M2 m3 D2
Unit – 29 (Understanding
Retailing)
BTEC National Diploma In Business Level 3
The Date
Your Name
Your Teacher
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,Unit 29: International Business M2 M3 D2
Unit 29 – International Business
On completion of this unit I should:
1) Know the structure of the retail industry.
2) Understand the role of retailing in the distribution of goods and services.
3) Understand the sales and service functions in retailing.
4) Know how the retail sector responds to internal and external change.
Task 4:
a) Compare the methods used to distribute products and services.
b) Explain the ways in which sales techniques and customer service have developed in retail
organisation.
c) Assess the impact of different sales techniques and customer service in a selected
organisation.
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, Unit 29: International Business M2 M3 D2
Methods of product distribution
Getting a product into the hands of your customers appropriately on time and with sufficient
customer service is a key to successful retailing. Depending on the sector of retailing a business
operates at and the product it sell a different distribution methods may apply. Businesses must take
careful consideration before chosen the method od delivering their goods because this can define
their future profitability as well as success of the whole organisation. Underestimated importance of
distribution methods will lead to inefficiency and ineffectiveness of business operations.
Before making a decision regarding the distribution channels business should think about the
following things:
What are the strengths, weakness and opportunities of the distribution methods available
What difficulties can be face using particular distribution method
The cost of each method
The distance particular method allows to cover
At what capacity each particular method can distribute your products
Below are the most common methods of product transport:
1. Courier/Mail Services – these are pretty fast, reliable and very secure. However the couriers
can deliver goods only up to a certain weight and these are cost effective only over short
distances.
2. Rail – relatively cheap methods of goods transportation, which can deliver your products
through long distances. On the other hand trains can have a certain journey times and limited
space.
3. Ground – trucking, the most common method of transport all around the world, especially
for raw materials and consumer goods. Time-consuming over a long distances and can be
human resource demanding. Height, weight and length often applies to trucks, thus some
businesses would not consider using this method of transportation.
4. Air – transportation using aircraft is the fastest way of distribution of goods, which deliver
your goods to any play around the globe. The limitations of this method is its high cost, taxes
and fees as well as low carriage capacity.
5. Water – provides slow, but the most cos-effective method of transportation, since modern
carriage ships can hold a lot of cargo. The weather condition as well as loading and unloading
goods may create additional issues.
Product distribution method
Due to the nature of the business sector and the organisation of the Tesco PLC, the company has to
take care of its distribution channels in a different way that Jaguar Land Rover does. Predominantly
food-based nature of Tesco PLC requires the company to think about the expiry dates of their
produces since no costumers would like to purchase products out of date. That heavily limits
transfers from abroad and makes Tesco to rely on domestic farmers. That is why customers shopping
at Tesco PLC notice that most of the perishable products on the shelves of the retailer are grown or
produced in the UK. Ground and train distribution transports ensure prompt, regular and safe
delivery of to the multiple stores of the organisation, which are running in 3561 places around the
Unlighted Kingdom. Although these methods are not the as expensive as some of the other methods,
but they still incur significant costs to be spend to the maintenance of the trucks and trains, fuel and
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