Assess a likely trade-off for Bon Bon's of not having 'mass market ambition.'
- Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Question 1
Assess a likely trade-off for Bon Bon's of not having 'mass market ambition.'
Worked Solution & Example Answer:Assess a likely trade-off for Bon Bon's of not having 'mass market ambition.'
- Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
Trade-off Explanation
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Answer
A trade-off is a situation where having more of one thing leads to having less of something else. By not having mass market ambition, Bon Bon's is potentially sacrificing additional sales that it could achieve by selling to a wider range of retailers such as supermarkets. This may limit their growth potential.
Step 2
Potential Benefits of a Niche Market
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Answer
Not having mass market ambitions may provide Bon Bon's with a strong brand image as a niche provider of traditional sweets to specialized retailers. This approach could lead to higher profit margins per sale and establish a loyal customer base.
Step 3
Competitive Market Considerations
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Answer
The market for sweets is likely to be more competitive. Rather than facing a negative trade-off, this niche approach might enable Bon Bon's to focus on specific customer needs, thereby differentiating their products from mass-market offerings.
Step 4
Future Growth Factors
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Answer
All businesses face trade-offs in their decisions. For a small business like Bon Bon's, not pursuing mass market ambitions might allow them to concentrate on customer desires specific to niche markets. However, it could also limit their broader market growth in an expanding sweet market.
