MNM3602 Assignment 2 2024

ADDENDUM A – ASSESSMENT 02 FOR SEMESTER 2

ASSESSMENT 02 – COMPULSORY – CONTRIBUTES TO YOUR FINAL MARK

You need to study chapters 1–4 of the study guide to complete this assessment.

Semester Due date

2 10 September 2024


QUESTION 1 (40 MARKS)


Make use of the following to complete the question:

• Use the study guide.

• Read the Vital Health Foods case study in the prescribed book, Business cases
from Southern African companies.

• Do an internet search of the buying plan and Vital Health Foods to answer some
of the questions where the study guide did not give full information.

Gregory has expanded his tuck shop to include a superette across the road from
the local college’s main gate. He stocks various products ranging from snacks
and to toiletries, to staples such as rice, tinned food and eggs. Gregory wants
to add vitamins to his offering as he has noticed that the students appear tired
and stressed. Gregory has decided to offer Vital Health Foods supplements for
brain and memory, immune boosters, energy vitamins and for UTIs. As a
pharmaceutical company, Vital Health Foods have built a very successful
business selling nutritional supplements, therefore Gregory trusts them to offer a
wide range of supplements for the various needs of students. Based on the
information in the case study and by conducting an internet search on Vital Health
Foods and the retail buying process, answer the following questions.

QUESTION 1
Provide a discussion of the first two phases in the buying process.
Provide a theoretical discussion (2 marks per each theoretical discussion) and a
relevant case study application/example (3 marks per each application discussion) for
each phase and each related step.

Structure of answer
Phase 1: theoretical
discussion + application Step
1: theoretical discussion +
application Step 2: theoretical
discussion + application Step

, 3: theoretical discussion +
application

Phase 2 (repeat same structure as for phase 1)

The practical application will contribute 60% to your final mark and the theoretical
discussion will contribute 40% towards your final mark.




ANSWER



Introduction


The retail buying process is critical for retailers aiming to satisfy customer needs
while maintaining profitability. In this context, the buying process involves a
sequence of well-structured phases that guide the buyer from determining which
products to stock to negotiating and purchasing merchandise. And then following
this process, retailers like Gregory, who owns a superette near a college, can
make informed decisions that help align the product offerings with customer
demands. The case study of Vital Health Foods supplements provides a real-world
example of how strategic decision-making in the buying process can enhance
customer satisfaction and lead to successful outcomes in the retail sector. This
assignment will focus on the first two phases of the buying process: "What to Buy"
and "How Much to Buy," followed by theoretical discussions and practical
applications from the Gregory case study.


Phase 1: What to Buy
 Theoretical Discussion:
The first phase of the retail buying process, "What to Buy," focuses on identifying
the merchandise categories that the retailer should carry. This decision is
influenced by multiple factors, such as market trends, customer preferences, and
competition. Retail buyers must thoroughly research the market and understand
their target demographic’s specific needs and preferences. This phase often