Discuss distributing products through supermarkets


Problem: You are hired by a small bakery that is interested in distributing its products through supermarkets. The market for the bakery's products has been steadily growing, and it is time to expand distribution now that the bakery has expanded its production capacity. You have an appointment with the manager of a local grocery chain. The manager is familiar with the bakery's products and is excited about the possibility of having them in the store. He presents the contract and you notice a $10,000 fee for stocking the product. When you ask about the fee, you are told it is simply the cost of doing business and that the bigger bakeries are not in favor of adding your product line to the chain. You know the bakery cannot afford to pay the fee. What should you do know?

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Marketing Management: Discuss distributing products through supermarkets
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