Takunda Ltd sells its fizzy drinks in bulk to wholesalers and large-scale retailers all over the country.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [3] (a) (i) Any three points × 1 mark each and up to two marks for a well-developed point – storing (1 mark) of the fizzy drinks; awaiting sale/delivery to its customers (wholesalers/large-scale retailers); (storage) of the raw materials needed to make the fizzy drinks; enables Takunda Ltd to maintain continuous production; ensures Takunda Ltd has sufficient supplies to fulfil demand; protects the fizzy drinks against theft/damage/deterioration; any other relevant point
2. [3] (a) (ii) Any three points × 1 mark each and up to two marks for a well-developed point – provides financial advice; offers finance with loans/overdrafts; offers various methods of payment + an example; enables Takunda Ltd to save money and earn interest; enables Takunda Ltd to deposit money; arranges payment of wages to workers; any other relevant point
3. [6] (b) Level 2 (4-6 marks) Has discussed the statement and has shown whether or not it is true with reasons. (If a candidate has discussed only branding or packaging award 4 marks max.) Fizzy drinks need to be packaged in bottles as they are in liquid form. Otherwise they could not be sold. Packaging makes it easier to transport the fizzy drinks and also to display them. It makes it easier for customers to handle the fizzy drinks. Fizzy drinks need to be given a brand name to identify them in the market and to distinguish them from the fizzy drinks of other manufacturers. Branding enables customers to recognise them so that they will buy the same brand again. Branding gives an indication of the quality the customer associates with the brand. It is, therefore, essential that the fizzy drinks are both branded and packaged. Level 1 (1-3 marks) Has commented on some elements of the statement with/without an opinion. Packaging is needed to protect the fizzy drinks. The brand name helps to advertise the products. The brand name is put on the packaging. They are both essential.
4. [1] (c) (i) splitting purchases into small quantities for retailers to purchase
5. [3] (c) (ii) it saves the retailer the expense of buying large quantities; it saves the retailer keeping large quantities before sale that might become unsaleable or for which there may be no demand; it saves the expense of large storage space at the retailer's premises; many small-scale retailers require only small quantities as the demand from their customers is small; money spent by a retailer on purchasing in bulk can be spent on other goods; any other relevant point
6. [4] (c) (iii) Any two services to retailers explained × 2 marks each – providing a variety of goods from many manufacturers; providing advice to retailers especially about new products; displaying goods so that retailers may be able to examine them; providing cash and carry services to retailers who pay cash/carry good away; providing delivery services so that retailers do not run out of goods; offering trade discount so that retailers can make a profit on goods sold; providing a reservoir of goods so that retailers can obtain goods to sell; any other relevant service