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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 in the decline stage of the product life cycle. This phase is characterized by decreasing sales and market interest, prompting the manufacturer to revamp the product's packaging in hopes of rekindling consumer interest and boosting sales.
Step 2
How could a niche market approach increase sales for this cereal manufacturer?
Answer
A niche market approach could help the cereal manufacturer cater specifically to health-conscious consumers by providing healthier cereal options like low-sugar or sugar-free alternatives. This targeted strategy would enable the manufacturer to distinguish their products from competitors, enhancing customer retention and potentially increasing repeat purchases. Additionally, by addressing the specific needs and preferences of this market segment, the manufacturer could build brand loyalty and strengthen its position within this niche.