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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 Sales Through Brand Recognition
Answer
Branding is crucial for creating a positive image for products. For Mars UK Ltd, the branding of their products, such as Maltesers, allows them to stand out in a crowded market. The data show that Maltesers is ranked first, indicating strong sales performance. This brand recognition is likely responsible for achieving a significant market share, thus increasing the chances of repeat purchases and customer loyalty. By investing in branding that builds consumer trust, Mars UK can engage more potential buyers.
Step 2
Benefit 2: Product Differentiation and Competitive Advantage
Answer
Effective branding helps Mars UK Ltd differentiate its products from competitors. By developing distinct branding strategies, such as unique packaging and marketing campaigns, Mars can address consumer preferences, thereby positioning itself more favorably in relevant consumer segments. For example, Maltesers, with significant sales, showcases how branding can enhance product visibility, helping to capture consumer attention in a market with similar products, leading to sustained sales growth.