sponsibilities. One company indicated it used local trade surveys as a basis 

 for determining market areas. Other companies undoubtedly follow a similar 

 approach. All companies with more than one company-owned store or agent 

 had these dispersed to provide the opportunity for volume. 



The companies indicating no participation by the main office in divid- 

 ing territory for retail outlets probably found this step unnecessary. Some 

 had only one retail outlet in the State. In some instances this was at or 

 near the mill. Others had retail outlets at widely separated points, with dis- 

 tances between these points in excess of that which could feasibly be served 

 from such points by truck. 



Where the companies engaged in dividing territory into market areas 

 for their own outlets, there was some coincidental similarity in market areas 

 hut for the most part each company's pattern differed from the others. 

 This is a function of numbers of outlets, the exact location ( based upon the 

 random dispersion permitted bv milling-in-transit equalization), and insti- 

 tutional considerations evolving from retail outlet acquisitions, consolida- 

 tions of firms, and traditional servicing of particular territories from particu- 

 lar points. The most similarity in market areas was observed in and around 

 the principal cities, in which a large number of different companies had 

 retail outlets. 



Retail outlet managers played an important role in delineating the final 

 line between their units. Usually these arrangements were somewhat in- 

 formal, but within the broad policies of the parent company or supplying 

 mill. 



Sales and Service Policy. 



In addition to influencing method of distribution and division of the 

 market area, parent companies or supplying mills play an important role 

 in product differentiation and relationships with producers. 



Industry people frequently refer to particular brands as "low-priced 

 feeds", "high-priced feeds", or "quality feeds", though these terms are 

 applied from the viewpoint of the particular individual's affiliation. One 

 group contends that set formulas embodying the latest nutritional advances, 

 with cost varying with weighted prices of the set quantities of the various 

 ingredients, are the best buy for the producers. Another group stresses 

 that it is just as progressive on nutritional matters, but shifts the propor- 

 tions of different ingredients within a given analysis to take advantage of 

 lower cost ingredients for its customers. Many companies carry a "standard", 

 "regular", "utility", or "price" line, plus a "quality", 'high-energy", or 

 "high-efficiency" line, in order to meet competition in both directions and 

 offer its customers various alternatives. 



All companies engaged to some extent in what has come to be called 

 service work. Service is carried on in various ways and to varying degrees. 

 With some companies or brands the main reliance for service work is the 

 individual retail outlet, supplemented by a small main office and/or field 

 service staff. Others place the greater emphasis upon a larger main office 

 and/or field service staff, with the individual retail outlet in a secondary 

 role. Service is generally "free"; actually it is an overhead cost borne to 

 a degree by user and non-user alike. However, in many cases the particular 

 service stands the individual producer using it less than if he actually hired 

 it done. Service also brings to the producer a breadth of specialized skill 

 and information he himself probably does not possess. 



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