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Spotlight Oral Care, a Galway based company, was set up by sisters and dentists Dr Lisa & Dr Vanessa Creaven and Dr Barry Buckley in 2016 - Leaving Cert Business - Question 8 - 2022

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Question 8

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Spotlight Oral Care, a Galway based company, was set up by sisters and dentists Dr Lisa & Dr Vanessa Creaven and Dr Barry Buckley in 2016. The company has developed ... show full transcript

Worked Solution & Example Answer:Spotlight Oral Care, a Galway based company, was set up by sisters and dentists Dr Lisa & Dr Vanessa Creaven and Dr Barry Buckley in 2016 - Leaving Cert Business - Question 8 - 2022

Step 1

Explain the term channel of distribution.

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Answer

The channel of distribution refers to the pathway through which products or services travel from the manufacturer to the end consumer. It includes all intermediaries between the producer and the consumer, such as wholesalers, retailers, and distributors, playing an essential role in delivering the product efficiently and effectively.

Step 2

Draft a diagram of a channel of distribution that Spotlight Oral Care might use.

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Answer

A suitable channel of distribution for Spotlight Oral Care could be represented as follows:

Channel of Distribution of Spotlight

Manufacturer
   ↓
Retailer (e.g., Boots)
   ↓
Consumer

Step 3

Outline two implications of using this channel of distribution.

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  1. Increased Sales/Reach a Wider Audience: By utilizing retailers, Spotlight Oral Care can access a broader market, thus maximizing exposure and potential sales volume. This helps establish a strong brand presence in the competitive consumer oral care segment.

  2. Profit Margin Considerations: Selling through retailers may require lower profit margins per unit compared to direct sales, impacting overall profitability. However, this trade-off can be balanced by higher sales volume and brand recognition.

Step 4

In relation to the product element of the marketing mix explain the factors a business must consider when designing a new or a revised product.

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Answer

When designing a new or revised product, businesses must consider the following:

  1. Functionality: The product should meet the intended purpose effectively and be simple for consumers to use.

  2. Cost of Production: This includes evaluating materials, equipment, and labor to ensure that production costs align with budget forecasts while maintaining quality.

  3. Target Market: Understanding the needs and preferences of the target audience is crucial. Businesses should analyze whether the product meets market demands and consumer expectations.

  4. Competitors: Assessing competition helps in identifying unique selling propositions (USPs) that can differentiate the new or revised product from others in the market.

  5. Legal Requirements: Compliance with regulations and relevant standards, particularly those pertaining to safety and quality, is essential.

  6. Branding: The product should align with the existing brand identity, enhancing customer loyalty and ensuring recognition in the marketplace.

Step 5

Outline your understanding of any three of the following types of advertising: Persuasive advertising.

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Answer

Persuasive advertising aims to convince consumers to purchase a product or service by appealing to their emotions or needs. It highlights benefits to differentiate from competitors and typically employs motivational messaging. For example, the advertisement for a new oral care product might emphasize how it promotes dental health and boosts confidence through a brighter smile.

Step 6

Informative advertising.

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Answer

Informative advertising seeks to educate consumers about a product's benefits, features, or uses. It provides data and factual evidence to make an informed decision. For instance, during the COVID-19 pandemic, informative advertising by Spotlight Oral Care could include details on how their products help maintain oral hygiene amidst health concerns.

Step 7

Generic advertising.

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Answer

Generic advertising promotes a product category rather than a specific brand, beneficial for raising overall awareness. For example, an advertisement campaign from National Dental Council might stress the importance of regular brushing and dental check-ups, highlighting the advantages of maintaining good oral hygiene.

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