Despite the current pandemic situation, Christmas day is coming. In many countries, it is time for people
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Question:
Despite the current pandemic situation, Christmas day is coming. In many countries, it is time for people to decorate their homes, shops, and public spaces with Christmas trees. In the US, 98% of the real Christmas trees on the market come from tree farms. What makes a Christmas tree a special product is its extremely long production cycle: one tree takes 8-10 years to mature to 6 feet.
Christmas tree farms have 2 major sales channels:
The buyers come to the farm and cut down trees by themselves. Wholesale (indirect channel): The farms cut, package, ship, and sell their trees in bulk to lots, retailers, and distributors.Consider the product distribution as a customer value creation process.
What are the pros and cons of using different channels (direct vs indirect) in distributing Christmas trees?
If you are advising a Christmas tree farm, what is your recommendation?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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