Selection of Appropriate Channel

Channel pricing involves implementing proper distribution methods in marketing. It encompasses training of the channel vendors on the benefits of products and encouraging promotions of various channel strategies in the market (Newsome, 2004). Appropriate configuration of sales and marketing is vital to efficient selection of channel and pricing strategies. This mainly depends on efficient consultant services that enable the understanding of channel pricing and its market integration. To ensure a stable competition in the market, Kudler Fine Food Company should adjust in accordance to the needs of consumers. The company, therefore, needs to establish new stores in Mexico and Chile for appropriate launch of the product.

According to Newsome (2004), the appropriate channel for selection by KFF Company is to introduce the product at low prices compared to similar products in the market and improve on the quality. This is due to the fact that Mango juice is new in the market and offers variety contrary to the competitors without nutritious products. Selection of these channel strategies relies on competition in the market and pricing of the product with the aim of making profits. The best method for launching the product in Mexico is to introduce lower prices since mangoes used for manufacture are home grown hence cutting costs. This also helps the company to produce and distribute the drinks at low prices internationally. International expansion to Chile is another crucial strategy to enable the growth of the company. This is based on the fact that beverage companies enjoy a stable market in the country. Therefore, KFF should implement the same pricing strategy in the international market.

Justification of channel pricing strategy

Consistence in marketing proves difficult to various companies. The important strategy to implement is encouraging customers to buy products over the others (Kotler, 2007).The choice by KFF to expand to Chile and independent production in the home country of Mexico is way in for market development. The stable market enjoyed by soft drink companies in Chile projects suitable market for KFF Mango juice. Pricing the product at low prices in Mexico is important because there is a ready supply of home grown mangoes hence low costs of production. This will enable the company to compete for the market share with its rivals in the energy drink sector such as Red bull, Vitamin water and Monster.

Channel and pricing strategies for product launch in both markets

Efficient channel pricing strategies require implementation of discounts from suppliers on their commodities. Development of these strategies is however complicated due to competition, channel power and conflicts in the market hence the need for careful consideration. The launch of Kudler Fine Food mango juice in the home country and internationally requires various channel pricing strategies. These include channel marketing and alliance strategies. This is aimed at looking on the life cycle of the product, type, quality, and the benefits (Kotler, 2006). It further helps in designing the vital channel strategies required. This will enable market penetration for the new product both in Mexico and Chile.

One more important program in channel pricing is the strategic pricing principle. This is a field which deals with altering the prices of already accessible commodities and implementation of the pricing strategies. This is achieved by price adjustments according to customer consumption and exploring the required services for launching new products in the international market (Kotler, 2006). This strategy is essential for Kudler Fine Food since it enables the management to settle on proper pricing strategy via segmentation, channel marketing and positioning. To attract more customers, the company needs to apply mix pricing for the products and services both locally and internationally.


Kotler, P., & Keller, K. L. (2007). A framework for marketing management. New Jersey: Pearson Prentice Hall.

Kotler, P., & Keller, K. L. (2006). Marketing management. New Jersey: Pearson Prentice Hall.

Newsom, D., Turk, J. V., & Kruckeberg, D. (2004). This is PR: The realities of public relations. Belmont, CA: Thomson-Wadsworth.

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