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3 marksDistribution Management

CAPE Management of Business Unit 2 · 2008 · Paper 2 · Question 6(a)

Healthy Choice Bakery Ltd. produces a 100% whole wheat bread catering to health-conscious consumers and people with lifestyle illnesses. Following strong publicity, demand has surged beyond its current distribution capacity (one van). A consultant recommends using a retail (one-level) channel, while the bank requires a business plan before considering a loan.

Identify THREE types of retail businesses or outlets that could effectively distribute the Healthy Choice Bakery Ltd. new product.

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Other parts of this question

  1. 6(b)Identify and justify TWO main factors that may have influenced the Marketing Consultant's suggested choice of distribution channel.[8 marks]
  2. 6(c)(i)Explain what is meant by a 'business plan'.[2 marks]
  3. 6(c)(ii)Outline FOUR main components of a business plan.[8 marks]
  4. 6(c)(iii)State TWO benefits, to Miss Eat-Rite, of having a business plan.[4 marks]

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