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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 could be classified as a 'dog' in the Boston Matrix since they are part of a low growth segment within the confectionery market. This classification suggests that sales are not strong, and the product may not attract significant interest in the current market.
Step 2
Including 'dogs' such as Traffic Light lollies in the product portfolio attracts some customers
Answer
Traffic Light Lollies may still be appealing to a niche market, leading to some customer purchases of Bon Bon's products. This attraction can potentially lead to additional sales of other products, although it may not be significant.
Step 3
Dogs such as Traffic Light lollies do not need an increase in marketing
Answer
The low sales figures of Traffic Light Lollies suggest that substantial marketing efforts may not yield proportional returns. Bon Bon's could choose to maintain a minimal marketing approach for these products, focusing instead on higher-selling items.
Step 4
Counterbalancing the low performance of 'Traffic Light Lollies'
Answer
Bon Bon’s may consider offering promotions or discounts to stimulate sales of Traffic Light Lollies. This tactic could help improve visibility and consumer interest. However, resources spent on marketing these 'dogs' could detract from higher potential products in the portfolio.
Step 5
Traffic Light Lollies still provide potential for some sales
Answer
Despite being in a low growth market, Traffic Light Lollies can still serve an important role in Bon Bon's overall product strategy. They might maintain foot traffic to stores or serve as lower-cost options for price-sensitive customers.
Step 6
Evaluate if Bon Bon's should refocus on higher-growth markets
Answer
Shifting focus away from Traffic Light Lollies and concentrating marketing efforts on better-performing products may yield greater profits. This strategic pivot can facilitate the growth of more successful products, thereby increasing overall revenue.