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Awakestick

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a)      Product description (shorter and more to the point)

Awakestick is an energize lipstick similar to the 5-hour energy in lipstick version

2)      Place flowchart

Awakestick

Retailer

  Final consumer

3)      Degree of market exposure required

The degree of market exposure required is wide, intensive and selective. The product should be wide in the sense that we need to cover a wide market. Marketing for awakestick meant to be intensive in order to capture a large number of consumers Its marketing is to be selective because not everybody uses lipstick. It should target urban workers. The end sellers of awakestick would cosmetics shops, super markets, ordinary shop keepers and hawkers,

4)      Identification of channel members       

The channel members involved in the distribution of Awakestick lipstick include main stores to act as suppliers to regional distributors, regional distributors are to supply country distributors, country distributors shall be responsible for distributing to whole seller, whole sellers can directly sell to last consumers but mostly supply to retail shops and hawkers. Retail shops and hawkers have the responsibility of selling to last consumers.

5)      Production Balance/Discrepancies of Size/Bulk-breaking Activities

Awakestick belongs to a big category of commodities classified as cosmetic. On a general view, cosmetics have no low and high seasons because ladies use them almost every day. However, seasons like during Christmas Easter and other religious holidays can be considered as the high seasons for the sale of Awakestick lipstick. This implies that that production has to be increased during these seasons of the year. While during ordinary seasons of the year, production has to be kept simply at optimum levels to suit the consumption levels.

Packaging logistics at production

At the production level little shall be done concerning packaging logistic. This is true because Awakestick lipstick is packed in big cartons, making the ready for supply to main stores.

Packaging logistics through channel at each “touch”

Much is done at this stage because the big cartons from factory are unpacked and repacked in small consumable packs of dozens and packets.

Who is responsible for shelving and stocking?

The responsibility of shelving and stocking of Awakestick lipstick is to be taken up by whole sellers, and retailers. This implies that last consumers can only access Awakestick lipstick from either whole sellers or retail shops.

Volume requirements for discounts

Incentives and breakpoints to channel members

The company offers a 10% discount to any number of cartons supplied to regional and country distributors. Regional and country distributors offer a 2.5% to any sale of Awakestick products supplied to whole sellers, above 5 cartons. Transportation of Awakestick products shall be done a no cost from whole sellers to retailers.

Coordination

a)      Problem solvers throughout channel

Product supervisors shall always stand in to supervise and ensure that products reach buyers, and that clients get value for their money

b)      How will they track product, information and cash-flow through channel?

Prepaid measures are to be used in the Awakestick business. Regional and country distributors have to pay for any product they have to take. In the same way, whole sellers are to pay to country distributor and regional distributors as they take Awakestick lipstick for resale to retailers and finally to the final consumers by the retailers.  From each channel member complaints and suggestions from customers can be received and from that concerned parties take responsibility of the concerns and suggestions from clients

c)      Communication platforms and frequencies

Clients at all levels have opportunities of being heard through comment cards at their disposal at all Awakestick distribution centers, and shop. Emails and telephones are all platforms for customers to be heard at any time of the customers’ convenience.

6)      Transportation requirement

Type of transportation at each “touch”

Transportation of Awakestick products from one continent to another would be to the discretion of the exporter but the most reliable mode of transport would be ship to connect to far parts of the world like Europe, Africa and Asia. However for small contingents air would work easily and faster.

Ownership or access

Since Awakestick has distribution centers at continental, regional and country levels, access or ownership of Awakestick products cannot be a matter of contention because Awakestick products are readily available for anyone at any time of need.

Inventory Considerations    

Space facilities required

Space required for the Awakestick lipstick is a building of 100meters x 50meters. With a parking yard as big as 200 meters x 100meters for truck parking

Climate and physical space controls

Due to the nature of our products, they need to be stored in a cool dry place, with no easy reach of fire. To avoid moisture, reasonable space should be maintained between cartons/bundles.

Mix considerations with other inventory

Awakestick lipstick can be stored with other inventories but clear boundaries should be put to avoid mixing different inventories.

Timing considerations through channel

In order to ensure steady supply, the manager should take note of seasonal changes in demand and therefore adjust the supply.

Reverse channels

Customer service requirements at point-of-return

In case products are returned by the customer due to any technical or clerical errors, we replacement or exchange for other products should be made.

Backward physical processing (product, information and cash-flow)

Any faulty products that need to be exchanged or replace have to be brought back to us and transport cost incurred by the company. The cheapest mode of information transfer is by email even though telephone calls should be used where urgency is required.

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