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Assess a likely trade-off for Bon Bon’s of not having ‘mass market ambition’. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Question 1
Assess a likely trade-off for Bon Bon’s of not having ‘mass market ambition’.
Worked Solution & Example Answer:Assess a likely trade-off for Bon Bon’s of not having ‘mass market ambition’. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
Potential Negative Impact of Not Having Mass Market Ambition
Answer
By not having mass market ambition, Bon Bon's could be sacrificing potential sales that could be generated by appealing to a wider audience. This strategy limits the retail channels available, primarily focusing on specialized retailers rather than larger ones such as supermarkets. As a result, Bon Bon's may miss out on significant revenue that comes from mass sales and wider distribution.
In addition, this narrow focus could lead to lower economies of scale, making it harder for Bon Bon's to reduce costs effectively compared to competitors who serve the mass market. Without mass market ambition, the company may struggle to establish a substantial market presence, inhibiting brand visibility and awareness.
Step 2
Potential Positive Impact of Not Having Mass Market Ambition
Answer
Conversely, focusing on a niche market can enhance Bon Bon's brand image as a specialized provider of traditional sweets. This niche marketing approach can attract specific customer segments looking for high-quality, unique products. Such a strategy could lead to higher profit margins as specialized retailers often cater to customers willing to pay a premium for quality.
Furthermore, this focus allows Bon Bon's to align more closely with the preferences of their existing customers, ensuring product offerings that satisfy specific market needs and preferences, which could facilitate customer loyalty and repeat purchases.
Step 3
Conclusion and Overall Trade-Off Assessment
Answer
Ultimately, while not pursuing mass market ambitions can limit Bon Bon's growth potential in terms of sales volume, it may provide a competitive advantage by establishing a strong niche brand reputation. It's essential for Bon Bon's to weigh these potential trade-offs carefully, as the decision to focus on a smaller market may suit their business strategy, especially in a growing sweet market in the UK. However, they should also be cautious, as overlooking opportunities in the mass market may hinder long-term growth and scalability.