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NuCam markets a digital video camera - HSC - SSCE Business Studies - Question 21 - 2004 - Paper 1
Question 21
NuCam markets a digital video camera. This product is in the growth phase of its life cycle. Management is reviewing the performance of the product on the market. M... show full transcript
Worked Solution & Example Answer:NuCam markets a digital video camera - HSC - SSCE Business Studies - Question 21 - 2004 - Paper 1
Step 1
Referring to the graph, identify a marketing objective that NuCam management has established for the digital video camera.
Answer
A marketing objective that NuCam management has established is to increase market share to 10% by 2004. This is evidenced by the upward trend in the forecast line for market share in the graph.
Step 2
Explain ONE possible reason why actual market share of the digital video camera has not reached its forecast in 2004.
Answer
One possible reason for the actual market share not reaching the forecast could be due to increased competition in the digital video camera market. New entrants may have offered similar products at competitive prices, affecting NuCam's market penetration and customer acquisition.
Step 3
Recommend a marketing strategy that NuCam management could implement to raise market share.
Answer
NuCam management could implement a promotional strategy that includes targeted advertising campaigns to raise awareness of the digital video camera. This could include offering limited-time discounts or bundling the product with accessories, thereby incentivizing customers to choose NuCam over competitors.