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Transcription of this question: 4.Procter & Gamble (P&G) and the dry cleaning* industryPmcter Gamble (P&G) is a multinational company that manufactures a wide range Of productsand has global sales of USS80 billion. In the United States (US), has now entered thedry cleaning industry, which is dominated by small independent, locally-owned businesses.”Tide Dry’ Cleaners*” is named after its best-selling soap (detergent) for washing clothes, Tide.hopes to attract customers into its franchise stores with its well-known soap brand and thenretain them with superior service.According to research conducted by market analysts, consumers think that independent dry cleaners:• are inconsistent in the service they provide• have inconvenient opening hours• rarely display prices• are dirty, hot and smell Of chemicals.Tide Dry Cleaners aims to promote a different image. The franchises are larger than mostindependent dry cleaners and have longer opening hours. They are painted in the same bright orangecolour as Tide’s soap packaging. The dry cleaning is done onsite, so service is quicker. Tide soapwith its well-known long-lasting fresh scent is always used to dry-clean the clothes. The premises arekept clean, well-ventilated, cool and smelling of Tide soap.Because competition is fierce, all Tide Dry Cleanersr Offer discounts and below the line promotion.Already, many independent dry cleaners are concerned about the competition from the newTide Dry Cleaners franchises. One independent dry cleaner recently experienced a 50% decrease insales after a new Tide Dry’ Cleaners franchise opened nearby. In the past, dry cleaning chains havehad difficulty competing with independent stores, due to diseconomies of scale.[Source Adapted from http•J.’ww.v.nytimes.com/201W12.’09’business.’09tidehtmI(a)(b)(c)(d)(e)Define the term below the line promotion.Explain one possible type Of diseconomy Of scale that may experience inthe dry cleaning industry.Explain two types Of primary research that the market analysts may have used.Using the Ansoff matrix, analyse entry into the dry cleaning industry.Discuss franchising as a way for to enter the dry cleaning industry.[2 marks][2 marks][4 marks][5 marks][7 marks]

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