CBSE Class 12 Business Studies 2015 Delhi set 1

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Question : 26
Total: 26
'Hayaram' is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above para describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.
Solution:  
Variables used by Hayaram to prepare its market offering are as follows:
(i) Product: It refers to the combination of various aspects relating to the product or service to be offered for sale. It relates to decision regarding planning, designing and developing the right type of product and service for the consumers. It includes branding, labelling and packaging.
(ii) Price: Mix involves different Pricing Method, Pricing strategies, Pricing Policies and Price Changes. It involves decisions regarding the basic price of the product, discount allowance and terms of payment etc.
(iii) Place/Physical Distribution: It include activities that make firm's product available to the target customers. It consist of all the activities involved in transferring ownership and physical possession of the product to the consumers. It consists of physical distribution i.e, activities involving the movement of product or services from producers to consumers as well as channels of distribution i.e. the route through which the goods move from the producer to the consumer.
(iv) Promotion: It consists of all activities aimed at persuading customers to buy the product through advertising, personal selling, sales promotion and publicity.
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