Calculator Allowed: Yes
Transcription of this question: 3.Flussbiegung CityRoller (FC)F/ussbiegung CityRoller (FC) is a private limited company that sellsscooters in a large German city. Its shop is situated in an excellentlocation near the city centre. In 2014, FC sold 1200 scooters at asales price of €2200 per scooter. The business has few variablecosts.FC only sells one brand of scooter, called Rasen, which consumersregard as high quality. Rasen’s competitors are:BrandElectricoEleganteZoomPrice (in €s) Consumer opinion280023001900medium qualitylow qualitylow qualityElegante and Zoom have both become popular in the last five years. Despite some problems withquality, both are seen as fashionable scooters. Elegante has successfully built a brand identity asa stylish scooter. Electrico scooters are electric-powered and are popular with people concernedabout pollution. Rasen, Elegante and Zoom scooters all use petrol (gas).Despite Rasen’s reputation for quality, in the last five years FCS market share has decreased.Rasen’s manufacturer has also been losing market share across Germany. The problem,according to FC, is that the manufacturer does not invest enough to update the brand’s image.Rasen scooters appeal to an older generation in Germany, but younger people prefer productsthat are fashionable. FC uses below the line promotions. These promotions do not have the sameinfluence on market perception as the manufacturer’s above the line promotions, which emphasizeRasen’s quality. Another possibility for Rasen is, rather than update its brand image, to maintainits current brand identity but try to sell its product in different geographic markets where its currentbrand identity may have more appeal, such as in eastern Europe or Africa.(a)(b)(c)(d)Describe one feature of a private limited company.Construct a position/perception map for all four brands of scooter.Explain the relationship between Rasen’s product life cycle and FC’s marketing mix.Discuss the importance of branding for FC and for Rasen.