Chances and risks of multi channel strategies in the sweets industry

Kurz, Dietrich

The objective of this thesis is to investigate the potential of multi channel distribution in the sweets industry and derive specific recommendations. The aim is to identify what are chances and risks, and how to make chances more probable while avoiding risks. An empirical study is carried out which utilizes the perspectives of customers and sales persons as well (triangulation). The main results are that the benefits of multi channel marketing do not materialize for customers for low valued sweets, but that multi channel marketing is valuable in the sweets industry only for highly valued products, like precious pralines. Here multi channel marketing may generate new customers, or it may contribute to sales in existing channels. This kind of synergy may arise if channels do not compete but are closely interlinked. This is the most important chance since this kind of synergy adds to the convenience of customers (thereby raising sales) and reduces the risks of channel conflicts, cannibalization, and conflicts with retailers.

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