Sales and Promotion Assignment 2022

Running head: SALES AND PROMOTION
Sales and Promotion (Assignment 2)
Name of the University:
Name of the Student:
Authors Note:

SALES AND PROMOTION1
Executive Summary
The business of New Zealand than adds value through product assembling prior to employing
distributors to the retail supply outlets. Considering this case scenario, the objective of the report
is to analyze the inbound and outbound distribution factors that must be considered in that can be
applicable for this product at several stages. The report revealed that in the flat pack wooden
furniture products reverse distribution process the finished furniture goods can move from
consumer to the distributors or the manufacturer. For distinctive flat pack wooden furniture
products such as handicraft furniture and ergonomic office chairs the company can set high retail
prices as they are unique and offered with high quality in the marketed greatly appreciated by
consumers.

SALES AND PROMOTION2
Table of Contents
1. Introduction..................................................................................................................................3
2. Identification of the Inbound Distribution Factors......................................................................3
3. Identification of Outbound Distribution Factors.........................................................................5
4. Identification of Reverse Distribution Factors............................................................................6
5. Identification and Discussion of Cost Inputs...............................................................................8
6. Approach of Setting Recommended Retail Price (RRP)...........................................................11
7. Conclusion.................................................................................................................................13
References......................................................................................................................................15

SALES AND PROMOTION3
1. Introduction
A consumer-centric logistics is observed to be associated with the manufacturing of flat
pack wooden furniture products within China for a business based in New Zealand. The business
of New Zealand than adds value through product assembling prior to employing distributors to
the retail supply outlets (Bortoluzzi, Chiarvesio & Tabacco, 2015). The products sold are
claimed to be of good quality and medium priced furniture. Considering this case scenario, the
objective of the report is to analyze the inbound and outbound distribution factors that must be
considered in that can be applicable for this product at several stages. Moreover, the reverse
distribution factors will be identified that will be involved in feting the products supplied to the
target consumers and based on this associated fixed and variable costs will also be distinguished.
In addition all the cost outputs will also be evaluated in developing set of recommendations
regarding suitable retail price to be set for these furniture products.
2. Identification of the Inbound Distribution Factors
Inbound logistics or distribution factors for the furniture products offered can include
medium employed for transport, store and delivery of goods offered by the business. Considering
the most suitable inbound distribution factors can facilitate the furniture company in maintaining
effective supply chain management and maximize the reliability along with efficiency of the
distribution networks that can further decrease the storage and transportation costs (Bosch,
Verploegen, Grösser & van Rhijn, 2017). The inbound logistics factors for successful
distribution of the furniture products involves information integration, shipping costs, stock
clearances, port handling and domestic transportation. Managing these factors in the inbound
logistics is focused on delivering the furniture materials at very minimum costs.