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Cp 10

Consumers are individuals who purchase goods or services for personal use. The price of coffee may be falling due to decreased demand from health trends and the availability of healthier substitutes. D&F Limited should consider growing more fruits instead of coffee due to the rising demand for nutritious options, while also maintaining coffee production to mitigate risks in a dynamic market.

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13 views

Cp 10

Consumers are individuals who purchase goods or services for personal use. The price of coffee may be falling due to decreased demand from health trends and the availability of healthier substitutes. D&F Limited should consider growing more fruits instead of coffee due to the rising demand for nutritious options, while also maintaining coffee production to mitigate risks in a dynamic market.

Uploaded by

myahninphyupaing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

a) Define ‘consumers’.

(2)
Ans: Consumers buy goods or services for personal use-not to re-sell.

b) Identify two reasons why the price of coffee might be falling. (2)
Ans: Reason1: Due to the trendy healthy lifestyle,a decrease in demand
occurred as it is not a healthy beverage.
Reason2 : Arise in the availability of healthy substitutes (e.g.,orange juice)

c) Outline two reasons why supermarkets are demanding more fruit. (4)
Ans: Reason1: As there is an increase in demand for fruits from both
developed and developing countries, the supermarkets need more supply to
satisfy those customers’ demand.
Reason2 : It might also be because the governments want to reduce the
problem of obesity.They encourage the supermarkets to trade fresh fruits by
granting subsidies.
Ans: Method1 : D&F can provide the promotions for their customers(i.e.,large
supermarkets abroad) to increase the customer loyalty so that new firms
cannot win against.
Method2 : It should find the bigger market in developing countries since
there is a surge in demand for fresh fruits so that it would
possess larger market share.

e) Do you think D&F Limited should stop producing coffee and grow more fruits
instead. Why?
Ans: Owing to a growing trend in healthy lifestyle,there would be more people
purchasing fresh fruits which are nutritious instead of coffee.Hence,D&F woud
not make much profit growing coffee so that it should plant more fruits.
In order to reduce the risks which could be resulted from a decrease in demand
for the fruits from both developing and developed countries,D%F should grow
both coffee and fruits as the businesses are operating in dynamic markets.
However,the above one is not a definite change that could occur in near future so
if D&F continuously grow coffee even though it is currently making loss,that could
result deteriorating result in the business finance.So it is safer for D&F to grow
more fruits instead of coffee.
a)Define niche market. (2)
Ans: A niche market is small, usually specialized,segment of a much larger
market.

b) Identify two examples of the different markets for TGH products. (2)
Ans: Example 1: Adolescents who play soccer
Example 2: Elderly people who want shoes which are convenient to wear
when walking

c) Outline two reasons why TGH sells to a niche market. (4)


Ans:Reason1 : TGH may increase the brand loyalty by selling special trainers to
the customers who need particular types of shoes due to their medical
problems.From this way,the customers might feel they are valuable to the firms.
Reason2 : A niche market would make the TGH to earn higher sale revenue.That is
because unlike the usual mass market of TGH,a niche market is less competitive
so that TGH does not need to lower price just to stay competitive.

d) Explain two advantages to TGH of segmenting the market for sports shoes. (6)
Advantage1 : TGH can increase the brand loyalty by selling special trainers to the
customers who need particular types of shoes due to their medical
problems.From this way,the customers might feel they are valuable to the firms.
Advantage2 : Market segmentation allows TGH to create more effective
advertising which is intended for specific type of trainers.To give an illustration, it
may not be suitable for TGH to use the same advertisement for some kind of
shoes(e.g.,fashionable item and the one which is produced due to medical
problems)

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