to the distributor for $.50 per unit or $12.00 per 24 pack case. This allows the Company to retain a $.18 per unit or $4.32 profit per case not including shipping.The  distributor  then  sells  Roadkill  to  the  retail  location  for  $.75  per  unit  or  $18.00  per case. This allows the distributor to retain $6.00 profit per case making it very attractive to them and allowing them to add it to their existing orders.Roadkill is shipped to the distributor in a palletized format. Each pallet contains 72 cases with a revenue amount of $864.00. A full trailer contains 20 pallets with a revenue figure of $17,280.00 .