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Transcription of this question: 4.LiturgiLiturgi is an agricultural partnership that owns six farms located in Jaen in the south Of Spain.The company produces good-quality Olive Oil, which is sold directly to consumers. The Olive Oilis distributed in I litre plastic bottles and larger orders are delivered in 5 litre containers. Sale Ofthe Olive Oil is currently only in Spain. Most sales occur at the partnership’s farm shop, with theremaining sales via telephone and Internet orders. Current promotion is mainly by “word Of mouth”and a web page.In addition to the current production Of good-quality Olive Oil, some partners want to produce asecond type Of Olive Oil: a high-quality, organic Olive Oil produced in small batches. This wouldhave a retail price Of €15 per litre with a gross profit margin of 60% compared to €3 per litre for thecurrent Olive Oil with a gross profit margin Of 40%. However, two farm managers think that theirOlive trees are not Of the quality required to produce the organic Olive Oil.The partners realize that finding a new market for this organic Olive Oil will involve significantchanges to current marketing practices and strategies, including new forms Of distribution.The new organic Olive Oil will be targeted at expensive restaurants throughout Europe. Litwgi willneed to hire a salesperson, who will be paid a salary plus commission.(a)(b)(c)(d)Define the term partnership.(i) Explain why quality control may become more important for Litulgi.(ii) Calculate the gross profit per litre for the two types Of Olive Oil.Using two elements Of the marketing mix other than place, analyse LitwgiSchallenge to produce the new organic Olive Oil.Discuss the effectiveness Of the two types Of distribution channels for Litwgi.[2 marks/[4 marks][2 marks/[5 marks][7 marks]

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