Marketing Application response
Market Application Response
Wal-Mart is the store known for the use of Just in Time Inventory (JIT). The success of Wal-Mart is based on high quality of product and low production cost. As stated by Kennedy (2015) JIT is design to deliver less merchandise product on more frequent basis. It means that the company is able to get the merchandise just in time, for it to able to get another product on line CITATION Sea15 \p 21 \l 1033 (Kennedy, 2015, p. 21). In this case, the store stock product, which clients wants and it is what has made Wal-Mart Supermarket successful. However, the advantages of JIT are it increases the availability of the product in the stores, lower the inventory investment and also reduce the lead time. The disadvantages are the logistic function is more complicated because of more frequent deliveries of products to the stores and customers. It is also more expensive because of transportation and coordination. However, Wal-Mart should continue to use the JIT since, it has produced best result for the company over the years. The customers taste and preferences changes daily and the store can be able to deliver products based on the taste of customers and with Just in time system Wal-Mart is able to stock products needed by customers.
Vertical Marketing System
Vertical marketing system is supply chain method where members act as a unified system. The vertical system include administrated, contractual and corporate. However, Bartoli Pasta uses Contractual vertical marketing system to sale its products. It has entered into agreement with various stores, where its products are stock for customers. Contractual is the agreement which exist between various distributors or stores. It helps a company to have a wider distribution channel and a wider market as well. Krsipy Kreme donuts utilize administrated vertical marketing system in the market. It has an agreement with other firms to sales its products CITATION Ric19 \l 1033 (Richards, 2019). Ralph Lauren uses corporate vertical method for the sale of its products. The company still maintains its brand despite the partnership with other firms for the purpose of selling its products.
BIBLIOGRAPHY Kennedy, S. (2015). Vertical Market Systems and Management. Journal of supply chain , 2-34.
Richards, L. (2019). Vertical Marketing Systems Application in supply chain ana management. International Journal of business and supply chain , 14 (4), 12-38.
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