Photo AI
In 2014 PepsiCo launched Pepsi True, a rival to Coca-Cola Life - Edexcel - GCSE Business - Question 4 - 2017 - Paper 1
Question 4
In 2014 PepsiCo launched Pepsi True, a rival to Coca-Cola Life. Pepsi True is a cola drink that contains 30% less calories than normal Pepsi-Cola, but more than Diet... show full transcript
Worked Solution & Example Answer:In 2014 PepsiCo launched Pepsi True, a rival to Coca-Cola Life - Edexcel - GCSE Business - Question 4 - 2017 - Paper 1
Step 1
Increase the number of retailers who stock Pepsi True:
Answer
This option is likely to increase consumer awareness of Pepsi True, as a higher number of retailers means greater accessibility to the product. By stocking Pepsi True, retailers may attract customers who are already purchasing existing PepsiCo brands. This increased visibility could lead to more impulse purchases by consumers and ultimately enhance sales.
Step 2
Lower the price of each can:
Answer
Reducing the price of Pepsi True could make it more attractive compared to rival drinks like Coca-Cola Life. Consumers often look for value, and a lower price may entice them to choose Pepsi True over other options. However, the effectiveness of this strategy depends on how consumers respond to price changes, as the perception of quality might be affected.
Step 3
Conclusion:
Answer
In evaluating the options, it appears that increasing the number of retailers may have a more significant impact on consumer access and awareness. This could enhance sales potential better than simply lowering the price, especially since the product's debut was initially limited to online sales via Amazon. However, the final decision should consider market conditions and consumer responses.