SUMAMA SYED

Midterm

[Course title]
1811339 BBA-5 (F)
 Sumama Syed (1811339)

Question No.1

Traditional Distribution Channel:

In the traditional distribution channel, she as a manufacturer will
sell her home-made cakes in bulk quantity as a whole seller to
retailer and benefit from economies of scale. While the retailer will
sell the product at a higher price as he will have to incur the cost of
transport, distribution, shop, etc. Then the retailers will sell to
consumers. The problem is that the price at which she sells (pkr
70) is less than that of the retailer (pkr 150).

Direct to Consumer:
In direct to consumers she will have to sell her cakes to consumers
directly which will require investment in opening shops, hiring
shopkeepers, transport, distribution, etc. if she sells her cake to
retailer for now at Pkr 80 and increase her business.

Conclusion:
In my opinion this price for selling cake to retailer is reasonable for
now as she is saving time, transport cost, distribution cost, etc.
which adds up to the extra cost that the retailer is adding. If she
continues to sell her product to retailers at pkr 80 then this will
provide her with the opportunity to gain experience, work on her
product, expand its business toward D2C in the future. Then she
can sell her product at pkr 90 including the additional cost incurred
for D2C.

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 Sumama Syed (1811339)

Question No.3
Traditional grocery stores in Pakistan are facing competitive issues
due to the new super store and markets.
Problem:
The first challenge it faces is that traditional stores are small in size
and does not have vast variety of products while supermarkets are
huge, and variety of products are available. Therefore, consumers
tend to go to supermarkets than traditional Karyana store.
Solution:
To overcome this problem the karyana store can observe its
consumer preferences and only acquire those selected products
and they can renovate their shop to utilize its space more
efficiently.
Problem:
Secondly, the supermarkets get its products directly from
manufacturer at lower cost due to bulk buying and then they sell at
relatively low rates than the local karyana who get their products
from retailers at relatively higher price.
Solution:
Karyanas can provide other service such as home delivery or sign
contracts with company to get products at a lower price.
Problem:
Thirdly, local karyana stores are losing loyal customers as more
people are shopping from supermarkets.
Solution:
The karyana store can provide credit sales to its daily customers to
keep their loyalty. In the end the more easiness that karyana
provide through innovative services will provide a competitive
edge.

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 Sumama Syed (1811339)

Question No.2

Brands Sneakers Running Lifestyle Football

studs
Nike Variety of Running Lifestyle Studs for
sneakers is shoes are variety is vast teenagers and
available for all available for for all genders adults of all
age groups kids’ and ages Rs. genders RS.
and gender teenagers and 7000- Rs. 5000-
price ranging adults ranging 40,000 Rs.13000
from Rs.7000- from Rs. 7000-
Rs.20,000 Rs. 15000
Rebok Variety of Running Lifestyle Studs for
sneakers is shoes are variety is vast teenagers and
available for all available for for all genders adults of all
age groups kids’ and ages Rs. genders
and gender teenagers and 7000- Rs. RS.2000-
price ranging adults ranging 25,000 Rs.7000
from Rs.4000- from Rs. 5000-
Rs.15,000 Rs. 17000
Bata Sneakers are Running Lifestyle shoes Studs for the
available for shoes for are available little one’s RS.
mainly kids children and for children 4000-
price ranges early RS. 4000- rs.14000
from Rs. 2000- teenagers Rs. 14000
6000 2500-7000

Nike and Reebok have a vast variety of products for all genders and age
groups. Nike is expensive than reebok. Bata on the other hand is limited
to children of age 1-12 age and comparatively cheaper than other
brands.

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