Business Studies Q2b – Place and distribution | HSC HSC Practice – StudyPulse
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Business Studies HSC HSC Practice Question 2b – Place and distribution

Q2b Business Studies Place and distribution Module 2 - Outcome 4

VoltWear is an Australian scale-up that designs premium heated motorcycle gloves (battery-powered, rechargeable). The gloves retail at \$299 and are positioned as a high-safety, high-performance product for winter riding.

VoltWear currently sells direct-to-consumer (DTC) through its website and fulfils orders from a single small warehouse in Geelong. Over the last winter peak, VoltWear experienced:

  • frequent online stockouts of the most common sizes (M and L)
  • high freight costs for shipping batteries under carrier restrictions
  • a rise in returns due to incorrect sizing and customers misunderstanding battery-care instructions

VoltWear is planning a national expansion for the next winter season and is evaluating three distribution channel strategies:

  • Intensive distribution: supply a wide range of outlets (large auto retailers, general sporting chains, and online marketplaces).
  • Selective distribution: supply a limited number of specialist motorcycle retailers that meet training and service requirements (e.g. can explain battery handling and fit customers in-store).
  • Exclusive distribution: appoint one national motorcycle retail chain as the only in-store stockist, while VoltWear continues DTC online.

To support the expansion, VoltWear has obtained quotes from logistics providers:

Option Warehouse network Indicative storage cost Indicative outbound freight per order Notes
A 1 warehouse (Geelong) \$6,000 per month \$18 per order Longer delivery times to WA/NT; simpler stock control
B 2 warehouses (Melbourne + Perth) \$10,500 per month \$12 per order Faster delivery to WA; requires splitting inventory

Forecast winter sales are 9,000 pairs over 3 months (June–August). VoltWear expects 70% of orders to be shipped to customers (online sales) and 30% to be delivered in bulk to retailers. Average online order size is 1 pair. VoltWear’s brand objective is to remain premium and reduce return rates, while still growing total sales.

VoltWear’s marketing manager is concerned about channel conflict if retail partners undercut VoltWear’s online price or if VoltWear runs frequent online discounts. The operations manager is concerned about battery transport compliance, warehousing space for peak stock, and maintaining availability across sizes.

Question 2b

5 marks

Using the sales forecast and logistics quotes, determine which warehousing option (A or B) is likely to minimise total distribution cost for the online portion of sales over June–August. Show your working and state one assumption you made.

Your Answer

0 words

About This Business Studies Question

This is a free HSC HSC Business Studies practice question worth 5 marks, testing your understanding of Place and distribution. It falls under marketing strategies in Module 2: Marketing. Submit your answer above to receive instant AI-powered marking and personalised feedback.

Subject
Business Studies – Higher School Certificate (NSW) HSC
Module 2
Marketing
Outcome 4
marketing strategies
Content Point
Place and distribution

Content Point Detail

place/distribution - distribution channels - channel choice – intensive, selective, exclusive - physical distribution issues – transport, warehousing, inventory

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