Summary
Summary BEST MNM1506 ASSIGMENT
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BEST MNM1506 ASSIGMENT
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Cotton Co is a clothing store that sells high-quality national brands and designer merchandise atlower prices than those typically charged by retail businesses. Cotton Co purchases those items
that were sent back to the manufacturer due to off-season production and sells them at a
cheaper price than they would normally have sold for. Cotton Co can be classified as which ONE
of the following speciality stores? Select one: a. a convenience store b. a department store c. a
category killer d. an off-price retailer
d. an off-price retailer
Cotton Co can be classified as an off-price retailer. Off-price retailers typically offer brand-name
and designer merchandise at discounted prices compared to traditional retail stores. They often
acquire excess inventory, closeout items, or returned goods from manufacturers or other retailers
and sell them at lower prices. This allows customers to purchase high-quality products at a
reduced cost. Cotton Co fits this description as it purchases items sent back to the manufacturer
due to off-season production and sells them at lower prices than they would typically be sold for.
Woolworths places a lot of emphasis on sustainability across the full breadth of its business
activities and highlights environmental consciousness in its advertisements. This is an example of
… advertising, which is aimed at maintaining favourable relationships with customers. Select one:
a. cooperative b. promotional c. ecological d. institutional
d. institutional
Woolworths placing emphasis on sustainability and highlighting environmental consciousness in
its advertisements is an example of institutional advertising. Institutional advertising is aimed at
maintaining favorable relationships with customers by promoting the values, image, and overall
reputation of a company or brand. In this case, Woolworths is showcasing its commitment to
sustainability and environmental consciousness, which helps to establish a positive perception of
the company and build trust with its customers.
The growth in sales of cast-iron Chinese teapots at Lizzy's Tea Cup Store was 2% from 2017 to
2018, 3.5% from 2018 to 2019, and 4.8% from 2019 to 2020. The growth is attributed to the
effective in-store promotions for the teapots, and the opening of new competitive teashops in
the area which increased awareness and accessibility to cast iron teapots. Lizzy, therefore,
adjusted predicted growth to 6.5% from 2020 to 2021. She keeps the percentage relatively low
because other similar products have recently emerged in the market. Which method did Lizzy use
to estimate the annual growth in sales of the teapots for 2021? Select one: a. Percentage
variation method b. Fixed adjustment method c. Variable adjustment method d. Stock-to-sales
ratio method
c. Variable adjustment method
Lizzy used the variable adjustment method to estimate the annual growth in sales of the teapots
for 2021. This method takes into account various factors that can impact sales growth, such as in-
store promotions, competition, and market trends. Based on the effective in-store promotions
and the opening of new competitive teashops that increased awareness and accessibility to cast
iron teapots, Lizzy adjusted the predicted growth to 6.5% for 2021. She kept the percentage
,relatively low due to the emergence of other similar products in the market, indicating her
consideration of the changing competitive landscape and potential impact on sales growth.
Metro Home Store charges a R200 delivery fee for all deliveries within a radius of 10 km and
R300 for all deliveries further than 10 km but within a radius of 30 km from the physical store.
Which geographical pricing strategy is Metro Home Store using? Select one: a. freight-absorption
pricing b. base-point pricing c. uniform delivery pricing d. zone pricing
d. zone pricing
Metro Home Store is using zone pricing as its geographical pricing strategy. Zone pricing
involves dividing the target market into different zones or regions and charging different prices
based on the distance or proximity to the physical store. In this case, Metro Home Store charges
a R200 delivery fee for deliveries within a 10 km radius and R300 for deliveries within a 10-30 km
radius. By setting different delivery fees based on the distance from the store, Metro Home Store
is implementing zone pricing to account for the varying costs associated with delivering to
different zones.
