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6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest - NSC Consumer Studies - Question 6 - 2021 - Paper 1
Question 6
6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest. 6.1.2 Sustai... show full transcript
Worked Solution & Example Answer:6.1 Define the following terms: 6.1.1 Target market A specific group of people who may want to purchase your product with common needs and interest - NSC Consumer Studies - Question 6 - 2021 - Paper 1
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6.2 State why it is important for an entrepreneur to adhere to product specifications.
Answer
Adhering to product specifications is crucial because it ensures consistency in quality, appearance, size, and color, leading to customer satisfaction. A reliable product fosters trust, enhances brand reputation, and reduces the risk of product failures or losses.
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6.3.2 Explain why it is important for Lelethu to do a financial feasibility study.
Answer
Conducting a financial feasibility study helps Lelethu identify the strengths and weaknesses of her business idea. It allows her to forecast revenue, evaluate costs, and make informed decisions about the viability of her venture.
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6.3.3 Identify FOUR factors that gave Lelethu's business a competitive edge in the market.
Answer
- Unique designs that cater directly to customer preferences.
- Personalized garments tailored to individual needs.
- Affordable pricing that attracts a broader customer base.
- Use of high-quality local fabric, ensuring product uniqueness.
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6.3.4 State THREE ways in which Lelethu could advertise her business in the community.
Answer
- Utilize social media platforms like Facebook and Instagram for promotions.
- Participate in local fashion shows to display her designs.
- Distribute flyers or collaborate with local influencers to expand outreach.
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6.3.6 Comment on the impact of the quality and the availability of the fabric for Lelethu's business.
Answer
The quality and availability of the fabric greatly impact Lelethu's business. High-quality fabric ensures customer satisfaction and repeat business, while consistent availability prevents delays in production, allowing her to meet customer demands promptly.
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6.3.7 Calculate the total cost of ONE dress with a mark-up of 30%. SHOW ALL calculations.
Answer
- Calculate fabric cost: 3 m @ R70.00/m = R210.00
- Calculate thread and buttons: R10.00
- Calculate overhead costs: R250.00
- Total cost before mark-up: R210.00 + R10.00 + R250.00 = R470.00
- Calculate mark-up (30% of R470.00): 0.30 x R470.00 = R141.00
- Total cost with mark-up: R470.00 + R141.00 = R611.00.
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6.3.8 Explain why Lelethu's business is likely to show sustainable profitability.
Answer
Lelethu's business model indicates potential for sustainable profitability due to her unique, made-to-order garments, which eliminate waste and minimize costs. Her focus on customer satisfaction and use of local materials enhance her competitive advantage, while community engagement strategies help build a loyal customer base.