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FINALS - Case Study2 FreshBrew Case - Motivating Channel Members

FreshBrew, a premium coffee brand, is facing declining sales in retail channels and seeks to motivate its wholesalers, retailers, and online partners to prioritize its products. The company aims to improve product visibility, increase sales volume, and strengthen relationships with channel members through strategies such as incentive programs, cooperative advertising, and sales training. Options under consideration include tiered incentives, marketing support, and exclusive product lines to enhance brand differentiation and loyalty among channel partners.

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173 views2 pages

FINALS - Case Study2 FreshBrew Case - Motivating Channel Members

FreshBrew, a premium coffee brand, is facing declining sales in retail channels and seeks to motivate its wholesalers, retailers, and online partners to prioritize its products. The company aims to improve product visibility, increase sales volume, and strengthen relationships with channel members through strategies such as incentive programs, cooperative advertising, and sales training. Options under consideration include tiered incentives, marketing support, and exclusive product lines to enhance brand differentiation and loyalty among channel partners.

Uploaded by

H. V.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Study #2: Motivating Channel Members for "FreshBrew" - A Premium

Coffee Brand

Background:

FreshBrew is a mid-sized company that produces premium, sustainably sourced coffee beans and
instant coffee products. FreshBrew distributes its products through a network of wholesalers,
retailers, and online marketplaces. The brand prides itself on providing high-quality coffee while
supporting fair trade practices and sustainable agriculture.

Despite high product quality, FreshBrew has recently faced issues with declining sales in certain
retail channels, particularly in physical stores, where competition is intense. Some retail partners
have prioritized other brands over FreshBrew on their shelves, affecting the brand’s visibility and
resulting in stagnant sales.

To counter this, FreshBrew’s management realizes that it needs to motivate its channel members
—wholesalers, retailers, and online partners—to actively promote and sell its products.
FreshBrew is exploring different strategies to ensure these channel partners prioritize FreshBrew
over competitors and keep the brand in top visibility.

Objectives:

1. Improve visibility of FreshBrew’s products across all retail channels.


2. Increase sales volume by motivating retailers to prioritize FreshBrew.
3. Strengthen relationships with channel members to ensure long-term loyalty.
4. Differentiate FreshBrew from competitors by aligning the brand image with motivated,
enthusiastic channel members.

Current Situation:

FreshBrew currently provides some standard support to its channel members, such as occasional
discounts, training materials, and basic point-of-sale displays. However, these efforts have proven
insufficient in the face of aggressive competitors who offer larger discounts, bonuses, and more
attractive in-store displays.

Options for Motivating Channel Members:

1. Incentive Programs: Introduce tiered incentives where channel members can earn
bonuses or rebates based on sales volume, product visibility, and meeting performance
goals.
2. Cooperative Advertising and Marketing Support: Offer to co-fund advertising
campaigns and provide marketing materials to enhance product presence in stores and
online.
3. Sales Training and Product Knowledge: Conduct regular training sessions for channel
members' sales staff to educate them on FreshBrew's unique features and brand story,
which could increase enthusiasm and knowledge about the products.
4. Exclusive Product Lines: Develop a limited product line or exclusive packaging that can
only be sold by certain key retail partners, giving them a unique advantage in the market.

Case Study Questions

1. What type of incentive program would be most effective for FreshBrew in motivating
channel members to prioritize its products? Explain your answer.
2. Discuss the advantages and disadvantages of cooperative advertising as a means to
motivate FreshBrew’s retail partners.
3. How might regular sales training sessions for channel members' staff help increase
FreshBrew's visibility and sales? Provide specific examples.
4. If FreshBrew chooses to offer an exclusive product line to certain retail partners,
what potential risks and rewards might this entail?

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