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Because of intense competition, Cool Candy is trying to defend its market share by means of product line extensions. They have added smaller bite-sized candy bars, packaged in a string of six bars, to their existing product mix.
Super Clean washing powder is struggling to obtain shelf space and is handing out free samples at laundries in an attempt to create a demand for their product.
On-the-Spot Tyres, a company that sells and fits tyres by means of a mobile van that goes to the consumer in need, is experiencing a high demand for its product and profits are rising, but competitors are entering the market with similar products.
Divine Hair Colour is experiencing breakdowns in their production lines. They are experiencing problems with mixing just the right formula for a specific hair colour.
Fancy Flavours, rice that is cooked in a bag, has decided to drop two of the five flavours, as well as decreasing the number of distribution outlets from 35 to 15. In an attempt to stimulate sales and to reduce stock, they plan to sell the remaining three flavours at a discount of 25% for a period of six weeks.
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1. Because of intense competition, Cool Candy is trying to defend its market share by means of product line extensions.
This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.