6. product mix - st crispin's · whether of not her proposed product mix would be ... having...
TRANSCRIPT
6. Product Mix
INVESTIGATION 3
Advise Deb on the following;
Whether of not her proposed product mix would be successful if her café were to open in your area.
The support which entrepreneurs in her situation might receive
• Deb is 23, and has worked in a hotel in the UK since leaving school at 18. She is now tired of the hours she works. She feels that if she was working for herself, then all the effort she puts into her work would be more worthwhile.
• Deb does not have enough money to start her own hotel. She can only consider a small business as she has limited personal savings. While working at the hotel, Deb enjoyed serving coffee and tea in the lounge, and felt that this might form the basis of her own business. Having studied business at school she remembered the importance of identifying a target market. Deb thought that this would be males and females of all ages, but especially younger people up to 30 years of age.
• Having little capital, Deb researched the possibility of entering into a franchise agreement for a coffee shop or a sandwich shop. She realises that, although this will mean finding considerable finance, there will be some advantages. However, Deb knows that opening her own independent shop will bring its own benefits and problems. To help her decide whether a franchise or an independent café would be the right choice for her, Deb has drawn up a comparison chart (see Fig. 2).
Deb’s proposed product mix – what we know
Teas Coffees
Sandwiches Light snacks
Product mix• This means the range or
variety of products sold by a business.
• Businesses sell a variety of products:– To appeal to different
segments of customers– To spread the risk of the
business– To maximise sales– To make a profit
• This is also known as a product portfolio Have a look at the Easy.com website, and
look at their product portfolio ‐ not just easyJet but easyVan, EasyPizza…
What could Deb’s include in her product portfolio?
What products have you seen on
sale in a café in your area?
Where would you place the following products on the Boston Matrix
• Cadbury cream eggs• Nivea skin care for men• Heinz salard cream• Sinclair C5• McDonald’s arch deluxe burger• Thirsty dog – bottled water for dogs• Kelloggs breakfast mates• E‐readers• Colgate toothpaste• Double decker• Iwatch