The growth in sales of cast-iron Chinese teapots at Lizzy's Tea Cup Store was 2% from 2017 to
2018, 3.5% from 2018 to 2019, and 4.8% from 2019 to 2020. The growth is attributed to the
effective in-store promotions for the teapots, and the opening of new competitive teashops in
the area which increased awareness and accessibility to cast iron teapots. Lizzy, therefore,
adjusted predicted growth to 6.5% from 2020 to 2021. She keeps the percentage relatively low
because other similar products have recently emerged in the market. Which method did Lizzy use
to estimate the annual growth in sales of the teapots for 2021? Select one: a. Percentage
variation method b. Fixed adjustment method c. Variable adjustment method d. Stock-to-sales
ratio method
c. Variable adjustment method
Lizzy used the variable adjustment method to estimate the annual growth in sales of the teapots
for 2021. The variable adjustment method takes into account various factors that can impact
sales growth, such as changes in market conditions, competition, and other external factors. In
this case, Lizzy adjusted the predicted growth to 6.5% for 2021 based on the effective in-store
promotions and the opening of new competitive teashops that increased awareness and
accessibility to cast iron teapots. She also considered the emergence of other similar products in
the market, which led her to keep the growth percentage relatively low. The variable adjustment
method allows for flexibility in estimating sales growth by considering relevant factors that affect
the business environment.
A high-end, very exclusive clothing boutique in Stellenbosch has developed various promotional
objectives to effectively manage the promotional mix. Which option listed below is an example of
an appropriate long-term promotional objective? Randomize Select one: a. To increase floor
traffic to the store by offering a 15% discount on all summer dresses. b. To increase support from
existing customers by offering 20% off club card members' next purchase. c. To attract middle-
and lower-class customers to the store to increase its market share. d. To build and maintain an
image of being perceived as a luxury clothing brand.
, d. To build and maintain an image of being perceived as a luxury clothing brand.
The appropriate long-term promotional objective for a high-end, very exclusive clothing
boutique in Stellenbosch would be to build and maintain an image of being perceived as a luxury
clothing brand. This objective aligns with the boutique's positioning as a high-end and exclusive
store. It focuses on creating and sustaining a perception of luxury, which can help attract the
desired target audience and differentiate the boutique from competitors. By emphasizing the
luxury brand image, the boutique can cultivate a sense of exclusivity and prestige, which can be
appealing to its target market.
Twinkle Toes, a children’s shoe manufacturer, purchases a variety of raw leather from a local hide
wholesaler for use in the production of leather shoes for babies and toddlers. This is an example
of a/an … market. Select one: a. reseller b. consumer c. industrial d. international
c. industrial
The purchase of raw leather from a local hide wholesaler by Twinkle Toes, a children's shoe
manufacturer, falls under the category of an industrial market. Industrial markets involve
businesses that purchase goods and services to be used in the production of other goods or
services. In this case, Twinkle Toes is acquiring raw leather as a raw material for their shoe
production process. The leather will be transformed into finished products (leather shoes for
babies and toddlers) by the manufacturer. Therefore, the transaction between Twinkle Toes and
the local hide wholesaler is part of the industrial market, as it involves the acquisition of materials
for further production.
Rainbow Paints displays 5-litre cans of wall paint that are on special in the middle of the store,
stacking the cans on top of one another to create a triangle reaching the store ceiling. Which
pattern of arranging merchandise is used in this example? Select one: a. Asymmetrical step
pattern b. Vertical pyramid pattern c. Symmetrical step pattern d. Horizontal pyramid pattern
b. Vertical pyramid pattern
The pattern of arranging merchandise used in this example is a vertical pyramid pattern. By
stacking the 5-litre cans of wall paint on top of one another to create a triangle reaching the
store ceiling, Rainbow Paints is utilizing a vertical arrangement that resembles a pyramid shape.
This pattern helps to create a visually striking display that draws attention to the special offer. The
pyramid shape provides a sense of height and prominence, making the merchandise stand out in
the middle of the store.
A home patisserie attaches labels or price tickets to the baked goods it sells. These labels contain
information about the items and the bakers. When items are sold, their labels are removed and
sent to the inventory control staff, who then record the information on inventory cards for each
baker and order more baked goods. Which manual inventory control system is the home
patisserie using in this example? Select one: a. sales slip b. tickler control c. stub control d. point-
of-purchase sheet
c. stub control
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