Wednesday, September 2, 2015

Marketing Mix - Distribution

Distribution

“With each new channel, the company expands its sales and market coverage and gains opportunities to tailor its products and services to the specific needs of diverse customer segments.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 301). Boston: Prentice Hall.) That being said, opportunities to create distribution channels at first seem limited for a food truck. Though we will do what we can to create a few of them. "Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 294). Boston: Prentice Hall.) Besides the ability to order directly from the truck, we will enable customers to place orders online, through our website, or our application, which will need to be created as part of our initial launch.

The Cluck Wagon will be capable of operating all day long, from breakfast to dinner, and possibly beyond. What happens to the truck when it is not out and about making sales is an important question. Down time with the truck could be a liability, or a potential asset. When the truck is ‘off duty’ and parked in the company lot, a second or third shift might occupy the vehicle. An early morning shift could be responsible for prepping for the day ahead. An evening shift might come in and clean the truck and restock it for the next day. There is also an opportunity to cater events, and off time might be perfect for this purpose. Catering could become a huge distribution channel.

There is a possibility that horizontal marketing channels could be exploited. For instance, we might be able to set up Cluck Wagon kiosks at concerts, sporting events, and the like. Positioning these kiosks might prove challenging, as they would require fitting out with kitchen equipment, etc. But if the original food truck concept is successful, these avenues may become viable options.