BS7- Product

Question 1

Explain how branding and USP can be used to help a product stand out

Answer 1

It can make business stand out from others and make them memorable in customers heads, this way customs are Able to differentiate them from other brands.

Question 2

Outline for stage of the project life cycle

Answer 2

Introduction
Growth
Maturity
Decline

Question 3

Describe two reasons why a business might find early stages of a product life-cycle difficult to survive

Answer 3

They my find it difficult due to brand loyalty, this is when existing customers in the market have been shopping with a brand for a long time, now they only use them.
Another reason they may find it difficult is due to survive at the start is due to the company having no reputation, this may be a bad thing as customers have no idea if the products are good value for money or not, which means especially if a high costing product it makes it hard for them to make a purchase.

Question 4

Explain Two businesses decisions which could be taken during the maturity stage of the project life cycle

Answer 4

They will concentrate on trying to keep sales as high as possible through advertising
They will use extension strategies such as releasing special additions of the product.

Question 5

Identify three extension strategies that could be used to extend the life-cycle of Yankee candles

Answer 5

They can release special editions, e.g a Christmas sent 
They can release new candles with coloured class instead of clear
Add a gift box with a selection

Question 6

Outline what is meant by a product portfolio

Answer 6

A product portfolio is the group of product that the business sell, it helps them to identify what sections of the market they aren’t selling, and where they could be.

Question 7

Draw and label a Boston matrix

Answer 7

high market share low market share

High market growth Rising star problem child

Low market growth Cash cow dog

Question 8

Outline the difference between star, Cashcow, dog and ? /Poulten child

Answer 8

Star- product has a high market share and the market has potential to grow
Cash cow- ensures high revenue, it is established product that has a high share of the market
Dog- have low market share and low market growth, no real future
Problem child- has a low market share within a rapidly growing market, aim is for it to become a start or cash cow

Question 9

1. explain why business needs cash cows to develop question marks
2. Explain why too many stars could be a drain on resources

Answer 9

1. The cash cows are self efficient and just produce profits, those profits can then be invested into the question marks which need to be heavily invested in to turn them into cash cows and starts.
2. Too may starts can drain resources due to them needing constant advertising in order for it to be fully established.