Ch. 14 - Marketing Channels and Retailing 

Walking down any street you will come across a Starbucks. Starbucks has established locations anywhere and that is them practicing the "direct channel" of Marketing Channels. There is a process that happens to get products from the producer to the consumer. Another one that Starbucks has picked up is "Intensive distribution". You can now go into a Target or Duane read and find a four pack Starbucks fraappuccino package. These originated from Starbucks and only Starbucks shops sold them. In a way to expand their retailing and to accommodate their consumers they made a smart decision in not only selling these frappuccions outside of their shops, but selling them in packs. These whole sale markets are known to have stuff for cheaper. I myself have seen these frappuccino four packs at a lower price than what you would get them at an actual Starbucks. One single frappuccino can cost about $2.75. These other markets are selling four of them for only $5.00. You are essentially getting two beverages free. Its a good way to intrigue the consumer and have them buy it.