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Transcription of this question: 3.NesbitFor years, Nesbit has produced chocolate bars targeting the youth market segment and has been themarket leader. The market became saturated due to the entry of many competitors. Nesbit founder,Shira Nesbit, was concerned about falling market share, especially because many competitor productswere perceived to be similar to Nesbit S. As a result Shira decided to hire an agency to prepare amarket audit and to conduct market research. The results confirmed Shira’s concerns.The audit identified a new gap in the market: a chocolate bar for health conscious consumers.Shira thought that it was a good opportunity for Nesbit to exploit. She estimated that a chocolatebar for health conscious consumers could be produced in small batches using imported cocoa beansfrom Venezuela. Shira knew that these beans had significant health benefits and that the new barcould change customer perceptions Of Nesbit. It could also be priced considerably above Otherchocolate bars. Nesbit began the product development of the new healthy chocolate bar, “Veneziano”The introduction Of Veneziano gave Shira the opportunity to introduce total quality management(TQM) across the company. Previously chocolate bars were produced using flow production andonly three workers were employed to check quality. With the adoption Of the system Of TQM,Shira expected that the quality Of all Nesbit products could improve with zero defects andreduced waste. However issues remain. Nesbit workers have traditionally resisted changesin the production process and Shira is worried about the impact on worker motivation. Shira isconsidering change management practices.Early sales Of Veneziano have been impressive. Shira believes that the strategy Of introducing anew healthy chocolate bar would differentiate Nesbit from its competitors and change customerperceptions away from a youth chocolate company towards a more adult one. However, the movemight be unpopular with Nesbit Other stakeholders and would require further extensive promotionto change perceptions Of its brands and company. Some competitors are also experimenting withhealth conscious products similar to Veneziano.(Question 3 continued)(a)(b)(c)(d)Define the following terms:(i) market segment(ii) flow production.Explain what Shira could do in order to overcome the workers’ resistance tochange.Analyse the usefulness Of Shira hiring an agency ‘ ‘to prepare a market audit andto conduct market research”.Discuss whether the launch Of Veneziano could change customer perceptionsOf Nesbit.[2 marks][2 marks][6 marks][6 marks][9 marks]

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