- The product sold is chocolate bars made from peanut butter, and they are produced by the company known as Reese’s Big Cup. According to the research that I conducted, the peanut butter chocolate bars are mostly sold in almost all retail stores, and can also be found in specialty candy stores, and gourmet and grocery food. Other places, which the product can be found, and are readily available, include syndicated stores and vending machines. Also, the product can be found at the high end stores that sell specialty chocolate. This is because the product is sold all year round in all the various locations. The packaging is often unique, whereby the peanut butter chocolate is six in number in every packaging. The product is also packaged in many different varieties that are extremely colorful. Reese’s Big Cup makes use of an intermediary distribution channel, whereby the Hershey Company has the responsibility of distribution (Ferrel & Hartline, 2007. 45). The method employed by Reese’s Big Cup is extremely beneficial as it relieves itself of having to market and distribute the products itself. The two companies have come up with a partnership and the success of this strategy it evident. Upon observing, when deliveries were being made, I saw that the employees in the delivery van had put on Hershey Company uniforms.
- The target market selected by Reese’s Big Cup Company is teenagers and young children. They range from the ages of five to seventeen years old, who love to indulge in sweets and candy. They have come up with attractive packaging, which easily attract the target market. The wrappers for the packages come in various colors such as Gold and Red. It seems that the marketing strategy employed by the company is successful. This is because the stores, which stock the peanut butter chocolate bars, are easily accessible by the target market. Also, the various locations are convenient as there are other facilities such as malls and restaurants within the vicinity. The company has ensured that its products are readily available. The distribution used by the company is effective, but more needs to be done to make it successful. For example, since the target market attends school, the company should seek to provide a variety of its products in the vending machines, found in most schools. The use of an intermediary for the purposes of distribution has helped a lot, as the target market is obtaining the Reese’s Big Cup Products (Dent, 2008. 90).
- After a lot of research, it has been found out the distribution channel being used by Reese’s Big Cup Company makes effective use of a supplier. The latter is the Hershey Company, which has been given this role. This conclusion is because Reese’s Big Cup does not distribute its own products. The advertising and marketing efforts are done by the Hershey Company (Hershey Co (HSYN.N), 2011. 1). The products are available in countries such as Australia, Canada and the United States. In turn, the latter company benefits as it obtains a percentage of the earnings that Reese’s Big Cup earns. As a result, of using this type of distribution strategy Reese’s Big Cup enjoys benefits such as a competitive advantage, larger market share, and increased profits, among others (Nash, 1994. 89).
Dent, Julian. Distribution Channels: Understanding and managing channels to market. New York: Kogan, 2008.Print.
Ferrel, O. & Hartline, Michael. Marketing Strategy. Colorado: South western pub. 2007.
Nash, Edward. Direct Marketing: Strategy, Planning, execution. Mc-GrawHill, 1994.Print.
“Reese’s product listing”. Retrieved 4 November 2011 from http://www.hersheys.com/reeses/products.aspx#/REESE’S-Peanut-Butter-Cups.
Hershey Co (HSYN.N). Reuters. Retrieved 4 November 2011 from http://in.reuters.com/finance/stocks/companyProfile?symbol=HSY.N
Kotler, P. Marketing Management. New York: Prentice Hall, 2002.Print.
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