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Deirdre Moloney hopes to start up her own cosmetics and personal beauty products business aimed at the consumer market - Leaving Cert Business - Question 1 - 2006
Question 1
Deirdre Moloney hopes to start up her own cosmetics and personal beauty products business aimed at the consumer market. She has approached you as a marketing consult... show full transcript
Worked Solution & Example Answer:Deirdre Moloney hopes to start up her own cosmetics and personal beauty products business aimed at the consumer market - Leaving Cert Business - Question 1 - 2006
Step 1
(A) The stages in the development of a new product/service.
Answer
The development of a new product or service typically involves several key stages:
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Idea Generation and Development: At this stage, creative ideas for potential products are generated through brainstorming, market research, or feedback from potential customers.
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Product or Service Screening: This involves evaluating the generated ideas to filter out those that are less viable, ensuring that only the most promising ideas move forward.
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Concept Development: The selected ideas are further refined into a detailed concept, outlining what the product will be and how it will meet consumer needs.
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Feasibility Study: A comprehensive analysis is conducted to assess the economic viability, technical feasibility, and legal considerations of the product.
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Prototype Development: A prototype or sample of the product is created to test its design, functionality, and appeal to potential customers.
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Test Marketing: The prototype is introduced to a small segment of the target market to gather feedback and gauge consumer response.
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Launch on the Market: Upon successful testing, the product is officially launched in the market with a full marketing plan in place.
Step 2
(B) The significance of 'packaging', 'branding' and 'product life cycle' with reference to this business.
Answer
In the context of Deirdre's cosmetics and beauty products business:
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Packaging: Packaging serves multiple purposes including protection of the product, information provision, and marketing appeal. Eye-catching packaging can attract consumers and enhance the overall experience of the product. Proper packaging reflects the brand's image and can differentiate it from competitors.
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Branding: Branding goes beyond just a logo; it encompasses the entire perception of the product in the consumer’s mind. Effective branding helps to build customer loyalty and trust, positioning the product in the market. Strong branding can lead to higher perceived value, allowing for premium pricing.
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Product Life Cycle: Understanding the product life cycle is vital to manage the products effectively. It consists of four stages: Introduction, Growth, Maturity, and Decline. Each stage requires different strategies regarding marketing, packaging, and perhaps even product modification to remain relevant and competitive.
Step 3
(C) The term 'channel of distribution' and recommend a suitable one for her business.
Answer
The term 'channel of distribution' refers to the pathway through which goods move from the manufacturer to the final consumer. This can include direct sales, wholesalers, retailers, or even online platforms. For Deirdre's business, a suitable channel of distribution could be the use of online retailing combined with partnerships with beauty retailers.
This hybrid approach allows her to reach a broader audience while maintaining control over branding and customer engagement. In addition, selling through e-commerce platforms can reduce overhead costs and provide direct interaction with consumers, allowing for tailored marketing strategies based on customer feedback.