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6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest - NSC Consumer Studies - Question 6 - 2021 - Paper 1
Question 6
6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest. 6.1.2 Sustaina... show full transcript
Worked Solution & Example Answer:6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest - NSC Consumer Studies - Question 6 - 2021 - Paper 1
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6.1.2 Sustainable production
Answer
Sustainable production is the process of creating goods in a way that meets the basic needs of consumers while improving their quality of life. This method prioritizes environmental responsibility by reducing the consumption of natural resources and minimizing toxic waste and pollution.
Step 3
6.2 State why it is important for an entrepreneur to adhere to product specifications.
Answer
Adhering to product specifications is crucial for ensuring consistency in quality, appearance, and size, which in turn meets customer expectations. This consistency builds trust and satisfaction among customers, ultimately leading to repeat business and a successful brand reputation. Furthermore, it minimizes risks and potential losses due to product failures.
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6.3.2 Explain why it is important for Leletu to do a financial feasibility study.
Answer
Conducting a financial feasibility study is essential for Leletu to understand the strengths and weaknesses of her business idea. It helps her assess financial viability, determine potential profits, identify necessary start-up costs, and evaluate whether her business can sustain itself in the long run.
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6.3.3 Identify FOUR factors that gave Leletu's business a competitive edge in the market.
Answer
- Unique designs that catered to individual customer requests.
- Use of local, sustainable fabric that appealed to environmentally conscious clients.
- Affordability of the garments compared to similar products in the market.
- Personalization of products to meet specific customer needs.
Step 7
6.3.4 State THREE ways in which Leletu could advertise her business in the community.
Answer
- Utilizing social media platforms (e.g., Facebook, Instagram) for promotion.
- Participating in local fashion shows or community events.
- Distributing flyers or brochures in local businesses and community centers.
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6.3.6 Comment on the impact of the quality and the availability of the fabric for Leletu's business.
Answer
The quality of the fabric, being 100% cotton produced locally, ensures durability and comfort, attracting more customers who appreciate quality. Additionally, consistent availability of this fabric allows Leletu to fulfill orders promptly, helping her maintain customer satisfaction and build a reliable reputation.
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6.3.7 Calculate the total cost of ONE dress with a markup of 30%. Show ALL calculations.
Answer
To calculate the total cost of ONE dress:
- Fabric: 3 meters @ R70.00/m = R210.00
- Thread and buttons per dress = R10.00
- Overhead costs and labour per dress = R250.00
Total cost = R210.00 + R10.00 + R250.00 = R470.00
Markup = 30% of R470.00 = 0.30 * R470.00 = R141.00
Total selling price = R470.00 + R141.00 = R611.00
Step 11
6.3.8 Explain why Leletu's business is likely to show sustainable profitability.
Answer
Leletu's business is poised for sustainable profitability because she creates garments by order, ensuring no excess inventory and no wasted resources. The personalized nature of her products meets customers' unique needs, fostering customer loyalty and repeat business. Additionally, the affordability of her garments and her effective use of local fabrics cater to a growing demand for sustainable fashion, ensuring consistent revenue streams.