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A producer of gourmet ice-creams chooses selective distribution for her products - HSC - SSCE Business Studies - Question 21 - 2015 - Paper 1
Question 21
A producer of gourmet ice-creams chooses selective distribution for her products. (a) Why might the producer have chosen selective distribution for her products? (... show full transcript
Worked Solution & Example Answer:A producer of gourmet ice-creams chooses selective distribution for her products - HSC - SSCE Business Studies - Question 21 - 2015 - Paper 1
Step 1
Why might the producer have chosen selective distribution for her products?
Answer
The producer may have chosen selective distribution because it allows her to maintain a higher degree of control over how her gourmet ice-creams are marketed and sold. By selecting specific retailers, she can ensure that her products are placed in stores that align with her brand image and target audience. This strategy can lead to enhanced customer experiences, as these retailers may provide superior service and a more curated shopping environment. Furthermore, it can help to create a perception of exclusivity around her products, ultimately leading to higher sales from a more focused customer base.
Step 2
Outline ONE physical distribution issue that will need to be considered.
Answer
One significant physical distribution issue to consider is the need for proper temperature control during transportation and storage. Since ice-cream is a perishable product that requires specific temperature conditions to maintain its quality and prevent spoilage, the producer must ensure that logistics operations are equipped with adequate refrigeration capabilities. This includes choosing transportation methods that can consistently maintain low temperatures and implementing monitoring systems to track the temperature during transit.
Step 3
Recommend ways that packaging could be used to maximise sales of the products.
Answer
Effective packaging can greatly influence sales by attracting customer attention and providing essential product information. Here are some recommendations:
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Visual Appeal: The packaging design should be bright and colorful to stand out on retail shelves, making the ice-creams easily recognizable among competitors.
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Eco-Friendly Materials: Utilizing environmentally sustainable packaging can appeal to environmentally-conscious consumers and enhance brand loyalty.
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Clear Branding: The producer's logo and brand story should be prominently displayed to reinforce brand identity and evoke customer trust.
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Informative Labels: Including clear information about ingredients, nutritional value, and unique selling propositions (like being artisanal or organic) can help customers make informed purchasing decisions.
By implementing these strategies, the producer can enhance the overall consumer experience and maximize sales.