Answer BOTH questions

Questions carry equal weight

Word limit 1500 words per answer (3000 for the whole assignment). Penalties will be imposed if either question is more than 10% over the word limit.

Essay or report format (executive summary not necessary)

References should be cited using an accepted academic system (Harvard or Footnotes recommended)

Please Note: You should NOT research any data for this assignment. You should rely on the information in the scenario and make reasonable assumptions (articulate your assumptions). You should review and use materials covered in class and are advised to undertake some research into distribution and retail theory by deepening and broadening your knowledge of distribution and retail beyond that covered in lectures.

Question 1

Jackson Engineering produces a wide range of spare parts for trucks. They have a good quality product that has high customer acceptance in the fleet and independent garage markets. Most of their distribution goes through 8 wholesalers. The most significant of these is GEH Distribution who are Jackson Engineering’s largest customer taking 30% of Jackson Engineering’ output.

GEH Distributors have indicated that they are unhappy with the way the ordering and delivery system is operating and would like Jackson Engineering to modify their systems. GEH want to operate more integrated information systems with Jackson, to have access to Jackson’s stock records and order by EDI.

Jackson Engineering is a conservative company and the changes will require substantial investment. They have found little interest for such systems among their other customers only 2 companies indicating they had considered improving systems. GEH are pressing and Jackson Engineering has decided to get advice on the management of the dispute with GEH.

As the distribution consultant to Jackson:

a)    Explain their situation (50%)

b)   Advise them of their options in managing their relationship with GEH (50%)

Question 2

Retailing is characterised by concentration into chain stores. Explain how an independent clothing retailer might gain competitive advantage. Specify your assumptions about target market and positioning.