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Assess the possible consequences for Bon Bon's continuing to sell 'Traffic Light Lollies': Bon Bon's, founded in 2007, is a confectionery wholesaler, led by Yorkshire businessman, Mark Rowntree, descendant of confectionery pioneer, Joseph Rowntree - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Question 1
Assess the possible consequences for Bon Bon's continuing to sell 'Traffic Light Lollies': Bon Bon's, founded in 2007, is a confectionery wholesaler, led by Yorkshi... show full transcript
Worked Solution & Example Answer:Assess the possible consequences for Bon Bon's continuing to sell 'Traffic Light Lollies': Bon Bon's, founded in 2007, is a confectionery wholesaler, led by Yorkshire businessman, Mark Rowntree, descendant of confectionery pioneer, Joseph Rowntree - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
A dog in the Boston Matrix is a product that has a low share of a low growth market.
Answer
Traffic Light Lollies would be categorized as a 'dog' in the Boston Matrix since they likely have a low market share in a low growth segment. This classification emphasizes the need for Bon Bon's to carefully consider the viability of continuing to market this product.
Step 2
Including 'dogs' such as Traffic Light Lollies in the product portfolio attracts some customers to purchase Bon Bon's products, which could lead to additional sales of other products.
Answer
While Traffic Light Lollies may not be the leading drivers of revenue, their presence can attract certain customer segments that appreciate nostalgic or traditional sweets. This may indirectly boost overall sales as consumers might be enticed to explore other offerings in the portfolio during their purchase.
Step 3
Dogs such as Traffic Light Lollies do not need an increase in marketing.
Answer
Given their low demand and sales, it may not be worthwhile to invest heavily in marketing Traffic Light Lollies. The focus could instead be shifted to promoting more popular products that align better with market trends and consumer preferences.
Step 4
Potential counterbalance: Traffic Light Lollies may still require increased marketing.
Answer
There is a potential argument that targeted marketing promotions, such as discounts or special offers, could rejuvenate interest in Traffic Light Lollies. This might help to boost their sales and leverage them for better positions within retail spaces.
Step 5
Potential judgement: Traffic Light Lollies, despite poor sales in a low growth market, might still provide an important part of Bon Bon's product portfolio.
Answer
It is crucial for Bon Bon's to assess whether these products hold sentimental value to customers. If so, even low sales might justify their continued sale, especially if they enhance the overall traditional image of the brand and fill niche market spaces.