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Transcription of this question: 5.BennoBenno is a soft drinks manufacturer. Its mission statement is”to produce healthy drinks without damaging the environment”.Competition in the healthy soft drinks market is fierce.Benno uses a competitive pricing strategy. However, sales ofBenno’s drinks have fallen significantly over the last five years,particularly in the 12—18 age group. The business has noaccumulated retained profits.Benno is committed to innovation and corporate social responsibility (CSR). Its researchand development division has recently invented a new biodegradable drink pack ringthat starts to break down within two hours of contact with sea water. It dissolves fully in48 hours. Currently, 98% of pack rings are made of plastic and when dumped in the sea areresponsible for the death of many sea creatures.A focus group of loyal customers used regularly by Benno’s marketing departrnent iswholeheartedly in favour of the new drink rings. However, the marketing director has readrecent studies that suggest:purchases of green products are not increasing, despite the positive attitude of manyconsumers towards sustainability and biodegradable productsconsumers continue to prioritize price when purchasing soft drinks.To manufacture the new drink rings, machinery costing $5 million would be needed. Drinkring production unit costs would rise from 10 cents to 15 cents and prices of a six-pack ofBenno soft drinks would have to increase by 5%. Benno’s net profit margin on a six-packis 10%.Benno’s director of corporate social responsibility favours the change to the new drink ringsbut is opposed by both the finance director and marketing directors.(a)(b)(c)(d)Define the term innovation.Explain two roles of Benno’s mission statement.Explain one advantage and one disadvantage for Benno of using a focus group ofloyal customers.Recommend whether Benno should replace its plastic drink rings with the newbiodegradable drink rings.