Pros and Cons of Fairtrade

Only available on StudyMode
  • Download(s) : 339
  • Published : December 6, 2010
Open Document
Text Preview
In business area, every product has its life cycle, which shows different stages that a product passes through over time and the sales that can be expected at each stage. In this essay, attentions will be paid on the different consequences of having a major product at the growth stage. After that, I will turn to the pros and cons of our company to sell sugar under the Fair-trade label and then giving my own opinion. According to the product life cycle, it is obviously that once a product comes into the growth stage, consumers identification in term of psychology and value is aroused, and new consumers are absorbed in so that there are repeating purchases, which leads to an increase of sales. If our company has a major product at this stage, the first consequence is that more profits will be gained and a competitive advantage to against others will be given. Secondly, costs may fall because production will increase. The third consequence is that it will also catch our competitors’ attention because of its considerable profits. Thus they may launch their own versions which lead to a slowdown of ours. Fourthly, to keep and enhance our sales, price and quality, availability needs to be checked and promotion plan needs to be made so that brand loyalty can be encouraged and its life cycle can be extended. To be specific, in order to make consumes aware of our product, we can advertise on media like TV and newspaper to introduce our product and emphasize its strength. Moreover, sales promotions in retailers are also necessary, so that consumes could be persuaded to buy our product. Fair trade means more profits go to growers rather than middlemen. There are considerable advantages to sell sugar under the Fair trade label. To start with, the Fair trade products have a large potential market, as stated in the scenario, total sales were growing 12% on 08/09 and up from 493million to 800 million in two years. From this, it can be seen that there is an increasing...
tracking img