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ENERGO is a new fruit-based drink that contains high levels of caffeine and sugar - HSC - SSCE Business Studies - Question 23 - 2010 - Paper 1
Question 23
ENERGO is a new fruit-based drink that contains high levels of caffeine and sugar. The manufacturer would like the drink to be seen as a healthy product. Market rese... show full transcript
Worked Solution & Example Answer:ENERGO is a new fruit-based drink that contains high levels of caffeine and sugar - HSC - SSCE Business Studies - Question 23 - 2010 - Paper 1
Step 1
Outline ONE method of primary data collection that could have been used to obtain this market research result.
Answer
One effective method of primary data collection that could have been used to obtain this market research result is the use of surveys. Surveys allow manufacturers to directly ask the target demographic, in this case, 8–12 year olds, whether they would like to see ENERGO sold at their school canteen. By designing a simple questionnaire with clear options, the manufacturer can gather quantitative data regarding preferences and attitudes towards the drink.
Step 2
Analyse how ONE legal or ONE ethical aspect in the marketing of ENERGO might impact on the manufacturer.
Answer
One significant legal aspect that might impact the manufacturer is compliance with food and beverage marketing regulations, particularly those concerning health claims. If ENERGO is marketed as a healthy product despite its high caffeine and sugar content, this could lead to legal repercussions if the claims are found to be misleading. Regulatory bodies may impose fines or require changes in marketing strategies. Furthermore, ethical considerations must also be taken into account. Marketing to children, especially concerning sugary and caffeinated beverages, raises ethical questions about promoting health and well-being. If the marketing strategy is seen as targeting vulnerable populations without clearly communicating potential health risks, it could damage the manufacturer’s reputation and lead to public backlash.