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A daily marketing channel evaluation of the various outlets for a small scale dairy farm in Kabwe shows the information in the following table. Details

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A daily marketing channel evaluation of the various outlets for a small scale dairy farm in Kabwe shows the information in the following table. Details High density market segment Makulului Katondo 800 Sales (kwacha) Cost of goods sold kwacha) Selling (costical) (kwacha) Packaging and delivery (costorder) (kwacha) Advertising (costadvert) kwacha) Billing (cost/order) (kwacha) 1500 220 30 27 310 121 1400 225 26 25 311 126 Low density market segment Highridge Poleni 700 215 223 32 31 27 26 186 200 124 120 Generate income statements for each outlet [4 marks) Based on your results in (a), use the profit on sales index to rank the various channels on basis of attractiveness [4 marks) Do you think price descrimination is responsible for the differences in the attractiveness of these outlets in (b)? Justify your answer xpo [4 marks Compare the average total marketing costs to sales indices for high density market segment with those of low density market segment, and recommend the segment to be placed under management attention [4 marks] Estimate the cost contribution of each of the five cost elements for each outlet and recommend the cost which may need to be placed under strict management [4 marks)

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