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

1. What distribution channels does Taza Chocolate use, and what do they contribute to the company's overall marketing efforts?
2. 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.
3. How does the concept of integrated marketing channels apply to Taza Chocolate's product distribution system?