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A cereal manufacturer has decided to change the packaging of its product in an attempt to reverse a drop in sales and remain competitive with existing businesses - HSC - SSCE Business Studies - Question 23 - 2023 - Paper 1
Question 23
A cereal manufacturer has decided to change the packaging of its product in an attempt to reverse a drop in sales and remain competitive with existing businesses. It... show full transcript
Worked Solution & Example Answer:A cereal manufacturer has decided to change the packaging of its product in an attempt to reverse a drop in sales and remain competitive with existing businesses - HSC - SSCE Business Studies - Question 23 - 2023 - Paper 1
Step 1
Outline the current product life cycle stage of this cereal.
Answer
The cereal manufacturer is currently experiencing the decline stage of the product life cycle. This decline is marked by falling sales and diminishing consumer interest in the product. The manufacturer is attempting to rejuvenate interest through a redesign of the packaging, indicating a strategy to capture customer attention once more.
Step 2
How could a niche market approach increase sales for this cereal manufacturer?
Answer
A niche market approach could significantly enhance sales for the cereal manufacturer by targeting health-conscious consumers specifically. By developing and offering products like low-sugar or sugar-free cereal options, the manufacturer can cater to a growing demographic interested in healthier lifestyle choices. This targeted strategy not only helps to differentiate the product from competitors but also builds customer loyalty by appealing directly to consumers' specific dietary needs.