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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 might have chosen selective distribution to maintain better control over the product’s image and quality. By using selective distribution, she can ensure her gourmet ice-creams are sold in locations that match her brand identity, attracting the right customer base. This strategy can also help in reducing the costs related to shipping and handling while maximizing customer sales.
Step 2
Outline ONE physical distribution issue that will need to be considered.
Answer
One physical distribution issue to consider is the temperature control during transportation. Ice-creams require specific temperature conditions to ensure they do not melt or degrade in quality. Therefore, the logistics planning must include appropriate refrigeration methods to maintain the integrity of the products until they reach retailers.
Step 3
Recommend ways that packaging could be used to maximise sales of the products.
Answer
Packaging can significantly influence sales by making the products visually appealing and recognizable. Firstly, using bright colors and unique designs can differentiate the ice-creams from competitors, catching the eye of potential customers. Secondly, packaging should clearly communicate unique selling points, such as 'made with organic ingredients' or 'locally sourced'. Lastly, the design should be environmentally friendly to appeal to eco-conscious consumers, enhancing brand reputation and potentially increasing sales.