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Sweetdreams Ltd Sweetdreams Ltd, based in Dublin since 1997, is a large manufacturer of chocolate and confectionary - Leaving Cert Business - Question 8 - 2012
Question 8
Sweetdreams Ltd Sweetdreams Ltd, based in Dublin since 1997, is a large manufacturer of chocolate and confectionary. The company is continuously researching the mar... show full transcript
Worked Solution & Example Answer:Sweetdreams Ltd Sweetdreams Ltd, based in Dublin since 1997, is a large manufacturer of chocolate and confectionary - Leaving Cert Business - Question 8 - 2012
Step 1
Explain Field Research and Desk Research and give one example in each case.
Answer
Field Research involves gathering new information directly from customers. An example would be conducting surveys or focus groups to learn about customer preferences and behaviors.
Desk Research, on the other hand, involves analyzing existing information from various sources. An example includes reviewing market reports or data from government publications to understand market trends.
Step 2
Explain what is meant by the term 'Channels of Distribution'.
Answer
Channels of Distribution refer to the various paths or methods through which goods are transferred from producer to consumer. They include the intermediaries involved in the wholesale and retail processes, which facilitate the delivery of products to the end-user.
Step 3
Illustrate, using a diagram, a suitable channel of distribution for Sweetdreams Ltd.
Answer
A suitable channel of distribution for Sweetdreams Ltd can be illustrated as follows:
PRODUCER / MANUFACTURER
↓
WHOLESALER
↓
RETAILER
↓
CONSUMER
This diagram depicts the path through which Sweetdreams' products move from production to the final consumer.
Step 4
Describe two Sales Promotion methods that Sweetdreams Ltd may use to increase sales.
Answer
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Buy one, get one free: This method encourages consumers to buy more products by offering one additional item at no extra cost, thus increasing sales volume.
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Free samples: Distributing free samples to potential customers allows them to try the products without commitment, which may lead to increased purchases.
Step 5
Outline three factors Sweetdreams Ltd must consider when setting the price of its products.
Answer
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Cost of Production: Sweetdreams Ltd must ensure that the pricing covers the costs associated with creating the products while allowing for profitability.
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Competition: The company needs to analyze the pricing strategies of competitors in the chocolate and confectionery market to remain competitive.
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Target Market: Understanding the demographics and purchasing power of the target market can guide Sweetdreams Ltd in setting prices that are acceptable to consumers.
Step 6
Outline three advantages of branding for Sweetdreams Ltd.
Answer
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Recognition and Differentiation: Branding helps Sweetdreams Ltd to make its products more recognizable in a crowded market, setting it apart from competitors.
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Customer Loyalty: A strong brand fosters customer trust and loyalty, encouraging repeat purchases and long-term relationships with consumers.
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Premium Pricing: Effective branding can justify higher prices, allowing Sweetdreams Ltd to increase profitability compared to unbranded or lesser-known products.