1. Independent Institute of Education - Assessment 20t2
1.1 Sketch the possible flow of L'Eau d'Issey Florale supply chain and indicate clearly
which parts belong to which industrial sector (there are three of them). (10)
(LU 7. Source: IKEA prescribed case study and Strydom et al (2OO9)
Distribution Management, p. Bo. Award marks as below, and award 2 marks
for actual sketch made in the right format.
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Raw materials; (1)
Manufacturing; (1)
a Distribution; (1)
Retailer; (1)
a Consumer. (1)
And for correctly identifying:
a Primary sector (1) (related to raw materials).
o Secondary sector (1) (related to manufacturing).
Tertiary sector (1) (related to distribution and retailer).)
r.2 Define the distribution structure decision relevant to L'Eau d'Issev Florale. (3)
(LU 7. Source: Strydom et al, 2OO9t p. 60.)
Selective distribution: (2) It involves placement of products in a more
limited number of locations (than intensive distribution, but in more
locations than exclusive distribution). (l)
@ Independent Institute of Education (Pty) Ltd 2012
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2. IndeDendent Institute of Education Assessment 2072
What competitive strategy has Issey Miyake selected for his product's distribution?
(2)
(LU 1. Source: Strydom et al, 2OO9: p' 60.)
Differentiation strategy. (2)
1A Issey Miyake ought to be aware of possible pitfalls in inventory management. Advise
him on 10 possible types of pitfalls and briefly explain each to his Marketing
Manager. (20)
(LU 7. Source: Strydom et al, 2OO9: pp. 74-79' Refer to the 74 pitfalls
mentioned and discussed in the prescribed textbook' Award 7 mark for
identifying a pitfall and 7 mark for a brief discussion of each.)
r.f Explain the market and product considerations that were taken into account for
selecting the chosen Issey Miyake channel members. Apply your mentioned factors
of influence to the brand in ouestion. ( 18)
(LU 4. Source: Strydom et al, 2OO9: pp. 749'752,)
Market considerations:
Size of n';arket (1) and application to Issey Miyake perfumei (1)
Geographic concentration (1) and applicationi (1)
a Order size (1) and application; (1)
Customer buying behavior (1) and application' (l)
Product considerations:
o PerishabilitV (1) and application to Issey Miyake perfume; (l)
a Unit value of product (1) and application; (l)
a Technical nature of product (1) and application; (J)
The life cycle of the product (1) and application; (-1)
Buf k and weight of product (1) and application. (J)
l.o Edgars in Bayside, Blouberg wants to work out their store's reorder point for L'Eau
d'Issey Florale. If the order lead time is 20 days, the usage rate is 3 units per seven-
day week and the safety stock is 50 units, calculate the reorder point of L'Eau
d'Issey Florale. Show your formula and calculations. (7)
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Page 7 of 72