Unit 29 Task 2 Understanding Business Retailing

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Unit 29 Andrew Monique task 2 p2 |
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Contents
page 1. front sheet
page 2. contents page
page 3. channel 1,2,3 flowchart
page 3-4. Explain what the flowchart is showing

Task 2 P2 [SM] M2, D1
As part of your consultancy you have been invited to present a detailed practical understanding of distribution and its significance to the retail industry. You must: * Produce a flow chart/diagram and explain the process of distributing goods through different channels from the manufacturer to the customer (P2)

Channel 1

Customers
(Consumer)
Farm
(Manufacture)

|

Channel 2
Customers
(Consumer)

Cadbury
(Manufacture)
Tesco
(Retailer)

Channel 2
Customers
(Consumer)

Off licence
(Retailer)
Cash and Carry
(Wholesaler)
Coca Cola UK
(Manufacture)

Channel 1 is known as the ‘direct marketing’ channel. This channel has no intermediary levels. This type of channel is selling their goods and services straight to the customers as how the chart is shown above in the diagram. The reason that this business would make customer buy their product there and then on the farm is because the would get a good reputation from the customers and also the customers can recommend this business to a friend or family member. The farm company would sell fruits directly to customers because they can go on the farm and pick the fruits that they want to buy from the farm company. Channel one does not have intermediaries like channel two and three this is because direct marketing does not need to go through the process of passing all products and services to another distributor.

Channel 2 has only one intermediary. This is because there are only passing the products and services through one distributor. Cadbury is a world wide business so they would make Tesco sell their products to potential customers because Cadbury cannot sell all their products at once, so therefore they need...
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