Executive Summary: Sample Solution

The report revolves around Nudie, the Australian Fresh Fruit Juice Drink manufacturer which is recently bought by Monde Nissin. The company holds 4% of the fruit juice market. The report proposes a new product; Ice-blocks for the expansion of the existing product profile. The new product will follow the Nudie’s tradition of using pure fruit for its manufacturing. “Families are looking for health-conscious products” would be targeted for the marketing of the new product line. For reaching the target market, distribution plays a vital role. Use of “Supermarkets” and “large retailers” is recommended in the report for efficient distribution. After considering of variables, a three-level distribution structure (manufacturer to retailer to consumer) is suggested for reduction of the tasks. The alternative channels which are available to Nudie are; 1) Nudie to online medium to the customer; 2) Nudie to online medium to Wholesaler/Retailer to Customer, and 3) Nudie to the Wholesaler to Customer. However, after evaluation of the Product variables, market variables, company variables, environment variables, and behavioral variables, the optimum channel structure selected for Nudie’s Ice blocks is found to be off: “Nudie to Retailer to Customer.” This allows Nudie to transport the products in less time and with cost savings of around $537.07. This structure would include investing in refrigerated transport as compared to paying for the wholesaler or distributor for storage. It is found that this structure would take less time and cost for distribution of the Ice-Blocks. It would also result in more customer satisfaction. It is also found that use of the refrigerated trucks for transportation can also aid in distributing of smaller packages and in “breaking the bulk”. Woolworths, and Coles as the retailers, and OFE Transport as the distribution members are suggested for achieving the highest ROI for Nudie in the distribution of the Ice Blocks.