Question

Bidco Kenya Ltd. is a manufacturer of soap and edible oil products. Highlight five reasons why the company chooses to distribute its products through wholesalers rather than selling directly to consumers

Answer 1

1. Wholesalers share the risks associated with trading goods with the producers e.g handling risks.
2. Wholesalers would provide vital information to the producer
3. Wholesalers may engage in product promotion activities for the producers products
4. They would provide the much needed capitals to the company
5. wholesalers would relief the company some costs, transport costs, insurance and warehousing

Answer 2

It can reach wholesalers  easier than consumers.
It is cheap to reach wholesalers than consumers.