Valerie owns a dairy farm in Cornwall. In 2007 she decided to use some of the milk they produce to make their own brand of ice cream. After analysing the local competition they developed a brand called Truro’s best. It is very rich and creamy and is sold at a premium price. Most of their customers are in the catering industry – hotels and restaurants. Valerie has now an established product range and can also produce ice cream in any flavour to order.
Which ONE of the following suggests that there was an opportunity in the local market for Valerie’s ice cream to enter?
Select ONE answer:
- Unemployment in the region was rising
- Ice cream is made from milk
- There was only one supplier of premium-priced ice-cream in the area
- The pound is getting stronger against the Euro
- Large ice-cream manufacturers can supply ice-cream to order
What are other things would you consider to be important in determining whether there is an opportunity for Valerie in the premium ice-cream market?
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This is multiple choice question is suitable for Business Studies KS4 classes.
The answer is 3 – if there is only one other supplier then there is an opportunity for Valerie to enter the local market as she can supply an established product range and flavours to order.
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