Saturday, December 21, 2019

The Product Distribution Ideal For Whole Foods Market

Win-Win-Win Distribution The product distribution ideal for Whole Foods Market in Namibia will be two. First, the win-win-win distribution will be used when the company is entering the new country for the first place. This distribution channel aims at having all distributors in the supply chain to benefit from the products being distributed. Even though American companies always aim at reducing the links in the supply chain, this happens in the developed countries while this company is opening a new store in a developing country where the distribution channel is expected to change. Therefore, the win-win-win distribution channel works in a way that it benefits the all vendors. With attached financial benefits, the win-win-win situation†¦show more content†¦Therefore, using third-party prospectors will initiate research and production units with the motivation of having a ready high end market for the products (Roy, 2013). Cost-plus pricing The ideal pricing strategy for Whole Foods Market will adopt the cost-plus pricing strategy that takes into account the cost of operations or cost of production plus a constant profit. The organic food market analysis in Namibia indicates that there is a structured market with specific consumer. Organic foods are better produced locally than flown from abroad. Therefore, the cost of producing these foods using the local resources will be expected to reduce the retail cost because local production costs are not equal to abroad production costs (Chris, et al., 2005). Another important pricing strategy ideal for Whole Foods Market is to use psychology of pricing such that the retailer analyses the responses of the market and develop a pricing strategy ideal to that consumer response. However, psychological pricing will depend on the quality of organic foods and consumer services the company is going to offer to its consumers in the foreign market. In return, the consumers are going to r espect and pay for quality and healthy organic foods they receive from Whole Foods Market Company. Since the market for the organic food industry in Namibia is already defined as a niche that caters for the elite and financially advantaged in the society, the company will find it easier to price

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