Shelf Strategy

Part 5

Case Showdown: Gatorade vs. AG1 (Athletic Greens)

Gatorade ($1.89 / bottle)

Distribution: Convenience stores, vending, grocery

AG1 ($79.00 / pouch)

Distribution: Direct-to-Consumer monthly online subscription

Critical Analysis Question:

Suppose AG1 decided to start selling individual packets at local gas station checkout lines. Explain two negative marketing consequences this move could cause for AG1's brand.

Consequence 1 (Brand image / pricing perception):

Consequence 2 (Retail margins / audience disconnect):

Part 6

Mini Project Readiness Check

Before jumping into your Agency Project Brief, match each product description to its most logical distribution intensity:

A. Handcrafted custom carbon-fiber road bicycles ($11,500 each) Choice: [                  ]

B. Electrolyte pocket chews sold for immediate workout hydration ($1.49) Choice: [                  ]

C. High-performance noise-canceling studio headphones ($279) Choice: [                  ]

Completed notes must be stamped prior to launching the Route to Market Agency Project. Teacher Stamp: [            ]

Step 4 Strategic Marketing Defense Memo

A. The "Wrong Door" Test:

Name ONE retail chain or channel your agency would explicitly FORBID this client from entering. Explain why it would harm the brand's positioning.

B. Channel Conflict & Profit Margin Defense:

Retailers keep 30%–50% of the sticker price. Why is your chosen channel structure worth the cost or logistical effort?

Agency Pitch Evaluation Rubric (100 Total Points)

Submit completed Pages 1 & 2 at conclusion of agency work session. Total Agency Score:        / 100

Classroom Mastery & Evaluation Guidance

10th Grade Business • Page 2 of 2

Mini Project Exemplar Solutions

Client A: Aura Luxe Skincare ($68)

• Intensity: Selective (or D2C Exclusive)
• 3 Channels: 1. Official D2C Website; 2. Sephora / Bluemercury prestige beauty counter; 3. High-end eco-boutiques / Med-Spas.
• Route: Laboratory Lab ➔ Centralized Fulfillment ➔ Direct Ship to Customer (or Sephora DC ➔ Sephora Floor).
• Wrong Door: Dollar General or gas stations. Cheap fluorescent shelving and discount bargain reputation would destroy the $68 luxury justification.

Client B: SparkFuel Hydration ($1.89)

• Intensity: Intensive
• 3 Channels: 1. Convenience stores & gas stations (Wawa, 7-Eleven); 2. College campus bookstore grab-and-go; 3. Gym front-desk counters (Planet Fitness).
• Route: Food Grade Plant ➔ Regional Wholesale Distributor (e.g. McLane) ➔ Convenience Store Delivery ➔ Checkout impulse rack.
• Wrong Door: Luxury department store (Saks Fifth Avenue) or high-friction appointment-only outlets where no one seeks an urgent $1.89 caffeine boost.

Misconceptions & Facilitation Prompts

Misconception: "More stores always equals more total profit."

Teacher Rebuttal: Over-distribution dilutes brand prestige. If high-end goods appear in bargain clearance aisles, prestige retailers will drop the brand to protect their own reputation, leading to disastrous long-term brand collapse.

Misconception: "E-Commerce makes physical stores obsolete."

Teacher Rebuttal: For low-cost impulse items ($1.89 drink), shipping costs exceed the product value! In-person convenience stores and grocery checkouts remain the primary driver for low-margin goods.

Tiered Differentiation Strategies

Support / IEP / ELL

Provide pre-printed node stickers for the Step 3 flowchart; assign Client B (SparkFuel) as everyday convenience products have familiar supply chains.

On-Grade Standard

Pair students in consulting duos to debate client selection, requiring peer cross-examination of their Step 4 "Wrong Door" defense before teacher stamp.

Advanced / Honors

Challenge students to calculate the slotting fee impact: if a grocery chain demands $15,000 per shelf slot, how many units of SparkFuel must sell to break even?

Ready-to-teach resource set • Aligns with NBEA Marketing & Distribution Standards Shelf Strategy Curriculum

Turn to Page 2 for Slides 5 through 8 Script & Project Facilitation Shelf Strategy Presenter Toolkit

PRESENTER SCRIPT: PART 2

Drivers, Case Study, & Project Kickoff

10th Grade Business • Page 2 of 2

Slide 5 4 Marketing Drivers of Distribution Pacing: 4 Mins

Say: "How do brand managers choose where to sell? They analyze four core pillars: 1. Brand Image (does the store match the vibe?), 2. Customer Habit (do target buyers shop in person or online?), 3. Margins (can we afford retailer cuts?), and 4. Product Nature (does it spoil or need technical demos?)."

Notes Sync: Students complete Part 4 on Page 2 of their Guided Notes.

Slide 6 Case Study Showdown: Gatorade vs. AG1 Pacing: 5 Mins

Say: "Here are two beverages. Gatorade is $1.89 and sold at literally every corner store. AG1 is $79 a pouch and only sold online as a recurring monthly subscription. Why doesn't AG1 put bottles in 7-Eleven?"

Debate Prompt: "What happens if someone sees a $79 powder packet next to a 99-cent iced tea? It creates price shock and ruins their elite biohacker aura."

Notes Sync: Complete Part 5 & 6 (Critical Analysis & Readiness Check). Stamp completed notes!

Slide 7 Agency Challenge Launch (Mini Project) Pacing: 3 Mins

Say: "You are now senior marketing strategists. You have two clients bidding for your agency: Aura Luxe Skincare ($68 organic serum) or SparkFuel Hydration ($1.89 energy sachet). Pick one client. In your agency brief, you will build their channel strategy, map their supply route, and name one retailer they are strictly forbidden from entering."

Classroom Setup: Have students pair up or work individually. Distribute the 2-page Mini Project Brief. Set a 22-minute work timer.

Slide 8 Agency Pitch Criteria & Debrief Pacing: 5 Mins

Say: "Check your rubrics before submitting: Did you clearly justify your intensity? Does your route map have clear arrows from producer to buyer? And did you explain the 'Wrong Door' test?"

Closing Exit Callout: "Remember: Your product is only as good as the place you can buy it. Great distribution builds customer convenience or builds brand lust. Poor distribution kills both."

Companion guide to Shelf Strategy Slides & Mini Project Brief Teacher Instructional Script