Medium4 marksStructured
AQA GCSE · Question 03.2 · Marketing
Explain one reason why Cornets Ltd decided to sell its ice cream cones through a wholesaler.
Explain one reason why Cornets Ltd decided to sell its ice cream cones through a wholesaler.
How to approach this question
This is a 4-mark "explain" question that requires you to use the case study.
1. **Identify** a reason/benefit of using a wholesaler (e.g., reach more customers, reduce delivery costs).
2. **Explain** this reason in general terms.
3. **Apply** it to Cornets Ltd using information from Item C. Contrast the "50 different ice cream shops" with the wholesaler's "hundreds of customers".
4. Develop the explanation to show a clear benefit, such as increased sales or reduced complexity.
Full Answer
A wholesaler is an intermediary in the distribution channel that buys goods in large quantities from producers and sells them in smaller quantities to retailers. For a producer like Cornets Ltd, using a wholesaler has several advantages:
- **Access to a wider market:** Wholesalers have an established network of retail customers. As the case study shows, this allowed Cornets Ltd to expand from 50 customers to "hundreds". This leads to higher potential sales.
- **Reduced costs and complexity:** The producer makes fewer, larger deliveries to the wholesaler's depot rather than many small, expensive deliveries to individual shops. This saves on transport costs, administration, and sales staff.
- **Bulk purchasing:** Wholesalers buy in large quantities, which can provide a steady and predictable stream of revenue for the producer.
Common mistakes
✗ Not using the context from Item C.
✗ Confusing the role of a wholesaler with a retailer.
✗ Giving a disadvantage instead of a reason/advantage.
Practice the full AQA GCSE Business Paper 2
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