1. DEF is a private limited company.

It makes nuts and bolts, which are producer

products, and they are sold to large manufacturers. The sales of its products are at a
high and steady level. The products are made to the exact specifications of car
companies and they are not sold to any other customers. Some other makers of nuts
and bolts have developed new products using new technology materials.
a) What is meant by the term ‘producer product’?
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b) DEF make nuts and bolts. Identify two other examples of producer goods.
Example 1: ____________________________________________________________
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Example 2: ____________________________________________________________
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c) Identify and explain two characteristics of the packaging of DEF’s products.
Characteristic 1: ________________________________________________________
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Characteristic 2: ________________________________________________________
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d) Identify and explain two benefits to DEF of only selling to marge car companies.
Benefit 1: _____________________________________________________________
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Benefit 2: _____________________________________________________________
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e) Do you think DEF should consider bringing out a new product? Justify your answer.
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2. TUV produce chocolate bars and sell them to supermarkets. Its bestselling brand is
ChocSupreme. It is put in expensive packaging and sold as a luxury product. This
bestselling chocolate bar has had high and steady sales for the last 5 years, but
recently sales have started to fall as it has now reached the decline stage of the
product life cycle.
a) What is meant by a ‘brand’?
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b) Identify two ways the business could react to falling sales of the chocolate bars.
Way 1: _______________________________________________________________
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Way 2: _______________________________________________________________
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c) Identify and explain two characteristics of the packaging of the chocolate bars.
Characteristic 1: ________________________________________________________
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Characteristic 2: ________________________________________________________
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d) Identify and explain two possible reasons why TUV’s chocolate bars are successful.
Benefit 1: _____________________________________________________________
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Benefit 2: _____________________________________________________________
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f) Do you think giving the chocolate bar a brand name was necessary fro its success?
Justify your answer.
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___________________________________________________________________ [6]