Agroindustrial project analysi

56 AGROINDUSTRIAL PROJECT ANALYSIStiated, high-use products such as sugar. Because consumers will notshop around for these products, coverage is critical to intensive retailing.The selective strategy employs a few chosen stores and isappropriate for expensive and differentiated products that peoplewill selectively shop for and that can be sold through direct personalselling-for example, a suit of clothes. With exclusive distribution,one outlet is given the franchise for the product within acompetitive area. This is appropriate for specialty goods that areeither highly complex, costly items or luxury, low-use items such ascaviar.In all cases, the analyst should review the proposed distributionsystem to ensure an appropriate product-distribution fit.Integrating the mixThe elements of the marketing mix should be designed to beinternally consistent and mutually reinforcing. For example, itwould not be consistent to have an extensive distribution systemwith a skimming price strategy, or an exclusive distribution systemwith a broad, mass media promotional program.The marketing mix for a particular product must also relate tothe company's entire line so that sales will not be diverted fromanother of the company's products. If sales are diverted, such"cannibalization" can make an individual product appear highlysuccessful without significantly benefiting the company as a whole.Sometimes the marketing mix can be adjusted so that consumerswill remain with the company and "trade up" from one product toa higher-price, more elaborate product-for example, from cannedpeas to frozen mixed vegetables. The marketing approach mustalso be related to a company's financial, organizational, production,and procurement operations.The integration of the marketing components into an internallyconsistent whole that is compatible with the company's product lineand the other managerial functions constitutes the marketingplan.' 6 Based on the enterprise's marketing objectives, it shouldguide the project through the competitive market environment.16. See Philip Kotler, Marketing Decision Making: A Model-building Approach(New York: Holt, Rinehart & Winston, 1971) and Marketing Management:Analysis, Planning and Control, 3d ed. (Englewood Cliffs, N.J.:Prentice-Hall, 1976).