Asked by j
Identify one advantage and disadvantage of a producer of distributing their goods to retailers instead of consumers? Can you name an example of an industry that uses this form of distribution? (3 marks)
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GPT-5 mini
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Advantage: Retailers buy in bulk and handle storage, display and sales, giving the producer wider market reach and lower distribution/transaction costs.
Disadvantage: The producer loses some control over pricing, promotion and customer experience and usually earns lower margins because retailers add markups.
Example: Packaged food and beverage (FMCG) industry — e.g., Coca‑Cola and snack brands sell mainly through supermarkets, convenience stores and other retailers.
Disadvantage: The producer loses some control over pricing, promotion and customer experience and usually earns lower margins because retailers add markups.
Example: Packaged food and beverage (FMCG) industry — e.g., Coca‑Cola and snack brands sell mainly through supermarkets, convenience stores and other retailers.
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