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Yummy Foods currently manufactures and markets its mango ice-cream in Australia - HSC - SSCE Business Studies - Question 24 - 2004 - Paper 1
Question 24
Yummy Foods currently manufactures and markets its mango ice-cream in Australia. It is considering building another manufacturing plant in south-east Asia to develop... show full transcript
Worked Solution & Example Answer:Yummy Foods currently manufactures and markets its mango ice-cream in Australia - HSC - SSCE Business Studies - Question 24 - 2004 - Paper 1
Step 1
Outline TWO sociocultural factors of the south-east Asian market that Yummy Foods should take into account in its product design.
Answer
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Cultural Preferences: Yummy Foods should consider the cultural taste preferences in the region. For instance, certain ingredients may be preferred or avoided based on local customs. Understanding regional flavors, such as tropical fruits or local delicacies, can enhance market acceptance.
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Health Consciousness: There is a growing trend towards health consciousness among consumers in South-East Asia. Yummy Foods should tailor its product design to include lower fat content and natural ingredients, appealing to health-oriented consumers.
Step 2
Describe ONE economic factor that would influence consumers in south-east Asia to buy the mango ice-cream.
Answer
An important economic factor is disposable income. In many South-East Asian countries, the level of disposable income affects purchasing decisions. If consumers have higher disposable incomes, they may be more inclined to spend on premium products like mango ice-cream. Conversely, lower disposable income could limit their willingness to spend on non-essential items, emphasizing the need for Yummy Foods to position its product appropriately within the market.