Market growth
For this question we need you to select 3 options from the lists below,
that you think answer the question
'What is most likely to affect market growth of biscuits in the future and why?'
Use the boxes below to add a short commentary about your selection. Once you've finished select 'find the answer'.
Answer: Market growth
We asked you to work out 'what is most likely to affect market growth of biscuits in the future and why?'
Here are our workings out to help you start to think like a Strategy Consultant. If you selected the right answer, you'll see a tick. If you selected a wrong answer you'll see a cross.
CorrectPrice inflation Commodity price rises are likely to be passed on to consumers as price increases.
Deals and promotions Promotion is one of the main drivers of volume growth in the biscuit market. Manufacturers respond to competitor promotions with their own and the resulting increase in total biscuit consumption tends to outweigh the fall in average retail price.
Changing consumer preferences A continued shift towards more expensive biscuits could increase average selling price.
New product innovation New products (for instance, different pack sizes and flavour variations) are an important growth driver. Premium products increase the average retail price and boost sales volume.
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IncorrectDemographics This is a possible answer as elderly people have higher biscuit consumption and are growing in number but the growing number of elderly people may consume fewer biscuits than the current elderly population.
Government legislation While legislation of salt and sugar levels in consumer products could potentially affect the biscuit market, this is unlikely to take effect in the medium term.
Sales of complementary products e.g. Tea There's limited evidence around how closely linked biscuit sales are to other complimentary products and a change in demand for biscuits due to sales of these products is unlikely.
Shelf space reduction Biscuits are an established, mature category so shelf space tends to be traded between different biscuit brands, rather than between biscuits and substitutes. This results in changes in market share but no change to market size.
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