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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
Trade-off of sacrificing wider sales opportunities
Answer
By not having mass market ambition, Bon Bon's potentially sacrifices the additional sales it could earn by appealing to a broader customer base. If the company limited its focus to niche retailers or specialized markets, it might miss out on significant sales from larger retailers such as supermarkets that could offer greater volume.
This narrower approach can mean lower overall sales volume, and could ultimately restrict revenue growth.
Step 2
Impact on brand image and positioning
Answer
On the flip side, not pursuing mass market ambitions allows Bon Bon's to cultivate a strong brand image. By positioning itself as a provider of traditional, high-quality sweets through specialized retailers, it can forge a reputation for excellence. This niche marketing approach can lead to higher profit margins compared to competing in the more price-sensitive mass market sector.
Step 3
Market competition and growth considerations
Answer
The market for sweets is competitive, and although some might see this trade-off as a weakness, it actually could serve Bon Bon's better in terms of strategic focus. By prioritizing the needs of specific customer segments—such as tourists or local consumers—Bon Bon's can tailor its offerings and marketing strategies more effectively. This could be a positive path toward sustainable growth in the long run.
Step 4
Potential limitations on future growth
Answer
However, it is essential to note that the decision to avoid a mass market approach could limit Bon Bon's future growth. The sweet market in the UK is expanding, and the company may need to reassess its strategy if the larger market opportunities become too appealing to ignore. The risk remains that by not engaging with the mass market, Bon Bon's could miss out on lucrative growth avenues.