Question
Following the Mexican chocolate-making tradition, Taza Chocolate, based in Somerville, Massachusetts, manufactures a unique, stoneground chocolate with a very coarse texture and a very intense
Following the Mexican chocolate-making tradition, Taza Chocolate, based in Somerville, Massachusetts, manufactures a unique, stoneground chocolate with a very coarse texture and a very intense flavor. Making its chocolate from scratch (like, bean-to-bar), Taza produces chocolate bars, Mexican-style chocolate disks, and chocolate-covered nuts. Taza's products are carried in specialty and health food stores around the nation and on the company's website. Given the nature of the product, distribution is a critical element of Taza's marketing program. Taza markets its products through three distribution channels at different price points. As a manufacturer, Taza must produce a large volume of product in order to be cost-effective; the bulk of Taza's output is sold wholesale. The wholesale channel is an intermediate price point. A second channel occurs through distributors, and this pricing is below wholesale. A third channel is through direct retail, which has the highest price point; most of Taza's direct retailing occurs through the company's website, although it is working on opening a factory store.
VIDEO DISCUSSION QUESTIONS
- What distribution channels does Taza Chocolate use, and what do they contribute to the company's overall marketing efforts?
- Taza Chocolate prices its products differently based on the channel that is used for distributing them. Does this approach make good managerial sense? Explain your answer.
- How does the concept of integrated marketing channels apply to Taza Chocolate's product distribution system?
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