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Add album chocolatinas jet watch album chocolatinas jet Remove from watch list. The company in charge of the distribution channels is called Cordialsa.
These channels have different functions depending on the type of buyers. Wholesalers buy goods directly from the company and they usually buy large quantities in order to sell either to retailers or consumers.
This distribution channel is usually responsible for the largest volume of sales the company may have and they are generally composed by very visible and well known customers Exito, Olimpica, Macro, Carulla, Pomona etc. Retailers on the other hand represent the other half of the distribution scale, accounting for the everyday consumer who does not buy in bulk and rather buy for the immediate use.
Each channel of distribution is managed in different ways, depending on the type of customer they are dealing with, for example, when dealing with the wholesaler, Cordialsa has a warehouse director that is in charge of dispatching large orders and is constantly in touch with a warehouse director over at the clients warehouse which has to be ready to receive the order. The operation does not change much when dealing with smaller retailers because Cordialsa employs as well a warehouse manager specialized in small orders and dispatching to the small shops and retailers, usually with a higher frequency than the orders for wholesalers.
The distribution channel system used in the company has been identified as being a hybrid or a multichannel system because it consists of a single firm Nacional De Chocolates setting up one or more distribution channels to reach one or more customers through different intermediaries.
This is achieved through the wholesalers who buy from the company and then sell in bulk or redistribute to other retailers or by the actual retailers who reach the smaller portions of the market and account for the individual sales of the product itself. The intermediaries in the different channels have certain characteristics which make them better at specific functions. Wholesalers are independent intermediaries that buy goods from manufacturers and sell them to retailers and other business to business customers.
These intermediaries are the ones in charge of breaking the bulk so they can sell it mainly to other businesses which will finally sell it to the end user, for example, Retailers: They are directly in charge of selling to the final consumer, making the product available when, where and in the sizes and quantities that the final consumer wants.
Because of the nature of the product, retailers are usually the ones who provide it directly to the consumer instead of the wholesaler doing this. Nacional de Chocolates is oriented primarily towards an intensive distribution of their product Chocolatinas Jet because it takes advantage of every existing channel of distribution, focusing on taking their product to every single corner of the market and making sure it reaches any store capable of selling it. An intensive distribution is mostly oriented towards convenience products which have an appeal to a wide percentage of the population and therefore can be easily marketed without many extra costs.
Chocolatinas Jet which in essence is a convenience product suits this model perfectly as it can be easily marketed through any and all distribution channels without having to make any changes to the existing distribution systems or the product itself.
For their distribution strategy, Nacional De Chocolates uses both wholesalers and retailers to market their products and take them to their final consumers and by doing this they aim at spreading their product, Chocolatinas Jet, throughout the entire potential market. The use of both big and small intermediaries ensures that the market is completely covered and there are no gaps for their competitors to take advantage.
The only existing gap that has been recognized by Nacional De Chocolates exists in areas where the temperature is too high coastal areas which degrade the quality of their product as a result of the chocolate melting. The company Nacional de Chocolates is essentially considered as a wholesaler because they are known to sell large quantities, aiming at economies of scale and are not known for selling directly to the end user, they rather sell to intermediaries who in turn sell Chocolatinas Jet to the end users.
Being a wholesaler the Nacional De Chocolates group has a specific marketing mix which has been adapted for their wholesalers functions. In regards to their products they focus on large volumes and presentations other than individual retail sales, as for their prices they are oriented towards large volume sales and therefore grant their customers with special conditions such as discounts or payment plans when they exceed a certain number of units or a certain amount of money spent.
Due to the fact that they are wholesalers and they have to seek large market shares in order to maintain their economies of scale, the Nacional de Chocolates group has to aim their promotion efforts towards a more regional and national even international in some cases advertising of their products in order to be well known in the market and secure enough sales to surpass their break-even point.
They are not focused on having stores which customers seek and plan to visit; instead the company sets up isolated stores, where the location is as not important as low rent costs.
They use this type of strategy because the company doesnt need to get to the customers, the customers go to them, which justify the preference they have for low rents costs over the aesthetics of their store fronts.
An example of a strategy they use in order to allow customers to get to know them is having tours around their factory located in Rionegro, Antioquia, where small kids can go with their parents and learn how chocolate is made and get free samples of a wide variety of products.
In this case the marketing mix does not include either Personnel nor Presentation due to the fact that the company is not selling directly to the final consumers and do not come in direct contact with them.
Their function is to sell in bulk large or small to other distributors which break down their products into the sizes and quantities that customers want to buy. These are in end, the special functions that the Nacional de Chocolates group has to carry out being a wholesaler for their Chocolatinas Jet product. PROMOTION The promotion mix of the company is composed by the basic four elements, advertising, public relations, sales promotion and personal selling; for these four activities the Nacional de Chocolates assigns a budget of million Colombian pesos, which are assigned in order of importance to each task in the promotional mix.
The budget break down shows that the company wants to make an emphasis on advertising, basically focusing on children, and trying to attract them through TV commercials and online websites, but its also making an effort to become strong in personal selling.
It is a profitable way to convince the children and their parents who are the ones that will purchase the product. The company is concerned about the public relations and the sales promotion and they undertake different activities for each of the promotional mix elements.
Personal Selling: The internet plays a crucial role in personal selling because it is used to attract potential buyers. The Nacional de Chocolates uses its web site to inform and incentive their customers. For the young customers, their web site is more colorful, interactive, and is really easy to access them so children can explore and learn from them. Also on its official web site they explain their history with a time line, showcase their various products, and explain the production process, basic items that concern the customer.
This shows that the company cares about having a good image and showing that they are a responsible company. Nacional de Chocolates emphasizes in personal selling seeking to convince children and parents to purchase their products, in this case Chocolatinas Jet Leche. They use promoters in supermarkets, who talk about the benefits of the product and encourage the general audience to know about more about their product.
The company is placing promoters around the city where theres a large presence of children, like Divercity and El Tesoro Encantado, giving free samples of the chocolate bar, so they will know the product.
Also the Nacional de Chocolates is creating spaces where children can exchange animal stickers to complete the album guided by employees from the company who help the children with this task. Another strategy they use is the planning of outside activities with children, encouraging them to learn how to take care of nature, so they can develop an environmentally concerned attitude.
The company is constantly surveying its customers to make sure its personnel is doing their job properly and uses this information in the creation of new sales strategies that will attract their target market in a much more efficient fashion. Sales Promotion: Instead of lowering the price, Nacional de Chocolates believes in a strategy called adding value. This is when in the package says that instead of four chocolate bars, it contains five for the price of four.
It also is a great technique to increase sales because, usually the ones who see this promotion are the children and for them that is a very attractive offer. To encourage youngsters to keep buying their products they launch different campaigns, such as album stickers which are found inside the chocolate bars, needed to complete the album.
This strategy makes the children want to consume a considerable amount of chocolate, because they want to complete the album.