The diagram below shows the product life cycle of Paxman, a child's toy - OCR - GCSE Business - Question 11 - 2021 - Paper 1
Question 11
The diagram below shows the product life cycle of Paxman, a child's toy. The current position of Paxman is shown by X.
Sales
Worked Solution & Example Answer:The diagram below shows the product life cycle of Paxman, a child's toy - OCR - GCSE Business - Question 11 - 2021 - Paper 1
Step 1
Identify the Current Position in the Product Life Cycle
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Answer
The position marked X indicates that Paxman is in the decline stage of its product life cycle. In this stage, sales are decreasing after reaching a peak and the product is losing market prominence.
Step 2
Discuss Implications for the Product
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Answer
Being in the decline stage implies that sales and market interest in Paxman are waning. This could necessitate strategies such as product rebranding, improved marketing efforts, or potential discontinuation if sales continue to drop.
Step 3
Propose Possible Strategies
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Answer
To manage the decline, strategies could include:
Diversifying the product line to attract new customers.
Implementing promotional campaigns to increase visibility.
Exploring alternative uses for the product to rejuvenate interest.
