Question

Your family runs a specialty ice cream parlor, Ice-Scoops. It manufactures its own ice cream in small batches and sells it only in pint-sized containers. After someone not affiliated with the company sent six pints of your ice cream to a popular talk-show host, she proclaimed on her national TV show that it was the best ice cream she had ever eaten. Immediately after the broadcast, orders came flooding in, overwhelming your small-batch production schedule and your limited distribution system. The company’s shipping manager thinks she can handle it, but you disagree. List the reasons why you need to restructure your channel of distribution.

2. Building on question 1, determine a new channel structure for Ice - Scoops. Write a proposal to present to your key managers.

Answer 1

The reasons why I need to restructure the company's channel of distribution are:

The company is going to enter a new market.

If we don't increase our distribution we are going to lose against our adversaries.

The existing distribution is not going to be profitable.

Step-by-step explanation:

The arguments behind these reasons are that in the first place we no longer belong to the same market. The company has entered a new market and because it now has this bigger pool of customers we need to increase the channel of distribution or we are going to lose the market. That is the second reason if we don't build a distribution network we are going to let our adversaries sell their products to the new clients because we are unable to satisfy their needs. Third, the actual channel of distribution needs to improve it because if we don't do it we are going to lose by working with the same. the reason is that the capability might not be enough to satisfy the demand.