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Using the data in Extract A, assess two benefits of branding for a chocolate manufacturer, such as Mars UK Ltd. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 3
Question 1
Using the data in Extract A, assess two benefits of branding for a chocolate manufacturer, such as Mars UK Ltd.
Worked Solution & Example Answer:Using the data in Extract A, assess two benefits of branding for a chocolate manufacturer, such as Mars UK Ltd. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 3
Step 1
Benefit 1: Increased Market Recognition
Answer
Branding is essential for establishing an image or name that consumers can easily recognize. For Mars UK Ltd, the product branding for their items, such as Maltesers, positions them prominently in the market. With effective branding, consumers are more likely to choose their products over competitors. In the data provided, Maltesers has the highest revenue, which suggests that strong brand recognition contributes significantly to sales.
Step 2
Benefit 2: Enhanced Consumer Loyalty
Answer
Strong branding fosters consumer loyalty, ensuring that customers repeatedly return for their favorite products. The table indicates that certain brands, like Cadbury's Dairy Milk, held significant market positions in previous years. A solid brand identity complements marketing strategies, which help in maintaining customer loyalty. As consumers associate positive experiences with a brand, this leads to increased repeat purchases, further bolstering sales for Mars UK Ltd.