Assess the possible consequences for Bon Bon's continuing to sell 'Traffic Light Lollies':
A dog in the Boston Matrix is a product that has a low share of a low growth market - 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':
A dog in the Boston Matrix is a product that has a low share of a low gro... show full transcript
Worked Solution & Example Answer:Assess the possible consequences for Bon Bon's continuing to sell 'Traffic Light Lollies':
A dog in the Boston Matrix is a product that has a low share of a low growth market - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
Knowledge: A dog in the Boston Matrix
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Answer
A dog is defined in the Boston Matrix as a product that has a low market share in a low growth market. Consequently, products like 'Traffic Light Lollies' may not provide significant profit or growth opportunities for Bon Bon's.
Step 2
Application: Impact on Sales
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Answer
Although 'Traffic Light Lollies' have low sales, they can attract customers to the brand, potentially leading to increased purchases of other products in the portfolio. This could enhance overall revenue despite the individual product's poor performance.
Step 3
Analysis: Marketing Considerations
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Answer
Maintaining 'Traffic Light Lollies' in the product lineup may require less marketing effort, as their existing customer base may be sufficient. However, Bon Bon's might still evaluate potential promotions or discounts to rejuvenate interest in these products.
Step 4
Evaluation: Strategic Focus
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Answer
While 'Traffic Light Lollies' are categorized as a 'dog', Bon Bon's must consider focusing on more profitable products. Redirecting resources toward higher-margin sweets could yield better returns, making the argument for the sustained sale of 'Traffic Light Lollies' weaker unless a clear strategy is devised to enhance overall sales.