Benno is a soft drinks manufacturer. Its mission statement is to produce healthy drinks without damaging...

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Benno 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 of Benno's drinks have fallen significantly over the last five years, particularly in the 12-18 age group. The business has no accumulated retained profits. Benno is committed to innovation and corporate social responsibility (CSR). Its research and development division has recently invented a new biodegradable drink pack ring that starts to break down within two hours of contact with sea water. It dissolves fully in 48 hours. Currently, 98 % of pack rings are made of plastic and when dumped in the sea are responsible for the death of many sea creatures. A focus group of loyal customers used regularly by Benno's marketing department is wholeheartedly in favour of the new drink rings. However, the marketing director has read recent studies that suggest: purchases of green products are not increasing, despite the positive attitude of many consumers towards sustainability and biodegradable products • consumers continue to prioritize price when purchasing soft drinks. ● To manufacture the new drink rings, machinery costing $5 million would be needed. Drink ring production unit costs would rise from 10 cents to 15 cents and prices of a six-pack of Benno soft drinks would have to increase by 5%. Benno's net profit margin on a six-pack is 10%. Benno's director of corporate social responsibility favours the change to the new drink rings but is opposed by both the finance director and marketing directors. [Source: Image provided with permission from E6PR™] Ba. Define the term innovation. 3b. Explain two roles of Benno's mission statement. Bc. Explain one advantage and one disadvantage for Benno of using a focus group of loyal customers. [2 marks] [4 marks] [4 marks] Bd. Recommend whether Benno should replace its plastic drink rings with [10 marks] the new biodegradable drink rings. Benno 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 of Benno's drinks have fallen significantly over the last five years, particularly in the 12-18 age group. The business has no accumulated retained profits. Benno is committed to innovation and corporate social responsibility (CSR). Its research and development division has recently invented a new biodegradable drink pack ring that starts to break down within two hours of contact with sea water. It dissolves fully in 48 hours. Currently, 98 % of pack rings are made of plastic and when dumped in the sea are responsible for the death of many sea creatures. A focus group of loyal customers used regularly by Benno's marketing department is wholeheartedly in favour of the new drink rings. However, the marketing director has read recent studies that suggest: purchases of green products are not increasing, despite the positive attitude of many consumers towards sustainability and biodegradable products • consumers continue to prioritize price when purchasing soft drinks. ● To manufacture the new drink rings, machinery costing $5 million would be needed. Drink ring production unit costs would rise from 10 cents to 15 cents and prices of a six-pack of Benno soft drinks would have to increase by 5%. Benno's net profit margin on a six-pack is 10%. Benno's director of corporate social responsibility favours the change to the new drink rings but is opposed by both the finance director and marketing directors. [Source: Image provided with permission from E6PR™] Ba. Define the term innovation. 3b. Explain two roles of Benno's mission statement. Bc. Explain one advantage and one disadvantage for Benno of using a focus group of loyal customers. [2 marks] [4 marks] [4 marks] Bd. Recommend whether Benno should replace its plastic drink rings with [10 marks] the new biodegradable drink rings.

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a 1 Define the term innovation i Innovation refers to the process of introducing new ideas methods products or services that result in significant imp... View the full answer